Cover Page Document
Cover Page Document - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 28, 2019 | Jan. 25, 2020 | Jun. 29, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-4171 | ||
Entity Registrant Name | Kellogg Company | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 38-0710690 | ||
Entity Address, Address Line One | One Kellogg Square | ||
Entity Address, City or Town | Battle Creek | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49016-3599 | ||
City Area Code | 269 | ||
Local Phone Number | 961-2000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.7 | ||
Entity Common Stock, Shares Outstanding | 342,054,365 | ||
Documents Incorporated by Reference [Text Block] | Parts of the registrant’s Proxy Statement for the Annual Meeting of Shareowners to be held on April 24, 2020 are incorporated by reference into Part III of this Report. | ||
Closing price per share of common stock | $ 53.57 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0000055067 | ||
Current Fiscal Year End Date | --12-28 | ||
Common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.25 par value per share | ||
Trading Symbol | K | ||
Security Exchange Name | NYSE | ||
1.750% Senior Notes Due 2021 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.750% Senior Notes due 2021 | ||
Trading Symbol | K 21 | ||
Security Exchange Name | NYSE | ||
0.800% Senior Notes Due 2022 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.800% Senior Notes due 2022 | ||
Trading Symbol | K 22A | ||
Security Exchange Name | NYSE | ||
1.000% Senior Notes Due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.000% Senior Notes due 2024 | ||
Trading Symbol | K 24 | ||
Security Exchange Name | NYSE | ||
1.250% Senior Notes Due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2025 | ||
Trading Symbol | K 25 | ||
Security Exchange Name | NYSE |
Consolidated Statement of Incom
Consolidated Statement of Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 13,578 | $ 13,547 | $ 12,854 |
Cost of goods sold | 9,197 | 8,821 | 8,155 |
Selling, general and administrative expense | 2,980 | 3,020 | 3,312 |
Operating profit | 1,401 | 1,706 | 1,387 |
Interest expense | 284 | 287 | 256 |
Other income (expense), net | 188 | (90) | 526 |
Income before income taxes | 1,305 | 1,329 | 1,657 |
Income taxes | 321 | 181 | 410 |
Earnings (loss) from unconsolidated entities | (7) | 196 | 7 |
Net income | 977 | 1,344 | 1,254 |
Net income (loss) attributable to noncontrolling interests | 17 | 8 | 0 |
Net income attributable to Kellogg Company | $ 960 | $ 1,336 | $ 1,254 |
Basic | $ 2.81 | $ 3.85 | $ 3.61 |
Diluted | $ 2.80 | $ 3.83 | $ 3.58 |
Comprehensive Income Statement
Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 977 | $ 1,344 | $ 1,254 |
Other comprehensive income (loss), pre-tax: | |||
Foreign currency translation adjustment before tax | 100 | 5 | (34) |
Cash flow hedges, pre-tax: | |||
Unrealized gain (loss) on cash flow hedges, pre-tax | 5 | 3 | 0 |
Reclassifications to net income, pre-tax | 4 | 8 | 9 |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | |||
Net experience gain (loss) | (16) | (8) | 44 |
Prior service credit (cost) | 3 | 1 | 0 |
Postretirement and postemployment benefits reclassification to net income, pre-tax: | |||
Net experience (gain) loss, pre-tax | (5) | (5) | 0 |
Prior service (credit) cost, pre-tax | (1) | 0 | 1 |
Available-for-sale securities, pre-tax | |||
Unrealized gain (loss) on available-for-sale securities, pre-tax | 4 | 0 | 0 |
Reclassification to net income on available-for-sale securities, pre-tax | (4) | 0 | 0 |
Other comprehensive income (loss), pre-tax | 90 | 4 | 20 |
Other comprehensive income (loss), tax (expense) benefit: | |||
Foreign currency translation adjustments tax (expense) benefit | (19) | (53) | 113 |
Cash flow hedges, tax (expense) benefit: | |||
Unrealized gain (loss) on cash flow hedges, tax (expense) benefit | (1) | (1) | 0 |
Reclassifications to net income, tax (expense) benefit | (1) | (2) | (3) |
Postretirement and postemployment benefit amounts arising during the period, tax (expense) benefit: | |||
Net experience gain (loss), tax (expense) benefit | 5 | 1 | (12) |
Prior service credit (cost), tax (expense) benefit | (1) | 0 | 0 |
Postretirement and postemployment benefits reclassification to net income, tax (expense) benefit: | |||
Net experience (gain) loss, tax (expense) benefit | 1 | 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 | (16) | (54) | 98 |
Other comprehensive income (loss), after-tax | |||
Foreign currency translation adjustments after tax | 81 | (48) | 79 |
Cash flow hedges, after-tax: | |||
Unrealized gain (loss) on cash flow hedges, after-tax | 4 | 2 | 0 |
Reclassification to net income, after-tax | 3 | 6 | 6 |
Postretirement and postemployment benefit amounts arising during the period, after-tax | |||
Net experience gain (loss), after tax | (11) | (7) | 32 |
Prior service credit (cost), after-tax | 2 | 1 | 0 |
Postretirement and postemployment benefits reclassification to net income, after-tax | |||
Net experience loss, after-tax | (4) | (4) | 0 |
Prior service cost, after-tax | (1) | 0 | 1 |
Available-for-sale securities, after-tax | |||
Unrealized gain (loss) on available-for-sale securities, after-tax | 4 | 0 | 0 |
Reclassification to net income on available-for-sale securities, after-tax | (4) | 0 | 0 |
Other comprehensive income (loss) | 74 | (50) | 118 |
Comprehensive income | 1,051 | 1,294 | 1,372 |
Net income (loss) attributable to noncontrolling interests | 17 | 8 | 0 |
Other comprehensive income (loss) attributable to noncontrolling interests | 0 | (7) | 0 |
Comprehensive income attributable to Kellogg Company | $ 1,034 | $ 1,293 | $ 1,372 |
Consolidated Balance Sheet Stat
Consolidated Balance Sheet Statement - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 397 | $ 321 |
Accounts receivable, net | 1,576 | 1,375 |
Inventories | 1,226 | 1,330 |
Other current assets | 232 | 131 |
Total current assets | 3,431 | 3,157 |
Property, net | 3,612 | 3,731 |
Operating lease, right-of-use assets | 541 | 0 |
Goodwill | 5,861 | 6,050 |
Other intangibles, net | 2,576 | 3,361 |
Investment in unconsolidated entities | 404 | 413 |
Other Assets | 1,139 | 1,068 |
Total assets | 17,564 | 17,780 |
Liabilities, Current [Abstract] | ||
Current maturities of long-term debt | 620 | 510 |
Notes payable | 107 | 176 |
Accounts payable | 2,387 | 2,427 |
Current operating lease liabilities | 114 | 0 |
Other current liabilities | 1,550 | 1,416 |
Total current liabilities | 4,778 | 4,529 |
Long-term debt | 7,195 | 8,207 |
Operating lease liabilities | 433 | 0 |
Deferred income taxes | 596 | 730 |
Pension liability | 705 | 651 |
Other liabilities | 543 | 504 |
Commitments and contingencies | ||
Equity [Abstract] | ||
Common stock, $.25 par value, 1,000,000,000 shares authorized Issued: 420,829,201 shares in 2019 and 420,666,780 shares in 2018 | 105 | 105 |
Capital in excess of par value | 921 | 895 |
Retained earnings | 7,859 | 7,652 |
Treasury stock, at cost 79,286,171 shares in 2019 and 76,801,314 shares in 2018 | (4,690) | (4,551) |
Accumulated other comprehensive income (loss) | (1,448) | (1,500) |
Total Kellogg Company equity | 2,747 | 2,601 |
Noncontrolling interests | 567 | 558 |
Total equity | 3,314 | 3,159 |
Total liabilities and equity | $ 17,564 | $ 17,780 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) Consolidated Balance Sheet - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.25 | $ 0.25 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 420,829,201 | 420,666,780 |
Treasury Stock, Shares | 79,286,171 | 76,801,314 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Capital in excess of par value | Retained earnings | Treasury stock | Accumulated other comprehensive income (loss) | Total Kellogg Company equity | Non- controlling interests |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016 | $ 1,907 | $ 16 | ||||||
Balance, in shares at Dec. 31, 2016 | 420 | 69 | ||||||
Balance at Dec. 31, 2016 | $ 105 | $ 806 | $ 6,552 | $ (3,997) | $ (1,575) | $ 1,891 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | $ (516) | $ (516) | (516) | |||||
Common stock repurchases (in shares) | 7 | 7 | ||||||
Net income (loss) | $ 1,254 | 1,254 | 1,254 | 0 | ||||
Dividends declared ($2.26, $2.20, $2.12 per share for 2019, 2018 and 2017 respectively) | (736) | (736) | (736) | |||||
Other comprehensive income (loss) | 118 | 118 | 118 | 0 | ||||
Stock compensation | 66 | 66 | 66 | |||||
Stock options exercised and other | 101 | 6 | (1) | $ 96 | 101 | |||
Stock options exercised and other (in shares) | 1 | (1) | ||||||
Balance, in shares at Dec. 30, 2017 | 421 | 75 | ||||||
Balance at Dec. 30, 2017 | $ 105 | 878 | 7,069 | $ (4,417) | (1,457) | 2,178 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 30, 2017 | 2,194 | 16 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | $ (320) | $ (320) | (320) | |||||
Common stock repurchases (in shares) | 5 | 5 | ||||||
Net income (loss) | $ 1,344 | 1,336 | 1,336 | 8 | ||||
Acquisition of noncontrolling interest | 552 | 0 | 552 | |||||
Dividends declared ($2.26, $2.20, $2.12 per share for 2019, 2018 and 2017 respectively) | (762) | (762) | (762) | |||||
Distributions to noncontrolling interest | (11) | 0 | (11) | |||||
Other comprehensive income (loss) | (50) | (43) | (43) | (7) | ||||
Stock compensation | 59 | 59 | 59 | |||||
Stock options exercised and other | 153 | (42) | 9 | $ 186 | 153 | |||
Stock options exercised and other (in shares) | 0 | (3) | ||||||
Balance, in shares at Dec. 29, 2018 | 421 | 77 | ||||||
Balance at Dec. 29, 2018 | 2,601 | $ 105 | 895 | 7,652 | $ (4,551) | (1,500) | 2,601 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 29, 2018 | 3,159 | 558 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | $ (220) | $ (220) | (220) | |||||
Common stock repurchases (in shares) | 4 | 4 | ||||||
Net income (loss) | $ 977 | 960 | 960 | 17 | ||||
Sale of subsidiary shares to noncontrolling interest | 1 | 0 | 1 | |||||
Dividends declared ($2.26, $2.20, $2.12 per share for 2019, 2018 and 2017 respectively) | (769) | (769) | (769) | 0 | ||||
Distributions to noncontrolling interest | (9) | 0 | (9) | |||||
Other comprehensive income (loss) | 74 | 74 | 74 | 0 | ||||
Reclassification of tax effects relating to U.S. Tax Reform | 0 | 22 | (22) | 0 | ||||
Stock compensation | 56 | 56 | 56 | |||||
Stock options exercised and other | 45 | (30) | (6) | $ 81 | 45 | |||
Stock options exercised and other (in shares) | 0 | (2) | ||||||
Balance, in shares at Dec. 28, 2019 | 421 | 79 | ||||||
Balance at Dec. 28, 2019 | 2,747 | $ 105 | $ 921 | $ 7,859 | $ (4,690) | $ (1,448) | $ 2,747 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 28, 2019 | $ 3,314 | $ 567 |
Statement of Shareholders' Eq_2
Statement of Shareholders' Equity (Parenthetical) Statement of Shareholders' Equity - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 2.26 | $ 2.20 | $ 2.12 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating Activities | |||
Net income | $ 977 | $ 1,344 | $ 1,254 |
Adjustments to reconcile net income to operating cash flows | |||
Depreciation and amortization | 484 | 516 | 481 |
Postretirement benefit plan expense (benefit) | (89) | 170 | (427) |
Deferred income taxes | 47 | 46 | (58) |
Stock compensation | 56 | 59 | 66 |
Multi-employer pension plan exit liability | 132 | 7 | 26 |
Gain from unconsolidated entities, net | 0 | (200) | 0 |
Noncurrent income taxes payable | (35) | (23) | 144 |
Other | (1) | (47) | 1 |
Tax payment related to divestiture | (255) | 0 | 0 |
Postretirement benefit plan contributions | (28) | (287) | (44) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables | (145) | 76 | (1,300) |
Inventories | 2 | (86) | 80 |
Accounts payable | (9) | 115 | 193 |
All other current assets and liabilities | 40 | (154) | (13) |
Net cash provided by (used in) operating activities | 1,176 | 1,536 | 403 |
Investing activities | |||
Additions to properties | (586) | (578) | (501) |
Collections of deferred purchase price on securitized trade receivables | 0 | 0 | 1,243 |
Acquisitions, net of cash acquired | (8) | (28) | (592) |
Divestiture | 1,332 | 0 | 0 |
Investments in unconsolidated entities | 0 | (389) | 0 |
Acquisition of cost method investments | (1) | (8) | (7) |
Purchases of available-for-sale securities | (18) | 0 | 0 |
Sale of available-for-sale securities | 83 | 0 | 0 |
Other | (28) | 55 | 6 |
Net cash provided by (used in) investing activities | 774 | (948) | 149 |
Financing activities | |||
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days | (18) | (264) | 153 |
Issuances of notes payable, with maturities greater than 90 days | 62 | 62 | 17 |
Reductions of notes payable, with maturities greater than 90 days | (69) | (23) | (238) |
Issuances of long-term debt | 80 | 993 | 1,251 |
Reductions of long-term debt | (1,009) | (408) | (632) |
Debt redemption costs | (17) | 0 | 0 |
Net issuances of common stock | 64 | 167 | 97 |
Common stock repurchases | (220) | (320) | (516) |
Cash dividends | (769) | (762) | (736) |
Other | (9) | (11) | 0 |
Net cash provided by (used in) financing activities | (1,905) | (566) | (604) |
Effect of exchange rate changes on cash and cash equivalents | 31 | 18 | 53 |
Increase (decrease) in cash and cash equivalents | 76 | 40 | 1 |
Cash and cash equivalents at beginning of period | 321 | 281 | 280 |
Cash and cash equivalents at end of period | 397 | 321 | 281 |
Supplemental cash flow disclosures: | |||
Interest paid | 284 | 280 | 258 |
Income taxes paid | 537 | 188 | 352 |
Supplemental cash flow disclosures of non-cash investing activities: | |||
Beneficial interests obtained in exchange for securitized trade receivables | 0 | 0 | 1,222 |
Additions to properties included in accounts payable | $ 128 | $ 162 | $ 151 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of presentation The consolidated financial statements include the accounts of the Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest (Kellogg or the Company). The Company continually evaluates its involvement with variable interest entities (VIEs) to determine whether it has variable interests and is the primary beneficiary of the VIE. When these criteria are met, the Company is required to consolidate the VIE. The Company’s share of earnings or losses of nonconsolidated affiliates is included in its consolidated operating results using the equity method of accounting when it is able to exercise significant influence over the operating and financial decisions of the affiliate. The Company uses the cost method of accounting if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. Intercompany balances and transactions are eliminated. The Company’s fiscal year normally ends on the Saturday closest to December 31 and as a result, a 53rd week is added approximately every sixth year. The Company’s 2019, 2018 and 2017 fiscal years each contained 52 weeks and ended on December 28, 2019 , December 29, 2018 , and December 30, 2017, respectively. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. Cash and cash equivalents Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. Accounts receivable Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts and prompt payment discounts. Trade receivables do not bear interest. The allowance for doubtful accounts represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances and other specific account data. Account balances are written off against the allowance when management determines the receivable is uncollectible. For the years ended 2019 and 2018 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 2 for information on sales of accounts receivable. Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined on an average cost basis. Property The Company’s property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods, where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 15 - 30 ; office equipment 5 ; computer equipment and capitalized software 3 - 7 ; building components 20 ; building structures 10 - 50 . Cost includes interest associated with significant capital projects. Plant and equipment are reviewed for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include an extended period of idleness or a plan of disposal. Assets to be disposed of at a future date are depreciated over the remaining period of use. Assets to be sold are written down to realizable value at the time the assets are being actively marketed for sale and a sale is expected to occur within one year. There were no assets held for sale at the year-end 2019 or 2018. Goodwill and other intangible assets Goodwill and indefinite-lived intangibles are not amortized, but are tested at least annually for impairment of value and whenever events or changes in circumstances indicate the carrying amount of the asset may be impaired. An intangible asset with a finite life is amortized on a straight-line basis over the estimated useful life, which materially approximates the pattern of economic benefit. For the goodwill impairment test, the fair value of the reporting units are estimated based on market multiples. This approach employs market multiples based on either sales or earnings before interest, taxes, depreciation and amortization for companies that are comparable to the Company’s reporting units. In the event the fair value determined using the market multiple approach is close to carrying value, the Company may supplement the fair value determination using discounted cash flows. The assumptions used for the impairment test are consistent with those utilized by a market participant performing similar valuations for the Company’s reporting units. Similarly, impairment testing of other intangible assets requires a comparison of carrying value to fair value of that particular asset. Fair values of non-goodwill intangible assets are based primarily on projections of future cash flows to be generated from that asset. For instance, cash flows related to a particular trademark would be based on a projected royalty stream attributable to branded product sales, discounted at rates consistent with rates used by market participants. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. Accounts payable The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal is to capture overall supplier savings, in the form of payment terms or vendor funding, and the agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 28, 2019 , $812 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $605 million of those payment obligations to participating financial institutions. As of December 29, 2018 , $893 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $701 million of those payment obligations to participating financial institutions. Revenue recognition The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements. The Company also recognizes revenue from the license of our trademarks granted to third parties who uses these trademarks on their merchandise and revenue from hauling services provided to third parties within certain markets. Revenue from these licenses and hauling services is not material to the Company. Contract balances recognized in the current period that are not the result of current period performance are not material to the Company. The Company also does not incur costs to obtain or fulfill contracts. The Company does not adjust the promised amount of consideration for the effects of significant financing components as the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Company accounts for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. The Company excludes from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales taxes. Performance obligations The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. The customer is invoiced with payment terms which are commensurate with the customer’s credit profile. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company assesses the goods and services promised in its customers’ purchase orders and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised, whether explicitly stated or implied based on customary business practices. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. Significant Judgments The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. Where applicable, future provisions are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company's promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in-store displays and events, feature price discounts, consumer coupons, contests and loyalty programs. The costs of these activities are generally recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. Differences between estimated expense and actual redemptions are normally immaterial and recognized as a change in management estimate in a subsequent period. Advertising and promotion The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense is classified in selling, general and administrative (SGA) expense. The Company classifies promotional payments to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. Promotional allowances 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 promotions are recorded in other current liabilities. The cost of promotional package inserts is recorded in cost of goods sold (COGS). Other types of consumer promotional expenditures are recorded in SGA expense. Research and development The costs of research and development (R&D) are expensed as incurred and are classified in SGA expense. R&D includes expenditures for new product and process innovation, as well as significant technological improvements to existing products and processes. The Company’s R&D expenditures primarily consist of internal salaries, wages, consulting, and supplies attributable to time spent on R&D activities. Other costs include depreciation and maintenance of research facilities and equipment, including assets at manufacturing locations that are temporarily engaged in pilot plant activities. Stock-based compensation The Company uses stock-based compensation, including stock options, restricted stock, restricted stock units, and executive performance shares, to provide long-term performance incentives for its global workforce. The Company classifies pre-tax stock compensation expense 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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes a provision designed to tax currently global intangible low taxed income (GILTI) starting in 2018. Under the provision, a U.S. shareholder is required to include in gross income the amount of its GILTI, which is 50% of the excess of the shareholder’s net tested income of its controlled foreign corporation over the deemed tangible income return. The amount of GILTI included by a U.S. shareholder is computed by aggregating all controlled foreign corporations (CFC). Shareholders are allowed to claim a foreign tax credit for 80 percent of the taxes paid or accrued with respect to the tested income of each CFC, subject to some limitations. The Company elected to account for the GILTI as a period cost and has included an estimate for GILTI in its effective tax rate. Derivative Instruments The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in the Consolidated Statement of Income in other income (expense), net (OIE) or interest expense. In the Consolidated Statement of Cash Flows, settlements of cash flow and fair value hedges are classified as an operating activity; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instrument. Cash flow hedges. Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in other comprehensive income until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive income (loss) (AOCI) to the Consolidated Statement of Income on the same line item as the underlying transaction. Fair value hedges. Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item. Net investment hedges. Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments in AOCI. Derivatives not designated for hedge accounting. Gains and losses on these instruments are recorded in the Consolidated Statement of Income, on the same line item as the underlying hedged item. Foreign currency exchange risk. The Company is exposed to fluctuations in foreign currency cash flows related primarily to third-party purchases, intercompany transactions and when applicable, nonfunctional currency denominated third-party debt. The Company is also exposed to fluctuations in the value of foreign currency investments in subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation of foreign currency denominated earnings to U.S. dollars. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contracts, options, and currency swaps to reduce fluctuations in long or short currency positions. Forward contracts and options are generally less than 18 months duration. Currency swap agreements are established in conjunction with the term of underlying debt issues. For foreign currency cash flow and fair value hedges, the assessment of effectiveness is generally based on changes in spot rates. Changes in time value are reported in OIE. Interest rate risk. The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing and future issuances of variable rate debt. The Company periodically uses interest rate swaps, including forward-starting swaps, to reduce interest rate volatility and funding costs associated with certain debt issues, and to achieve a desired proportion of variable versus fixed rate debt, based on current and projected market conditions. Fixed-to-variable interest rate swaps are accounted for as fair value hedges and the assessment of effectiveness is based on changes in the fair value of the underlying debt, using incremental borrowing rates currently available on loans with similar terms and maturities. Price risk. The Company is exposed to price fluctuations primarily as a result of anticipated purchases of raw and packaging materials, fuel, and energy. The Company has historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months. 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 17 for more information on reportable segments. Management reviews the Company’s expected long-term rates of return annually; however, the benefit trust investment performance for one particular year does not, by itself, significantly influence this evaluation. The expected rates of return are generally not revised provided these rates fall between the 25th and 75th percentile of expected long-term returns, as determined by the Company’s modeling process. For defined benefit pension and postretirement plans, the Company records the net overfunded or underfunded position as a pension asset or pension liability on the Consolidated Balance Sheet. New accounting standards Income Taxes. In October 2016, the Financial Accounting Standards Board (FASB), as part of their simplification initiative, issued an Accounting Standards Update (ASU) to improve the accounting for income tax consequences of intra-entity transfers of assets other than inventory. The amendments in the ASU eliminate the exception, such that entities should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the period of adoption. The Company early adopted the ASU in the first quarter of 2017. As a result of intercompany transfers of intellectual property, the Company recorded a $39 million reduction in income tax expense during the year ended December 30, 2017. Upon adoption, there was no cumulative effect adjustment to retained earnings. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. In August 2017, the FASB issued an ASU intended to simplify hedge accounting by better aligning an entity’s financial reporting for hedging relationships with its risk management activities. The ASU also simplifies the application of the hedge accounting guidance. The new guidance is effective fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For cash flow hedges existing at the adoption date, the standard requires adoption on a modified retrospective basis with a cumulative-effect adjustment to the Consolidated Balance Sheet as of the beginning of the year of adoption. The amendments to presentation guidance and disclosure requirements are required to be adopted prospectively. The Company adopted the ASU in the first quarter of 2018. The impact of adoption was immaterial to the financial statements. Simplifying the test for goodwill impairment. In January 2017, the FASB issued an ASU to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. The ASU is effective for an entity's annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments in this ASU should be applied on a prospective basis. The Company adopted the ASU in the first quarter of 2018 with no impact. Recognition and measurement of financial assets and liabilities. In January 2016, the FASB issued an ASU which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and which updates certain presentation and disclosure requirements. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption can be elected for all financial statements of fiscal years and interim periods that have not yet been issued or that have not yet been made available for issuance. Entities should apply the update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company adopted the updated standard in the first quarter of 2018. The impact of adoption was immaterial to the financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) permitting a company to reclassify the disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 on items within accumulated other comprehensive income (AOCI) to retained earnings. We elected to adopt the ASU effective in the first quarter of 2019 and reclassified the disproportionate income tax effect recorded within AOCI to retained earnings. This resulted in a decrease to AOCI and an increase to retained earnings of $22 million . The adjustment primarily related to deferred taxes previously recorded for pension and other postretirement benefits, as well as hedging positions for debt and net investment hedges. Leases. In February 2016, the FASB issued an ASU which requires the recognition of lease assets and lease liabilities by lessees for all leases with terms greater than 12 months. The distinction between finance leases and operating leases remains, with similar classification criteria as current GAAP to distinguish between capital and operating leases. The principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases are recognized on the Consolidated Balance Sheet. Lessor accounting remains substantially similar to previous GAAP. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted the ASU in the first quarter of 2019, using the optional transition method that allows for a cumulative-effect adjustment in the period of adoption with no restatement of prior periods. The Company elected the package of practical expedients permitted under the transition guidance that allows for the carry forward of historical lease classifications and consistent treatment of initial direct costs for existing leases. The Company also elected to apply the practical expedient that allows the continued historical treatment of land easements. The Company did not elect the practical expedient for the use of hindsight in evaluating the expected lease term of existing leases. The adoption of the ASU resulted in the recording of operating lease assets and operating lease liabilities of approximately $453 million to $461 million respectively, as of December 30, 2018. The difference between the additional lease assets and lease liabilities, represents existing deferred rent and prepaid lease balances that were reclassified on the balance sheet. The adoption of the ASU did not have a material impact to the Company’s Consolidated Statements of Income or Cash Flows. Accounting standards to be adopted in future periods Cloud Computing Arrangements. In August 2018, the FASB issued ASU 2018-15: Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The ASU allows companies to capitalize implementation costs incurred in a hosting arrangement that is a service contract over the term of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and can be applied retrospectively or prospectively. Early adoption is permitted. The Company plans to adopt the ASU in the first quarter of 2020 and apply it prospectively. The adoption is not expected to have a material impact to the Company's Consolidated Financial Statements. Compensation Retirement Benefits. In August 2018, the FASB issued ASU 2018-14: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The ASU removed disclosures that no longer are considered cost beneficial, clarified the specific requirements of disclosures, and added disclosure requirements identified as relevant. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020 and can be applied retrospectively or prospectively. Early adoption is permitted. The Company is currently assessing when to adopt the ASU and the impact of adoption. |
Sale of Accounts Receivable
Sale of Accounts Receivable | 12 Months Ended |
Dec. 28, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | SALE OF ACCOUNTS RECEIVABLE The Company has a program in which a discrete group of customers are allowed to extend their payment terms in exchange for the elimination of early payment discounts (Extended Terms Program). The Company has two Receivable Sales Agreements (Monetization Programs) described below, which are intended to directly offset the impact the Extended Terms Program would have on the days-sales-outstanding (DSO) metric that is critical to the effective management of the Company's accounts receivable balance and overall working capital. The Monetization Programs are designed to effectively offset the impact on working capital of the Extended Terms Program. The Monetization Programs sell, on a revolving basis, certain trade accounts receivable invoices to third party financial institutions. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being de-recognized from the Consolidated Balance Sheet. The Monetization Programs provide for the continuing sale of certain receivables on a revolving basis until terminated by either party; however the maximum receivables that may be sold at any time is $1,033 million . 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 28, 2019 and December 29, 2018 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 $774 million and $900 million remained outstanding under these arrangements as of December 28, 2019 and December 29, 2018, 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 $25 million , $26 million and $11 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. The recorded loss is included in Other income and expense. 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 $89 million and $93 million remained outstanding under these programs as of December 28, 2019 and December 29, 2018, 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 Other income and expense and is not material. |
Divestiures, West Africa Invest
Divestiures, West Africa Investments and Acquisitions | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | DIVESTITURES, WEST AFRICA INVESTMENTS AND ACQUISITIONS Divestiture On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses to Ferrero International S.A. (“Ferrero”) for approximately $1.3 billion in cash, subject to a working capital adjustment mechanism. Both the total assets and net assets of the businesses were approximately $1.3 billion , resulting in a net pre-tax gain of $38 million during the year ended December 28, 2019, recorded in Other income and (expense), after including related costs to sell of $14 million . Additionally, the Company recognized curtailment gains related to the divestiture totaling $17 million in our U.S. pension and nonpension postretirement plans. The operating results for these businesses were primarily included in the North America reporting segment prior to the sale. Proceeds from the divestiture were used primarily to redeem $1.0 billion of debt during the third quarter. Additionally, the Company paid approximately $255 million of cash taxes on the divestiture in the fourth quarter of 2019. In connection with the sale, the Company entered into a transition services agreement (TSA) with Ferrero, under which the Company will provide certain services to Ferrero to help facilitate an orderly transition of the businesses following the sale. In return for these services, Ferrero is required to pay certain agreed upon fees that are designed to reimburse the Company for certain costs incurred by the Company in providing such services, plus specified immaterial margins. The TSA provides for a term of services starting at the sale completion date and continuing for a period of up to 18 months. Multipro acquisition On May 2, 2018, the Company (i) acquired an incremental 1% ownership interest in Multipro, a leading distributor of a variety of food products in Nigeria and Ghana, and (ii) exercised its call option (Purchase Option) to acquire a 50% interest in Tolaram Africa Foods, PTE LTD (TAF), a holding company with a 49% equity interest in an affiliated food manufacturer, resulting in the Company having a 24.5% interest in the affiliated food manufacturer. The aggregate cash consideration paid was approximately $419 million and was funded through cash on hand and short-term borrowings, which was refinanced with long-term borrowings in May 2018. As part of the consideration for the acquisition, an escrow established in connection with the original Multipro investment in 2015, which represented a significant portion of the amount paid for the Company’s initial investment, was released by the Company. The amount paid to exercise the Purchase Option was subject to certain working capital and net debt adjustments based on the actual working capital and net debt existing on the exercise date compared to targeted amounts. These adjustments were finalized during 2018 and resulted in an increase in the purchase price of $1 million . As a result of the Company’s incremental ownership interest in Multipro and concurrent changes to the shareholders' agreement, the Company now has a 51% controlling interest in and began consolidating Multipro. Accordingly, the acquisition was accounted for as a business combination and the assets and liabilities of Multipro were included in the December 29, 2018 Consolidated Balance Sheet and the results of its operations have been included in the Consolidated Statement of Income subsequent to the acquisition date. The aggregate of the consideration paid and the fair value of previously held equity interest totaled $626 million , or $617 million net of cash acquired. The Multipro investment was previously accounted for under the equity method of accounting and the Company recorded our share of equity income or loss from Multipro within Earnings (loss) from unconsolidated entities. In connection with the business combination, the Company recognized a one-time, non-cash gain on the disposition of our previously held equity interest in Multipro of $245 million , which is included within Earnings (loss) from unconsolidated entities. We utilized estimated fair values at the acquisition date to allocate the total consideration exchanged to the net tangible and intangible assets acquired and liabilities assumed. The acquisition resulted in $616 million of non-tax deductible goodwill relating principally to planned growth in new markets, deferred taxes associated with intangible assets, and any intangible assets that did not qualify for separate recognition. We used the excess earnings method, a variation of the income approach, to value a perpetual distribution agreement indefinite lived intangible asset. We also valued customer relationships, using either the excess earnings method or with-and-without method, which is also a variation of the income approach. Some of the more significant assumptions inherent in developing the valuations included the estimated annual net cash flows for each indefinite-lived or definite-lived intangible asset (including net sales, cost of products sold, selling and marketing costs, and working capital/contributory asset charges), the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management plans, and market comparables. We used carrying values as of the acquisition date to value certain current and non-current assets and liabilities, as we determined that they represented the fair value of those items at the acquisition date. Deferred income tax assets and liabilities as of the acquisition date represented the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bases. We estimated the fair value of non-controlling interests assumed consistent with the manner in which we valued all of the underlying assets and liabilities. The assets and liabilities are included in the Consolidated Balance Sheet as of December 29, 2018 within the Kellogg AMEA reporting segment. The fair value of the acquired assets, assumed liabilities, and noncontrolling interest include the following: (millions) May 2, 2018 Current assets $ 118 Property 41 Goodwill 616 Intangible assets subject to amortization, primarily customer relationships 425 Intangible assets not subject to amortization, primarily distribution rights 373 Deferred tax liability (254 ) Other liabilities (150 ) Noncontrolling interest (552 ) $ 617 The amounts in the above table represent the final allocation of purchase price as of December 29, 2018. During 2018, deferred tax liabilities were decreased by $2 million and other liabilities were increased by $2 million in conjunction with an updated allocation of the purchase price. For the post-acquisition period ended December 29, 2018, the acquisition added net sales of $536 million and net earnings of $8 million , including transaction fees and integration costs. The Company's consolidated unaudited pro forma historical net sales and net income, as if Multipro had been acquired at the beginning of 2017, exclusive of the non-cash $245 million gain on the disposition of the equity interest recognized in the second quarter of 2018, are estimated as follows: Year ended (millions) December 29, 2018 December 30, 2017 Net sales $ 13,829 $ 13,511 Net Income attributable to Kellogg Company $ 1,336 $ 1,255 Investment in TAF The investment in TAF, our interest in an affiliated food manufacturer, is accounted for under the equity method of accounting with the Company’s share of equity income or loss being recognized within Earnings (loss) from unconsolidated entities. During 2018, when the call option was exercised for TAF, the $458 million aggregate of the consideration paid upon exercise and the historical cost value of the Purchase Option was compared to the estimated fair value of the Company’s ownership percentage of TAF and the Company recognized a one-time, non-cash loss of $45 million within Earnings (loss) from unconsolidated entities, which represents an other than temporary excess of cost over fair value of the investment. The difference between the carrying amount of TAF and the underlying equity in net assets is primarily attributable to brand and customer list intangible assets, a portion of which is being amortized over future periods, and goodwill. TAF and certain other unconsolidated entities of the Company are suppliers of Multipro. The related trade payables are generally settled on a monthly basis. TAF’s net sales, totaling $581 million for the year ended December 28, 2019 and $350 million for the seven months ended December 29, 2018, consist primarily of inventory purchases by Multipro. RX acquisition In October 2017, the Company completed its acquisition of Chicago Bar Co., LLC, the manufacturer of RXBAR, for $600 million , or $596 million net of cash and cash equivalents. The purchase price was subject to certain working capital and net debt adjustments based on the actual working capital and net debt existing on the acquisition date compared to targeted amounts. These adjustments were finalized during 2018 and resulted in a purchase price reduction of $1 million . The acquisition was accounted for under the purchase price method and was financed with short-term borrowings. For the post-acquisition period ended December 30, 2017, the acquisition added $27 million in net sales and less than $1 million of operating profit in the Company's North America reporting segment. The pro forma effects of this acquisition were not material. The assets and liabilities are included in the Consolidated Balance Sheet as of December 28, 2019 within the North America reporting segment. The acquired assets and assumed liabilities include the following: (millions) October 27, 2017 Current assets $ 42 Goodwill 373 Intangible assets, primarily indefinite-lived brands 203 Current liabilities (23 ) $ 595 The amounts in the above table represent the final allocation of purchase price as of December 29, 2018, which resulted in a $2 million increase in amortizable intangible assets with a corresponding reduction of goodwill during 2018. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets Changes in the carrying amount of goodwill, intangible assets subject to amortization, consisting primarily of customer relationships, and indefinite-lived intangible assets, consisting of brands and distribution agreements, are presented in the following tables: Carrying amount of goodwill (millions) North America Europe Latin America AMEA Consoli- dated December 30, 2017 $ 4,617 $ 368 $ 244 $ 275 $ 5,504 Additions — — — 616 616 Purchase price allocation adjustment (2 ) — — — (2 ) Purchase price adjustment — — — — — Currency translation adjustment (4 ) (22 ) (26 ) (16 ) (68 ) December 29, 2018 $ 4,611 $ 346 $ 218 $ 875 $ 6,050 Divestiture (191 ) — — — (191 ) Currency translation adjustment 2 1 (5 ) 4 2 December 28, 2019 $ 4,422 $ 347 $ 213 $ 879 $ 5,861 Intangible assets subject to amortization Gross carrying amount (millions) North America Europe Latin America AMEA Consoli- dated December 30, 2017 $ 72 $ 45 $ 74 $ 10 $ 201 Additions — — — 425 425 Purchase price allocation adjustment 2 — — — 2 Currency translation adjustment — (2 ) (11 ) (7 ) (20 ) December 29, 2018 $ 74 $ 43 $ 63 $ 428 $ 608 Additions 2 — — — 2 Divestiture (12 ) — — — (12 ) Currency translation adjustment — (2 ) (3 ) 1 (4 ) December 28, 2019 $ 64 $ 41 $ 60 $ 429 $ 594 Accumulated Amortization December 30, 2017 $ 35 $ 18 $ 10 $ 4 $ 67 Amortization 4 3 4 12 23 Currency translation adjustment — (1 ) (2 ) — (3 ) December 29, 2018 $ 39 $ 20 $ 12 $ 16 $ 87 Amortization (a) 4 2 3 18 27 Divestiture (12 ) — — — (12 ) Currency translation adjustment — (1 ) — — (1 ) December 28, 2019 $ 31 $ 21 $ 15 $ 34 $ 101 Intangible assets subject to amortization, net December 30, 2017 $ 37 $ 27 $ 64 $ 6 $ 134 Additions — — — 425 425 Amortization (4 ) (3 ) (4 ) (12 ) (23 ) Purchase price allocation adjustment 2 — — — 2 Currency translation adjustment — (1 ) (9 ) (7 ) (17 ) December 29, 2018 $ 35 $ 23 $ 51 $ 412 $ 521 Additions 2 — — — 2 Amortization (4 ) (2 ) (3 ) (18 ) (27 ) Divestiture — — — — — Currency translation adjustment — (1 ) (3 ) 1 (3 ) December 28, 2019 $ 33 $ 20 $ 45 $ 395 $ 493 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $28 million per year through 2024. Intangible assets not subject to amortization (millions) North America Europe Latin America AMEA Consoli- dated December 30, 2017 $ 1,985 $ 420 $ 86 $ 14 $ 2,505 Additions — — — 373 373 Purchase price allocation adjustment — — — — — Currency translation adjustment — (19 ) (13 ) (6 ) (38 ) December 29, 2018 $ 1,985 $ 401 $ 73 $ 381 $ 2,840 Additions 18 — — — 18 Divestiture (765 ) — — — (765 ) Currency translation adjustment — (9 ) (3 ) 2 (10 ) December 28, 2019 $ 1,238 $ 392 $ 70 $ 383 $ 2,083 Annual Impairment Testing On December 30, 2018 the Company reorganized our North American business. The reorganization eliminated the legacy business unit structure and internal reporting. In addition, the Company changed the internal reporting provided to the chief operating decision maker (CODM) and segment manager. As a result, the Company reevaluated its operating segments and reporting units. In addition, we transferred the management of our Middle East, North Africa, and Turkey businesses from Europe to AMEA, effective December 30, 2018. Refer to Note 17 Reportable Segments for further details on these changes. As a result of these changes in operating segments and related reporting units, the Company re-allocated goodwill between reporting units where necessary and compared the carrying value to the fair value of each impacted reporting unit on a before and after basis. This evaluation was only required to be performed on reporting units impacted by the changes noted above. Effective December 30, 2018 in North America, the previous U.S. Snacks, U.S. Morning Foods, U.S. Specialty Channels, U.S. Frozen Foods, Kashi, Canada and RX operating segments are now a single operating segment (Kellogg North America). At the beginning of 2019, the Company evaluated the related impacted reporting units for impairment on a before and after basis and concluded that the fair values of each reporting unit exceeded their carrying values. Approximately $46 million of goodwill was re-allocated between the impacted reporting units within Europe and AMEA related to the transfer of businesses between these operating segments. The Company performed a goodwill evaluation of the impacted reporting units on a before and after basis and concluded that the fair value of the impacted reporting units exceeded their carrying values. Additionally, during the first quarter of 2019, the Company determined that it was more likely than not that the Company would be selling selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses within the North America reporting unit. As a result, the Company performed a goodwill impairment evaluation on the North America reporting unit in the first quarter of 2019 and concluded that the fair value exceeded the carrying value of the reporting unit. During the second quarter of 2019, the Company entered into a definitive agreement to sell the businesses to Ferrero. The sale was completed during the third quarter of 2019 and resulted in the divestiture of the net assets and liabilities of these businesses, included in the North America reporting unit, including $191 million of Goodwill and $765 million of Net Intangibles. In addition to the cash consideration received, the Company entered into a perpetual royalty-free licensing agreement with Ferrero, allowing Kellogg the use of certain brand names for cracker products. The license agreement was fair valued at $18 million and recorded as an indefinite-lived intangible asset. At December 28, 2019 , goodwill and other intangible assets amounted to $8.4 billion , consisting primarily of goodwill and brands originally associated with the 2001 acquisition of Keebler Foods Company and the 2012 acquisition of Pringles. Within this total, approximately $2.1 billion of non-goodwill intangible assets were classified as indefinite-lived, including $1.7 billion related to trademarks, comprised principally of Pringles and cracker-related trademarks. The majority of these intangible assets are recorded in our North America reporting unit. The Company currently believes the fair value of goodwill and other intangible assets exceeds their carrying value and that those intangibles so classified will contribute indefinitely to cash flows. Through impairment testing performed during the fourth quarter of 2019, no heightened risk of impairment of individual intangible assets or reporting units was identified. Additionally, the Company has goodwill of $606 million and $373 million |
Restructuring and Cost Reductio
Restructuring and Cost Reduction Activities | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | RESTRUCTURING PROGRAMS The Company views its restructuring and cost reduction activities as part of its operating principles to provide greater visibility in achieving its long-term profit growth targets. Initiatives undertaken are currently expected to recover cash implementation costs within a 3 to 5 -year period of completion. Upon completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. Project K As of the end of 2019, the Company has completed implementation of all Project K initiatives. Total project charges, after-tax cash costs and annual savings delivered by Project K were in line with expectations. Since inception, Project K has reduced the Company’s cost structure, and provided enduring benefits, including an optimized supply chain infrastructure, an efficient global business services model, a global focus on categories, increased agility from a more efficient organization design, and improved effectiveness in go-to-market models. These benefits have strengthen existing businesses in core markets, increased growth in developing and emerging markets, and driven an increased level of value-added innovation. The total program resulted in pre-tax charges, of approximately $1.6 billion , with after-tax cash costs, including incremental capital expenditures, of approximately $1.2 billion . Total project charges consist of asset-related costs of approximately $500 million which consists primarily of asset impairments, accelerated depreciation and other exit-related costs; employee-related costs of approximately $400 million which includes severance, pension and other termination benefits; and other costs of approximately $700 million which consists primarily of charges related to the design and implementation of global business capabilities and a more efficient go-to-market model. Total pre-tax charges related to Project K impacted reportable segments as follows: North America (approximately 65% ), Europe (approximately 21% ), Latin America (approximately 4% ), AMEA (approximately 6% ), and Corporate (approximately 4% ). Since the inception of Project K, the Company recognized charges of $1,574 million that have been attributed to the program. The charges were comprised of $6 million being recorded as a reduction of revenue, $928 million being recorded in COGS, $807 million recorded in SGA and $(167) million recorded in OIE. Other programs During 2019, the Company announced a reorganization plan for the European reportable segment designed to simplify the organization, increase organizational efficiency, and enhance key processes. The overall project is expected to be substantially completed by the end of fiscal year 2020. The project is expected to result in cumulative pretax net charges of approximately $40 million , including certain non-cash credits. Cash costs are expected to be approximately $50 million . The total expected charges will include severance and other termination benefits and charges related to relocation, third party legal and consulting fees, and contract termination costs. The Company recorded total net charges of $38 million related to this initiative during 2019, with $43 million recorded in SG&A expense and $(5) million recorded in OIE. Also during 2019, the Company announced a reorganization plan which primarily impacts the North America reportable segment. The reorganization plan is designed to simplify the organization that supports the remaining North America reportable segment after the divestiture and related transition. The overall project is expected to be substantially completed by the end of fiscal year 2020. The overall project is expected to result in cumulative pretax charges of approximately $30 million . Cash costs are expected to approximate the pretax charges. Total expected charges will include severance and other termination benefits and charges related to third party consulting fees. The Company recorded total charges of $21 million related to this initiative during 2019. These charges were recorded in SG&A expense. Total programs During 2019, the Company recorded $113 million of charges associated with all restructuring programs. The charges were comprised of $35 million expense being recorded in Cost of Goods Sold (COGS), a $83 million expense recorded in Selling, General, Administrative (SG&A), and $(5) million recorded in Other (Income) Expense, net (OIE). The Company recorded $143 million of costs in 2018 associated with all restructuring programs. The charges were comprised of $99 million being recorded in COGS, $74 million recorded SG&A and $(30) million recorded in OIE. The Company recorded $263 million of costs in 2017 associated with all restructuring programs. The charges were comprised of $115 million expense being recorded in COGS, a $296 million expense recorded in SGA expense, and a $(148) million gain recorded in OIE. The tables below provide the details for the charges incurred during 2019, 2018 and 2017 and program costs to date for all programs currently active as of December 28, 2019. Program costs to date (millions) 2019 2018 2017 December 28, 2019 Employee related costs $ 49 $ 63 $ 177 $ 646 Pension curtailment (gain) loss, net (5 ) (30 ) (148 ) (172 ) Asset related costs 21 16 77 306 Asset impairment — 14 — 169 Other costs 48 80 157 684 Total $ 113 $ 143 $ 263 $ 1,633 Program costs to date (millions) 2019 2018 2017 December 28, 2019 North America $ 50 $ 107 $ 345 $ 1,072 Europe 47 3 40 380 Latin America 15 15 9 57 AMEA 3 11 11 101 Corporate (2 ) 7 (142 ) 23 Total $ 113 $ 143 $ 263 $ 1,633 Employee related costs consisted of severance and pension charges. Pension curtailment (gain) loss consists of curtailment gains or losses that resulted from project initiatives. Asset impairments were recorded for fixed assets that were determined to be impaired and were written down to their estimated fair value. See Note 14 for more information. Asset related costs consist primarily of accelerated depreciation. Other costs incurred consist primarily of lease termination costs as well as third-party incremental costs related to the development and implementation of global business capabilities and a more efficient go-to-market model. At December 28, 2019 total project reserves were $62 million , related to severance payments and other costs of which a substantial portion will be paid in 2020. The following table provides details for exit cost reserves. (millions) Employee Related Costs Curtailment Gain Loss, net Asset Impairment Asset Related Costs Other Costs Total Liability as of December 30, 2017 $ 97 $ — $ — $ — $ 63 $ 160 2018 restructuring charges 63 (30 ) 14 16 80 143 Cash payments (67 ) — — (9 ) (133 ) (209 ) Non-cash charges and other — 30 (14 ) (6 ) — 10 Liability as of December 29, 2018 $ 93 $ — $ — $ 1 $ 10 $ 104 2019 restructuring charges 49 (5 ) — 21 48 113 Cash payments (81 ) — — (10 ) (57 ) (148 ) Non-cash charges and other — 5 — (12 ) — (7 ) Liability as of December 28, 2019 $ 61 $ — $ — $ — $ 1 $ 62 |
Equity
Equity | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Earnings per share Basic earnings per share is determined by dividing net income attributable to Kellogg Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, restricted stock units, and to a lesser extent, certain contingently issuable performance shares. The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (shares in millions): 2019 - 14.0 ; 2018 - 6.5 ; 2017- 4.9 . Stock transactions The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 9 . The number of shares issued and outstanding during the periods presented was (shares in millions): 2019 – 15 ; 2018 – 8 ; 2017– 7 . The Company issued shares totaling less than one million in each of the years presented under Kellogg Direct ™ , a direct stock purchase and dividend reinvestment plan for U.S. shareholders. In December 2017, the board of directors approved an authorization to repurchase up to $1.5 billion of the Company's common stock beginning in 2018 through December 2019. In February 2020, the board of directors approved a new authorization to repurchase up to $1.5 billion of the Company's common stock through December 2022. During 2019 , the Company repurchased 4 million shares of common stock for a total of $220 million . During 2018 , the Company repurchased 5 million shares of common stock for a total of $320 million . During 2017, the Company repurchased 7 million shares of common stock at a total cost of $516 million . Comprehensive income Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income for all years presented consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience gains (losses) and prior service credit (cost) related to employee benefit plans. During the years ended December 28, 2019 and December 30, 2017, the Company modified assumptions for a U.S. postemployment benefit plan. As a result, a net experience gain (loss) was recognized in other comprehensive income with an offsetting reduction in the accumulated postemployment benefit obligation. See Note 10 and Note 11 for further details. 2019 2018 2017 Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax amount benefit amount amount benefit amount amount benefit amount Net income $ 977 $ 1,344 $ 1,254 Other comprehensive income: Foreign currency translation adjustments $ 100 $ (19 ) 81 $ 5 $ (53 ) $ (48 ) $ (34 ) 113 79 Cash flow hedges: Unrealized gain (loss) on cash flow hedges 5 (1 ) 4 3 (1 ) 2 — — — Reclassification to net income 4 (1 ) 3 8 (2 ) 6 9 (3 ) 6 Postretirement and postemployment benefits: Amounts arising during the period: Net experience gain (loss) (16 ) 5 (11 ) (8 ) 1 (7 ) 44 (12 ) 32 Prior service credit (cost) 3 (1 ) 2 1 — 1 — — — Reclassification to net income: Net experience (gain) loss (5 ) 1 (4 ) (5 ) 1 (4 ) — — — Prior service (credit) cost (1 ) — (1 ) — — — 1 — 1 Available-for-sale securities: Unrealized gain (loss) 4 — 4 — — — — — — Reclassification to net income (4 ) — (4 ) — — — — — — Other comprehensive income (loss) $ 90 $ (16 ) $ 74 $ 4 $ (54 ) $ (50 ) $ 20 $ 98 $ 118 Comprehensive income $ 1,051 $ 1,294 $ 1,372 Net income (loss) attributable to noncontrolling interests 17 8 — Other comprehensive income (loss) attributable to noncontrolling interests — (7 ) — Comprehensive income attributable to Kellogg Company $ 1,034 $ 1,293 $ 1,372 Reclassifications from Accumulated Other Comprehensive Income (AOCI) for the year ended December 28, 2019 and December 29, 2018 , consisted of the following: Details about AOCI Components Amount reclassified from AOCI Line item impacted within Income Statement (millions) 2019 2018 2017 (Gains) and losses on cash flow hedges: Foreign currency exchange contracts $ — $ — $ (1 ) COGS Interest rate contracts 4 8 10 Interest expense $ 4 $ 8 $ 9 Total before tax (1 ) (2 ) (3 ) Tax expense (benefit) $ 3 $ 6 $ 6 Net of tax Amortization of postretirement and postemployment benefits: Net experience (gains) $ (5 ) $ (5 ) $ — OIE Prior service (credit) cost (1 ) — 1 OIE $ (6 ) $ (5 ) $ 1 Total before tax 1 1 — Tax expense (benefit) $ (5 ) $ (4 ) $ 1 Net of tax (Gains) losses on available-for-sale securities Corporate bonds $ (4 ) $ — $ — OIE $ (4 ) $ — $ — Total before tax — — — Tax expense (benefit) $ (4 ) $ — $ — Net of tax Total reclassifications $ (6 ) $ 2 $ 7 Net of tax Accumulated other comprehensive income (loss) as of December 28, 2019 and December 29, 2018 consisted of the following: (millions) December 28, 2019 December 29, 2018 Foreign currency translation adjustments $ (1,399 ) $ (1,467 ) Cash flow hedges — unrealized net gain (loss) (60 ) (53 ) Postretirement and postemployment benefits: Net experience gain (loss) 7 23 Prior service credit (cost) 4 (3 ) Total accumulated other comprehensive income (loss) $ (1,448 ) $ (1,500 ) |
Leases and Other Commitments
Leases and Other Commitments | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases and other commitments | LEASES AND OTHER COMMITMENTS 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 12 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. For the initial implementation of the lease standard, the incremental borrowing rate at December 29, 2018 was used to present value operating lease assets and liabilities. The Company recorded operating lease costs of $133 million for the year ended December 28, 2019. 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 28, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 134 Right-of-use assets obtained in exchange for new operating lease liabilities $ 164 Weighted-average remaining lease term - operating leases 7 years Weighted-average discount rate - operating leases 2.9% At December 28, 2019, future maturities of operating leases were as follows: (millions) Operating leases 2020 $ 129 2021 98 2022 80 2023 67 2024 55 2025 and beyond 181 Total minimum payments $ 610 Less interest (63 ) Present value of lease liabilities $ 547 Operating lease payments presented in the table above exclude $18 million of minimum lease payments for real-estate leases signed but not yet commenced. The leases are expected to commence in 2020. Under the previous lease standard (Topic 840), at December 29, 2018, future minimum annual lease commitments under non-cancelable operating leases were as follows: (millions) Operating leases 2019 $ 121 2020 97 2021 73 2022 57 2023 48 2024 and beyond 129 Total minimum payments $ 525 Rent expense on operating leases for the year ended December 29, 2018 and December 30, 2017 were $133 million and $195 million respectively. At December 29, 2018, 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 28, 2019, the Company had not recorded any liability related to these indemnifications. |
Debt
Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt [Abstract] | |
Long-term Debt [Text Block] | DEBT The following table presents the components of notes payable at year end December 28, 2019 and December 29, 2018 : (millions) 2019 2018 Principal amount Effective interest rate Principal amount Effective interest rate U.S. commercial paper $ 3 1.78 % $ 15 2.75 % Europe commercial paper — — — — Bank borrowings 104 161 Total $ 107 $ 176 The following table presents the components of long-term debt at year end December 28, 2019 and December 29, 2018 : (millions) 2019 2018 (a) 4.50% U.S. Dollar Notes due 2046 $ 638 $ 638 (b) 7.45% U.S. Dollar Debentures due 2031 621 621 (c) 4.30% U.S. Dollar Notes due 2028 595 595 (d) 3.40% U.S. Dollar Notes due 2027 596 595 (e) 3.25% U.S. Dollar Notes due 2026 741 731 (f) 1.25% Euro Notes due 2025 689 693 (g) 1.00% Euro Notes due 2024 692 697 (h) 2.65% U.S. Dollar Notes due 2023 539 585 (i) 2.75% U.S. Dollar Notes due 2023 201 198 (j) 3.125% U.S. Dollar Notes due 2022 353 351 (k) 0.80% Euro Notes due 2022 669 684 (l) 1.75% Euro Notes due 2021 558 570 (m) 3.25% U.S. Dollar Notes due 2021 198 399 (n) 4.0% U.S. Dollar Notes due 2020 601 848 (o) 4.15% U.S. Dollar Notes due 2019 — 503 Other 124 9 7,815 8,717 Less current maturities (620 ) (510 ) Balance at year end $ 7,195 $ 8,207 (a) In March 2016, the Company issued $650 million of thirty-year 4.50% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's 7.45% U.S. Dollar Debentures due 2031 and a portion of its commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 4.59% at December 28, 2019. (b) In March 2001, the Company issued long-term debt instruments, primarily to finance the acquisition of Keebler Foods Company, of which $625 million of thirty-year 7.45% Debentures remain outstanding. The effective interest rate on the Debentures, reflecting issuance discount and hedge settlement, was 7.56% at December 28, 2019. The Debentures contain standard events of default and covenants, and can be redeemed in whole or in part by the Company at any time at prices determined under a formula (but not less than 100% of the principal amount plus unpaid interest to the redemption date). (c) In May 2018, the Company issued $600 million of ten-year 4.30% Senior Notes due 2028, using the net proceeds for general corporate purposes, which included repayment of the Company's $400 million , seven-year 3.25% U.S. Dollar Notes due 2018 at maturity, and the repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of ownership interests in TAF and Multipro. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 4.34% at December 28, 2019. (d) In November 2017, the Company issued $600 million of ten-year 3.40% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of Chicago Bar Company LLC, the maker of RXBAR. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 3.49% at December 28, 2019. (e) In March 2016, the Company issued $750 million of ten-year 3.25% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's 7.45% U.S. Dollar Debentures due 2031 and a portion of its commercial paper borrowings. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 4.11% at December 28, 2019 . In September 2016, the Company entered into interest rate swaps with notional amounts totaling $300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In October 2018, the Company entered into interest rate swaps with notional amounts totaling $450 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $6 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (f) In March 2015, the Company issued €600 million (approximately $671 million at December 28, 2019 , which reflects the discount, fees and translation adjustments) of ten-year 1.25% Euro Notes due 2025, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 1.58% at December 28, 2019 . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. In May 2017, the Company entered into interest rate swaps with notional amounts totaling €600 million , which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized gain of $20 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (g) In May 2016, the Company issued €600 million (approximately $671 million USD at December 28, 2019 , which reflects the discount, fees and translation adjustments) of eight-year 1.00% Euro Notes due 2024. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand and additional commercial paper borrowings, repayment of the Company's $750 million , seven-year 4.45% U.S. Dollar Notes due 2016 at maturity. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 0.21% at December 28, 2019 . In November 2016, the Company entered into interest rate swaps with notional amounts totaling €300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In October 2018, the Company entered into interest rate swaps with notional amounts totaling €300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. The Company subsequently terminated these swaps. In May of 2019, the Company entered into interest rate swaps with notional amounts totaling €600 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The fair value adjustment for the interest rate swaps was $3 million at December 28, 2019 , recorded as an increase in the hedged debt balance. (h) In November 2016, the Company issued $600 million of seven-year 2.65% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of the Company's 1.875% U.S. Dollar Notes due 2016 at maturity and a portion of its commercial paper borrowings. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 3.39% at December 28, 2019 . In 2016, the Company entered into interest rate swaps with notional amounts totaling $300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $9 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. In 2019, the Company redeemed $50 million of the Notes. In connection with the debt redemption, the Company incurred $2 million of interest expense, consisting primarily of a premium on the tender offer. (i) In February 2013, the Company issued $400 million ( $189 million previously redeemed) of ten-year 2.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including, together with cash on hand, to repay a portion of the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The effective interest rate on these Notes, reflecting issuance discount hedge settlement and interest rate swaps, was 4.11% . In September 2016, the Company entered into interest rate swaps with notional amounts totaling $211 million , which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $9 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (j) In May 2012, the Company issued $700 million ( $342 million previously redeemed) of ten-year 3.125% U.S. Dollar Notes, using the net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 3.74% at December 28, 2019 . During 2016 and 2018, the Company entered into interest rate swaps which effectively converted all or a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting $4 million loss at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (k) In May 2017, the Company issued €600 million (approximately $671 million USD at December 28, 2019 , which reflects the discount and translation adjustments) of five-year 0.80% Euro Notes due 2022, using the proceeds from these Notes for general corporate purposes, including, repayment of the Company's $400 million , five-year 1.75% U.S. Dollar Notes due 2017 at maturity. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 0.87% . The Notes were designated as a net investment hedge of the Company's investment in its Europe subsidiary when issued. (l) In May 2014, the Company issued €500 million (approximately $559 million at December 28, 2019 , which reflects the discount and translation adjustments) of seven-year 1.75% Euro Notes due 2021, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.37% at December 28, 2019. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. (m) In May 2018, the Company issued $400 million of three-year 3.25% Senior Notes due 2021, using the net proceeds for general corporate purposes, which included repayment of the Company's $400 million , seven-year 3.25% U.S. Dollar Notes due 2018 at maturity, and the repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of ownership interests in TAF and Multipro. The effective interest rate on the Notes, reflecting issuance discount, was 3.39% as December 28, 2019. In 2019, the Company redeemed $202 million of the Notes. In connection with the dept redemption, the Company incurred $6 million of interest expense, consisting primarily of a premium on the tender offer. (n) In December 2010, the Company issued $1.0 billion ( $150 million previously redeemed) of ten-year 4.0% fixed rate U.S. Dollar Notes, using the net proceeds from these Notes for incremental pension and postretirement benefit plan contributions and to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 3.37% at December 28, 2019 . During 2016, the Company entered into interest rate swaps, which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps and the resulting gain on termination at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. In 2019, the Company redeemed $248 million of the Notes. In connection with the debt redemption, the Company incurred $6 million of interest expense, consisting primarily of a premium on the tender offer, which was partially offset by accelerated gains on pre-issuance interest rate hedges. (o) In November 2009, the Company issued $500 million of ten-year 4.15% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its 6.6% U.S. Dollar Notes due 2011. In 2012 and 2015, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2019, the Company redeemed $191 million of the Notes. In connection with the August 2019 debt redemption, the Company incurred $1 million of interest expense, consisting primarily of a premium on the tender offer. In September of 2019, the Company redeemed the remaining $309 million of the Notes. In connection with the September 2019 debt redemption, the company incurred $1 million of interest expense, consisting primarily of a premium on the tender offer. In August 2019, the Company redeemed $191 million of its 4.15% U.S. Dollar Notes due November 2019, $248 million of its 4.00% U.S. Dollar Notes due 2020, $202 million of its 3.25% U.S. Dollar Notes due 2021, and $50 million of its 2.65% U.S. Dollar Notes due 2023. In connection with the debt redemption, the Company incurred $15 million of interest expense, consisting primarily of a premium on the tender offer, acceleration of unamortized debt discount on the redeemed debt, and fees related to the tender offer, partially offset by accelerated gains on pre-issuance interest rate hedges. In September 2019, the Company redeemed $309 million of its 4.15% U.S. Dollar Notes due November 2019, the remaining principal balance subsequent to the August redemption. In connection with the debt redemption, the Company incurred $1 million of interest expense, consisting primarily of a premium and also including accelerated losses on pre-issuance interest rate hedges, acceleration of fees and debt discount on the redeemed debt and fees related to the make whole call. 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 28, 2019. 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 28, 2019 and December 29, 2018. At December 28, 2019 , the Company had $3.0 billion of short-term lines of credit and letters of credit, of which $2.9 billion were unused and available for borrowing primarily on an unsecured basis. These lines were comprised principally of the January 2018 unsecured $1.5 billion Five-Year Credit Agreement, which expires in 2023, 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 letters of credit in an aggregate stated amount up to $75 million and to obtain European swingline loans in an aggregate principal amount up to the equivalent of $300 million . In January 2020, 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, to replace the $1.0 billion 364-day facility that expired in January 2020. The Five-Year and 364 Day Credit Agreements which had no outstanding borrowings as December 28, 2019, 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. During the third quarter of 2019, in connection with the divestiture of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses, the Company withdrew from two multi-employer pension plans and recorded withdrawal liabilities of $132 million . While this represents our best estimate of the cost of withdrawing from the plans at this time, we have not yet reached agreement on the ultimate amount of the withdrawal liability. Subsequent to the end of the year, the Company and the lenders under the Five-Year and 364-Day Credit agreements entered into a waiver agreement addressing any matters that arose or may arise from these liabilities under the agreements, as long as the aggregate amount of such liabilities does not exceed $250 million . The Company was in compliance with all financial covenants contained in these agreements at December 28, 2019 . Scheduled principal repayments on long-term debt are (in millions): 2020– $620 ; 2021– $835 ; 2022– $1,039 ; 2023– $771 ; 2024– $677 ; 2025 and beyond– $3,896 . Financial institutions have issued standby letters of credit conditionally guaranteeing obligations on behalf of the Company totaling $87 million , including $52 million secured and $35 million unsecured, as of December 28, 2019. These obligations are related primarily to insurance programs. There were no amounts drawn down on the letters of credit as of December 28, 2019. 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. 28, 2019 | |
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, to a lesser extent, executive performance shares. The Company also sponsors a discounted stock purchase plan in the United States and matching-grant programs in several international locations. Additionally, the Company awards restricted stock to its outside directors. These awards are administered through several plans, as described within this Note. The 2017 Long-Term Incentive Plan (2017 Plan), approved by shareholders in 2017, permits awards to employees and officers in the form of incentive and non-qualified stock options, performance units, restricted stock or restricted stock units, and stock appreciation rights. The 2017 Plan, which replaced the 2013 Long-Term Incentive Plan (2013 Plan), authorizes the issuance of a total of (a) 16 million shares; plus (b) the total number of shares remaining available for future grants under the 2013 Plan. The total number of shares remaining available for issuance under the 2017 Plan will be reduced by two shares for each share issued pursuant to an award under the 2017 Plan other than a stock option or stock appreciation right, or potentially issuable pursuant to an outstanding award other than a stock option or stock appreciation right, which will in each case reduce the total number of shares remaining by one share for each share issued. At December 29, 2018, there were 17 million remaining authorized, but unissued, shares under the 2017 Plan. Compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows: (millions) 2019 2018 2017 Pre-tax compensation expense $ 61 $ 64 $ 71 Related income tax benefit $ 16 $ 16 $ 26 As of December 28, 2019 , total stock-based compensation cost related to non-vested awards not yet recognized was $87 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) 2019 2018 2017 Total cash received from option exercises and similar instruments $ 64 $ 167 $ 97 Tax windfall (shortfall) classified as cash flow from operating activities $ (2 ) $ 11 $ 4 Shares used to satisfy stock-based awards are normally issued out of treasury stock, although management is authorized to issue new shares to the extent permitted by respective plan provisions. Refer to Note 6 for information on shares issued during the periods presented to employees and directors under various long-term incentive plans and share repurchases under the Company’s stock repurchase authorizations. The Company does not currently have a policy of repurchasing a specified number of shares issued under employee benefit programs during any particular time period. Stock options During the periods presented, non-qualified stock options were granted to eligible employees under the 2017 and 2013 Plans with exercise prices equal to the fair market value of the Company’s stock on the grant date, a contractual term of ten years , and a three-year graded vesting period. Management estimates the fair value of each annual stock option award on the date of grant using a lattice-based option valuation model. Composite assumptions are presented in the following table. Weighted-average values are disclosed for certain inputs which incorporate a range of assumptions. Expected volatilities are based principally on historical volatility of the Company’s stock, and to a lesser extent, on implied volatilities from traded options on the Company’s stock. Historical volatility corresponds to the contractual term of the options granted. The Company uses historical data to estimate option exercise and employee termination within the valuation models; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time that options granted are expected to be outstanding; the weighted-average expected term for all employee groups is presented in the following table. The risk-free rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. Stock option valuation model assumptions for grants within the year ended: 2019 2018 2017 Weighted-average expected volatility 18.00 % 18.00 % 18.00 % Weighted-average expected term (years) 6.60 6.60 6.60 Weighted-average risk-free interest rate 2.59 % 2.82 % 2.26 % Dividend yield 3.90 % 3.00 % 2.80 % Weighted-average fair value of options granted $ 6.78 $ 10.00 $ 10.14 A summary of option activity for the year ended December 28, 2019 is presented in the following table: Employee and director stock options Shares (millions) Weighted- average exercise price Weighted- average remaining contractual term (yrs.) Aggregate intrinsic value (millions) Outstanding, beginning of year 14 $ 66 Granted 3 57 Exercised (1 ) 56 Forfeitures and expirations (2 ) 67 Outstanding, end of year 14 $ 65 4.9 $ 55 Exercisable, end of year 10 $ 65 6.1 $ 86 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2018 2017 Outstanding, beginning of year 14 15 Granted 3 2 Exercised (2 ) (2 ) Forfeitures and expirations (1 ) (1 ) Outstanding, end of year 14 14 Exercisable, end of year 10 10 Weighted-average exercise price: Outstanding, beginning of year $ 64 $ 62 Granted 70 73 Exercised 58 57 Forfeitures and expirations 71 70 Outstanding, end of year $ 66 $ 64 Exercisable, end of year $ 63 $ 60 The total intrinsic value of options exercised during the periods presented was (in millions): 2019– $7 ; 2018– $33 ; 2017– $22 . Other stock-based awards During the periods presented, other stock-based awards consisted principally of executive performance shares and restricted stock granted under the 2017 and 2013 Plans. In the first quarter of 2019, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting, as well as dividend equivalent shares. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year vesting period. The performance conditions of the award include three year currency-neutral net sales growth and total shareholder return (TSR) of the Company's common stock relative to a select group of peer companies. Dividend equivalents accrue and vest in accordance with the underlying award. A Monte Carlo valuation model was used to determine the fair value of the awards. The TSR performance metric is a market condition. Therefore, compensation cost of the TSR condition is fixed at the measurement date and is not revised based on actual performance. The TSR metric was valued as a multiplier of possible levels of currency- neutral comparable operating margin expansion. Compensation cost related to currency-neutral net sales growth performance is revised for changes in the expected outcome. The 2019 target grant currently corresponds to approximately 223,000 shares, with a grant-date fair value of $59 per share. In 2018, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year vesting period. The performance conditions of the award include three-year currency-neutral comparable operating margin expansion and total shareholder return (TSR) of the Company's common stock relative to a select group of peer companies. The 2018 target grant currently corresponds to approximately 143,000 shares, with a grant-date fair value of $88 per share. In 2017, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year vesting period. The performance conditions of the award include three-year currency neutral adjusted operating profit growth and TSR of the Company's common stock relative to a select group of peer companies. The 2017 target grant currently corresponds to approximately 100,000 shares, with a grant-date fair value of $50 per share. Based on the market price of the Company’s common stock at year-end 2019, the maximum future value that could be awarded on the vesting date was (in millions): 2019 award– $31 ; 2018 award– $20 ; and 2017 award– $13 . The 2016 performance share award, payable in stock, was settled at 88% of target in February 2019 for a total dollar equivalent of $7 million . The Company also grants restricted stock units to eligible employees under the 2017 Plan, typically with three year cliff vesting earning dividend equivalent units for awards granted beginning in 2019. Dividend equivalents accrue and vest in accordance with the underlying award. Management estimates the fair value of restricted stock grants based on the market price of the underlying stock on the date of grant. A summary of restricted stock unit activity for the year ended December 28, 2019 , is presented in the following table: Employee restricted stock and restricted stock units Shares (thousands) Weighted- average grant-date fair value Non-vested, beginning of year 1,708 $ 65 Granted 287 55 Vested (469 ) 68 Forfeited (340 ) 62 Non-vested, end of year 1,186 $ 61 Additionally, restricted stock unit activity for 2018 and 2017 is presented in the following table: Employee restricted stock and restricted stock units 2018 2017 Shares (in thousands): Non-vested, beginning of year 1,673 1,166 Granted 772 776 Vested (507 ) (109 ) Forfeited (230 ) (160 ) Non-vested, end of year 1,708 1,673 Weighted-average exercise price: Non-vested, beginning of year $ 65 $ 63 Granted 63 65 Vested 59 58 Forfeited 64 65 Non-vested, end of year $ 65 $ 65 The total fair value of restricted stock units vesting in the periods presented was (in millions): 2019– $27 ; 2018– $35 ; 2017– $5 . |
Pension Benefits
Pension Benefits | 12 Months Ended |
Dec. 28, 2019 | |
Pension Benefits [Abstract] | |
Pension Benefits [Text Block] | PENSION BENEFITS The Company sponsors a number of U.S. and foreign pension plans to provide retirement benefits for its employees. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. See Note 12 for more information regarding the Company’s participation in multiemployer plans. Defined benefits for salaried employees are generally based on salary and years of service, while union employee benefits are generally a negotiated amount for each year of service. The Company uses a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end. In September 2019, the Company provided a voluntary one-time lump-sum cash settlement offer to certain eligible terminated vested participants in our U.S. pension plans in order to reduce pension obligations and administrative costs. In December 2019, approximately $174 million was distributed from pension plan assets in connection with this offer. In conjunction with the completion of the sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses on July 28, 2019, the Company recognized a curtailment gain in its U.S. pension plans of $11 million . In September 2018, the Company recognized a curtailment gain of $30 million as certain European pension plans were frozen as of December 29, 2018 in conjunction with Project K restructuring. In September 2017, the Company amended certain defined benefit pension plans in the U.S. and Canada for salaried employees. As of December 31, 2018, the amendment froze compensation and service periods used to calculate pension benefits for active salaried employees who participate in the affected pension plans. During the third quarter of 2017, the Company recognized related pension curtailment gains totaling $136 million included within Project K restructuring activity. Beginning January 1, 2019, impacted employees will not accrue additional benefits for future service and eligible compensation received under these plans. Concurrently, the Company also amended its 401(k) savings plans effective January 1, 2019, to make previously ineligible salaried U.S. and Canada employees eligible for Company retirement contributions, which range from 3% to 7% of eligible compensation based on the employee’s length of employment. Obligations and funded status The aggregate change in projected benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2019 2018 Change in projected benefit obligation Beginning of year $ 5,117 $ 5,648 Service cost 36 87 Interest cost 172 165 Plan participants’ contributions 1 1 Amendments 3 6 Actuarial (gain)loss 766 (384 ) Benefits paid (458 ) (280 ) Curtailment and special termination benefits (13 ) (36 ) Other — 1 Foreign currency adjustments 30 (91 ) End of year $ 5,654 $ 5,117 Change in plan assets Fair value beginning of year $ 4,677 $ 5,043 Actual return on plan assets 874 (299 ) Employer contributions 10 270 Plan participants’ contributions 1 1 Benefits paid (426 ) (236 ) Other — (1 ) Foreign currency adjustments 34 (101 ) Fair value end of year $ 5,170 $ 4,677 Funded status $ (484 ) $ (440 ) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 241 $ 228 Other current liabilities (20 ) (17 ) Other liabilities (705 ) (651 ) Net amount recognized $ (484 ) $ (440 ) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 37 $ 41 Net amount recognized $ 37 $ 41 The accumulated benefit obligation for all defined benefit pension plans was $5.6 billion and $5.0 billion at December 28, 2019 and December 29, 2018 , respectively. Information for pension plans with accumulated benefit obligations in excess of plan assets were: (millions) 2019 2018 Projected benefit obligation $ 4,061 $ 3,725 Accumulated benefit obligation $ 4,033 $ 3,689 Fair value of plan assets $ 3,362 $ 3,081 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) 2019 2018 2017 Service cost $ 36 $ 87 $ 96 Interest cost 172 165 164 Expected return on plan assets (340 ) (361 ) (371 ) Amortization of unrecognized prior service cost 7 8 9 Recognized net (gain) loss 235 269 (36 ) Net periodic benefit cost 110 168 (138 ) Curtailment and special termination benefits (13 ) (30 ) (151 ) Pension (income) expense: Defined benefit plans 97 138 (289 ) Defined contribution plans 20 27 34 Total $ 117 $ 165 $ (255 ) The estimated prior service cost for defined benefit pension plans that will be amortized from accumulated other comprehensive income into pension expense over the next fiscal year is approximately $7 million . The Company and certain of its subsidiaries sponsor 401(k) or similar savings plans for active employees. Expense related to these plans was (in millions): 2019 – $39 million ; 2018 – $38 million ; 2017 – $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: 2019 2018 2017 Discount rate 2.9 % 3.9 % 3.3 % Long-term rate of compensation increase 3.4 % 3.8 % 3.9 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2019 2018 2017 Discount rate 3.7 % 3.3 % 3.6 % Long-term rate of compensation increase 4.0 % 3.9 % 3.9 % Long-term rate of return on plan assets 7.3 % 7.4 % 8.1 % To determine the overall expected long-term rate of return on plan assets, the Company models expected returns over a 20-year investment horizon with respect to the specific investment mix of its major plans. The return assumptions used reflect a combination of rigorous historical performance analysis and forward-looking views of the financial markets including consideration of current yields on long-term bonds, price-earnings ratios of the major stock market indices, and long-term inflation. The U.S. model, which corresponds to approximately 72% of consolidated pension and other postretirement benefit plan assets, incorporates a long-term inflation assumption of 2.5% and an active management premium of 0.8% (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 2019 of 7.0% for the U.S. plans after the mid-year remeasurement, equated to approximately the 54th percentile expectation. Refer to Note 1 . In 2019, the Society of Actuaries (SOA) published updated mortality tables and an updated improvement scale. The expectations of future mortality rates in the new SOA tables were consistent with prior Kellogg mortality assumptions. In determining the appropriate mortality assumptions as of 2019 fiscal year-end, the Company adopted the new SOA tables with collar adjustments based on Kellogg’s current population. In addition, based on mortality information available from the Social Security Administration and other sources, the Company developed assumptions for future mortality improvement in line with our expectations for future experience. The change to the mortality assumption increased year-end pension obligations by $77 million . To conduct the annual review of discount rates, the Company selected the discount rate based on a cash-flow matching analysis using Towers Watson’s proprietary RATE:Link tool and projections of the future benefit payments that constitute the projected benefit obligation for the plans. RATE:Link establishes the uniform discount rate that produces the same present value of the estimated future benefit payments, as is generated by discounting each year’s benefit payments by a spot rate applicable to that year. The measurement dates for the defined benefit plans are consistent with the Company’s fiscal year end. Accordingly, the Company selects yield curves to measure benefit obligations consistent with market indices during December of each year. Plan assets The Company categorized Plan assets within a three level fair value hierarchy described as follows: Investments stated at fair value as determined by quoted market prices (Level 1) include: Cash and cash equivalents: Value based on cost, which approximates fair value. Corporate stock, common: Value based on the last sales price on the primary exchange. Investments stated at estimated fair value using significant observable inputs (Level 2) include: Cash and cash equivalents: Institutional short-term investment vehicles valued daily. Mutual funds: Valued at exit prices quoted in active or non-active markets or based on observable inputs. Collective trusts : Valued at exit prices quoted in active or non-active markets or based on observable inputs. Bonds: Value based on matrices or models from pricing vendors. Limited partnerships: Value based on the ending net capital account balance at year end. Investments stated at estimated fair value using significant unobservable inputs (Level 3) include: Real estate: Value based on the net asset value of units held at year end. The fair value of real estate holdings is based on market data including earnings capitalization, discounted cash flow analysis, comparable sales transactions or a combination of these methods. Bonds: Value based on matrices or models from brokerage firms. A limited number of the investments are in default. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s practice regarding the timing of transfers between levels is to measure transfers in at the beginning of the month and transfers out at the end of the month. For the year ended December 28, 2019 , the Company had no transfers between Levels 1 and 2. The fair value of Plan assets as of December 28, 2019 summarized by level within the fair value hierarchy are as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 14 $ — $ — $ — $ 14 Corporate stock, common: Domestic 338 — — — 338 International 16 — — — 16 Mutual funds: International equity — — — 36 36 Domestic debt — 4 — — 4 Collective trusts: Domestic equity — — — 498 498 International equity — 117 — 816 933 Other international debt — 718 — 378 1,096 Limited partnerships — — — 228 228 Bonds, corporate — 443 — 211 654 Bonds, government — 774 — — 774 Bonds, other — 70 — — 70 Real estate — — — 412 412 Other — 61 — 36 97 Total $ 368 $ 2,187 $ — $ 2,615 $ 5,170 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at December 29, 2018 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 75 $ — $ — $ — $ 75 Corporate stock, common: Domestic 412 — — — 412 International 10 1 — — 11 Mutual funds: International equity — 7 — 34 41 Domestic debt — 53 — — 53 Collective trusts: Domestic equity — — — 437 437 International equity — 92 — 1,330 1,422 Other international debt — — — 331 331 Limited partnerships — — — 283 283 Bonds, corporate — 498 — — 498 Bonds, government — 562 — — 562 Bonds, other — 62 — — 62 Real estate — — — 378 378 Other — 55 — 57 112 Total $ 497 $ 1,330 $ — $ 2,850 $ 4,677 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. There were no Level 3 assets during 2019 and 2018 and no unfunded commitments to purchase investments at December 28, 2019 or December 29, 2018 . 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– 42% ; debt securities– 31% ; real estate and other– 27% . Investment in Company common stock represented 1.2% and 1.0% of consolidated plan assets at December 28, 2019 and December 29, 2018 , 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 $7 million to its defined benefit pension plans during 2020. Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): 2020– $274 ; 2021– $273 ; 2022– $281 ; 2023– $285 ; 2024– $294 ; 2025 to 2029– $1,508 . |
Nonpension Postretirement and P
Nonpension Postretirement and Postemployment Benefits | 12 Months Ended |
Dec. 28, 2019 | |
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) 2019 2018 Change in accumulated benefit obligation Beginning of year $ 1,069 $ 1,190 Service cost 15 18 Interest cost 37 36 Actuarial (gain) loss 59 (105 ) Benefits paid (60 ) (67 ) Curtailments (6 ) — Amendments — — Foreign currency adjustments 2 (3 ) End of year $ 1,116 $ 1,069 Change in plan assets Fair value beginning of year $ 1,140 $ 1,292 Actual return on plan assets 282 (91 ) Employer contributions 18 17 Benefits paid (76 ) (78 ) Fair value end of year $ 1,364 $ 1,140 Funded status $ 248 $ 71 Amounts recognized in the Consolidated Balance Sheet consist of Other non-current assets $ 283 $ 107 Other current liabilities (2 ) (2 ) Other liabilities (33 ) (34 ) Net amount recognized $ 248 $ 71 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (59 ) (68 ) Net amount recognized $ (59 ) $ (68 ) Expense Components of postretirement benefit expense (income) were: (millions) 2019 2018 2017 Service cost $ 15 $ 18 $ 18 Interest cost 37 36 37 Expected return on plan assets (86 ) (94 ) (98 ) Amortization of unrecognized prior service credit (9 ) (9 ) (9 ) Recognized net (gain) loss (137 ) 81 (90 ) Net periodic benefit cost (180 ) 32 (142 ) Curtailment (6 ) — 3 Postretirement benefit expense: Defined benefit plans (186 ) 32 (139 ) Defined contribution plans 11 11 16 Total $ (175 ) $ 43 $ (123 ) The estimated prior service credit that will be amortized from accumulated other comprehensive income into nonpension postretirement benefit expense over the next fiscal year is expected to be approximately $9 million . Assumptions The weighted-average actuarial assumptions used to determine benefit obligations were: 2019 2018 2017 Discount rate 3.3 % 4.3 % 3.6 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2019 2018 2017 Discount rate 4.0 % 3.6 % 4.0 % Long-term rate of return on plan assets 7.3 % 7.5 % 8.5 % The Company determines the overall discount rate and expected long-term rate of return on VEBA trust obligations and assets in the same manner as that described for pension trusts in Note 10 . The assumed U.S. health care cost trend rate is 5.25% for 2020, decreasing 0.25% annually to 4.5% by the year 2023 and remaining at that level thereafter. These trend rates reflect the Company’s historical experience and management’s expectations regarding future trends. A one percentage point change in assumed health care cost trend rates would have the following effects: (millions) One percentage point increase One percentage point decrease Effect on total of service and interest cost components $ 3 $ (2 ) Effect on postretirement benefit obligation 77 (66 ) Plan assets The fair value of Plan assets as of December 28, 2019 summarized by level within fair value hierarchy described in Note 10 , are as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 8 $ 1 $ — $ — $ 9 Corporate stock, common: Domestic 242 — — — 242 International 11 — — — 11 Mutual funds: Domestic equity — 35 — — 35 International equity — — — — — Domestic debt — 53 — — 53 Collective trusts: Domestic equity — — — 286 286 International equity — — — 293 293 Limited partnerships — — — 124 124 Bonds, corporate — 136 — — 136 Bonds, government — 77 — — 77 Bonds, other — 9 — — 9 Real estate — — — 88 88 Other — 1 — — 1 Total $ 261 $ 312 $ — $ 791 $ 1,364 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at December 29, 2018 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 2 $ 1 $ — $ — $ 3 Corporate stock, common: Domestic 108 — — — 108 International 5 1 — — 6 Mutual funds: Domestic equity — 37 — — 37 International equity — — — — — Domestic debt — 42 — — 42 Collective trusts: Domestic equity — — — 281 281 International equity — — — 228 228 Limited partnerships — — — 199 199 Bonds, corporate — 95 — — 95 Bonds, government — 50 — — 50 Bonds, other — 7 — 83 90 Other — 1 — — 1 Total $ 115 $ 234 $ — $ 791 $ 1,140 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The Company’s asset investment strategy for its VEBA trusts is consistent with that described for its pension trusts in Note 10 . The current target asset allocation is 67% equity securities, 24% debt securities, and 9% real estate. The Company currently expects to contribute approximately $19 million to its VEBA trusts during 2020. There were no Level 3 assets during 2019 and 2018 . Postemployment Under certain conditions, the Company provides benefits to former or inactive employees, including salary continuance, severance, and long-term disability, in the United States and several foreign locations. The Company’s postemployment benefit plans are unfunded. Actuarial assumptions used are generally consistent with those presented for pension benefits in Note 10 . During 2019, the Company updated its incidence rate assumption based on a review of historical experience, resulting in an actuarial loss of approximately $7 million . The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were: (millions) 2019 2018 Change in accumulated benefit obligation Beginning of year $ 42 $ 43 Service cost 3 3 Interest cost 2 1 Actuarial (gain)loss 8 3 Benefits paid (7 ) (8 ) Amendments — — Foreign currency adjustments — — End of year $ 48 $ 42 Funded status $ (48 ) $ (42 ) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (7 ) $ (5 ) Other liabilities (41 ) (37 ) Net amount recognized $ (48 ) $ (42 ) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 3 $ 4 Net experience gain (22 ) (38 ) Net amount recognized $ (19 ) $ (34 ) Components of postemployment benefit expense were: (millions) 2019 2018 2017 Service cost $ 3 $ 3 $ 6 Interest cost 2 1 3 Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (5 ) (5 ) — Net periodic benefit cost $ 1 $ — $ 10 Settlement cost (3 ) — — Postemployment benefit expense $ (2 ) $ — $ 10 The estimated net experience gain and net prior service cost that will be amortized from accumulated other comprehensive income into postemployment benefit expense over the next fiscal year is $3 million and $1 million , respectively. Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (millions) Postretirement Postemployment 2020 $ 66 $ 8 2021 67 6 2022 67 5 2023 68 5 2024 68 5 2025-2029 337 20 |
Multipemployer Pension and Post
Multipemployer Pension and Postretirement Plans | 12 Months Ended |
Dec. 28, 2019 | |
Multiemployer Plans [Abstract] | |
Multiemployer Plans [Text Block] | MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS The Company contributes to multiemployer defined contribution pension and postretirement benefit plans under the terms of collective-bargaining agreements that cover certain unionized employee groups in the United States. Contributions to these plans are included in total pension and postretirement benefit expense as reported in Note 10 and Note 11 , respectively. Pension benefits The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan are borne by the remaining participating employers. The Company’s participation in multiemployer pension plans for the year ended December 28, 2019, is outlined in the table below. The “EIN/PN” column provides the Employer Identification Number (EIN) and the three-digit plan number (PN). The most recent Pension Protection Act (PPA) zone status available for 2019 and 2018 is for the plan year-ends as indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are between 65 percent and 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. In addition to regular plan contributions, the Company may be subject to a surcharge if the plan is in the red zone. The “Surcharge Imposed” column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) (CBA) to which the plans are subject. The Company was not listed in the available Forms 5500 of the three plans listed below as providing more than 5 percent of total contributions. At the date the Company’s financial statements were issued, certain Forms 5500 were not available for the plan years ending in 2019. PPA Zone Status Contributions (millions) Pension trust fund EIN/PN 2019 2018 FIP/RP Status 2019 2018 2017 Surcharge Imposed Expiration Date of CBA Bakery and Confectionery Union and Industry International Pension Fund (a) 52-6118572 / Red - 12/31/2019 Red - 12/31/2018 Implemented $ 5.9 $ 6.5 $ 6.6 Yes 12/17/2020 to Central States, Southeast and Southwest Areas Pension Fund 36-6044243 / Red - 12/31/2019 Red - 12/31/2018 Implemented 1.3 1.9 4.8 Yes (c) Western Conference of Teamsters Pension Trust 91-6145047 / Green - 12/31/2019 Green - 12/31/2018 NA 0.8 1.0 1.4 No 3/26/2022 (d) Other Plans 0.7 1.0 3.1 (e) Total contributions: $ 8.7 $ 10.4 $ 15.9 (a) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 80 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/16/2021. (b) During 2017, the Company terminated certain CBAs covered by these funds. Because of the Company's level of continuing involvement in each fund, the Company does not anticipate being subject to a withdrawal liability. The Company does not expect 2020 contributions to be materially different than 2019. (c) During 2019, the Company terminated CBAs covered by this fund. As a result, the Company has withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect to make 2020 contributions. (d) During 2017, the Company terminated certain CBAs covered by this fund. As a result, the Company has partially withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect 2020 contributions to be materially different than 2019. (e) During 2017 and 2019, the Company terminated the CBAs covered by certain of these funds. As a result, for the impacted funds, the Company recognized expense for the estimated withdrawal liability in each year and no longer made contributions following the termination. The Company does not expect 2020 contributions to the remaining funds to be materially different from 2019. 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 associated with Project K restructuring. The Company recognized expense related to the withdrawals as follows (millions): 2019 - $132 ; 2018 - $7 ; 2017 - $26 . While this is our best estimate of the ultimate cost of withdrawing from the plans at this time, we have not yet reached agreement on the ultimate amount of the withdrawal liability. 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 charge was recorded within Cost of goods sold on the Consolidated Statement of Income and Other current liabilities and Other liabilities on the Consolidated Balance Sheet. The cash obligation associated with the 2019 withdrawal activity is approximately $8 million annually and is payable over a maximum 20-year period; management has not determined the actual period over which the payments will be made. Withdrawal liability payments of $8 million and $3 million were made during 2019 and 2018, respectively to multiemployer plans. Withdrawal liability payments made in 2017 were immaterial. The Company had withdrawal liabilities of $156 million and $32 million at December 28, 2019 and December 29, 2018, respectively. 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): 2019 – $11 ; 2018 – $11 ; 2017 – $16 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
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) 2019 2018 2017 Income before income taxes United States $ 938 $ 851 $ 1,097 Foreign 367 478 560 1,305 1,329 1,657 Income taxes Currently payable Federal 345 7 358 State 52 28 31 Foreign 77 99 79 474 134 468 Deferred Federal (124 ) 109 (41 ) State (29 ) (59 ) 8 Foreign — (3 ) (25 ) (153 ) 47 (58 ) Total income taxes $ 321 $ 181 $ 410 The difference between the U.S. federal statutory tax rate and the Company’s effective income tax rate was: 2019 2018 2017 U.S. statutory income tax rate 21.0 % 21.0 % 35.0 % Foreign rates varying from U.S. statutory rate (2.5 ) (3.0 ) (6.7 ) Excess tax benefits on share-based compensation — (0.3 ) (0.3 ) State income taxes, net of federal benefit 1.3 1.5 1.4 Cost (benefit) of remitted and unremitted foreign earnings 0.8 0.7 0.1 Legal entity restructuring, deferred tax impact — (3.3 ) — Discretionary pension contributions — (2.3 ) — Revaluation of investment in foreign subsidiary 2.5 — — Net change in valuation allowance (1.6 ) 2.0 (0.4 ) U.S. deduction for qualified production activities — — (1.4 ) Statutory rate changes, deferred tax impact 0.3 — (9.0 ) U.S. deemed repatriation tax — (1.2 ) 10.4 Intangible property transfer — — (2.4 ) Divestiture 2.9 — — Out-of-period adjustment 3.0 — — Other (3.1 ) (1.5 ) (1.9 ) Effective income tax rate 24.6 % 13.6 % 24.8 % As presented in the preceding table, the Company’s 2019 consolidated effective tax rate was 24.6% , as compared to 13.6% in 2018 and 24.8% in 2017. The 2019 effective income tax rate was unfavorably impacted by a permanent basis difference in the assets sold to Ferrero as well as an out-of-period correction. During the fourth quarter of 2019, the Company recorded an out-of-period adjustment to correct an error in the tax rate applied to a deferred tax asset arising from an intangible property transfer in a prior year. The adjustment increased income tax expense and decreased deferred tax assets by $39 million , respectively. We determined the adjustment to be immaterial to our Consolidated Financial Statements for the year ended December 28, 2019 and related prior annual and quarterly periods. The 2018 effective income tax rate benefited from the reduction of the U.S. corporate tax rate as well as a $11 million reduction of income tax expense due to changes in estimates related to the Tax Cuts and Jobs Act, the impact of discretionary pension contributions totaling $250 million in 2018, which were designated as 2017 tax year contributions, and a $44 million discrete tax benefit as a result of the remeasurement of deferred taxes following a legal entity restructuring. The 2017 effective income tax rate benefited from a deferred tax benefit of $39 million resulting from intercompany transfers of intellectual property under the application of the newly adopted standard. See discussion regarding the adoption of ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , in Note 1. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act made broad and complex changes to the U.S. tax code which impacted our year ended December 30, 2017 including but not limited to, reducing the corporate tax rate from 35% to 21% , requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that may be electively paid over eight years, and accelerating first year expensing of certain capital expenditures. Shortly after the Tax Act was enacted, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides guidance on accounting for the Tax Act’s impact. SAB 118 provided a measurement period, which in no case should extend beyond one year from the Tax Act enactment date, during which a company may complete the accounting for the impacts of the Tax Act under ASC Topic 740. The Company's 2018 income tax provision includes an $11 million reduction to income tax expense due to changes in estimates related to the Tax Act. The reduction is primarily related to a $16 million reduction in the transition tax estimate and $5 million of additional tax associated primarily with the final assessment of changes in our indefinite reinvestment assertion and resulting tax. The Company's 2017 year end income tax provision includes $8 million of net additional income tax expense during the quarter ended December 30, 2017, driven by the reduction in the U.S. corporate tax rate and the transition tax on foreign earnings. Transition tax on foreign earnings: The transition tax is a tax on the previously untaxed accumulated and current earnings and profits of certain of our foreign subsidiaries. In order to determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 earnings and profits (E&P) of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. E&P is similar to retained earnings of the subsidiary, but requires other adjustments to conform to U.S. tax rules. As of December 30, 2017, based on accumulated foreign earnings and profits of approximately $2.6 billion , which are primarily in Europe, the Company was able to make a reasonable estimate of the transition tax and recorded a transition tax obligation of $157 million . In the third quarter of 2018, the Company recorded a $16 million reduction to the transition tax liability and tax expense based on updated estimates of E&P. During the fourth quarter of 2018, the Company, as part of completing its accounting under SAB 118, revised its estimate of the transition tax liability to $94 million , and recorded $47 million of tax reserves related to uncertainty in our interpretation of the statute and associated regulations. Indefinite reinvestment assertion: Prior to the Tax Act, the Company treated a significant portion of its undistributed foreign earnings as indefinitely reinvested. In light of the Tax Act, which included a new territorial tax regime, as of the year ended December 30, 2017, Management determined that the Company would analyze its global capital structure and working capital strategy and considered the indefinite reinvestment assertion to be provisional under SAB 118. In the fourth quarter of 2018, we finished analyzing our global capital structure and working capital strategy and determined that $2.4 billion of foreign earnings as of December 30, 2017 were no longer considered to be indefinitely invested. Accordingly, income tax expense of approximately $5 million was recorded in the fourth quarter of 2018. The Company completed its assessment and accounting under SAB 118 for its indefinite investment assertion. Reduction in U.S. Corporate Tax Rate: The tax provision as of December 30, 2017, included a tax benefit of $149 million for the remeasurement of certain deferred tax assets and liabilities to reflect the corporate income tax rate reduction impact to the Company's net deferred tax balances. The accounting for the reduction in the U.S. Corporate Tax rate was considered complete in the fourth quarter of 2017. The Tax Act also created a new requirement that certain income earned by foreign subsidiaries, known as global intangible low-tax income (GILTI), must be included in the gross income of their U.S. shareholder. During the fourth quarter of 2018, the Company elected to treat the tax effect of GILTI as a current-period expense when incurred. In conjunction with SAB 118, we completed the accounting for the Tax Act in the fourth quarter 2018. As of December 28, 2019, approximately $800 million of unremitted earnings were considered indefinitely reinvested. The unrecognized deferred tax liability for these earnings is estimated at approximately $20 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 2019 and 2018 were $279 million and $270 million , respectively, with related valuation allowances at year-end 2019 and 2018 of $146 million and $166 million , respectively. Of the total carryforwards at year-end 2019 , substantially all will expire after 2024. The following table provides an analysis of the Company’s deferred tax assets and liabilities as of year-end 2019 and 2018 . Deferred tax liabilities decreased in 2019 due primarily to the divestiture of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses. Deferred tax assets Deferred tax liabilities (millions) 2019 2018 2019 2018 U.S. state income taxes $ — $ — $ 6 $ 19 Advertising and promotion-related 11 11 — — Wages and payroll taxes 15 20 — — Inventory valuation 17 14 — — Employee benefits 143 132 — — Operating loss, credit and other carryforwards 279 270 — — Hedging transactions 9 10 — — Depreciation and asset disposals — — 217 220 Trademarks and other intangibles — — 526 613 Deferred compensation 19 20 — — Stock options 29 31 — — Other 9 26 — — 531 534 749 852 Less valuation allowance (146 ) (166 ) — — Total deferred taxes $ 385 $ 368 $ 749 $ 852 Net deferred tax asset (liability) $ (364 ) $ (484 ) Classified in balance sheet as: Other assets $ 231 $ 246 Other liabilities (595 ) (730 ) Net deferred tax asset (liability) $ (364 ) $ (484 ) The change in valuation allowance reducing deferred tax assets was: (millions) 2019 2018 2017 Balance at beginning of year $ 166 $ 153 $ 131 Additions charged to income tax expense 25 29 35 Reductions credited to income tax expense (a) (47 ) (1 ) (28 ) Currency translation adjustments 2 (15 ) 15 Balance at end of year $ 146 $ 166 $ 153 (a) During 2019, the Company decreased the valuation allowance by $32 million related to the revaluation of its investment in a foreign subsidiary. Uncertain tax positions The Company is subject to federal income taxes in the U.S. as well as various state, local, and foreign jurisdictions. The Company’s 2019 provision for U.S. federal income taxes represents approximately 70% 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 2018. The Company is under examination for income and non-income tax filings in various state and foreign jurisdictions. As of December 28, 2019 , the Company has classified $19 million of unrecognized tax benefits as a current tax liability. The Company believes a decrease of $44 million in unrecognized tax benefits during the next twelve months is reasonably possible primarily due to finalization of tax examinations. In addition, t his decrease is expected to be offset by approximately $5 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 28, 2019 , December 29, 2018 and December 30, 2017 . For the 2019 year, approximately $81 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods. (millions) 2019 2018 2017 Balance at beginning of year $ 97 $ 60 $ 63 Tax positions related to current year: Additions (a) 5 51 6 Tax positions related to prior years: Additions 4 4 5 Reductions (14 ) (13 ) (8 ) Settlements (1 ) (4 ) (4 ) Lapses in statutes of limitation (1 ) (1 ) (2 ) Balance at end of year $ 90 $ 97 $ 60 (a) During the fourth quarter of 2018, the Company recorded, as part of its final estimate under SAB 118, $47 million of tax reserves related to uncertainty in our interpretation of the statute and associated regulations. During the year ended December 28, 2019, the Company settled certain tax matters resulting in an $11 million net reduction of the tax interest accrual, decreasing the balance to $11 million at year-end. For the year ended December 29, 2018, the Company paid tax-related interest totaling $2 million and recognized $3 million of tax-related interest increasing the accrual balance to $22 million at year-end. For the year ended December 30, 2017, the Company recognized $2 million of tax-related interest resulting in an accrual balance of $21 million |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company is exposed to certain market risks such as changes in interest rates, foreign currency exchange rates, and commodity prices, which exist as a part of its ongoing business operations. Management uses derivative financial and commodity instruments, including futures, options, and swaps, where appropriate, to manage these risks. Instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. The Company designates derivatives as cash flow hedges, fair value hedges, net investment hedges, and uses other contracts to reduce volatility in interest rates, foreign currency and commodities. As a matter of policy, the Company does not engage in trading or speculative hedging transactions. Total notional amounts of the Company’s derivative instruments as of December 28, 2019 and December 29, 2018 were as follows: (millions) 2019 2018 Foreign currency exchange contracts $ 2,628 $ 1,863 Cross-currency contracts 1,540 1,197 Interest rate contracts 1,871 1,608 Commodity contracts 524 417 Total $ 6,563 $ 5,085 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 28, 2019 and December 29, 2018 , measured on a recurring basis. Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market. For the Company, level 1 financial assets and liabilities consist primarily of commodity derivative contracts. Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. For the Company, level 2 financial assets and liabilities consist of interest rate swaps and over-the-counter commodity and currency contracts. The Company’s calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve. Over-the-counter commodity derivatives are valued using an income approach based on the commodity index prices less the contract rate multiplied by the notional amount. Foreign currency contracts are valued using an income approach based on forward rates less the contract rate multiplied by the notional amount. 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 28, 2019 or December 29, 2018 . 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 28, 2019 and December 29, 2018 : Derivatives designated as hedging instruments 2019 2018 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 45 $ 45 $ — $ — $ — Other Assets — 40 40 — 79 79 Interest rate contracts (a): Other current assets — 7 7 — — — Other assets — 4 4 — 17 17 Total assets $ — $ 96 $ 96 $ — $ 96 $ 96 Liabilities: Interest rate contracts (a): Other current liabilities $ — $ (4 ) $ (4 ) $ — $ — $ — Other liabilities — — — — (22 ) (22 ) Total liabilities $ — $ (4 ) $ (4 ) $ — $ (22 ) $ (22 ) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $0.7 billion and $1.6 billion as of December 28, 2019 and December 29, 2018 , respectively. Derivatives not designated as hedging instruments 2019 2018 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 12 $ 12 $ — $ 3 $ 3 Commodity contracts: Other current assets 9 — 9 3 — 3 Total assets $ 9 $ 12 $ 21 $ 3 $ 3 $ 6 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — (18 ) $ (18 ) $ — $ (4 ) $ (4 ) Interest rate contracts: Other liabilities — (13 ) (13 ) — — — Commodity contracts: Other current liabilities (1 ) — (1 ) (9 ) — (9 ) Total liabilities $ (1 ) $ (31 ) $ (32 ) $ (9 ) $ (4 ) $ (13 ) The Company has designated a portion of its outstanding foreign currency denominated long-term debt as a net investment hedge of a portion of the Company’s investment in its subsidiaries foreign currency denominated net assets. The carrying value of this debt was $2.6 billion as of December 28, 2019 and December 29, 2018 , respectively. The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of December 28, 2019 and December 29, 2018 . (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 28, December 29, December 28, December 29, Interest rate contracts Current maturities of long-term debt $ 493 $ 503 $ — $ 3 Interest rate contracts Long-term debt $ 2,643 $ 3,354 $ 19 $ (18 ) (a) The current maturities of hedged long-term debt includes $3 million of hedging adjustment on discontinued hedging relationships as of December 29, 2018 . The hedged long-term debt includes $15 million and $(12) million of hedging adjustment on discontinued hedging relationships as of December 28, 2019 and December 29, 2018 , 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 28, 2019 and December 29, 2018 would be adjusted as detailed in the following table: As of December 28, 2019 Gross Amounts Not Offset in the Consolidated Balance Sheet Amounts Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received/ Posted Net Amount Total asset derivatives $ 117 $ (27 ) $ (7 ) $ 83 Total liability derivatives $ (36 ) $ 27 $ — $ (9 ) As of December 29, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheet Amounts Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received/ Posted Net Amount Total asset derivatives $ 102 $ (27 ) $ (2 ) $ 73 Total liability derivatives $ (35 ) $ 27 $ — $ (8 ) The effect of derivative instruments on the Consolidated Statement of Income for the years ended December 28, 2019 and December 29, 2018 were as follows: Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) recognized in AOCI Gain (loss) excluded from assessment of hedge effectiveness Location of gain (loss) in income of excluded component 2019 2018 2019 2018 Foreign currency denominated long-term debt $ 60 $ 129 $ — $ — Cross-currency contracts 6 79 34 16 Interest expense Total $ 66 $ 208 $ 34 $ 16 Derivatives not designated as hedging instruments (millions) Location of gain (loss) recognized in income Gain (loss) recognized in income 2019 2018 Foreign currency exchange contracts COGS $ (16 ) $ 19 Foreign currency exchange contracts SGA (2 ) 1 Foreign currency exchange contracts OIE (4 ) — Commodity contracts COGS 4 (23 ) Commodity contracts SGA — — Total $ (18 ) $ (3 ) The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (millions) 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 $ 284 $ 287 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items (33 ) (5 ) Derivatives designated as hedging instruments 37 9 Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (4 ) (8 ) Foreign exchange contracts: Amount of gain (loss) reclassified from AOCI into income — — During the next 12 months, the Company expects $9 million of net deferred losses reported in accumulated other comprehensive income (AOCI) at December 28, 2019 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 28, 2019 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 28, 2019 triggered by credit-risk-related contingent features. Other fair value measurements Fair Value Measurements on a Nonrecurring Basis As part of Project K, the Company has consolidated the usage of and has disposed certain long-lived assets, including manufacturing facilities and Corporate owned assets over the term of the program. See Note 5 for more information regarding Project K. During 2019, there were no long-lived asset impairments related to Project K. During the year ended December 29, 2018 , long-lived assets of $19 million related to a manufacturing facility in the Company's North America reportable segment, were written down to an estimated fair value of $5 million due to Project K activities. The Company's calculation of the fair value of these long-lived assets is based on level 3 inputs, including market comparables, market trends and the condition of the assets. The following is a summary of the carrying and market values of the Company's available for sale securities: 2019 2018 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ — $ — $ — $ 59 $ — $ 59 During the year ended December 28, 2019 , the Company's investments in level 2 corporate bonds were sold for $63 million resulting in a gain of $4 million , recorded in Other income and (expense). The market values of the Company's investments in level 2 corporate bonds were based on matrices or models from pricing vendors. Unrealized gains and losses were included in the Consolidated Statement of Comprehensive Income. Additionally, these investments were recorded within Other current assets and Other assets on the Consolidated Balance Sheet, based on the maturity of the individual security. 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 $7.8 billion and $7.2 billion , respectively, as of December 28, 2019 . Counterparty credit risk concentration The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative financial and commodity contracts. Management believes a concentration of credit risk with respect to derivative counterparties is limited due to the credit ratings and use of master netting and reciprocal collateralization agreements with the counterparties and the use of exchange-traded commodity contracts. Master netting agreements apply in situations where the Company executes multiple contracts with the same counterparty. Certain counterparties represent a concentration of credit risk to the Company. If those counterparties fail to perform according to the terms of derivative contracts, this could result in a loss to the Company of approximately $58 million , net of collateral already received from those counterparties as of December 28, 2019 . 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 28, 2019 , the Company had no collateral posting requirements related to reciprocal collateralization agreements and collected approximately $19 million of collateral related to reciprocal collaterization agreements which is reflected as an increase in other liabilities. As of December 28, 2019 , the Company posted $12 million in margin deposits for exchange-traded commodity derivative instruments, which was reflected as an increase in accounts receivable, net. Management believes concentrations of credit risk with respect to accounts receivable is limited due to the generally high credit quality of the Company’s major customers, as well as the large number and geographic dispersion of smaller customers. However, the Company conducts a disproportionate amount of business with a small number of large multinational grocery retailers, with the five largest accounts encompassing approximately 23% of consolidated trade receivables at December 28, 2019 . Refer to Note 1 for disclosures regarding the Company’s accounting policies for derivative instruments. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Loss Contingencies [Abstract] | |
Contingencies Disclosure [Text Block] | CONTINGENCIES The Company is subject to various legal proceedings, claims, and governmental inspections or investigations in the ordinary course of business covering matters such as general commercial, governmental regulations, antitrust and trade regulations, product liability, environmental, intellectual property, workers’ compensation, employment and other actions. These matters are subject to uncertainty and the outcome is not predictable with assurance. The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability and product liability. In 2016, a class action complaint was filed against Kellogg in the Northern District of California relating to statements made on packaging for certain products. In August 2019, the Court ruled in favor of the plaintiff regarding certain statements made on the Company’s products and ordered the parties to conduct settlement discussions related to all matters in dispute. On October 21, 2019, the plaintiff filed a motion to the Court to approve a settlement. Subsequent to the end of the year, the Court denied without prejudice the plaintiff’s motion to approve the settlement. As of December 28, 2019, the Company concluded that the contingency related to the unfavorable ruling was probable and estimable, resulting in a liability being recorded. This litigation, including any potential settlement, is not expected to have a material impact on the Company’s consolidated financial statements. The Company will continue to evaluate the likelihood of potential outcomes as the litigation continues. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL DATA (unaudited) Net sales Gross profit (millions) 2019 2018 2019 2018 First $ 3,522 $ 3,401 $ 1,107 $ 1,252 Second 3,461 3,360 1,186 1,209 Third 3,372 3,469 1,000 1,176 Fourth 3,223 3,317 1,088 1,089 $ 13,578 $ 13,547 $ 4,381 $ 4,726 Net income (loss) attributable to Kellogg Company Per share amounts (millions) 2019 2018 2019 2018 Basic Diluted Basic Diluted First $ 282 $ 444 $ 0.82 $ 0.82 $ 1.28 $ 1.27 Second 286 596 0.84 0.84 1.72 1.71 Third 247 380 0.73 0.72 1.10 1.09 Fourth (a) 145 (84 ) 0.43 0.42 (0.24 ) (0.24 ) $ 960 $ 1,336 (a) The significant decrease in the fourth quarter 2018 net income is primarily due to a mark-to-market adjustment recognized on pension assets. The principal market for trading Kellogg shares (Ticker symbol: K) is the New York Stock Exchange (NYSE). At December 28, 2019 there were 31,322 shareholders of record. Dividends paid per share during the last two years were: Quarter 2019 2018 First $ 0.56 $ 0.54 Second 0.56 0.54 Third 0.57 0.56 Fourth 0.57 0.56 $ 2.26 $ 2.20 During 2019 , the Company recorded the following in operating profit and other income (expense): 2019 (millions) First Second Third Fourth Full Year Operating profit Restructuring and cost reduction charges $ (8 ) $ (65 ) $ (18 ) $ (27 ) $ (118 ) Gains / (losses) on mark-to-market adjustments (42 ) 46 (11 ) — (7 ) Other income (expense) Restructuring and cost reduction charges $ — $ — $ — $ 5 $ 5 Gains / (losses) on mark-to-market adjustments 1 (11 ) 32 (120 ) $ (98 ) During 2018 , the Company recorded the following in operating profit and other income (expense): 2018 (millions) First Second Third Fourth Full Year Operating profit Restructuring and cost reduction charges $ (20 ) $ (5 ) $ (64 ) $ (84 ) $ (173 ) Gains / (losses) on mark-to-market adjustments 30 3 (11 ) (15 ) 7 Other income (expense) Restructuring and cost reduction charges $ — $ — $ 30 $ — $ 30 Gains / (losses) on mark-to-market adjustments 9 2 36 (397 ) $ (350 ) |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | REPORTABLE SEGMENTS Kellogg Company is the world’s leading producer of cereal, second largest producer of crackers and a leading producer of savory snacks and frozen foods. Additional product offerings include toaster pastries, cereal bars, veggie foods, and noodles. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom and Nigeria. On December 30, 2018 the Company reorganized its North American business. The reorganization eliminated the legacy business unit structure and internal reporting. In addition, the Company changed the internal reporting provided to the chief operating decision maker (CODM) and segment manager. As a result, the Company reevaluated its operating segments. Prior period segment results were restated to reflect the new organizational structure. In conjunction with the reorganization, certain global research and development resources and related activities were transferred from the North America business to Corporate. Prior period segment results were not restated for the transfer as the impacts were not considered material. In addition, the Company transferred its Middle East, North Africa, and Turkey businesses from Kellogg Europe to Kellogg AMEA, effective December 30, 2018. This consolidated the Company's Africa business under a single regional management team. All comparable prior periods have been restated to reflect the change. For the year ended December 29, 2018, the change resulted in $273 million of reported net sales, and $46 million of reported operating profit transferring from Kellogg Europe to Kellogg AMEA. For the year ended December 30, 2017, the change resulted in $241 million of reported net sales, and $56 million of reported operating profit transferring from Kellogg Europe to Kellogg AMEA. 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 principally of European countries; Latin America which consists of Central and South America and includes Mexico; and AMEA (Asia Middle East Africa) which consists of Africa, Middle East, Australia and other Asian and Pacific markets. These operating segments also represent our reportable segments. On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit flavored snacks, pie crusts, and ice cream cone businesses to Ferrero for approximately $1.3 billion in cash. Both the total assets and the net assets, consisting primarily of goodwill and intangibles, property, plant and equipment, and inventory, of the businesses were approximately $1.3 billion . The operating results for these businesses were primarily included in the North America reporting segment prior to the sale. 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) 2019 2018 2017 Net sales North America 8,390 8,688 8,673 Europe 2,092 2,122 2,050 Latin America 940 947 944 AMEA 2,156 1,790 1,187 Consolidated $ 13,578 $ 13,547 $ 12,854 Operating profit North America (a)(b) 1,215 1,397 1,246 Europe 222 251 220 Latin America 85 102 108 AMEA 195 174 140 Total Reportable Segments 1,717 1,924 1,714 Corporate (b) (316 ) (218 ) (327 ) Consolidated $ 1,401 $ 1,706 $ 1,387 Depreciation and amortization (c) North America 291 341 330 Europe 80 78 78 Latin America 30 37 37 AMEA 76 57 35 Total Reportable Segments 477 513 480 Corporate 7 3 1 Consolidated $ 484 $ 516 $ 481 (a) During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million . (b) Corporate operating profit in 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 and 2017 totaling approximately $48 million and $47 million , respectively. (c) Includes asset impairment charges as discussed in Note 14 . 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 CODM for the Company’s internationally-based reportable segments as shown below. (millions) 2019 2018 2017 Interest expense North America $ — $ 1 $ 3 Europe 6 6 14 Latin America 9 3 2 AMEA 14 9 4 Corporate 255 268 233 Consolidated $ 284 $ 287 $ 256 Income taxes Europe $ 48 $ 23 $ (37 ) Latin America 16 30 33 AMEA 23 23 10 Corporate & North America 234 105 404 Consolidated $ 321 $ 181 $ 410 Assets are reviewed by the CODM on a consolidated basis and therefore are no presented by operating segmen t . The CODM does review additions to long-lived assets based on operating segment. (millions) 2019 2018 2017 Additions to long-lived assets North America $ 356 $ 336 $ 329 Europe 83 84 102 Latin America 41 76 32 AMEA 101 79 34 Corporate 5 3 4 Consolidated $ 586 $ 578 $ 501 The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 19% of consolidated net sales during both 2019 and 2018 , and 20% in 2017, comprised principally of sales within the United States. Supplemental geographic information is provided below for net sales to external customers and long-lived assets: (millions) 2019 2018 2017 Net sales United States $ 7,885 $ 8,176 $ 8,160 All other countries 5,693 5,371 4,694 Consolidated $ 13,578 $ 13,547 $ 12,854 Long-lived assets United States $ 1,996 $ 2,197 $ 2,195 All other countries 1,616 1,534 1,521 Consolidated $ 3,612 $ 3,731 $ 3,716 Supplemental product information is provided below for net sales to external customers: (millions) 2019 2018 2017 Snacks $ 6,663 $ 6,797 $ 6,683 Cereal 5,029 5,203 5,222 Frozen 1,037 1,020 949 Noodles and other 849 527 — Consolidated $ 13,578 $ 13,547 $ 12,854 |
Supplemental Financial Statemen
Supplemental Financial Statement Data | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Financial Statement Data [Abstract] | |
Supplemental Financial Statement Data [Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT DATA Consolidated Statement of Income (millions) 2019 2018 2017 Research and development expense $ 144 $ 154 $ 148 Advertising expense $ 676 $ 752 $ 732 Consolidated Balance Sheet (millions) 2019 2018 Trade receivables $ 1,315 $ 1,163 Allowance for doubtful accounts (10 ) (10 ) Refundable income taxes 56 28 Other receivables 215 194 Accounts receivable, net $ 1,576 $ 1,375 Raw materials, spare parts, and supplies $ 303 $ 339 Finished goods and materials in process 923 991 Inventories $ 1,226 $ 1,330 Land $ 116 $ 120 Buildings 2,021 2,061 Machinery and equipment 5,852 5,971 Capitalized software 496 438 Construction in progress 566 583 Accumulated depreciation (5,439 ) (5,442 ) Property, net $ 3,612 $ 3,731 Other intangibles $ 2,677 $ 3,448 Accumulated amortization (101 ) (87 ) Other intangibles, net $ 2,576 $ 3,361 Pension $ 241 $ 228 Deferred income taxes 231 246 Other 667 594 Other assets $ 1,139 $ 1,068 Accrued income taxes $ 42 $ 48 Accrued salaries and wages 290 309 Accrued advertising and promotion 641 557 Other 577 502 Other current liabilities $ 1,550 $ 1,416 Income taxes payable $ 81 $ 115 Nonpension postretirement benefits 33 34 Other 429 355 Other liabilities $ 543 $ 504 Allowance for doubtful accounts (millions) 2019 2018 2017 Balance at beginning of year $ 10 $ 10 $ 8 Additions charged to expense 9 4 14 Doubtful accounts charged to reserve (9 ) (4 ) (12 ) Balance at end of year $ 10 $ 10 $ 10 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of accounting [Policy Text Block] | The consolidated financial statements include the accounts of the Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest (Kellogg or the Company). The Company continually evaluates its involvement with variable interest entities (VIEs) to determine whether it has variable interests and is the primary beneficiary of the VIE. When these criteria are met, the Company is required to consolidate the VIE. The Company’s share of earnings or losses of nonconsolidated affiliates is included in its consolidated operating results using the equity method of accounting when it is able to exercise significant influence over the operating and financial decisions of the affiliate. The Company uses the cost method of accounting if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. Intercompany balances and transactions are eliminated. The Company’s fiscal year normally ends on the Saturday closest to December 31 and as a result, a 53rd week is added approximately every sixth year. The Company’s 2019, 2018 and 2017 fiscal years each contained 52 weeks and ended on December 28, 2019 , December 29, 2018 , and December 30, 2017, respectively. |
Use of estimates [Policy Text Block] | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. |
Cash and cash equivalents [Policy Text Block] | Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. |
Accounts receivables [Policy Text Block] | Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts and prompt payment discounts. Trade receivables do not bear interest. The allowance for doubtful accounts represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances and other specific account data. Account balances are written off against the allowance when management determines the receivable is uncollectible. For the years ended 2019 and 2018 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 2 for information on sales of accounts receivable. |
Inventories [Policy Text Block] | Inventories are valued at the lower of cost or net realizable value. Cost is determined on an average cost basis. |
Property [Policy Text Block] | The Company’s property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods, where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 15 - 30 ; office equipment 5 ; computer equipment and capitalized software 3 - 7 ; building components 20 ; building structures 10 - 50 . Cost includes interest associated with significant capital projects. Plant and equipment are reviewed for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include an extended period of idleness or a plan of disposal. Assets to be disposed of at a future date are depreciated over the remaining period of use. Assets to be sold are written down to realizable value at the time the assets are being actively marketed for sale and a sale is expected to occur within one year. There were no assets held for sale at the year-end 2019 or 2018. |
Goodwill and other intangible assets [Policy Text Block] | Goodwill and indefinite-lived intangibles are not amortized, but are tested at least annually for impairment of value and whenever events or changes in circumstances indicate the carrying amount of the asset may be impaired. An intangible asset with a finite life is amortized on a straight-line basis over the estimated useful life, which materially approximates the pattern of economic benefit. For the goodwill impairment test, the fair value of the reporting units are estimated based on market multiples. This approach employs market multiples based on either sales or earnings before interest, taxes, depreciation and amortization for companies that are comparable to the Company’s reporting units. In the event the fair value determined using the market multiple approach is close to carrying value, the Company may supplement the fair value determination using discounted cash flows. The assumptions used for the impairment test are consistent with those utilized by a market participant performing similar valuations for the Company’s reporting units. Similarly, impairment testing of other intangible assets requires a comparison of carrying value to fair value of that particular asset. Fair values of non-goodwill intangible assets are based primarily on projections of future cash flows to be generated from that asset. For instance, cash flows related to a particular trademark would be based on a projected royalty stream attributable to branded product sales, discounted at rates consistent with rates used by market participants. |
Accounts payable [Policy Text Block] | The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal is to capture overall supplier savings, in the form of payment terms or vendor funding, and the agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 28, 2019 , $812 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $605 million of those payment obligations to participating financial institutions. As of December 29, 2018 , $893 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $701 million |
Revenue recognition [Policy Text Block] | The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements. The Company also recognizes revenue from the license of our trademarks granted to third parties who uses these trademarks on their merchandise and revenue from hauling services provided to third parties within certain markets. Revenue from these licenses and hauling services is not material to the Company. Contract balances recognized in the current period that are not the result of current period performance are not material to the Company. The Company also does not incur costs to obtain or fulfill contracts. The Company does not adjust the promised amount of consideration for the effects of significant financing components as the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Company accounts for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. The Company excludes from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales taxes. Performance obligations The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. The customer is invoiced with payment terms which are commensurate with the customer’s credit profile. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company assesses the goods and services promised in its customers’ purchase orders and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised, whether explicitly stated or implied based on customary business practices. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. Significant Judgments The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. Where applicable, future provisions are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company's promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in-store displays and events, feature price discounts, consumer coupons, contests and loyalty programs. The costs of these activities are generally recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. Differences between estimated expense and actual redemptions are normally immaterial and recognized as a change in management estimate in a subsequent period. |
Advertising and promotion [Policy Text Block] | The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense is classified in selling, general and administrative (SGA) expense. The Company classifies promotional payments to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. Promotional allowances 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 promotions are recorded in other current liabilities. |
Research and development [Policy Text Block] | The costs of research and development (R&D) are expensed as incurred and are classified in SGA expense. R&D includes expenditures for new product and process innovation, as well as significant technological improvements to existing products and processes. The Company’s R&D expenditures primarily consist of internal salaries, wages, consulting, and supplies attributable to time spent on R&D activities. Other costs include depreciation and maintenance of research facilities and equipment, including assets at manufacturing locations that are temporarily engaged in pilot plant activities. |
Share-based compensation [Policy Text Block] | The Company uses stock-based compensation, including stock options, restricted stock, restricted stock units, and executive performance shares, to provide long-term performance incentives for its global workforce. The Company classifies pre-tax stock compensation expense in SGA and COGS within its corporate operations. Expense attributable to awards of equity instruments is recorded in capital in excess of par value in the Consolidated Balance Sheet. Certain of the Company’s stock-based compensation plans contain provisions that prorate vesting of awards upon retirement, disability, or death of eligible employees and directors. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. 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 [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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act includes a provision designed to tax currently global intangible low taxed income (GILTI) starting in 2018. Under the provision, a U.S. shareholder is required to include in gross income the amount of its GILTI, which is 50% of the excess of the shareholder’s net tested income of its controlled foreign corporation over the deemed tangible income return. The amount of GILTI included by a U.S. shareholder is computed by aggregating all controlled foreign corporations (CFC). Shareholders are allowed to claim a foreign tax credit for 80 percent of the taxes paid or accrued with respect to the tested income of each CFC, subject to some limitations. The Company elected to account for the GILTI as a period cost and has included an estimate for GILTI in its effective tax rate. |
Derivatives instruments[Policy Text Block] | The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in the Consolidated Statement of Income in other income (expense), net (OIE) or interest expense. In the Consolidated Statement of Cash Flows, settlements of cash flow and fair value hedges are classified as an operating activity; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instrument. Cash flow hedges. Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in other comprehensive income until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive income (loss) (AOCI) to the Consolidated Statement of Income on the same line item as the underlying transaction. Fair value hedges. Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item. Net investment hedges. Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments in AOCI. Derivatives not designated for hedge accounting. Gains and losses on these instruments are recorded in the Consolidated Statement of Income, on the same line item as the underlying hedged item. Foreign currency exchange risk. The Company is exposed to fluctuations in foreign currency cash flows related primarily to third-party purchases, intercompany transactions and when applicable, nonfunctional currency denominated third-party debt. The Company is also exposed to fluctuations in the value of foreign currency investments in subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation of foreign currency denominated earnings to U.S. dollars. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contracts, options, and currency swaps to reduce fluctuations in long or short currency positions. Forward contracts and options are generally less than 18 months duration. Currency swap agreements are established in conjunction with the term of underlying debt issues. For foreign currency cash flow and fair value hedges, the assessment of effectiveness is generally based on changes in spot rates. Changes in time value are reported in OIE. Interest rate risk. The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing and future issuances of variable rate debt. The Company periodically uses interest rate swaps, including forward-starting swaps, to reduce interest rate volatility and funding costs associated with certain debt issues, and to achieve a desired proportion of variable versus fixed rate debt, based on current and projected market conditions. Fixed-to-variable interest rate swaps are accounted for as fair value hedges and the assessment of effectiveness is based on changes in the fair value of the underlying debt, using incremental borrowing rates currently available on loans with similar terms and maturities. Price risk. The Company is exposed to price fluctuations primarily as a result of anticipated purchases of raw and packaging materials, fuel, and energy. The Company has historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months. |
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 17 for more information on reportable segments. Management reviews the Company’s expected long-term rates of return annually; however, the benefit trust investment performance for one particular year does not, by itself, significantly influence this evaluation. The expected rates of return are generally not revised provided these rates fall between the 25th and 75th percentile of expected long-term returns, as determined by the Company’s modeling process. For defined benefit pension and postretirement plans, the Company records the net overfunded or underfunded position as a pension asset or pension liability on the Consolidated Balance Sheet. |
New Accounting Pronouncements, Policy [Policy Text Block] | New accounting standards Income Taxes. In October 2016, the Financial Accounting Standards Board (FASB), as part of their simplification initiative, issued an Accounting Standards Update (ASU) to improve the accounting for income tax consequences of intra-entity transfers of assets other than inventory. The amendments in the ASU eliminate the exception, such that entities should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the period of adoption. The Company early adopted the ASU in the first quarter of 2017. As a result of intercompany transfers of intellectual property, the Company recorded a $39 million reduction in income tax expense during the year ended December 30, 2017. Upon adoption, there was no cumulative effect adjustment to retained earnings. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. In August 2017, the FASB issued an ASU intended to simplify hedge accounting by better aligning an entity’s financial reporting for hedging relationships with its risk management activities. The ASU also simplifies the application of the hedge accounting guidance. The new guidance is effective fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For cash flow hedges existing at the adoption date, the standard requires adoption on a modified retrospective basis with a cumulative-effect adjustment to the Consolidated Balance Sheet as of the beginning of the year of adoption. The amendments to presentation guidance and disclosure requirements are required to be adopted prospectively. The Company adopted the ASU in the first quarter of 2018. The impact of adoption was immaterial to the financial statements. Simplifying the test for goodwill impairment. In January 2017, the FASB issued an ASU to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. The ASU is effective for an entity's annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments in this ASU should be applied on a prospective basis. The Company adopted the ASU in the first quarter of 2018 with no impact. Recognition and measurement of financial assets and liabilities. In January 2016, the FASB issued an ASU which requires equity investments that are not accounted for under the equity method of accounting to be measured at fair value with changes recognized in net income and which updates certain presentation and disclosure requirements. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption can be elected for all financial statements of fiscal years and interim periods that have not yet been issued or that have not yet been made available for issuance. Entities should apply the update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company adopted the updated standard in the first quarter of 2018. The impact of adoption was immaterial to the financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) permitting a company to reclassify the disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 on items within accumulated other comprehensive income (AOCI) to retained earnings. We elected to adopt the ASU effective in the first quarter of 2019 and reclassified the disproportionate income tax effect recorded within AOCI to retained earnings. This resulted in a decrease to AOCI and an increase to retained earnings of $22 million . The adjustment primarily related to deferred taxes previously recorded for pension and other postretirement benefits, as well as hedging positions for debt and net investment hedges. Leases. In February 2016, the FASB issued an ASU which requires the recognition of lease assets and lease liabilities by lessees for all leases with terms greater than 12 months. The distinction between finance leases and operating leases remains, with similar classification criteria as current GAAP to distinguish between capital and operating leases. The principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases are recognized on the Consolidated Balance Sheet. Lessor accounting remains substantially similar to previous GAAP. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company adopted the ASU in the first quarter of 2019, using the optional transition method that allows for a cumulative-effect adjustment in the period of adoption with no restatement of prior periods. The Company elected the package of practical expedients permitted under the transition guidance that allows for the carry forward of historical lease classifications and consistent treatment of initial direct costs for existing leases. The Company also elected to apply the practical expedient that allows the continued historical treatment of land easements. The Company did not elect the practical expedient for the use of hindsight in evaluating the expected lease term of existing leases. The adoption of the ASU resulted in the recording of operating lease assets and operating lease liabilities of approximately $453 million to $461 million respectively, as of December 30, 2018. The difference between the additional lease assets and lease liabilities, represents existing deferred rent and prepaid lease balances that were reclassified on the balance sheet. The adoption of the ASU did not have a material impact to the Company’s Consolidated Statements of Income or Cash Flows. Accounting standards to be adopted in future periods Cloud Computing Arrangements. In August 2018, the FASB issued ASU 2018-15: Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The ASU allows companies to capitalize implementation costs incurred in a hosting arrangement that is a service contract over the term of the hosting arrangement, including periods covered by renewal options that are reasonably certain to be exercised. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and can be applied retrospectively or prospectively. Early adoption is permitted. The Company plans to adopt the ASU in the first quarter of 2020 and apply it prospectively. The adoption is not expected to have a material impact to the Company's Consolidated Financial Statements. Compensation Retirement Benefits. In August 2018, the FASB issued ASU 2018-14: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. The ASU removed disclosures that no longer are considered cost beneficial, clarified the specific requirements of disclosures, and added disclosure requirements identified as relevant. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020 and can be applied retrospectively or prospectively. Early adoption is permitted. The Company is currently assessing when to adopt the ASU and the impact of adoption. |
Divestiures, West Africa Inve_2
Divestiures, West Africa Investments and Acquisitions (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions, by acquisition | The assets and liabilities are included in the Consolidated Balance Sheet as of December 28, 2019 within the North America reporting segment. The acquired assets and assumed liabilities include the following: (millions) October 27, 2017 Current assets $ 42 Goodwill 373 Intangible assets, primarily indefinite-lived brands 203 Current liabilities (23 ) $ 595 The assets and liabilities are included in the Consolidated Balance Sheet as of December 29, 2018 within the Kellogg AMEA reporting segment. The fair value of the acquired assets, assumed liabilities, and noncontrolling interest include the following: (millions) May 2, 2018 Current assets $ 118 Property 41 Goodwill 616 Intangible assets subject to amortization, primarily customer relationships 425 Intangible assets not subject to amortization, primarily distribution rights 373 Deferred tax liability (254 ) Other liabilities (150 ) Noncontrolling interest (552 ) $ 617 |
Business acquisition, pro forma information | The Company's consolidated unaudited pro forma historical net sales and net income, as if Multipro had been acquired at the beginning of 2017, exclusive of the non-cash $245 million gain on the disposition of the equity interest recognized in the second quarter of 2018, are estimated as follows: Year ended (millions) December 29, 2018 December 30, 2017 Net sales $ 13,829 $ 13,511 Net Income attributable to Kellogg Company $ 1,336 $ 1,255 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 America Europe Latin America AMEA Consoli- dated December 30, 2017 $ 4,617 $ 368 $ 244 $ 275 $ 5,504 Additions — — — 616 616 Purchase price allocation adjustment (2 ) — — — (2 ) Purchase price adjustment — — — — — Currency translation adjustment (4 ) (22 ) (26 ) (16 ) (68 ) December 29, 2018 $ 4,611 $ 346 $ 218 $ 875 $ 6,050 Divestiture (191 ) — — — (191 ) Currency translation adjustment 2 1 (5 ) 4 2 December 28, 2019 $ 4,422 $ 347 $ 213 $ 879 $ 5,861 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross carrying amount (millions) North America Europe Latin America AMEA Consoli- dated December 30, 2017 $ 72 $ 45 $ 74 $ 10 $ 201 Additions — — — 425 425 Purchase price allocation adjustment 2 — — — 2 Currency translation adjustment — (2 ) (11 ) (7 ) (20 ) December 29, 2018 $ 74 $ 43 $ 63 $ 428 $ 608 Additions 2 — — — 2 Divestiture (12 ) — — — (12 ) Currency translation adjustment — (2 ) (3 ) 1 (4 ) December 28, 2019 $ 64 $ 41 $ 60 $ 429 $ 594 Accumulated Amortization December 30, 2017 $ 35 $ 18 $ 10 $ 4 $ 67 Amortization 4 3 4 12 23 Currency translation adjustment — (1 ) (2 ) — (3 ) December 29, 2018 $ 39 $ 20 $ 12 $ 16 $ 87 Amortization (a) 4 2 3 18 27 Divestiture (12 ) — — — (12 ) Currency translation adjustment — (1 ) — — (1 ) December 28, 2019 $ 31 $ 21 $ 15 $ 34 $ 101 Intangible assets subject to amortization, net December 30, 2017 $ 37 $ 27 $ 64 $ 6 $ 134 Additions — — — 425 425 Amortization (4 ) (3 ) (4 ) (12 ) (23 ) Purchase price allocation adjustment 2 — — — 2 Currency translation adjustment — (1 ) (9 ) (7 ) (17 ) December 29, 2018 $ 35 $ 23 $ 51 $ 412 $ 521 Additions 2 — — — 2 Amortization (4 ) (2 ) (3 ) (18 ) (27 ) Divestiture — — — — — Currency translation adjustment — (1 ) (3 ) 1 (3 ) December 28, 2019 $ 33 $ 20 $ 45 $ 395 $ 493 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $28 million per year through 2024. |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | (millions) North America Europe Latin America AMEA Consoli- dated December 30, 2017 $ 1,985 $ 420 $ 86 $ 14 $ 2,505 Additions — — — 373 373 Purchase price allocation adjustment — — — — — Currency translation adjustment — (19 ) (13 ) (6 ) (38 ) December 29, 2018 $ 1,985 $ 401 $ 73 $ 381 $ 2,840 Additions 18 — — — 18 Divestiture (765 ) — — — (765 ) Currency translation adjustment — (9 ) (3 ) 2 (10 ) December 28, 2019 $ 1,238 $ 392 $ 70 $ 383 $ 2,083 |
Restructuring and Cost Reduct_2
Restructuring and Cost Reduction Activities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Cost Reduction Activities | Program costs to date (millions) 2019 2018 2017 December 28, 2019 Employee related costs $ 49 $ 63 $ 177 $ 646 Pension curtailment (gain) loss, net (5 ) (30 ) (148 ) (172 ) Asset related costs 21 16 77 306 Asset impairment — 14 — 169 Other costs 48 80 157 684 Total $ 113 $ 143 $ 263 $ 1,633 Program costs to date (millions) 2019 2018 2017 December 28, 2019 North America $ 50 $ 107 $ 345 $ 1,072 Europe 47 3 40 380 Latin America 15 15 9 57 AMEA 3 11 11 101 Corporate (2 ) 7 (142 ) 23 Total $ 113 $ 143 $ 263 $ 1,633 |
Schedule of Exit Cost Reserves | (millions) Employee Related Costs Curtailment Gain Loss, net Asset Impairment Asset Related Costs Other Costs Total Liability as of December 30, 2017 $ 97 $ — $ — $ — $ 63 $ 160 2018 restructuring charges 63 (30 ) 14 16 80 143 Cash payments (67 ) — — (9 ) (133 ) (209 ) Non-cash charges and other — 30 (14 ) (6 ) — 10 Liability as of December 29, 2018 $ 93 $ — $ — $ 1 $ 10 $ 104 2019 restructuring charges 49 (5 ) — 21 48 113 Cash payments (81 ) — — (10 ) (57 ) (148 ) Non-cash charges and other — 5 — (12 ) — (7 ) Liability as of December 28, 2019 $ 61 $ — $ — $ — $ 1 $ 62 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Changes in Comprehensive Income | 2019 2018 2017 Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax amount benefit amount amount benefit amount amount benefit amount Net income $ 977 $ 1,344 $ 1,254 Other comprehensive income: Foreign currency translation adjustments $ 100 $ (19 ) 81 $ 5 $ (53 ) $ (48 ) $ (34 ) 113 79 Cash flow hedges: Unrealized gain (loss) on cash flow hedges 5 (1 ) 4 3 (1 ) 2 — — — Reclassification to net income 4 (1 ) 3 8 (2 ) 6 9 (3 ) 6 Postretirement and postemployment benefits: Amounts arising during the period: Net experience gain (loss) (16 ) 5 (11 ) (8 ) 1 (7 ) 44 (12 ) 32 Prior service credit (cost) 3 (1 ) 2 1 — 1 — — — Reclassification to net income: Net experience (gain) loss (5 ) 1 (4 ) (5 ) 1 (4 ) — — — Prior service (credit) cost (1 ) — (1 ) — — — 1 — 1 Available-for-sale securities: Unrealized gain (loss) 4 — 4 — — — — — — Reclassification to net income (4 ) — (4 ) — — — — — — Other comprehensive income (loss) $ 90 $ (16 ) $ 74 $ 4 $ (54 ) $ (50 ) $ 20 $ 98 $ 118 Comprehensive income $ 1,051 $ 1,294 $ 1,372 Net income (loss) attributable to noncontrolling interests 17 8 — Other comprehensive income (loss) attributable to noncontrolling interests — (7 ) — Comprehensive income attributable to Kellogg Company $ 1,034 $ 1,293 $ 1,372 |
Reclassification out of AOCI | Details about AOCI Components Amount reclassified from AOCI Line item impacted within Income Statement (millions) 2019 2018 2017 (Gains) and losses on cash flow hedges: Foreign currency exchange contracts $ — $ — $ (1 ) COGS Interest rate contracts 4 8 10 Interest expense $ 4 $ 8 $ 9 Total before tax (1 ) (2 ) (3 ) Tax expense (benefit) $ 3 $ 6 $ 6 Net of tax Amortization of postretirement and postemployment benefits: Net experience (gains) $ (5 ) $ (5 ) $ — OIE Prior service (credit) cost (1 ) — 1 OIE $ (6 ) $ (5 ) $ 1 Total before tax 1 1 — Tax expense (benefit) $ (5 ) $ (4 ) $ 1 Net of tax (Gains) losses on available-for-sale securities Corporate bonds $ (4 ) $ — $ — OIE $ (4 ) $ — $ — Total before tax — — — Tax expense (benefit) $ (4 ) $ — $ — Net of tax Total reclassifications $ (6 ) $ 2 $ 7 Net of tax |
Summary of Accumulated Other Comprehensive Income (Loss) | (millions) December 28, 2019 December 29, 2018 Foreign currency translation adjustments $ (1,399 ) $ (1,467 ) Cash flow hedges — unrealized net gain (loss) (60 ) (53 ) Postretirement and postemployment benefits: Net experience gain (loss) 7 23 Prior service credit (cost) 4 (3 ) Total accumulated other comprehensive income (loss) $ (1,448 ) $ (1,500 ) |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Schedule of supplemental operating lease information | (millions) Year ended December 28, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 134 Right-of-use assets obtained in exchange for new operating lease liabilities $ 164 Weighted-average remaining lease term - operating leases 7 years Weighted-average discount rate - operating leases 2.9% |
Operating leases future maturities | Under the previous lease standard (Topic 840), at December 29, 2018, future minimum annual lease commitments under non-cancelable operating leases were as follows: (millions) Operating leases 2019 $ 121 2020 97 2021 73 2022 57 2023 48 2024 and beyond 129 Total minimum payments $ 525 At December 28, 2019, future maturities of operating leases were as follows: (millions) Operating leases 2020 $ 129 2021 98 2022 80 2023 67 2024 55 2025 and beyond 181 Total minimum payments $ 610 Less interest (63 ) Present value of lease liabilities $ 547 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | (millions) 2019 2018 Principal amount Effective interest rate Principal amount Effective interest rate U.S. commercial paper $ 3 1.78 % $ 15 2.75 % Europe commercial paper — — — — Bank borrowings 104 161 Total $ 107 $ 176 |
Schedule of Debt [Table Text Block] | The following table presents the components of long-term debt at year end December 28, 2019 and December 29, 2018 : (millions) 2019 2018 (a) 4.50% U.S. Dollar Notes due 2046 $ 638 $ 638 (b) 7.45% U.S. Dollar Debentures due 2031 621 621 (c) 4.30% U.S. Dollar Notes due 2028 595 595 (d) 3.40% U.S. Dollar Notes due 2027 596 595 (e) 3.25% U.S. Dollar Notes due 2026 741 731 (f) 1.25% Euro Notes due 2025 689 693 (g) 1.00% Euro Notes due 2024 692 697 (h) 2.65% U.S. Dollar Notes due 2023 539 585 (i) 2.75% U.S. Dollar Notes due 2023 201 198 (j) 3.125% U.S. Dollar Notes due 2022 353 351 (k) 0.80% Euro Notes due 2022 669 684 (l) 1.75% Euro Notes due 2021 558 570 (m) 3.25% U.S. Dollar Notes due 2021 198 399 (n) 4.0% U.S. Dollar Notes due 2020 601 848 (o) 4.15% U.S. Dollar Notes due 2019 — 503 Other 124 9 7,815 8,717 Less current maturities (620 ) (510 ) Balance at year end $ 7,195 $ 8,207 (a) In March 2016, the Company issued $650 million of thirty-year 4.50% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's 7.45% U.S. Dollar Debentures due 2031 and a portion of its commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 4.59% at December 28, 2019. (b) In March 2001, the Company issued long-term debt instruments, primarily to finance the acquisition of Keebler Foods Company, of which $625 million of thirty-year 7.45% Debentures remain outstanding. The effective interest rate on the Debentures, reflecting issuance discount and hedge settlement, was 7.56% at December 28, 2019. The Debentures contain standard events of default and covenants, and can be redeemed in whole or in part by the Company at any time at prices determined under a formula (but not less than 100% of the principal amount plus unpaid interest to the redemption date). (c) In May 2018, the Company issued $600 million of ten-year 4.30% Senior Notes due 2028, using the net proceeds for general corporate purposes, which included repayment of the Company's $400 million , seven-year 3.25% U.S. Dollar Notes due 2018 at maturity, and the repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of ownership interests in TAF and Multipro. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 4.34% at December 28, 2019. (d) In November 2017, the Company issued $600 million of ten-year 3.40% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of Chicago Bar Company LLC, the maker of RXBAR. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 3.49% at December 28, 2019. (e) In March 2016, the Company issued $750 million of ten-year 3.25% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's 7.45% U.S. Dollar Debentures due 2031 and a portion of its commercial paper borrowings. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 4.11% at December 28, 2019 . In September 2016, the Company entered into interest rate swaps with notional amounts totaling $300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In October 2018, the Company entered into interest rate swaps with notional amounts totaling $450 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $6 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (f) In March 2015, the Company issued €600 million (approximately $671 million at December 28, 2019 , which reflects the discount, fees and translation adjustments) of ten-year 1.25% Euro Notes due 2025, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 1.58% at December 28, 2019 . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. In May 2017, the Company entered into interest rate swaps with notional amounts totaling €600 million , which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized gain of $20 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (g) In May 2016, the Company issued €600 million (approximately $671 million USD at December 28, 2019 , which reflects the discount, fees and translation adjustments) of eight-year 1.00% Euro Notes due 2024. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand and additional commercial paper borrowings, repayment of the Company's $750 million , seven-year 4.45% U.S. Dollar Notes due 2016 at maturity. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 0.21% at December 28, 2019 . In November 2016, the Company entered into interest rate swaps with notional amounts totaling €300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In October 2018, the Company entered into interest rate swaps with notional amounts totaling €300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. The Company subsequently terminated these swaps. In May of 2019, the Company entered into interest rate swaps with notional amounts totaling €600 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The fair value adjustment for the interest rate swaps was $3 million at December 28, 2019 , recorded as an increase in the hedged debt balance. (h) In November 2016, the Company issued $600 million of seven-year 2.65% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of the Company's 1.875% U.S. Dollar Notes due 2016 at maturity and a portion of its commercial paper borrowings. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 3.39% at December 28, 2019 . In 2016, the Company entered into interest rate swaps with notional amounts totaling $300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $9 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. In 2019, the Company redeemed $50 million of the Notes. In connection with the debt redemption, the Company incurred $2 million of interest expense, consisting primarily of a premium on the tender offer. (i) In February 2013, the Company issued $400 million ( $189 million previously redeemed) of ten-year 2.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including, together with cash on hand, to repay a portion of the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The effective interest rate on these Notes, reflecting issuance discount hedge settlement and interest rate swaps, was 4.11% . In September 2016, the Company entered into interest rate swaps with notional amounts totaling $211 million , which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $9 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (j) In May 2012, the Company issued $700 million ( $342 million previously redeemed) of ten-year 3.125% U.S. Dollar Notes, using the net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 3.74% at December 28, 2019 . During 2016 and 2018, the Company entered into interest rate swaps which effectively converted all or a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting $4 million loss at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. (k) In May 2017, the Company issued €600 million (approximately $671 million USD at December 28, 2019 , which reflects the discount and translation adjustments) of five-year 0.80% Euro Notes due 2022, using the proceeds from these Notes for general corporate purposes, including, repayment of the Company's $400 million , five-year 1.75% U.S. Dollar Notes due 2017 at maturity. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 0.87% . The Notes were designated as a net investment hedge of the Company's investment in its Europe subsidiary when issued. (l) In May 2014, the Company issued €500 million (approximately $559 million at December 28, 2019 , which reflects the discount and translation adjustments) of seven-year 1.75% Euro Notes due 2021, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.37% at December 28, 2019. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. (m) In May 2018, the Company issued $400 million of three-year 3.25% Senior Notes due 2021, using the net proceeds for general corporate purposes, which included repayment of the Company's $400 million , seven-year 3.25% U.S. Dollar Notes due 2018 at maturity, and the repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of ownership interests in TAF and Multipro. The effective interest rate on the Notes, reflecting issuance discount, was 3.39% as December 28, 2019. In 2019, the Company redeemed $202 million of the Notes. In connection with the dept redemption, the Company incurred $6 million of interest expense, consisting primarily of a premium on the tender offer. (n) In December 2010, the Company issued $1.0 billion ( $150 million previously redeemed) of ten-year 4.0% fixed rate U.S. Dollar Notes, using the net proceeds from these Notes for incremental pension and postretirement benefit plan contributions and to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 3.37% at December 28, 2019 . During 2016, the Company entered into interest rate swaps, which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps and the resulting gain on termination at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. In 2019, the Company redeemed $248 million of the Notes. In connection with the debt redemption, the Company incurred $6 million of interest expense, consisting primarily of a premium on the tender offer, which was partially offset by accelerated gains on pre-issuance interest rate hedges. (o) In November 2009, the Company issued $500 million of ten-year 4.15% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its 6.6% U.S. Dollar Notes due 2011. In 2012 and 2015, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2019, the Company redeemed $191 million of the Notes. In connection with the August 2019 debt redemption, the Company incurred $1 million of interest expense, consisting primarily of a premium on the tender offer. In September of 2019, the Company redeemed the remaining $309 million of the Notes. In connection with the September 2019 debt redemption, the company incurred $1 million of interest expense, consisting primarily of a premium on the tender offer. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Compensation Expense For Equity Programs And Related Tax Benefits Text Block [Table Text Block] | (millions) 2019 2018 2017 Pre-tax compensation expense $ 61 $ 64 $ 71 Related income tax benefit $ 16 $ 16 $ 26 |
Schedule of Cash and Tax Benefits Received Upon Exercise of Stock Options and Similar Instruments [Table Text Block] | (millions) 2019 2018 2017 Total cash received from option exercises and similar instruments $ 64 $ 167 $ 97 Tax windfall (shortfall) classified as cash flow from operating activities $ (2 ) $ 11 $ 4 |
Schedule of Stock Option Valuation Model Assumptions for Grants [Table Text Block] | Stock option valuation model assumptions for grants within the year ended: 2019 2018 2017 Weighted-average expected volatility 18.00 % 18.00 % 18.00 % Weighted-average expected term (years) 6.60 6.60 6.60 Weighted-average risk-free interest rate 2.59 % 2.82 % 2.26 % Dividend yield 3.90 % 3.00 % 2.80 % Weighted-average fair value of options granted $ 6.78 $ 10.00 $ 10.14 |
Share-based Payment Arrangement, Activity [Table Text Block] | Employee and director stock options Shares (millions) Weighted- average exercise price Weighted- average remaining contractual term (yrs.) Aggregate intrinsic value (millions) Outstanding, beginning of year 14 $ 66 Granted 3 57 Exercised (1 ) 56 Forfeitures and expirations (2 ) 67 Outstanding, end of year 14 $ 65 4.9 $ 55 Exercisable, end of year 10 $ 65 6.1 $ 86 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2018 2017 Outstanding, beginning of year 14 15 Granted 3 2 Exercised (2 ) (2 ) Forfeitures and expirations (1 ) (1 ) Outstanding, end of year 14 14 Exercisable, end of year 10 10 Weighted-average exercise price: Outstanding, beginning of year $ 64 $ 62 Granted 70 73 Exercised 58 57 Forfeitures and expirations 71 70 Outstanding, end of year $ 66 $ 64 Exercisable, end of year $ 63 $ 60 |
Summary of Restricted Stock Summary [Table Text Block] | Employee restricted stock and restricted stock units Shares (thousands) Weighted- average grant-date fair value Non-vested, beginning of year 1,708 $ 65 Granted 287 55 Vested (469 ) 68 Forfeited (340 ) 62 Non-vested, end of year 1,186 $ 61 Additionally, restricted stock unit activity for 2018 and 2017 is presented in the following table: Employee restricted stock and restricted stock units 2018 2017 Shares (in thousands): Non-vested, beginning of year 1,673 1,166 Granted 772 776 Vested (507 ) (109 ) Forfeited (230 ) (160 ) Non-vested, end of year 1,708 1,673 Weighted-average exercise price: Non-vested, beginning of year $ 65 $ 63 Granted 63 65 Vested 59 58 Forfeited 64 65 Non-vested, end of year $ 65 $ 65 |
Pension Benefits (Tables)
Pension Benefits (Tables) - Pension | 12 Months Ended |
Dec. 28, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Company Plan Benefit Expense [Table Text Block] | (millions) 2019 2018 Change in projected benefit obligation Beginning of year $ 5,117 $ 5,648 Service cost 36 87 Interest cost 172 165 Plan participants’ contributions 1 1 Amendments 3 6 Actuarial (gain)loss 766 (384 ) Benefits paid (458 ) (280 ) Curtailment and special termination benefits (13 ) (36 ) Other — 1 Foreign currency adjustments 30 (91 ) End of year $ 5,654 $ 5,117 Change in plan assets Fair value beginning of year $ 4,677 $ 5,043 Actual return on plan assets 874 (299 ) Employer contributions 10 270 Plan participants’ contributions 1 1 Benefits paid (426 ) (236 ) Other — (1 ) Foreign currency adjustments 34 (101 ) Fair value end of year $ 5,170 $ 4,677 Funded status $ (484 ) $ (440 ) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 241 $ 228 Other current liabilities (20 ) (17 ) Other liabilities (705 ) (651 ) Net amount recognized $ (484 ) $ (440 ) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 37 $ 41 Net amount recognized $ 37 $ 41 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | (millions) 2019 2018 Projected benefit obligation $ 4,061 $ 3,725 Accumulated benefit obligation $ 4,033 $ 3,689 Fair value of plan assets $ 3,362 $ 3,081 |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2019 2018 2017 Service cost $ 36 $ 87 $ 96 Interest cost 172 165 164 Expected return on plan assets (340 ) (361 ) (371 ) Amortization of unrecognized prior service cost 7 8 9 Recognized net (gain) loss 235 269 (36 ) Net periodic benefit cost 110 168 (138 ) Curtailment and special termination benefits (13 ) (30 ) (151 ) Pension (income) expense: Defined benefit plans 97 138 (289 ) Defined contribution plans 20 27 34 Total $ 117 $ 165 $ (255 ) |
Defined Benefit Plan, Assumptions [Table Text Block] | 2019 2018 2017 Discount rate 2.9 % 3.9 % 3.3 % Long-term rate of compensation increase 3.4 % 3.8 % 3.9 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2019 2018 2017 Discount rate 3.7 % 3.3 % 3.6 % Long-term rate of compensation increase 4.0 % 3.9 % 3.9 % Long-term rate of return on plan assets 7.3 % 7.4 % 8.1 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 14 $ — $ — $ — $ 14 Corporate stock, common: Domestic 338 — — — 338 International 16 — — — 16 Mutual funds: International equity — — — 36 36 Domestic debt — 4 — — 4 Collective trusts: Domestic equity — — — 498 498 International equity — 117 — 816 933 Other international debt — 718 — 378 1,096 Limited partnerships — — — 228 228 Bonds, corporate — 443 — 211 654 Bonds, government — 774 — — 774 Bonds, other — 70 — — 70 Real estate — — — 412 412 Other — 61 — 36 97 Total $ 368 $ 2,187 $ — $ 2,615 $ 5,170 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at December 29, 2018 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 75 $ — $ — $ — $ 75 Corporate stock, common: Domestic 412 — — — 412 International 10 1 — — 11 Mutual funds: International equity — 7 — 34 41 Domestic debt — 53 — — 53 Collective trusts: Domestic equity — — — 437 437 International equity — 92 — 1,330 1,422 Other international debt — — — 331 331 Limited partnerships — — — 283 283 Bonds, corporate — 498 — — 498 Bonds, government — 562 — — 562 Bonds, other — 62 — — 62 Real estate — — — 378 378 Other — 55 — 57 112 Total $ 497 $ 1,330 $ — $ 2,850 $ 4,677 (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. |
Nonpension Postretirement and_2
Nonpension Postretirement and Postemployment Benefits (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Nonpension Postretirement [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (millions) 2019 2018 Change in accumulated benefit obligation Beginning of year $ 1,069 $ 1,190 Service cost 15 18 Interest cost 37 36 Actuarial (gain) loss 59 (105 ) Benefits paid (60 ) (67 ) Curtailments (6 ) — Amendments — — Foreign currency adjustments 2 (3 ) End of year $ 1,116 $ 1,069 Change in plan assets Fair value beginning of year $ 1,140 $ 1,292 Actual return on plan assets 282 (91 ) Employer contributions 18 17 Benefits paid (76 ) (78 ) Fair value end of year $ 1,364 $ 1,140 Funded status $ 248 $ 71 Amounts recognized in the Consolidated Balance Sheet consist of Other non-current assets $ 283 $ 107 Other current liabilities (2 ) (2 ) Other liabilities (33 ) (34 ) Net amount recognized $ 248 $ 71 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (59 ) (68 ) Net amount recognized $ (59 ) $ (68 ) |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2019 2018 2017 Service cost $ 15 $ 18 $ 18 Interest cost 37 36 37 Expected return on plan assets (86 ) (94 ) (98 ) Amortization of unrecognized prior service credit (9 ) (9 ) (9 ) Recognized net (gain) loss (137 ) 81 (90 ) Net periodic benefit cost (180 ) 32 (142 ) Curtailment (6 ) — 3 Postretirement benefit expense: Defined benefit plans (186 ) 32 (139 ) Defined contribution plans 11 11 16 Total $ (175 ) $ 43 $ (123 ) |
Defined Benefit Plan, Assumptions [Table Text Block] | 2019 2018 2017 Discount rate 3.3 % 4.3 % 3.6 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2019 2018 2017 Discount rate 4.0 % 3.6 % 4.0 % Long-term rate of return on plan assets 7.3 % 7.5 % 8.5 % |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | (millions) One percentage point increase One percentage point decrease Effect on total of service and interest cost components $ 3 $ (2 ) Effect on postretirement benefit obligation 77 (66 ) |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 8 $ 1 $ — $ — $ 9 Corporate stock, common: Domestic 242 — — — 242 International 11 — — — 11 Mutual funds: Domestic equity — 35 — — 35 International equity — — — — — Domestic debt — 53 — — 53 Collective trusts: Domestic equity — — — 286 286 International equity — — — 293 293 Limited partnerships — — — 124 124 Bonds, corporate — 136 — — 136 Bonds, government — 77 — — 77 Bonds, other — 9 — — 9 Real estate — — — 88 88 Other — 1 — — 1 Total $ 261 $ 312 $ — $ 791 $ 1,364 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at December 29, 2018 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total NAV (practical expedient)(a) Total Cash and cash equivalents $ 2 $ 1 $ — $ — $ 3 Corporate stock, common: Domestic 108 — — — 108 International 5 1 — — 6 Mutual funds: Domestic equity — 37 — — 37 International equity — — — — — Domestic debt — 42 — — 42 Collective trusts: Domestic equity — — — 281 281 International equity — — — 228 228 Limited partnerships — — — 199 199 Bonds, corporate — 95 — — 95 Bonds, government — 50 — — 50 Bonds, other — 7 — 83 90 Other — 1 — — 1 Total $ 115 $ 234 $ — $ 791 $ 1,140 (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) 2019 2018 Change in accumulated benefit obligation Beginning of year $ 42 $ 43 Service cost 3 3 Interest cost 2 1 Actuarial (gain)loss 8 3 Benefits paid (7 ) (8 ) Amendments — — Foreign currency adjustments — — End of year $ 48 $ 42 Funded status $ (48 ) $ (42 ) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (7 ) $ (5 ) Other liabilities (41 ) (37 ) Net amount recognized $ (48 ) $ (42 ) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 3 $ 4 Net experience gain (22 ) (38 ) Net amount recognized $ (19 ) $ (34 ) |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2019 2018 2017 Service cost $ 3 $ 3 $ 6 Interest cost 2 1 3 Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (5 ) (5 ) — Net periodic benefit cost $ 1 $ — $ 10 Settlement cost (3 ) — — Postemployment benefit expense $ (2 ) $ — $ 10 |
Schedule of Expected Benefit Payments [Table Text Block] | (millions) Postretirement Postemployment 2020 $ 66 $ 8 2021 67 6 2022 67 5 2023 68 5 2024 68 5 2025-2029 337 20 |
Multipemployer Pension and Po_2
Multipemployer Pension and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Multiemployer Plans [Abstract] | |
Schedule of Multiemployer Plans [Table Text Block] | PPA Zone Status Contributions (millions) Pension trust fund EIN/PN 2019 2018 FIP/RP Status 2019 2018 2017 Surcharge Imposed Expiration Date of CBA Bakery and Confectionery Union and Industry International Pension Fund (a) 52-6118572 / Red - 12/31/2019 Red - 12/31/2018 Implemented $ 5.9 $ 6.5 $ 6.6 Yes 12/17/2020 to Central States, Southeast and Southwest Areas Pension Fund 36-6044243 / Red - 12/31/2019 Red - 12/31/2018 Implemented 1.3 1.9 4.8 Yes (c) Western Conference of Teamsters Pension Trust 91-6145047 / Green - 12/31/2019 Green - 12/31/2018 NA 0.8 1.0 1.4 No 3/26/2022 (d) Other Plans 0.7 1.0 3.1 (e) Total contributions: $ 8.7 $ 10.4 $ 15.9 (a) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 80 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/16/2021. (b) During 2017, the Company terminated certain CBAs covered by these funds. Because of the Company's level of continuing involvement in each fund, the Company does not anticipate being subject to a withdrawal liability. The Company does not expect 2020 contributions to be materially different than 2019. (c) During 2019, the Company terminated CBAs covered by this fund. As a result, the Company has withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect to make 2020 contributions. (d) During 2017, the Company terminated certain CBAs covered by this fund. As a result, the Company has partially withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect 2020 contributions to be materially different than 2019. (e) During 2017 and 2019, the Company terminated the CBAs covered by certain of these funds. As a result, for the impacted funds, the Company recognized expense for the estimated withdrawal liability in each year and no longer made contributions following the termination. The Company does not expect 2020 contributions to the remaining funds to be materially different from 2019. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block] | (millions) 2019 2018 2017 Income before income taxes United States $ 938 $ 851 $ 1,097 Foreign 367 478 560 1,305 1,329 1,657 Income taxes Currently payable Federal 345 7 358 State 52 28 31 Foreign 77 99 79 474 134 468 Deferred Federal (124 ) 109 (41 ) State (29 ) (59 ) 8 Foreign — (3 ) (25 ) (153 ) 47 (58 ) Total income taxes $ 321 $ 181 $ 410 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2019 2018 2017 U.S. statutory income tax rate 21.0 % 21.0 % 35.0 % Foreign rates varying from U.S. statutory rate (2.5 ) (3.0 ) (6.7 ) Excess tax benefits on share-based compensation — (0.3 ) (0.3 ) State income taxes, net of federal benefit 1.3 1.5 1.4 Cost (benefit) of remitted and unremitted foreign earnings 0.8 0.7 0.1 Legal entity restructuring, deferred tax impact — (3.3 ) — Discretionary pension contributions — (2.3 ) — Revaluation of investment in foreign subsidiary 2.5 — — Net change in valuation allowance (1.6 ) 2.0 (0.4 ) U.S. deduction for qualified production activities — — (1.4 ) Statutory rate changes, deferred tax impact 0.3 — (9.0 ) U.S. deemed repatriation tax — (1.2 ) 10.4 Intangible property transfer — — (2.4 ) Divestiture 2.9 — — Out-of-period adjustment 3.0 — — Other (3.1 ) (1.5 ) (1.9 ) Effective income tax rate 24.6 % 13.6 % 24.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets Deferred tax liabilities (millions) 2019 2018 2019 2018 U.S. state income taxes $ — $ — $ 6 $ 19 Advertising and promotion-related 11 11 — — Wages and payroll taxes 15 20 — — Inventory valuation 17 14 — — Employee benefits 143 132 — — Operating loss, credit and other carryforwards 279 270 — — Hedging transactions 9 10 — — Depreciation and asset disposals — — 217 220 Trademarks and other intangibles — — 526 613 Deferred compensation 19 20 — — Stock options 29 31 — — Other 9 26 — — 531 534 749 852 Less valuation allowance (146 ) (166 ) — — Total deferred taxes $ 385 $ 368 $ 749 $ 852 Net deferred tax asset (liability) $ (364 ) $ (484 ) Classified in balance sheet as: Other assets $ 231 $ 246 Other liabilities (595 ) (730 ) Net deferred tax asset (liability) $ (364 ) $ (484 ) |
Summary of Valuation Allowance [Table Text Block] | (millions) 2019 2018 2017 Balance at beginning of year $ 166 $ 153 $ 131 Additions charged to income tax expense 25 29 35 Reductions credited to income tax expense (a) (47 ) (1 ) (28 ) Currency translation adjustments 2 (15 ) 15 Balance at end of year $ 146 $ 166 $ 153 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | (millions) 2019 2018 2017 Balance at beginning of year $ 97 $ 60 $ 63 Tax positions related to current year: Additions (a) 5 51 6 Tax positions related to prior years: Additions 4 4 5 Reductions (14 ) (13 ) (8 ) Settlements (1 ) (4 ) (4 ) Lapses in statutes of limitation (1 ) (1 ) (2 ) Balance at end of year $ 90 $ 97 $ 60 |
Derivative Instruments and Fa_2
Derivative Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Total Notional Amounts of the Company's Derivative Instruments | (millions) 2019 2018 Foreign currency exchange contracts $ 2,628 $ 1,863 Cross-currency contracts 1,540 1,197 Interest rate contracts 1,871 1,608 Commodity contracts 524 417 Total $ 6,563 $ 5,085 |
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 28, 2019 and December 29, 2018 : Derivatives designated as hedging instruments 2019 2018 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 45 $ 45 $ — $ — $ — Other Assets — 40 40 — 79 79 Interest rate contracts (a): Other current assets — 7 7 — — — Other assets — 4 4 — 17 17 Total assets $ — $ 96 $ 96 $ — $ 96 $ 96 Liabilities: Interest rate contracts (a): Other current liabilities $ — $ (4 ) $ (4 ) $ — $ — $ — Other liabilities — — — — (22 ) (22 ) Total liabilities $ — $ (4 ) $ (4 ) $ — $ (22 ) $ (22 ) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $0.7 billion and $1.6 billion as of December 28, 2019 and December 29, 2018 , respectively. Derivatives not designated as hedging instruments 2019 2018 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 12 $ 12 $ — $ 3 $ 3 Commodity contracts: Other current assets 9 — 9 3 — 3 Total assets $ 9 $ 12 $ 21 $ 3 $ 3 $ 6 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — (18 ) $ (18 ) $ — $ (4 ) $ (4 ) Interest rate contracts: Other liabilities — (13 ) (13 ) — — — Commodity contracts: Other current liabilities (1 ) — (1 ) (9 ) — (9 ) Total liabilities $ (1 ) $ (31 ) $ (32 ) $ (9 ) $ (4 ) $ (13 ) |
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 28, 2019 and December 29, 2018 . (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 28, December 29, December 28, December 29, Interest rate contracts Current maturities of long-term debt $ 493 $ 503 $ — $ 3 Interest rate contracts Long-term debt $ 2,643 $ 3,354 $ 19 $ (18 ) (a) The current maturities of hedged long-term debt includes $3 million of hedging adjustment on discontinued hedging relationships as of December 29, 2018 . The hedged long-term debt includes $15 million and $(12) million of hedging adjustment on discontinued hedging relationships as of December 28, 2019 and December 29, 2018 , respectively. |
Offsetting Assets | As of December 28, 2019 Gross Amounts Not Offset in the Consolidated Balance Sheet Amounts Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received/ Posted Net Amount Total asset derivatives $ 117 $ (27 ) $ (7 ) $ 83 Total liability derivatives $ (36 ) $ 27 $ — $ (9 ) As of December 29, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheet Amounts Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received/ Posted Net Amount Total asset derivatives $ 102 $ (27 ) $ (2 ) $ 73 Total liability derivatives $ (35 ) $ 27 $ — $ (8 ) |
Offsetting Liabilities | As of December 28, 2019 Gross Amounts Not Offset in the Consolidated Balance Sheet Amounts Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received/ Posted Net Amount Total asset derivatives $ 117 $ (27 ) $ (7 ) $ 83 Total liability derivatives $ (36 ) $ 27 $ — $ (9 ) As of December 29, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheet Amounts Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received/ Posted Net Amount Total asset derivatives $ 102 $ (27 ) $ (2 ) $ 73 Total liability derivatives $ (35 ) $ 27 $ — $ (8 ) |
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 28, 2019 and December 29, 2018 were as follows: Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) recognized in AOCI Gain (loss) excluded from assessment of hedge effectiveness Location of gain (loss) in income of excluded component 2019 2018 2019 2018 Foreign currency denominated long-term debt $ 60 $ 129 $ — $ — Cross-currency contracts 6 79 34 16 Interest expense Total $ 66 $ 208 $ 34 $ 16 Derivatives not designated as hedging instruments (millions) Location of gain (loss) recognized in income Gain (loss) recognized in income 2019 2018 Foreign currency exchange contracts COGS $ (16 ) $ 19 Foreign currency exchange contracts SGA (2 ) 1 Foreign currency exchange contracts OIE (4 ) — Commodity contracts COGS 4 (23 ) Commodity contracts SGA — — Total $ (18 ) $ (3 ) The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended December 28, 2019 and December 29, 2018 : December 28, 2019 December 29, 2018 (millions) 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 $ 284 $ 287 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items (33 ) (5 ) Derivatives designated as hedging instruments 37 9 Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (4 ) (8 ) Foreign exchange contracts: Amount of gain (loss) reclassified from AOCI into income — — |
Available-for-sale securities | The following is a summary of the carrying and market values of the Company's available for sale securities: 2019 2018 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ — $ — $ — $ 59 $ — $ 59 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Data Net Sales And Gross Profit [Table Text Block] | Net sales Gross profit (millions) 2019 2018 2019 2018 First $ 3,522 $ 3,401 $ 1,107 $ 1,252 Second 3,461 3,360 1,186 1,209 Third 3,372 3,469 1,000 1,176 Fourth 3,223 3,317 1,088 1,089 $ 13,578 $ 13,547 $ 4,381 $ 4,726 |
Schedule Of Quarterly Financial Data Net Income And Earnings Per Share [Table Text Block] | Net income (loss) attributable to Kellogg Company Per share amounts (millions) 2019 2018 2019 2018 Basic Diluted Basic Diluted First $ 282 $ 444 $ 0.82 $ 0.82 $ 1.28 $ 1.27 Second 286 596 0.84 0.84 1.72 1.71 Third 247 380 0.73 0.72 1.10 1.09 Fourth (a) 145 (84 ) 0.43 0.42 (0.24 ) (0.24 ) $ 960 $ 1,336 |
Schedule Of Quarterly Financial Data Dividends Per Share And Stock Prices [Table Text Block] | Quarter 2019 2018 First $ 0.56 $ 0.54 Second 0.56 0.54 Third 0.57 0.56 Fourth 0.57 0.56 $ 2.26 $ 2.20 |
Schedule Of Quarterly Financial Data Charges Gain In Operating Profit [Table Text Block] | During 2019 , the Company recorded the following in operating profit and other income (expense): 2019 (millions) First Second Third Fourth Full Year Operating profit Restructuring and cost reduction charges $ (8 ) $ (65 ) $ (18 ) $ (27 ) $ (118 ) Gains / (losses) on mark-to-market adjustments (42 ) 46 (11 ) — (7 ) Other income (expense) Restructuring and cost reduction charges $ — $ — $ — $ 5 $ 5 Gains / (losses) on mark-to-market adjustments 1 (11 ) 32 (120 ) $ (98 ) During 2018 , the Company recorded the following in operating profit and other income (expense): 2018 (millions) First Second Third Fourth Full Year Operating profit Restructuring and cost reduction charges $ (20 ) $ (5 ) $ (64 ) $ (84 ) $ (173 ) Gains / (losses) on mark-to-market adjustments 30 3 (11 ) (15 ) 7 Other income (expense) Restructuring and cost reduction charges $ — $ — $ 30 $ — $ 30 Gains / (losses) on mark-to-market adjustments 9 2 36 (397 ) $ (350 ) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (millions) 2019 2018 2017 Net sales North America 8,390 8,688 8,673 Europe 2,092 2,122 2,050 Latin America 940 947 944 AMEA 2,156 1,790 1,187 Consolidated $ 13,578 $ 13,547 $ 12,854 Operating profit North America (a)(b) 1,215 1,397 1,246 Europe 222 251 220 Latin America 85 102 108 AMEA 195 174 140 Total Reportable Segments 1,717 1,924 1,714 Corporate (b) (316 ) (218 ) (327 ) Consolidated $ 1,401 $ 1,706 $ 1,387 Depreciation and amortization (c) North America 291 341 330 Europe 80 78 78 Latin America 30 37 37 AMEA 76 57 35 Total Reportable Segments 477 513 480 Corporate 7 3 1 Consolidated $ 484 $ 516 $ 481 (a) During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million . (b) Corporate operating profit in 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 and 2017 totaling approximately $48 million and $47 million , respectively. (c) Includes asset impairment charges as discussed in Note 14 . |
Schedule of Interest Expense and Income Tax Expense by Segment [Table Text Block] | (millions) 2019 2018 2017 Interest expense North America $ — $ 1 $ 3 Europe 6 6 14 Latin America 9 3 2 AMEA 14 9 4 Corporate 255 268 233 Consolidated $ 284 $ 287 $ 256 Income taxes Europe $ 48 $ 23 $ (37 ) Latin America 16 30 33 AMEA 23 23 10 Corporate & North America 234 105 404 Consolidated $ 321 $ 181 $ 410 |
Schedule of Additions to Long Lived Assets by Segment [Table Text Block] | (millions) 2019 2018 2017 Additions to long-lived assets North America $ 356 $ 336 $ 329 Europe 83 84 102 Latin America 41 76 32 AMEA 101 79 34 Corporate 5 3 4 Consolidated $ 586 $ 578 $ 501 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | (millions) 2019 2018 2017 Net sales United States $ 7,885 $ 8,176 $ 8,160 All other countries 5,693 5,371 4,694 Consolidated $ 13,578 $ 13,547 $ 12,854 Long-lived assets United States $ 1,996 $ 2,197 $ 2,195 All other countries 1,616 1,534 1,521 Consolidated $ 3,612 $ 3,731 $ 3,716 |
Revenue from External Customers by Products and Services [Table Text Block] | (millions) 2019 2018 2017 Snacks $ 6,663 $ 6,797 $ 6,683 Cereal 5,029 5,203 5,222 Frozen 1,037 1,020 949 Noodles and other 849 527 — Consolidated $ 13,578 $ 13,547 $ 12,854 |
Supplemental Financial Statem_2
Supplemental Financial Statement Data (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Financial Statement Data [Abstract] | |
Supplemental Financial Data Consolidated Statement Of Income [Table Text Block] | Consolidated Statement of Income (millions) 2019 2018 2017 Research and development expense $ 144 $ 154 $ 148 Advertising expense $ 676 $ 752 $ 732 |
Supplemental Financial Data Consolidated Balance Sheet [Table Text Block] | Consolidated Balance Sheet (millions) 2019 2018 Trade receivables $ 1,315 $ 1,163 Allowance for doubtful accounts (10 ) (10 ) Refundable income taxes 56 28 Other receivables 215 194 Accounts receivable, net $ 1,576 $ 1,375 Raw materials, spare parts, and supplies $ 303 $ 339 Finished goods and materials in process 923 991 Inventories $ 1,226 $ 1,330 Land $ 116 $ 120 Buildings 2,021 2,061 Machinery and equipment 5,852 5,971 Capitalized software 496 438 Construction in progress 566 583 Accumulated depreciation (5,439 ) (5,442 ) Property, net $ 3,612 $ 3,731 Other intangibles $ 2,677 $ 3,448 Accumulated amortization (101 ) (87 ) Other intangibles, net $ 2,576 $ 3,361 Pension $ 241 $ 228 Deferred income taxes 231 246 Other 667 594 Other assets $ 1,139 $ 1,068 Accrued income taxes $ 42 $ 48 Accrued salaries and wages 290 309 Accrued advertising and promotion 641 557 Other 577 502 Other current liabilities $ 1,550 $ 1,416 Income taxes payable $ 81 $ 115 Nonpension postretirement benefits 33 34 Other 429 355 Other liabilities $ 543 $ 504 |
Supplemental Financial Data Allowance For Doubtful Accounts [Table Text Block] | Allowance for doubtful accounts (millions) 2019 2018 2017 Balance at beginning of year $ 10 $ 10 $ 8 Additions charged to expense 9 4 14 Doubtful accounts charged to reserve (9 ) (4 ) (12 ) Balance at end of year $ 10 $ 10 $ 10 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 30, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 30, 2018 | |
Accounting Policies and New Accounting Standards [Line Items] | |||||
Assets | $ 17,564 | $ 17,780 | |||
Income tax examination percentage likelihood of being realized upon settlement | 50.00% | ||||
Maximum length of time, forward contracts and options | 18 months | ||||
Maximum length of time hedged in price risk cash flow hedge | 18 months | ||||
Payables Placed On Tracking System | $ 812 | 893 | |||
Payables Financed By Participating Suppliers | 605 | 701 | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | (2) | 11 | $ 4 | ||
Reductions credited to income tax expense | (47) | (1) | $ (28) | ||
Income tax credits and adjustments, transfer of intellectual property | 39 | ||||
Reclassification of tax effects relating to U.S. Tax Reform | $ 0 | ||||
GILTI percentage excess of shareholder net tested income | 50.00% | ||||
Credit for percentage of taxes paid or accrued for tested income of controlled foreign corporations | 80.00% | ||||
Operating lease, right-of-use assets | $ 541 | $ 0 | |||
Operating lease, liability | $ 547 | ||||
Minimum | |||||
Accounting Policies and New Accounting Standards [Line Items] | |||||
Expected rates of return | 25th | ||||
Maximum | |||||
Accounting Policies and New Accounting Standards [Line Items] | |||||
Expected rates of return | 75th | ||||
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 | ||||
Leases ASU | |||||
Accounting Policies and New Accounting Standards [Line Items] | |||||
Operating lease, right-of-use assets | $ 453 | ||||
Operating lease, liability | $ 461 | ||||
AOCI | |||||
Accounting Policies and New Accounting Standards [Line Items] | |||||
Reclassification of tax effects relating to U.S. Tax Reform | $ (22) | $ (22) | |||
Retained earnings | |||||
Accounting Policies and New Accounting Standards [Line Items] | |||||
Reclassification of tax effects relating to U.S. Tax Reform | $ 22 | $ 22 |
Sale of Accounts Receivable (De
Sale of Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Monetization Program | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Gain (Loss) on Sale of Accounts Receivable | $ (25) | $ (26) | $ (11) |
Monetization Program | Maximum | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfers Of Accounts Receivable Agreements | 1,033 | ||
Monetization Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | 774 | 900 | |
Kellogg Foreign Subsidiaries Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | $ 89 | $ 93 |
Divestiures, West Africa Inve_3
Divestiures, West Africa Investments and Acquisitions Divestiture (Details) - USD ($) $ in Millions | Jul. 28, 2019 | Dec. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of businesses | $ 1,332 | $ 0 | $ 0 | ||
Debt repurchase amount | $ 1,000 | 1,000 | |||
Income taxes paid | $ 255 | $ 537 | $ 188 | $ 352 | |
Transition Services Agreement duration | 18 months | ||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of businesses | $ 1,300 | ||||
Net assets | $ 1,300 | ||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | Other income (expense) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on disposition of business | $ 38 | ||||
Disposition related transaction costs | 14 | ||||
U.S. pension and nonpension postretirement plans | Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Curtailment gain | $ 17 |
Divestiures, West Africa Inve_4
Divestiures, West Africa Investments and Acquisitions Multipro Acquisition Narrative (Details) - USD ($) $ in Millions | May 02, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | May 02, 2018 |
Business Acquisition [Line Items] | |||||
Purchase price adjustments | $ 0 | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 0 | 200 | $ 0 | ||
Goodwill | $ 5,861 | 6,050 | $ 5,504 | ||
Multipro | |||||
Business Acquisition [Line Items] | |||||
Equity method investment incremental ownership percentage | 1.00% | ||||
Purchase price adjustments | $ 1 | ||||
Equity method investment ownership percentage | 51.00% | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 245 | ||||
Goodwill | $ 616 | ||||
Tolaram Africa Foods (TAF) PTE LTD | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, gross | $ 419 | ||||
Equity method investment ownership percentage | 50.00% | ||||
TAF Investment in Affiliated Food Manufacturer | |||||
Business Acquisition [Line Items] | |||||
Equity method investment ownership percentage | 49.00% | ||||
Affiliated Food Manufacturer | |||||
Business Acquisition [Line Items] | |||||
Equity method investment ownership percentage | 24.50% | ||||
Multipro and Tolaram Africa Foods PTE LTD | |||||
Business Acquisition [Line Items] | |||||
Aggregate consideration paid and fair value of previously held equity investment | 626 | ||||
Aggregate consideration paid and fair value of previously held equity investment, net of cash acquired | $ 617 |
Divestiures, West Africa Inve_5
Divestiures, West Africa Investments and Acquisitions Multipro Schedule of Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | May 02, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,861 | $ 6,050 | $ 5,504 | |
Multipro | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 118 | |||
Property | 41 | |||
Goodwill | 616 | |||
Intangible assets subject to amortization, primarily customer relationships | 425 | |||
Intangible assets not subject to amortization, primarily distribution rights | 373 | |||
Deferred tax liability | (2) | (254) | ||
Other liabilities | $ (2) | (150) | ||
Non-controlling interests | (552) | |||
Net assets acquired (liabilities assumed), net | $ 617 |
Divestiures, West Africa Inve_6
Divestiures, West Africa Investments and Acquisitions Multipro Schedule of Acquired Assets and Assumed Liabilities Narrative (Details) - Multipro - USD ($) $ in Millions | Dec. 29, 2018 | May 02, 2018 |
Business Acquisition [Line Items] | ||
Deferred tax liability | $ (2) | $ (254) |
Other liabilities | $ 2 | $ 150 |
Divestiures, West Africa Inve_7
Divestiures, West Africa Investments and Acquisitions Multipro Schedule of Pro Forma Results Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Business Acquisition [Line Items] | ||||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 | |
Net income attributable to Kellogg | $ 145 | $ 247 | $ 286 | $ 282 | $ (84) | [1] | $ 380 | $ 596 | $ 444 | 960 | 1,336 | 1,254 |
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 0 | 200 | $ 0 | |||||||||
Multipro | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net sales | 536 | |||||||||||
Net income attributable to Kellogg | 8 | |||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 245 | |||||||||||
[1] | The significant decrease in the fourth quarter 2018 net income is primarily due to a mark-to-market adjustment recognized on pension assets. |
Divestiures, West Africa Inve_8
Divestiures, West Africa Investments and Acquisitions Multipro Schedule of Pro Forma Results (Details) - Multipro - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | ||
Pro forma net sales | $ 13,829 | $ 13,511 |
Pro forma net income attributable to Kellogg Company | $ 1,336 | $ 1,255 |
Divestiures, West Africa Inve_9
Divestiures, West Africa Investments and Acquisitions Investment in TAF Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 |
Tolaram Africa Foods (TAF) PTE LTD | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity method investment, aggregate cost | $ 458 | 458 | |||||||||
Equity Method Investment, Other than Temporary Impairment | 45 | ||||||||||
Net sales | $ 581 | $ 350 |
Divestiures, West Africa Inv_10
Divestiures, West Africa Investments and Acquisitions RXBAR Acquisition Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2017 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |||
Business Acquisition [Line Items] | ||||||||||||||
Payments to acquire businesses, net of cash acquired | $ 8 | $ 28 | $ 592 | |||||||||||
Goodwill, purchase accounting adjustments | 0 | |||||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | 13,578 | 13,547 | 12,854 | |||
Operating profit | 1,401 | 1,706 | 1,387 | |||||||||||
RXBAR | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to acquire businesses, gross | $ 600 | |||||||||||||
Payments to acquire businesses, net of cash acquired | 596 | |||||||||||||
Goodwill, purchase accounting adjustments | $ (1) | |||||||||||||
North America | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill, purchase accounting adjustments | 0 | |||||||||||||
Net sales | 8,390 | 8,688 | 8,673 | |||||||||||
Operating profit | [1] | $ 1,215 | [2] | $ 1,397 | 1,246 | |||||||||
North America | RXBAR | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net sales | 27 | |||||||||||||
Operating profit | $ 1 | |||||||||||||
[1] | Corporate operating profit in 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 and 2017 totaling approximately $48 million and $47 million , respectively. | |||||||||||||
[2] | During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million . |
Divestiures, West Africa Inv_11
Divestiures, West Africa Investments and Acquisitions RXBAR Schedule of Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Oct. 27, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,861 | $ 6,050 | $ 5,504 | |
RXBAR | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 42 | |||
Goodwill | 373 | |||
Intangible assets not subject to amortization, primarily distribution rights and indefinite lived brands | 203 | |||
Current liabilities | (23) | |||
Net assets acquired (liabilities assumed), net | $ 595 |
Divestiures, West Africa Inv_12
Divestiures, West Africa Investments and Acquisitions RXBAR Schedule of Acquired Assets and Assumed Liabilities Narrative (Details) $ in Millions | Dec. 29, 2018USD ($) |
RXBAR | |
Business Acquisition [Line Items] | |
Amortizable intangible assets | $ 2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 6,050 | $ 5,504 | |
Goodwill Additions | 616 | ||
Divestiture | (191) | ||
Goodwill, purchase price allocation adjustment | (2) | ||
Goodwill, Purchase Accounting Adjustments | 0 | ||
Goodwill, Currency Translation Adjustments | 2 | (68) | |
Goodwill | 5,861 | 6,050 | |
North America | |||
Goodwill [Roll Forward] | |||
Goodwill | 4,611 | 4,617 | |
Goodwill Additions | 0 | ||
Divestiture | $ (191) | (191) | |
Goodwill, purchase price allocation adjustment | (2) | ||
Goodwill, Purchase Accounting Adjustments | 0 | ||
Goodwill, Currency Translation Adjustments | 2 | (4) | |
Goodwill | 4,422 | 4,611 | |
Europe | |||
Goodwill [Roll Forward] | |||
Goodwill | 346 | 368 | |
Goodwill Additions | 0 | ||
Divestiture | 0 | ||
Goodwill, purchase price allocation adjustment | 0 | ||
Goodwill, Purchase Accounting Adjustments | 0 | ||
Goodwill, Currency Translation Adjustments | 1 | (22) | |
Goodwill | 347 | 346 | |
Latin America | |||
Goodwill [Roll Forward] | |||
Goodwill | 218 | 244 | |
Goodwill Additions | 0 | ||
Divestiture | 0 | ||
Goodwill, purchase price allocation adjustment | 0 | ||
Goodwill, Purchase Accounting Adjustments | 0 | ||
Goodwill, Currency Translation Adjustments | (5) | (26) | |
Goodwill | 213 | 218 | |
AMEA | |||
Goodwill [Roll Forward] | |||
Goodwill | 875 | 275 | |
Goodwill Additions | 616 | ||
Divestiture | 0 | ||
Goodwill, purchase price allocation adjustment | 0 | ||
Goodwill, Purchase Accounting Adjustments | 0 | ||
Goodwill, Currency Translation Adjustments | 4 | (16) | |
Goodwill | $ 879 | $ 875 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | $ 608 | $ 201 | |
Additions | 2 | 425 | |
Divestiture | (12) | ||
Purchase price allocation adjustment | 2 | ||
Currency translation adjustment | (4) | (20) | |
Gross carrying amount, ending balance | 594 | 608 | |
Accumulated amortization, beginning balance | 87 | 67 | |
Amortization (a) | 27 | [1] | 23 |
Divestiture | (12) | ||
Currency translation adjustment accumulated amortization | (1) | (3) | |
Accumulated amortization, ending balance | 101 | 87 | |
Intangible assets subject to amortization net, beginning balance | 521 | 134 | |
Additions | 2 | 425 | |
Amortization | (27) | [1] | (23) |
Divestiture | 0 | ||
Purchase price allocation adjustment net | 2 | ||
Currency translation adjustment net | (3) | (17) | |
Intangible assets subject to amortization net, ending balance | 493 | 521 | |
Estimated aggregate annual amortization expense for next twelve months | 28 | ||
Estimated aggregate annual amortization expense for year two | 28 | ||
Estimated aggregate annual amortization expense for year three | 28 | ||
Estimated aggregate annual amortization expense for year four | 28 | ||
Estimated aggregate annual amortization expense for year five | 28 | ||
North America | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 74 | 72 | |
Additions | 2 | 0 | |
Divestiture | (12) | ||
Purchase price allocation adjustment | 2 | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 64 | 74 | |
Accumulated amortization, beginning balance | 39 | 35 | |
Amortization (a) | 4 | [1] | 4 |
Divestiture | (12) | ||
Currency translation adjustment accumulated amortization | 0 | 0 | |
Accumulated amortization, ending balance | 31 | 39 | |
Intangible assets subject to amortization net, beginning balance | 35 | 37 | |
Additions | 2 | 0 | |
Amortization | (4) | [1] | (4) |
Divestiture | 0 | ||
Purchase price allocation adjustment net | 2 | ||
Currency translation adjustment net | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | 33 | 35 | |
Europe | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 43 | 45 | |
Additions | 0 | 0 | |
Divestiture | 0 | ||
Purchase price allocation adjustment | 0 | ||
Currency translation adjustment | (2) | (2) | |
Gross carrying amount, ending balance | 41 | 43 | |
Accumulated amortization, beginning balance | 20 | 18 | |
Amortization (a) | 2 | [1] | 3 |
Divestiture | 0 | ||
Currency translation adjustment accumulated amortization | (1) | (1) | |
Accumulated amortization, ending balance | 21 | 20 | |
Intangible assets subject to amortization net, beginning balance | 23 | 27 | |
Additions | 0 | 0 | |
Amortization | (2) | [1] | (3) |
Divestiture | 0 | ||
Purchase price allocation adjustment net | 0 | ||
Currency translation adjustment net | (1) | (1) | |
Intangible assets subject to amortization net, ending balance | 20 | 23 | |
Latin America | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 63 | 74 | |
Additions | 0 | 0 | |
Divestiture | 0 | ||
Purchase price allocation adjustment | 0 | ||
Currency translation adjustment | (3) | (11) | |
Gross carrying amount, ending balance | 60 | 63 | |
Accumulated amortization, beginning balance | 12 | 10 | |
Amortization (a) | 3 | [1] | 4 |
Divestiture | 0 | ||
Currency translation adjustment accumulated amortization | 0 | (2) | |
Accumulated amortization, ending balance | 15 | 12 | |
Intangible assets subject to amortization net, beginning balance | 51 | 64 | |
Additions | 0 | 0 | |
Amortization | (3) | [1] | (4) |
Divestiture | 0 | ||
Purchase price allocation adjustment net | 0 | ||
Currency translation adjustment net | (3) | (9) | |
Intangible assets subject to amortization net, ending balance | 45 | 51 | |
AMEA | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 428 | 10 | |
Additions | 0 | 425 | |
Divestiture | 0 | ||
Purchase price allocation adjustment | 0 | ||
Currency translation adjustment | 1 | (7) | |
Gross carrying amount, ending balance | 429 | 428 | |
Accumulated amortization, beginning balance | 16 | 4 | |
Amortization (a) | 18 | [1] | 12 |
Divestiture | 0 | ||
Currency translation adjustment accumulated amortization | 0 | 0 | |
Accumulated amortization, ending balance | 34 | 16 | |
Intangible assets subject to amortization net, beginning balance | 412 | 6 | |
Additions | 0 | 425 | |
Amortization | (18) | [1] | (12) |
Divestiture | 0 | ||
Purchase price allocation adjustment net | 0 | ||
Currency translation adjustment net | 1 | (7) | |
Intangible assets subject to amortization net, ending balance | $ 395 | $ 412 | |
[1] | The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $28 million per year through 2024. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Intangible Assets Not Subject to Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets not subject to amortization, beginning balance | $ 2,840 | $ 2,505 | |
Additions | 18 | 373 | |
Purchase price allocation adjustments | (765) | 0 | |
Currency translation adjustment | (10) | (38) | |
Intangible assets not subject to amortization, ending balance | 2,083 | 2,840 | |
North America | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets not subject to amortization, beginning balance | 1,985 | 1,985 | |
Additions | $ 18 | 18 | 0 |
Purchase price allocation adjustments | (765) | 0 | |
Currency translation adjustment | 0 | 0 | |
Intangible assets not subject to amortization, ending balance | 1,238 | 1,985 | |
Europe | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets not subject to amortization, beginning balance | 401 | 420 | |
Additions | 0 | 0 | |
Purchase price allocation adjustments | 0 | 0 | |
Currency translation adjustment | (9) | (19) | |
Intangible assets not subject to amortization, ending balance | 392 | 401 | |
Latin America | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets not subject to amortization, beginning balance | 73 | 86 | |
Additions | 0 | 0 | |
Purchase price allocation adjustments | 0 | 0 | |
Currency translation adjustment | (3) | (13) | |
Intangible assets not subject to amortization, ending balance | 70 | 73 | |
AMEA | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible assets not subject to amortization, beginning balance | 381 | 14 | |
Additions | 0 | 373 | |
Purchase price allocation adjustments | 0 | 0 | |
Currency translation adjustment | 2 | (6) | |
Intangible assets not subject to amortization, ending balance | $ 383 | $ 381 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets Annual Impairment Testing (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 30, 2019 | Dec. 30, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill and other intangible assets | $ 8,400 | ||||
Other intangible assets excluding goodwill | 2,083 | $ 2,840 | $ 2,505 | ||
Goodwill | 5,861 | 6,050 | 5,504 | ||
Divestiture Goodwill | 191 | ||||
Indefinite-lived intangible assets acquired | 18 | 373 | |||
Europe transfer to AMEA | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 46 | ||||
North America | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Other intangible assets excluding goodwill | 1,238 | 1,985 | 1,985 | ||
Goodwill | 4,422 | 4,611 | $ 4,617 | ||
Divestiture Goodwill | $ 191 | 191 | |||
Divestiture net intangibles | 765 | ||||
Indefinite-lived intangible assets acquired | $ 18 | 18 | $ 0 | ||
Pringles and cracker related trademarks | North America | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Other intangible assets excluding goodwill | 1,700 | ||||
Multipro | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | 606 | ||||
RXBAR | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill | $ 373 |
Restructuring and Cost Reduct_3
Restructuring and Cost Reduction Activities Project K Total Expected Program Costs Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Minimum | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related activities cash implementation costs recovery time frame | 3 years |
Maximum | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related activities cash implementation costs recovery time frame | 5 years |
Maximum | Project K | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | $ 1,600 |
Estimated after-tax cash costs for the program amount | 1,200 |
Maximum | Asset related costs | Project K | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | 500 |
Maximum | Employee related cost | Project K | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | 400 |
Maximum | Other cost | Project K | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | $ 700 |
Restructuring and Cost Reduct_4
Restructuring and Cost Reduction Activities Project K Total Program Cost Percentage by Reportable Segment Narrative (Details) - Project K | 12 Months Ended |
Dec. 28, 2019 | |
North America | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 65.00% |
Europe | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 21.00% |
Latin America | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 4.00% |
AMEA | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 6.00% |
Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 4.00% |
Restructuring and Cost Reduct_5
Restructuring and Cost Reduction Activities Project K Total Program Costs Since Inception Narrative (Details) $ in Millions | Dec. 28, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | $ 1,633 |
Project K | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | 1,574 |
Project K | Revenue | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | 6 |
Project K | Cost of goods sold | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | 928 |
Project K | SGA | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | 807 |
Project K | Other (income) expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | $ (167) |
Restructuring and Cost Reduct_6
Restructuring and Cost Reduction Activities Other Programs Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 113 | $ 143 | $ 263 |
SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 83 | 74 | 296 |
Other (income) expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (5) | (30) | (148) |
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 47 | 3 | 40 |
Europe | Other programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 40 | ||
Cash costs | 50 | ||
Restructuring charges | 38 | ||
Europe | Other programs | SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 43 | ||
Europe | Other programs | Other (income) expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (5) | ||
North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 50 | $ 107 | $ 345 |
North America | Other programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 30 | ||
North America | Other programs | SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 21 |
Restructuring and Cost Reduct_7
Restructuring and Cost Reduction Activities Total Programs Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 113 | $ 143 | $ 263 |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 35 | 99 | 115 |
SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 83 | 74 | 296 |
Other (income) expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ (5) | $ (30) | $ (148) |
Restructuring and Cost Reduct_8
Restructuring and Cost Reduction Activities Schedule of Restructuring Programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 113 | $ 143 | $ 263 |
Program cost to date | 1,633 | ||
Employee related cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 49 | 63 | 177 |
Program cost to date | 646 | ||
Pension curtailment (gain) loss, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (5) | (30) | (148) |
Program cost to date | (172) | ||
Asset related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 21 | 16 | 77 |
Program cost to date | 306 | ||
Asset impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 14 | 0 |
Program cost to date | 169 | ||
Other cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 48 | 80 | 157 |
Program cost to date | 684 | ||
North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 50 | 107 | 345 |
Program cost to date | 1,072 | ||
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 47 | 3 | 40 |
Program cost to date | 380 | ||
Latin America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 15 | 15 | 9 |
Program cost to date | 57 | ||
AMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3 | 11 | 11 |
Program cost to date | 101 | ||
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (2) | $ 7 | $ (142) |
Program cost to date | $ 23 |
Restructuring and Cost Reduct_9
Restructuring and Cost Reduction Activities Schedule of Restructuring Reserves Rollforward Narrative (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Restructuring and Related Activities [Abstract] | |||
Project reserves | $ 62 | $ 104 | $ 160 |
Restructuring and Cost Reduc_10
Restructuring and Cost Reduction Activities Reserves Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | $ 104 | $ 160 |
Restructuring charge | 113 | 143 |
Cash payments | (148) | (209) |
Non-cash charges and other | (7) | 10 |
Liability, ending balance | 62 | 104 |
Employee related cost | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 93 | 97 |
Restructuring charge | 49 | 63 |
Cash payments | (81) | (67) |
Restructuring Reserve, Period Increase (Decrease) | 0 | |
Non-cash charges and other | 0 | |
Liability, ending balance | 61 | 93 |
Pension curtailment (gain) loss, net | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
Restructuring charge | (5) | (30) |
Cash payments | 0 | 0 |
Restructuring Reserve, Period Increase (Decrease) | 30 | |
Non-cash charges and other | 5 | |
Liability, ending balance | 0 | 0 |
Asset impairment | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
Restructuring charge | 0 | 14 |
Cash payments | 0 | 0 |
Non-cash charges and other | 0 | 14 |
Liability, ending balance | 0 | 0 |
Asset related costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 1 | 0 |
Restructuring charge | 21 | 16 |
Cash payments | (10) | (9) |
Non-cash charges and other | (12) | (6) |
Liability, ending balance | 0 | 1 |
Other cost | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 10 | 63 |
Restructuring charge | 48 | 80 |
Cash payments | (57) | (133) |
Non-cash charges and other | 0 | 0 |
Liability, ending balance | $ 1 | $ 10 |
Equity Narrative (Details)
Equity Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Direct Stock Purchase and Dividend Reinvestment Plan number of shares issued | less than one million | less than one million | less than one million |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14 | 6.5 | 4.9 |
Shares issued to employees and directors under various benefit plans and stock purchase programs | 15 | 8 | 7 |
Common stock repurchases (in shares) | 4 | 5 | 7 |
Common stock repurchased | $ 220 | $ 320 | $ 516 |
2018 Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | 1,500 | ||
2020 share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 1,500 |
Equity Changes in Comprehensive
Equity Changes in Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Equity [Abstract] | |||
Net income | $ 977 | $ 1,344 | $ 1,254 |
Foreign currency translation adjustment before tax | 100 | 5 | (34) |
Foreign currency translation adjustments tax (expense) benefit | (19) | (53) | 113 |
Foreign currency translation adjustments after tax | 81 | (48) | 79 |
Unrealized gain (loss) on cash flow hedges, pre-tax | 5 | 3 | 0 |
Unrealized gain (loss) on cash flow hedges, tax (expense) benefit | (1) | (1) | 0 |
Unrealized gain (loss) on cash flow hedges, after-tax | 4 | 2 | 0 |
Reclassifications to net income, pre-tax | 4 | 8 | 9 |
Reclassifications to net income, tax (expense) benefit | (1) | (2) | (3) |
Reclassification to net income, after-tax | 3 | 6 | 6 |
Net experience gain (loss) | (16) | (8) | 44 |
Net experience gain (loss), tax (expense) benefit | 5 | 1 | (12) |
Net experience gain (loss), after tax | (11) | (7) | 32 |
Prior service credit (cost) | 3 | 1 | 0 |
Prior service credit (cost), tax (expense) benefit | (1) | 0 | 0 |
Prior service credit (cost), after-tax | 2 | 1 | 0 |
Net experience (gain) loss, pre-tax | (5) | (5) | 0 |
Net experience (gain) loss, tax (expense) benefit | 1 | 1 | 0 |
Net experience loss, after-tax | (4) | (4) | 0 |
Prior service (credit) cost, pre-tax | (1) | 0 | 1 |
Prior service (credit) cost, tax (expense) benefit | 0 | 0 | 0 |
Prior service cost, after-tax | (1) | 0 | 1 |
Unrealized gain (loss) on available-for-sale securities, pre-tax | 4 | 0 | 0 |
Unrealized gain (loss) on available-for-sale securities, tax (expense) benefit | 0 | 0 | 0 |
Unrealized gain (loss) on available-for-sale securities, after-tax | 4 | 0 | 0 |
Reclassification to net income on available-for-sale securities, pre-tax | (4) | 0 | 0 |
Reclassification to net income on available-for-sale securities, tax (expense) benefit | 0 | 0 | 0 |
Reclassification to net income on available-for-sale securities, after-tax | (4) | 0 | 0 |
Other Comprehensive Income (Loss), before Tax | 90 | 4 | 20 |
Other Comprehensive Income (Loss), Tax | (16) | (54) | 98 |
Other Comprehensive Income (loss) | 74 | (50) | 118 |
Comprehensive income | 1,051 | 1,294 | 1,372 |
Net income (loss) attributable to noncontrolling interests | 17 | 8 | 0 |
Other comprehensive income (loss) attributable to noncontrolling interests | 0 | (7) | 0 |
Comprehensive income attributable to Kellogg Company | $ 1,034 | $ 1,293 | $ 1,372 |
Equity Reclassifications Out of
Equity Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
COGS | $ (9,197) | $ (8,821) | $ (8,155) |
SGA | (2,980) | (3,020) | (3,312) |
Interest expense | 284 | 287 | 256 |
Net experience (gain) loss, pre-tax | (5) | (5) | 0 |
Prior service cost | (1) | 0 | 1 |
Other (income) expense | (188) | 90 | (526) |
Total before tax | 1,305 | 1,329 | 1,657 |
Tax (expense) benefit | (321) | (181) | (410) |
Net income | 977 | 1,344 | 1,254 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income | (6) | 2 | 7 |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before tax | 4 | 8 | 9 |
Tax (expense) benefit | (1) | (2) | (3) |
Net income | 3 | 6 | 6 |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | Foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
COGS | 0 | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense | 4 | 8 | 10 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of postretirement and postemployment benefits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net experience (gain) loss, pre-tax | (5) | (5) | 0 |
Prior service cost | (1) | 0 | 1 |
Total before tax | (6) | (5) | 1 |
Tax (expense) benefit | 1 | 1 | 0 |
Net income | (5) | (4) | 1 |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on available-for-sale securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before tax | (4) | 0 | 0 |
Tax (expense) benefit | 0 | 0 | 0 |
Net income | (4) | 0 | 0 |
Corporate bonds | Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on available-for-sale securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other (income) expense | $ (4) | $ 0 | $ 0 |
Equity Summary of Accumulated O
Equity Summary of Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Equity [Abstract] | ||
Cash flow hedges — unrealized net gain (loss) | $ (60) | $ (53) |
Foreign currency translation adjustments | (1,399) | (1,467) |
Postretirement and postemployment benefits: | ||
Net experience gain (loss) | 7 | 23 |
Prior service credit (cost) | 4 | (3) |
Total accumulated other comprehensive income (loss) | ||
Accumulated other comprehensive income (loss) | $ (1,448) | $ (1,500) |
Leases and Other Commitments Na
Leases and Other Commitments Narrative (Details) | Dec. 28, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 12 years |
Leases and Other Commitments Sc
Leases and Other Commitments Schedule of Supplemental Operating Lease Information Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 133 |
Leases and Other Commitments Su
Leases and Other Commitments Supplemental Operating Leases Information Table (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease, payments | $ 134 |
Right-of-use ssset obtained in exchange for operating lease liability | $ 164 |
Operating lease, weighted average remaining lease term | 7 years |
Operating lease, weighted average discount rate, percent | 2.90% |
Leases and Other Commitments Op
Leases and Other Commitments Operating Leases Future Maturities Table (Details) $ in Millions | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
Operating leases, 2020 | $ 129 |
Operating leases, 2021 | 98 |
Operating leases, 2022 | 80 |
Operating leases, 2023 | 67 |
Operating leases, 2024 | 55 |
Operating leases, 2025 and beyond | 181 |
Total minimum payments | 610 |
Interest | (63) |
Present value of lease liabilities | $ 547 |
Leases and Other Commitments _2
Leases and Other Commitments Operating Leases Future Maturities Table Narrative (Details) $ in Millions | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
Minimum lease payments for real-estate leases signed but not yet commenced | $ 18 |
Leases and Other Commitments _3
Leases and Other Commitments Operating Leases Future Minimum Annual Lease Commitments Table Details (Details) $ in Millions | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
Operating leases, future minimum payments due 2019 | $ 121 |
Operating leases, future minimum payments due in 2020 | 97 |
Operating leases, future minimum payments, due in 2021 | 73 |
Operating leases, future minimum payments, due in 2022 | 57 |
Operating leases, future minimum payments, due in 2023 | 48 |
Operating leases, future minimum payments, due 2024 and beyond | 129 |
Total minimum payments | $ 525 |
Leases and Other Commitments _4
Leases and Other Commitments Operating Leases Future Minimum Annual Lease Commitments Table Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Leases [Abstract] | ||
Operating lease expense | $ 133 | $ 195 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Jan. 31, 2020 | Sep. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000 | |||
Multiemployer Plans, Withdrawal Obligation | 156 | $ 32 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 2,900 | |||
Principal repayments on long-term debt in 2020 | 620 | |||
Principal repayments on long-term debt in 2021 | 835 | |||
Principal repayments on long-term debt in 2022 | 1,039 | |||
Principal repayments on long-term debt in 2023 | 771 | |||
Principal repayments on long-term debt in 2024 | 677 | |||
Principal repayments on long-term debt in 2025 and beyond | 3,896 | |||
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 | $ 1,000 | ||
Expired Three Hundred Sixty Four Day Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | |||
Letter of Credit [Member] | Five Year Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | |||
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 | |||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | ||||
Debt Instrument [Line Items] | ||||
Multiemployer Plans, Withdrawal Obligation | $ 132 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Multiemployer Plans, Withdrawal Obligation | $ 250 |
Debt Components of Notes Payabl
Debt Components of Notes Payable (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Components of Notes Payable | ||
Notes payable | $ 107 | $ 176 |
U.S. Commercial Paper | ||
Components of Notes Payable | ||
Notes payable | $ 3 | $ 15 |
Debt Instrument, Interest Rate, Effective Percentage | 1.78% | 2.75% |
Europe Commerical Paper | ||
Components of Notes Payable | ||
Notes payable | $ 0 | $ 0 |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 0.00% |
Bank Borrowings | ||
Components of Notes Payable | ||
Notes payable | $ 104 | $ 161 |
Debt Schedule of Long-term Debt
Debt Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | Aug. 31, 2019 | Dec. 29, 2018 | May 31, 2018 | Nov. 30, 2017 | May 31, 2017 | Nov. 30, 2016 | May 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | May 31, 2014 | Feb. 28, 2013 | May 31, 2012 | Dec. 31, 2010 | Nov. 30, 2009 | Mar. 31, 2001 | |
Debt Instrument [Line Items] | ||||||||||||||||||
Other long-term debt | $ 124 | $ 9 | ||||||||||||||||
Long-term debt, including current maturities of long-term debt | 7,815 | 8,717 | ||||||||||||||||
Current maturities of long-term debt | (620) | (510) | ||||||||||||||||
Long-term debt | 7,195 | 8,207 | ||||||||||||||||
4.5% U.S. Dollar Notes Due 2046 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [1] | 638 | 638 | |||||||||||||||
Debt instrument, stated interest rate | 4.50% | |||||||||||||||||
7.45% U.S. Dollar Debentures Due 2031 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [2] | 621 | 621 | |||||||||||||||
Debt instrument, stated interest rate | 7.45% | |||||||||||||||||
4.30% U.S. Dollar Notes Due 2028 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [3] | 595 | 595 | |||||||||||||||
Debt instrument, stated interest rate | 4.30% | |||||||||||||||||
3.40% U.S. Dollar Notes Due 2027 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [4] | 596 | 595 | |||||||||||||||
Debt instrument, stated interest rate | 3.40% | |||||||||||||||||
3.25% U.S. Dollar Notes Due 2026 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [5] | 741 | 731 | |||||||||||||||
Debt instrument, stated interest rate | 3.25% | |||||||||||||||||
1.25% Euro Note Due 2025 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [6] | 689 | 693 | |||||||||||||||
Debt instrument, stated interest rate | 1.25% | |||||||||||||||||
1.00% Euro Notes Due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [7] | 692 | 697 | |||||||||||||||
Debt instrument, stated interest rate | 1.00% | |||||||||||||||||
2.65% U.S. Dollar Notes Due 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [8] | 539 | 585 | |||||||||||||||
Debt instrument, stated interest rate | 2.65% | 2.65% | ||||||||||||||||
2.75% U.S. Dollar Note Due 2023 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [9] | 201 | 198 | |||||||||||||||
Debt instrument, stated interest rate | 2.75% | |||||||||||||||||
3.125% U.S. Dollar Debentures Due 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [10] | 353 | 351 | |||||||||||||||
Debt instrument, stated interest rate | 3.125% | |||||||||||||||||
.80% Euro Notes Due 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [11] | 669 | 684 | |||||||||||||||
Debt instrument, stated interest rate | 0.80% | |||||||||||||||||
1.75% Euro Notes Due 2021 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [12] | 558 | 570 | |||||||||||||||
Debt instrument, stated interest rate | 1.75% | |||||||||||||||||
3.25% U.S. Dollar Notes Due 2021 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [13] | 198 | 399 | |||||||||||||||
Debt instrument, stated interest rate | 3.25% | 3.25% | ||||||||||||||||
4.0% U.S. Dollar Notes Due 2020 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [14] | 601 | 848 | |||||||||||||||
Debt instrument, stated interest rate | 4.00% | 4.00% | ||||||||||||||||
4.15% U.S. Dollar Notes Due 2019 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | [15] | $ 0 | $ 503 | |||||||||||||||
Debt instrument, stated interest rate | 4.15% | 4.15% | 4.15% | |||||||||||||||
3.25% U.S. Dollar Notes Due 2018 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, stated interest rate | 3.25% | |||||||||||||||||
[1] | In March 2016, the Company issued $650 million of thirty-year 4.50% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's 7.45% U.S. Dollar Debentures due 2031 and a portion of its commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 4.59% at December 28, 2019. | |||||||||||||||||
[2] | In March 2001, the Company issued long-term debt instruments, primarily to finance the acquisition of Keebler Foods Company, of which $625 million of thirty-year 7.45% Debentures remain outstanding. The effective interest rate on the Debentures, reflecting issuance discount and hedge settlement, was 7.56% at December 28, 2019. The Debentures contain standard events of default and covenants, and can be redeemed in whole or in part by the Company at any time at prices determined under a formula (but not less than 100% of the principal amount plus unpaid interest to the redemption date). | |||||||||||||||||
[3] | In May 2018, the Company issued $600 million of ten-year 4.30% Senior Notes due 2028, using the net proceeds for general corporate purposes, which included repayment of the Company's $400 million , seven-year 3.25% U.S. Dollar Notes due 2018 at maturity, and the repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of ownership interests in TAF and Multipro. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 4.34% at December 28, 2019. | |||||||||||||||||
[4] | In November 2017, the Company issued $600 million of ten-year 3.40% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of Chicago Bar Company LLC, the maker of RXBAR. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 3.49% at December 28, 2019. | |||||||||||||||||
[5] | In March 2016, the Company issued $750 million of ten-year 3.25% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of a portion of the Company's 7.45% U.S. Dollar Debentures due 2031 and a portion of its commercial paper borrowings. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 4.11% at December 28, 2019 . In September 2016, the Company entered into interest rate swaps with notional amounts totaling $300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In October 2018, the Company entered into interest rate swaps with notional amounts totaling $450 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $6 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. | |||||||||||||||||
[6] | In March 2015, the Company issued €600 million (approximately $671 million at December 28, 2019 , which reflects the discount, fees and translation adjustments) of ten-year 1.25% Euro Notes due 2025, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 1.58% at December 28, 2019 . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. In May 2017, the Company entered into interest rate swaps with notional amounts totaling €600 million , which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized gain of $20 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. | |||||||||||||||||
[7] | In May 2016, the Company issued €600 million (approximately $671 million USD at December 28, 2019 , which reflects the discount, fees and translation adjustments) of eight-year 1.00% Euro Notes due 2024. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand and additional commercial paper borrowings, repayment of the Company's $750 million , seven-year 4.45% U.S. Dollar Notes due 2016 at maturity. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 0.21% at December 28, 2019 . In November 2016, the Company entered into interest rate swaps with notional amounts totaling €300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In October 2018, the Company entered into interest rate swaps with notional amounts totaling €300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. The Company subsequently terminated these swaps. In May of 2019, the Company entered into interest rate swaps with notional amounts totaling €600 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The fair value adjustment for the interest rate swaps was $3 million at December 28, 2019 | |||||||||||||||||
[8] | In November 2016, the Company issued $600 million of seven-year 2.65% U.S. Dollar Notes, using the net proceeds for general corporate purposes, which included repayment of the Company's 1.875% U.S. Dollar Notes due 2016 at maturity and a portion of its commercial paper borrowings. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 3.39% at December 28, 2019 . In 2016, the Company entered into interest rate swaps with notional amounts totaling $300 million , which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $9 million at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. In 2019, the Company redeemed $50 million of the Notes. In connection with the debt redemption, the Company incurred $2 million of interest expense, consisting primarily of a premium on the tender offer. | |||||||||||||||||
[9] | In February 2013, the Company issued $400 million ( $189 million previously redeemed) of ten-year 2.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including, together with cash on hand, to repay a portion of the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The effective interest rate on these Notes, reflecting issuance discount hedge settlement and interest rate swaps, was 4.11% . In September 2016, the Company entered into interest rate swaps with notional amounts totaling $211 million , which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting unamortized loss of $9 million at December 28, 2019 | |||||||||||||||||
[10] | In May 2012, the Company issued $700 million ( $342 million previously redeemed) of ten-year 3.125% U.S. Dollar Notes, using the net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 3.74% at December 28, 2019 . During 2016 and 2018, the Company entered into interest rate swaps which effectively converted all or a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps, and the resulting $4 million loss at December 28, 2019 | |||||||||||||||||
[11] | In May 2017, the Company issued €600 million (approximately $671 million USD at December 28, 2019 , which reflects the discount and translation adjustments) of five-year 0.80% Euro Notes due 2022, using the proceeds from these Notes for general corporate purposes, including, repayment of the Company's $400 million , five-year 1.75% U.S. Dollar Notes due 2017 at maturity. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 0.87% . The Notes were designated as a net investment hedge of the Company's investment in its Europe subsidiary when issued. | |||||||||||||||||
[12] | In May 2014, the Company issued €500 million (approximately $559 million at December 28, 2019 , which reflects the discount and translation adjustments) of seven-year 1.75% Euro Notes due 2021, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.37% at December 28, 2019. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. | |||||||||||||||||
[13] | In May 2018, the Company issued $400 million of three-year 3.25% Senior Notes due 2021, using the net proceeds for general corporate purposes, which included repayment of the Company's $400 million , seven-year 3.25% U.S. Dollar Notes due 2018 at maturity, and the repayment of a portion of the Company's commercial paper borrowings used to finance the acquisition of ownership interests in TAF and Multipro. The effective interest rate on the Notes, reflecting issuance discount, was 3.39% as December 28, 2019. In 2019, the Company redeemed $202 million of the Notes. In connection with the dept redemption, the Company incurred $6 million of interest expense, consisting primarily of a premium on the tender offer. | |||||||||||||||||
[14] | In December 2010, the Company issued $1.0 billion ( $150 million previously redeemed) of ten-year 4.0% fixed rate U.S. Dollar Notes, using the net proceeds from these Notes for incremental pension and postretirement benefit plan contributions and to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 3.37% at December 28, 2019 . During 2016, the Company entered into interest rate swaps, which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. The Company subsequently terminated the interest rate swaps and the resulting gain on termination at December 28, 2019 will be amortized to interest expense over the remaining term of the Notes. In 2019, the Company redeemed $248 million of the Notes. In connection with the debt redemption, the Company incurred $6 million of interest expense, consisting primarily of a premium on the tender offer, which was partially offset by accelerated gains on pre-issuance interest rate hedges. | |||||||||||||||||
[15] | In November 2009, the Company issued $500 million of ten-year 4.15% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its 6.6% U.S. Dollar Notes due 2011. In 2012 and 2015, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2019, the Company redeemed $191 million of the Notes. In connection with the August 2019 debt redemption, the Company incurred $1 million of interest expense, consisting primarily of a premium on the tender offer. In September of 2019, the Company redeemed the remaining $309 million of the Notes. In connection with the September 2019 debt redemption, the company incurred $1 million of interest expense, consisting primarily of a premium on the tender offer. |
Debt Long-term Debt Footnote A
Debt Long-term Debt Footnote A (Details) - USD ($) $ in Millions | Mar. 31, 2001 | Mar. 31, 2016 | Dec. 28, 2019 |
4.5% U.S. Dollar Notes Due 2046 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 650 | ||
Debt Instrument, Term | 30 years | ||
Debt instrument, stated interest rate | 4.50% | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.59% | ||
7.45% U.S. Dollar Debentures Due 2031 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 625 | ||
Debt Instrument, Term | 30 years | ||
Debt instrument, stated interest rate | 7.45% | ||
Debt Instrument, Interest Rate, Effective Percentage | 7.56% |
Debt Long-term Debt Footnote B
Debt Long-term Debt Footnote B (Details) - USD ($) $ in Millions | Mar. 31, 2001 | Aug. 31, 2019 | Mar. 31, 2016 | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | |||||
Interest expense | $ 15 | $ 284 | $ 287 | ||
7.45% U.S. Dollar Debentures Due 2031 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 625 | ||||
Debt Instrument, Term | 30 years | ||||
Debt instrument, stated interest rate | 7.45% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 7.56% | ||||
Percentage of principal amount redeemed | 100.00% |
Debt Long-term Debt Footnote C
Debt Long-term Debt Footnote C (Details) - USD ($) $ in Millions | 1 Months Ended | |
May 31, 2018 | Dec. 28, 2019 | |
4.30% U.S. Dollar Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 10 years | |
Debt Instrument, Face Amount | $ 600 | |
Debt instrument, stated interest rate | 4.30% | |
3.25% U.S. Dollar Notes Due 2018 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 7 years | |
Debt Instrument, Face Amount | $ 400 | |
Debt instrument, stated interest rate | 3.25% | |
Debt Instrument, Interest Rate, Effective Percentage | 4.34% |
Debt Long-term Debt Footnote D
Debt Long-term Debt Footnote D (Details) - 3.40% U.S. Dollar Notes Due 2027 - USD ($) $ in Millions | 1 Months Ended | |
Nov. 30, 2017 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 600 | |
Debt Instrument, Term | 10 years | |
Debt instrument, stated interest rate | 3.40% | |
Debt Instrument, Interest Rate, Effective Percentage | 3.49% |
Debt Long-term Debt Footnote E
Debt Long-term Debt Footnote E (Details) - USD ($) $ in Millions | Mar. 31, 2001 | Mar. 31, 2016 | Dec. 28, 2019 | Dec. 29, 2018 | Oct. 31, 2018 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||||
Notional amounts of interest rate swaps | $ 6,563 | $ 5,085 | ||||
3.25% U.S. Dollar Notes Due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 750 | |||||
Debt Instrument, Term | 10 years | |||||
Debt instrument, stated interest rate | 3.25% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.11% | |||||
Notional amounts of interest rate swaps | $ 450 | $ 300 | ||||
Unamortized gain (loss) on termination of interest rate swaps | $ (6) | |||||
7.45% U.S. Dollar Debentures Due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 625 | |||||
Debt Instrument, Term | 30 years | |||||
Debt instrument, stated interest rate | 7.45% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 7.56% |
Debt Long-term Debt Footnote F
Debt Long-term Debt Footnote F (Details) € in Millions, $ in Millions | 1 Months Ended | |||
Mar. 31, 2015EUR (€) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | May 31, 2017EUR (€) | |
Debt Instrument [Line Items] | ||||
Notional amounts of interest rate swaps | $ 6,563 | $ 5,085 | ||
1.25% Euro Note Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | € 600 | $ 671 | ||
Debt Instrument, Term | 10 years | |||
Debt instrument, stated interest rate | 1.25% | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.58% | |||
Notional amounts of interest rate swaps | € | € 600 | |||
Unamortized gain (loss) on termination of interest rate swaps | $ 20 |
Debt Long-term Debt Footnote G
Debt Long-term Debt Footnote G (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
May 31, 2016EUR (€) | May 31, 2009USD ($) | Dec. 28, 2019USD ($) | May 25, 2019EUR (€) | Dec. 29, 2018USD ($) | Oct. 31, 2018EUR (€) | Nov. 30, 2016EUR (€) | |
Debt Instrument [Line Items] | |||||||
Notional amounts of interest rate swaps | $ 6,563 | $ 5,085 | |||||
1.00% Euro Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | € 600 | $ 671 | |||||
Debt Instrument, Term | 8 years | ||||||
Debt instrument, stated interest rate | 1.00% | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.21% | ||||||
Notional amounts of interest rate swaps | € | € 600 | € 300 | € 300 | ||||
Fair value adjustment for interest rate swaps | $ 3 | ||||||
4.45% U.S. Notes Due 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 750 | ||||||
Debt Instrument, Term | 7 years | ||||||
Debt instrument, stated interest rate | 4.45% |
Debt Long-term Debt Footnote H
Debt Long-term Debt Footnote H (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019 | Nov. 30, 2016 | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 30, 2011 | |
Debt Instrument [Line Items] | |||||
Notional amounts of interest rate swaps | $ 6,563 | $ 5,085 | |||
Debt repurchase amount | 1,000 | ||||
Interest expense | $ 15 | $ 284 | $ 287 | ||
2.65% U.S. Dollar Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 600 | ||||
Debt Instrument, Term | 7 years | ||||
Debt instrument, stated interest rate | 2.65% | 2.65% | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.39% | ||||
Notional amounts of interest rate swaps | $ 300 | ||||
Unamortized gain (loss) on termination of interest rate swaps | $ (9) | ||||
Debt repurchase amount | $ 50 | ||||
Interest expense | $ 2 | ||||
1.875% U.S. Dollar Notes Due 2016 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 1.875% |
Debt Long-term Debt Footnote I
Debt Long-term Debt Footnote I (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019 | Feb. 28, 2013 | Dec. 28, 2019 | Dec. 29, 2018 | Sep. 30, 2016 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Debt repurchase amount | $ 1,000 | |||||
Interest expense | $ 15 | 284 | $ 287 | |||
Notional amounts of interest rate swaps | 6,563 | $ 5,085 | ||||
2.75% U.S. Dollar Note Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 400 | |||||
Debt repurchase amount | $ 189 | |||||
Debt Instrument, Term | 10 years | |||||
Debt instrument, stated interest rate | 2.75% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.11% | |||||
Notional amounts of interest rate swaps | $ 211 | |||||
Unamortized gain (loss) on termination of interest rate swaps | $ (9) | |||||
4.25% U.S. Dollar Notes Due 2013 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 750 | |||||
Debt instrument, stated interest rate | 4.25% |
Debt Long-term Debt Footnote J
Debt Long-term Debt Footnote J (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019 | May 31, 2012 | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 15 | $ 284 | $ 287 | ||
Debt repurchase amount | 1,000 | ||||
Notional amounts of interest rate swaps | $ 6,563 | $ 5,085 | |||
3.125% U.S. Dollar Debentures Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 700 | ||||
Debt repurchase amount | $ 342 | ||||
Debt Instrument, Term | 10 years | ||||
Debt instrument, stated interest rate | 3.125% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.74% | ||||
Unamortized gain (loss) on termination of interest rate swaps | $ (4) |
Debt Long-term Debt Footnote K
Debt Long-term Debt Footnote K (Details) € in Millions, $ in Millions | 1 Months Ended | ||
May 31, 2017USD ($) | Dec. 28, 2019USD ($) | May 31, 2017EUR (€) | |
.80% Euro Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 671 | € 600 | |
Debt Instrument, Term | 5 years | ||
Debt instrument, stated interest rate | 0.80% | 0.80% | |
Debt Instrument, Interest Rate, Effective Percentage | 0.87% | 0.87% | |
1.75% U.S. Dollar Notes Due 2017 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 5 years | ||
Debt instrument, stated interest rate | 1.75% | 1.75% | |
Debt Instrument, Repurchased Face Amount | $ 400 |
Debt Long-term Debt Footnote L
Debt Long-term Debt Footnote L (Details) - 1.75% Euro Notes Due 2021 € in Millions, $ in Millions | 1 Months Ended | |
May 31, 2014EUR (€) | Dec. 28, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 500 | $ 559 |
Debt Instrument, Term | 7 years | |
Debt instrument, stated interest rate | 1.75% | |
Debt Instrument, Interest Rate, Effective Percentage | 2.37% |
Debt Long-term Debt Footnote M
Debt Long-term Debt Footnote M (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | May 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | ||||
Debt repurchase amount | $ 1,000 | |||
Interest expense | $ 15 | $ 284 | $ 287 | |
3.25% U.S. Dollar Notes Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 400 | |||
Debt Instrument, Term | 3 years | |||
Debt instrument, stated interest rate | 3.25% | 3.25% | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.39% | |||
Debt repurchase amount | $ 202 | |||
Interest expense | $ 6 | |||
3.25% U.S. Dollar Notes Due 2018 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 400 | |||
Debt Instrument, Term | 7 years | |||
Debt instrument, stated interest rate | 3.25% | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.34% |
Debt Long-term Debt Footnote N
Debt Long-term Debt Footnote N (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019 | Dec. 31, 2010 | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Debt repurchase amount | $ 1,000 | ||||
Interest expense | $ 15 | 284 | $ 287 | ||
Notional amounts of interest rate swaps | $ 6,563 | $ 5,085 | |||
4.0% U.S. Dollar Notes Due 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,000 | ||||
Debt Instrument, Term | 10 years | ||||
Debt instrument, stated interest rate | 4.00% | 4.00% | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.37% | ||||
Debt repurchase amount | $ 248 | $ 150 | |||
Interest expense | $ 6 |
Debt Long-term Debt Footnote O
Debt Long-term Debt Footnote O (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Nov. 30, 2009 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | |||||
Debt repurchase amount | $ 1,000 | ||||
Interest expense | $ 15 | $ 284 | $ 287 | ||
4.15% U.S. Dollar Notes Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 500 | ||||
Debt Instrument, Term | 10 years | ||||
Debt instrument, stated interest rate | 4.15% | 4.15% | 4.15% | ||
Debt repurchase amount | $ 191 | $ 309 | |||
Interest expense | $ 1 | $ 1 | |||
6.6% U.S. Dollar Notes Due 2011 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 6.60% |
Debt 2019 Debt Redemption (Deta
Debt 2019 Debt Redemption (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2019 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | May 31, 2018 | Nov. 30, 2016 | Mar. 31, 2014 | Dec. 31, 2010 | Nov. 30, 2009 | |
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 15 | $ 284 | $ 287 | ||||||
Debt repurchase amount | $ 1,000 | ||||||||
4.15% U.S. Dollar Notes Due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 4.15% | 4.15% | 4.15% | ||||||
Interest expense | $ 1 | $ 1 | |||||||
Debt repurchase amount | $ 191 | $ 309 | |||||||
4.0% U.S. Dollar Notes Due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 4.00% | 4.00% | |||||||
Interest expense | $ 6 | ||||||||
Debt repurchase amount | $ 248 | $ 150 | |||||||
3.25% U.S. Dollar Notes Due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 3.25% | 3.25% | |||||||
Interest expense | $ 6 | ||||||||
Debt repurchase amount | $ 202 | ||||||||
2.65% U.S. Dollar Notes Due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, stated interest rate | 2.65% | 2.65% | |||||||
Interest expense | $ 2 | ||||||||
Debt repurchase amount | $ 50 |
Debt Standby Letters of Credit
Debt Standby Letters of Credit (Details) - Standby Letters of Credit $ in Millions | Dec. 28, 2019USD ($) |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 87 |
Secured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | 52 |
Unsecured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 35 |
Stock Compensation Equity based
Stock Compensation Equity based compensation programs (Details) | 12 Months Ended |
Dec. 28, 2019shares | |
2017 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized, but unissued | 16,000,000 |
Vesting period, years | 3 years |
Options granted remaining authorized, but unissued, shares | 17,000,000 |
Contractual term, years | 10 years |
Shares, Issued | 2 |
Shares Reduced From Remaining Available | 1 |
Shares Reduced From Outstanding Award | 1 |
2013 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, years | 3 years |
Contractual term, years | 10 years |
International Subsidiary Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% |
Stock Compensation Schedule of
Stock Compensation Schedule of Compensation Expense for Equity Programs and Related Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Pre-tax compensation expense | $ 61 | $ 64 | $ 71 |
Related income tax benefit | 16 | $ 16 | $ 26 |
Non-vested stock-based compensation awards not yet recognized | $ 87 | ||
Weighted-average period of recognition, years | 2 years |
Stock Compensation Cash used to
Stock Compensation Cash used to settle equity instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Total cash received from option exercises and similar instruments | $ 64 | $ 167 | $ 97 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ (2) | $ 11 | $ 4 |
Stock Compensation Fair Value A
Stock Compensation Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted-average expected volatility | 18.00% | 18.00% | 18.00% |
Weighted-average expected term (years) | 6 years 7 months 6 days | 6 years 7 months 6 days | 6 years 7 months 6 days |
Weighted-average risk-free interest rate | 2.59% | 2.82% | 2.26% |
Dividend yield | 3.90% | 3.00% | 2.80% |
Weighted-average fair value of options granted | $ 6.78 | $ 10 | $ 10.14 |
Stock Compensation Summary of S
Stock Compensation Summary of Share-based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Outstanding, beginning of period - shares | 14 | 14 | 15 |
Granted - shares | 3 | 3 | 2 |
Exercised - shares | (1) | (2) | (2) |
Forfeitures and expirations - shares | (2) | (1) | (1) |
Outstanding, end of period - shares | 14 | 14 | 14 |
Exerciseable, end of period - shares | 10 | 10 | 10 |
Outstanding, beginning of period - weighted-average exercise price | $ 66 | $ 64 | $ 62 |
Granted - weighted-average exercise price | 57 | 70 | 73 |
Exercised - weighted-average exercise price | 56 | 58 | 57 |
Forfeitures and expirations - weighted-average exercise price | 67 | 71 | 70 |
Outstanding, end of period - weighted-average exercise price | 65 | 66 | 64 |
Exercisable, end of period - weighted-average exercise price | $ 65 | $ 63 | $ 60 |
Outstanding, end of period - weighted-average remaining contractual term (years) | 4 years 10 months 24 days | ||
Excerciseable, end of period - weighted-average remaining contractual term (years) | 6 years 1 month 6 days | ||
Outstanding, end of period - aggregate intrinsic value | $ 55 | ||
Exerciseable, end of period - aggregate intrinsic value | 86 | ||
Total intrinsic value of options exercised | $ 7 | $ 33 | $ 22 |
Stock Compensation Maximum Futu
Stock Compensation Maximum Future Value of Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | |
2019 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 31 | ||||
2018 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | 20 | ||||
2017 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 13 | ||||
2019 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | ||||
Vesting period, years | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 59 | ||||
Performance Share Target Grant | 223,000 | ||||
2018 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | ||||
Vesting period, years | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 88 | ||||
Performance Share Target Grant | 143,000 | ||||
2017 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | ||||
Vesting period, years | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 50 | ||||
Performance Share Target Grant | 100,000 | ||||
2016 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
2016 Performance share award settlement in terms of original target | 88.00% | ||||
2016 Performance share award settlement in dollars | $ 7 |
Stock Compensation Summary of r
Stock Compensation Summary of restricted stock activity (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested, beginning of year - shares | 1,708 | 1,673 | 1,166 |
Granted - shares | 287 | 772 | 776 |
Vested - shares | (469) | (507) | (109) |
Forfeited - shares | (340) | (230) | (160) |
Non-vested, end of year - shares | 1,186 | 1,708 | 1,673 |
Non-vested, beginning of year - weighted-average grant-date fair value | $ 65 | $ 65 | $ 63 |
Granted - weighted average grant-date fair value | 55 | 63 | 65 |
Vested - weighted-average grant-date fair value | 68 | 59 | 58 |
Forfeited - weighted-average grant-date fair value | 62 | 64 | 65 |
Non-vested, end of year - weighted-average grant-date fair value | $ 61 | $ 65 | $ 65 |
Total fair value of restricted stock and restricted stock units vested during period | $ 27 | $ 35 | $ 5 |
Pension Benefits Pension Benefi
Pension Benefits Pension Benefits Narrative (Details) - Pension - United States - USD ($) $ in Millions | Jul. 28, 2019 | Dec. 28, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 174 | |
Curtailment gain | $ 11 |
Pension Benefits Change in Proj
Pension Benefits Change in Projected Benefit Obligations, Plan Assets, and Funding Status (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Sep. 30, 2017 | Sep. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Amounts Recognized in Balance Sheet | |||||
Other Assets | $ 241 | $ 228 | |||
Other liabilities | (705) | (651) | |||
Minimum | |||||
Amounts Recognized in Balance Sheet | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3.00% | ||||
Maximum | |||||
Amounts Recognized in Balance Sheet | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 7.00% | ||||
Europe | Project K | Pension | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | $ 30 | ||||
Global plans | Pension | |||||
Change in Benefit Obligation [Roll Forward] | |||||
Beginning of Year | 5,117 | 5,648 | |||
Service Cost | 36 | 87 | |||
Interest Cost | 172 | 165 | |||
Plan participants' contributions | 1 | 1 | |||
Plan Amendments | 3 | 6 | |||
Actuarial (gain) loss | 766 | (384) | |||
Benefits paid | (458) | (280) | |||
Curtailments and special termination benefits | (13) | (36) | |||
Other | 0 | 1 | |||
Foreign Currency Adjustments | 30 | (91) | |||
End of Year | 5,654 | 5,117 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value, Beginning of Year | 4,677 | 5,043 | |||
Actual Return on Plan Assets | 874 | (299) | |||
Employer Contributions | 10 | 270 | |||
Plan participants' contributions | 1 | 1 | |||
Benefits Paid, Plan Assets | (426) | (236) | |||
Other | 0 | (1) | |||
Foreign Currency Adjustments | 34 | (101) | |||
Fair Value, End of Year | 5,170 | 4,677 | |||
Funded Status | (484) | (440) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||||
Prior Service Cost | 37 | 41 | |||
Net Amount Recognized | 37 | 41 | |||
Amounts Recognized in Balance Sheet | |||||
Other Assets | 241 | 228 | |||
Other Current Liabilities | (20) | (17) | |||
Other liabilities | (705) | (651) | |||
Net Amount Recognized | (484) | (440) | |||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 5,600 | $ 5,000 | |||
United States and Canada | Project K | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Curtailment gain | $ 136 |
Pension Benefits Accumulated Be
Pension Benefits Accumulated Benefit Obligations (Details) - Global plans - Pension - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 4,061 | $ 3,725 |
Accumulated benefit obligation | 4,033 | 3,689 |
Fair value of plan assets | $ 3,362 | $ 3,081 |
Pension Benefits Components of
Pension Benefits Components of Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 117 | $ 165 | $ (255) |
Global plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) expense | 39 | 38 | 41 |
Global plans | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 36 | 87 | |
Interest Cost | 172 | 165 | |
Net periodic benefit cost | 110 | 168 | (138) |
Curtailment and special termination benefits | (13) | (30) | (151) |
Pension (income) expense | 97 | 138 | (289) |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 7 | ||
Global plans | COGS and SGA | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 36 | 87 | 96 |
Global plans | OIE | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest Cost | 172 | 165 | 164 |
Expected Return on Plan Assets | (340) | (361) | (371) |
Amortization of Unrecognized Prior Service Cost (Credit) | 7 | 8 | 9 |
Recognized net (gain) loss | 235 | 269 | (36) |
Foreign and U.S. multiemployer defined contribution plan | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 20 | $ 27 | $ 34 |
Pension Benefits Assumptions (D
Pension Benefits Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 2.90% | 3.90% | 3.30% |
Long-term rate of compensation increase | 3.40% | 3.80% | 3.90% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rates of return | 25th | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rates of return | 75th | ||
Global Plans [Member] | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 3.70% | 3.30% | 3.60% |
Long-term rate of compensation increase | 4.00% | 3.90% | 3.90% |
Long-term rate of return on plan assets | 7.30% | 7.40% | 8.10% |
Defined Benefit Plan, Benefit Obligation | $ 5,654 | $ 5,117 | $ 5,648 |
United States | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of consolidated pension and postretirement benefit plan assets | 72.00% | ||
Long-term inflation assumption | 2.50% | ||
Active management premium | 0.80% | ||
Expected rate of return on foreign plan assets | 7.00% | ||
Expected rates of return | 54th percentile | ||
Mortality rate | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 77 |
Pension Benefits Plan Assets (D
Pension Benefits Plan Assets (Details) - Global plans - Pension - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 5,170 | $ 4,677 | $ 5,043 | |
Net Asset Value Excluded From Fair Value By Input | [1] | 2,615 | 2,850 | |
Expected contribution by Company | 7 | |||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 368 | 497 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 2,187 | 1,330 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Cash and Cash Equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 14 | 75 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Cash and Cash Equivalents | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 14 | 75 | ||
Cash and Cash Equivalents | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Cash and Cash Equivalents | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Domestic Corporate Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 338 | 412 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | $ 0 | $ 0 | |
Percentage of consolidated plan assets represented by investment in Company comon stock | 1.20% | 1.00% | ||
Domestic Corporate Common Stock | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 338 | $ 412 | ||
Domestic Corporate Common Stock | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Domestic Corporate Common Stock | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Foreign Corporate Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 16 | 11 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Foreign Corporate Common Stock | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 16 | 10 | ||
Foreign Corporate Common Stock | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 1 | ||
Foreign Corporate Common Stock | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Mutual Fund International Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 36 | 41 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 36 | 34 | |
Mutual Fund International Equity | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Mutual Fund International Equity | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 7 | ||
Mutual Fund International Equity | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Mutual Funds Domestic Debt | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 4 | 53 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Mutual Funds Domestic Debt | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Mutual Funds Domestic Debt | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 4 | 53 | ||
Mutual Funds Domestic Debt | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts Domestic Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 498 | 437 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 498 | 437 | |
Collective Trusts Domestic Equity | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts Domestic Equity | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts Domestic Equity | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts International Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 933 | 1,422 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 816 | 1,330 | |
Collective Trusts International Equity | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts International Equity | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 117 | 92 | ||
Collective Trusts International Equity | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts Other International Debt | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 1,096 | 331 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 378 | 331 | |
Collective Trusts Other International Debt | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Collective Trusts Other International Debt | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 718 | 0 | ||
Collective Trusts Other International Debt | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Limited Partnership | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 228 | 283 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 228 | 283 | |
Limited Partnership | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Limited Partnership | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Limited Partnership | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Bonds, corporate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 654 | 498 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 211 | 0 | |
Bonds, corporate | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Bonds, corporate | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 443 | 498 | ||
Bonds, corporate | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Bonds, government | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 774 | 562 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Bonds, government | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Bonds, government | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 774 | 562 | ||
Bonds, government | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Bonds, other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 70 | 62 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Bonds, other | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Bonds, other | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 70 | 62 | ||
Bonds, other | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Real estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 412 | 378 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 412 | 378 | |
Real estate | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Real estate | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Real estate | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Other [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 97 | 112 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 36 | 57 | |
Other [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 0 | 0 | ||
Other [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 61 | 55 | ||
Other [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 0 | $ 0 | ||
Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 31.00% | |||
Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 42.00% | |||
Real Estate And Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 27.00% | |||
[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. |
Pension Benefits Benefit Paymen
Pension Benefits Benefit Payments (Details) - Global plans - Pension $ in Millions | Dec. 28, 2019USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2020 | $ 274 |
Benefit payments in 2021 | 273 |
Benefit payments in 2022 | 281 |
Benefit payments in 2023 | 285 |
Benefit payments in 2024 | 294 |
Benefit payments in 2025 through 2029 | $ 1,508 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | $ 241 | $ 228 | |
Other Liabilities | (33) | (34) | |
U.S. and Canada | Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Beginning of Year | 1,069 | 1,190 | |
Service Cost | 15 | 18 | $ 18 |
Interest Cost | 37 | 36 | 37 |
Actuarial (gain) loss | 59 | (105) | |
Benefits paid | (60) | (67) | |
Curtailments and special termination benefits | (6) | 0 | |
Plan Amendments | 0 | 0 | |
Foreign Currency Adjustments | 2 | (3) | |
End of Year | 1,116 | 1,069 | 1,190 |
Change in plan assets | |||
Fair Value, Beginning of Year | 1,140 | 1,292 | |
Actual Return on Plan Assets | 282 | (91) | |
Employer Contributions | 18 | 17 | |
Benefits Paid, Plan Assets | (76) | (78) | |
Fair Value, End of Year | 1,364 | 1,140 | $ 1,292 |
Funded Status | 248 | 71 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | 283 | 107 | |
Other Current Liabilities | (2) | (2) | |
Other Liabilities | (33) | (34) | |
Net Amount Recognized | 248 | 71 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | (59) | (68) | |
Net Amount Recognized | $ (59) | $ (68) |
Nonpension Postretirement and_4
Nonpension Postretirement and Postemployment Benefits Components of Postretirement Expense (Details) - Nonpension postretirement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ (175) | $ 43 | $ (123) |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 9 | ||
U.S. and Canada defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 15 | 18 | 18 |
Interest Cost | 37 | 36 | 37 |
Expected Return on Plan Assets | (86) | (94) | (98) |
Amortization of Unrecognized Prior Service Cost (Credit) | (9) | (9) | (9) |
Recognized net (gain) loss | (137) | 81 | (90) |
Net periodic benefit cost | (180) | 32 | (142) |
Curtailment and special termination benefits | (6) | 0 | 3 |
Postretirement Benefit Expense | (186) | 32 | (139) |
U.S. and Canada defined contribution plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ 11 | $ 11 | $ 16 |
Nonpension Postretirement and_5
Nonpension Postretirement and Postemployment Benefits Assumptions (Details) - Nonpension postretirement | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligation | 3.30% | 4.30% | 3.60% |
U.S. and Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, annual net periodic cost | 4.00% | 3.60% | 4.00% |
Long-term rate of return on plan assets | 7.30% | 7.50% | 8.50% |
Nonpension Postretirement and_6
Nonpension Postretirement and Postemployment Benefits Health Care Cost Trend Rates (Details) - Nonpension postretirement $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Assumed healthcare cost trend rate for 2019 | 5.25% |
Annual change in assumed healthcare cost trend rate | 0.25% |
Assumed health care cost trend rate by 2023 | 4.50% |
U.S. and Canada | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Effiect on total service and interest cost components, one percentage point increase | $ 3 |
Effect on postretirement benefit obligation, one percentage point increase | 77 |
Effect on total service and interest cost components, one percentage point decrease | (2) |
Effect on postretirement benefit obligation, one percentage point decrease | $ (66) |
Nonpension Postretirement and_7
Nonpension Postretirement and Postemployment Benefits Plan Assets (Details) - U.S. and Canada - Nonpension postretirement - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 1,364 | $ 1,140 | $ 1,292 | |
Net Asset Value Excluded From Fair Value By Input | [1] | 791 | 791 | |
Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 261 | 115 | ||
Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 312 | 234 | ||
Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Cash and Cash Equivalents | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 9 | 3 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Cash and Cash Equivalents | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 8 | 2 | ||
Cash and Cash Equivalents | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 1 | ||
Cash and Cash Equivalents | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Domestic Corporate Common Stock | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 242 | 108 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Domestic Corporate Common Stock | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 242 | 108 | ||
Domestic Corporate Common Stock | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Domestic Corporate Common Stock | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Foreign Corporate Common Stock | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 11 | 6 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Foreign Corporate Common Stock | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 11 | 5 | ||
Foreign Corporate Common Stock | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 1 | ||
Foreign Corporate Common Stock | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Funds Domestic Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 35 | 37 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Mutual Funds Domestic Equity | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Funds Domestic Equity | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 35 | 37 | ||
Mutual Funds Domestic Equity | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Fund International Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Mutual Fund International Equity | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Fund International Equity | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Fund International Equity | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Funds Domestic Debt | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 53 | 42 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Mutual Funds Domestic Debt | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Mutual Funds Domestic Debt | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 53 | 42 | ||
Mutual Funds Domestic Debt | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Collective Trusts Domestic Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 286 | 281 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 286 | 281 | |
Collective Trusts Domestic Equity | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Collective Trusts Domestic Equity | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Collective Trusts Domestic Equity | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Collective Trusts International Equity | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 293 | 228 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 293 | 228 | |
Collective Trusts International Equity | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Collective Trusts International Equity | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Collective Trusts International Equity | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Limited Partnership | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 124 | 199 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 124 | 199 | |
Limited Partnership | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Limited Partnership | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Limited Partnership | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Bonds, corporate | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 136 | 95 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Bonds, corporate | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Bonds, corporate | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 136 | 95 | ||
Bonds, corporate | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Bonds, government | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 77 | 50 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Bonds, government | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Bonds, government | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 77 | 50 | ||
Bonds, government | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Bonds, other | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 9 | 90 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 83 | |
Bonds, other | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Bonds, other | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 9 | 7 | ||
Bonds, other | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Real Estate | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 88 | |||
Net Asset Value Excluded From Fair Value By Input | [1] | 88 | ||
Real Estate | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | |||
Real Estate | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | |||
Real Estate | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | |||
Other [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 1 | ||
Net Asset Value Excluded From Fair Value By Input | [1] | 0 | 0 | |
Other [Member] | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | ||
Other [Member] | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 1 | ||
Other [Member] | Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 | ||
[1] | Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Nonpension Postretirement and_8
Nonpension Postretirement and Postemployment Benefits VEBA Trusts (Details) - U.S. and Canada $ in Millions | Dec. 28, 2019USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected contribution by Company | $ 19 |
Nonpension postretirement | Debt Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 24.00% |
Nonpension postretirement | Equity Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 67.00% |
Nonpension postretirement | Real Estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 9.00% |
Nonpension Postretirement and_9
Nonpension Postretirement and Postemployment Benefits Change in Projected Benefit Obligations, Plan Assets, and Funded Status, Postemployment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Other Assets | $ 241 | $ 228 |
Amounts Recognized in Balance Sheet | ||
Other Liabilities | (33) | (34) |
Postemployment | ||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Beginning of Year | 42 | 43 |
Service Cost | 3 | 3 |
Interest Cost | 2 | 1 |
Actuarial (gain) loss | 8 | 3 |
Benefits paid | (7) | (8) |
Plan Amendments | 0 | 0 |
Foreign Currency Adjustments | 0 | 0 |
End of Year | 48 | 42 |
Funded Status | (48) | (42) |
Amounts Recognized in Balance Sheet | ||
Other Current Liabilities | (7) | (5) |
Other Liabilities | (41) | (37) |
Net Amount Recognized | (48) | (42) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | 3 | 4 |
Net experience loss | (22) | (38) |
Net Amount Recognized | $ (19) | $ (34) |
Nonpension Postretirement an_10
Nonpension Postretirement and Postemployment Benefits Components of Postretirement Expense, Postemployment (Details) - Postemployment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 3 | $ 3 | |
Interest Cost | 2 | 1 | |
Global plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Change in incidence rate assumption | 7 | ||
Service Cost | 3 | 3 | $ 6 |
Interest Cost | 2 | 1 | 3 |
Amortization of Unrecognized Prior Service Cost (Credit) | 1 | 1 | 1 |
Recognized net (gain) loss | (5) | (5) | 0 |
Net periodic benefit cost | 1 | 0 | 10 |
Settlement cost | (3) | 0 | 0 |
Postemployment Benefits, Period Expense | (2) | $ 0 | $ 10 |
Estimated net prior service cost for defined benefit pension plans, expected to be amortized | 3 | ||
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ 1 |
Nonpension Postretirement an_11
Nonpension Postretirement and Postemployment Benefits Benefit Payments (Details) $ in Millions | Dec. 28, 2019USD ($) |
U.S. and Canada | Nonpension postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2020 | $ 66 |
Benefit payments in 2021 | 67 |
Benefit payments in 2022 | 67 |
Benefit payments in 2023 | 68 |
Benefit payments in 2024 | 68 |
Benefit payments in 2025 through 2029 | 337 |
Global plans | Postemployment | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2020 | 8 |
Benefit payments in 2021 | 6 |
Benefit payments in 2022 | 5 |
Benefit payments in 2023 | 5 |
Benefit payments in 2024 | 5 |
Benefit payments in 2025 through 2029 | $ 20 |
Multipemployer Pension and Po_3
Multipemployer Pension and Postretirement Plans Narrative (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Minimum | |
Multiemployer Plans [Line Items] | |
Red Zone Multiemployer Plans Funded Percentage | 0.00% |
Yellow Zone Multiemployer Plans Funded Percentage | 65.00% |
Green Zone Multiemployer Plan Funded Percentage | 80.00% |
Maximum | |
Multiemployer Plans [Line Items] | |
Red Zone Multiemployer Plans Funded Percentage | 65.00% |
Yellow Zone Multiemployer Plans Funded Percentage | 80.00% |
Green Zone Multiemployer Plan Funded Percentage | 100.00% |
Multipemployer Pension and Po_4
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Trusts Funds (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 38-0710690 | |||
Multiemployer Plan, Contributions by Employer | $ 8.7 | $ 10.4 | $ 15.9 | |
Bakery And Confectionary Union And Industry International Pension Fund [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 80.00% | |||
Entity Tax Identification Number | [1] | 52-6118572 | ||
Multiemployer Plan Number | [1] | 001 | ||
Multiemployer Plans, Certified Zone Status [Fixed List] | [1] | Red | Red | |
Multiemployer Plans, Certified Zone Status, Date | [1] | Dec. 31, 2019 | Dec. 31, 2018 | |
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | [1],[2] | Dec. 17, 2020 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | [1],[2] | Mar. 16, 2021 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [1],[2] | Mar. 16, 2021 | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan [Fixed List] | [1] | Implemented | ||
Multiemployer Plan, Contributions by Employer | [1] | $ 5.9 | $ 6.5 | 6.6 |
Multiemployer Plans, Surcharge [Fixed List] | [1] | Yes | ||
Central States Southeast And Southwest Areas Pension Fund [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 36-6044243 | |||
Multiemployer Plan Number | 001 | |||
Multiemployer Plans, Certified Zone Status [Fixed List] | Red | Red | ||
Multiemployer Plans, Certified Zone Status, Date | Dec. 31, 2019 | Dec. 31, 2018 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [3] | |||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan [Fixed List] | Implemented | |||
Multiemployer Plan, Contributions by Employer | $ 1.3 | $ 1.9 | 4.8 | |
Multiemployer Plans, Surcharge [Fixed List] | Yes | |||
Western Conference Of Teamsters Pension Trust [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 91-6145047 | |||
Multiemployer Plan Number | 001 | |||
Multiemployer Plans, Certified Zone Status [Fixed List] | Green | Green | ||
Multiemployer Plans, Certified Zone Status, Date | Dec. 31, 2019 | Dec. 31, 2018 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [4] | Mar. 26, 2022 | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan [Fixed List] | NA | |||
Multiemployer Plan, Contributions by Employer | $ 0.8 | $ 1 | 1.4 | |
Multiemployer Plans, Surcharge [Fixed List] | No | |||
Other Plans [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [5] | |||
Multiemployer Plan, Contributions by Employer | $ 0.7 | $ 1 | $ 3.1 | |
[1] | The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 80 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/16/2021. | |||
[2] | During 2017, the Company terminated certain CBAs covered by these funds. Because of the Company's level of continuing involvement in each fund, the Company does not anticipate being subject to a withdrawal liability. The Company does not expect 2020 contributions to be materially different than 2019. | |||
[3] | During 2019, the Company terminated CBAs covered by this fund. As a result, the Company has withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect to make 2020 contributions. | |||
[4] | During 2017, the Company terminated certain CBAs covered by this fund. As a result, the Company has partially withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect 2020 contributions to be materially different than 2019. | |||
[5] | During 2017 and 2019, the Company terminated the CBAs covered by certain of these funds. As a result, for the impacted funds, the Company recognized expense for the estimated withdrawal liability in each year and no longer made contributions following the termination. The Company does not expect 2020 contributions to the remaining funds to be materially different from 2019. |
Multipemployer Pension and Po_5
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Trusts Funds Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Multiemployer Plans [Line Items] | |||
Collective-Bargaining Arrangement, percentage of total contributions | 5.00% | ||
Multiemployer withdrawal obligation annual cash obligation | $ 8 | ||
Multiemployer Plans, Withdrawal Obligation | $ 156 | $ 32 | |
Multiemployer plan withdrawal obligation term | 20 years | ||
Multiemployer withdrawal liability payments | $ 8 | 3 | |
Project K | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan withdrawal expense | $ 132 | $ 7 | $ 26 |
Multipemployer Pension and Po_6
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Curtailments, Settlements and Termination Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer Plan, Contributions by Employer | $ 8.7 | $ 10.4 | $ 15.9 |
Multiemployer Plans, Postretirement Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer Plan, Contributions by Employer | $ 11 | $ 11 | $ 16 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 28, 2019 | Sep. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective income tax rate | 24.60% | 13.60% | 24.80% | ||
Out-of-period adjustment - increase tax expense decrease deferred tax asset | $ 39 | ||||
U.S. Federal Corporate Tax Rate Prior to Tax Cuts and Jobs Act of 2017 | 35.00% | ||||
U.S. Federal Corporate Tax Rate after Tax Cuts and Jobs Act of 2017 | 21.00% | ||||
Year end tax provision net of reduction in U.S. Corporate tax rate and transition tax | $ 8 | ||||
Tax benefit from U.S. corporate tax rate reduction | $ (11) | (11) | (11) | ||
Transition tax estimate | $ (16) | ||||
Discrete tax expense related to changes in our reinvestment assertion | 5 | ||||
Remeasurement of deferred taxes Tax Cuts Jobs Act of 2017 | $ 149 | ||||
Transition tax liability on accumulated foreign earnings | 94 | $ (16) | 94 | 157 | |
Tax reserves for transition tax on foreign earnings | 47 | 47 | 47 | ||
Pension contributions | 28 | 287 | 44 | ||
Discrete tax benefit remeasurement of deferred taxes following a legal entity restructuring | 44 | ||||
Undistributed earnings of foreign subsidiaries | 800 | 800 | 2,400 | ||
Amount of unrecognized deferred tax liability on undistributed earnings of foreign subsidiaries | 20 | 20 | |||
Accumulated foreign earnings considered permanently reinvested | 2,600 | ||||
Deferred Tax Benefit Resulting From Intercompany Transfer Of Intellectual Property | 39 | ||||
Tax benefits of carryforwards | 279 | 279 | 270 | ||
Valuation allowance | 146 | 146 | 166 | ||
Income taxes paid | $ 255 | $ 537 | 188 | $ 352 | |
U.S percentage of tax provision | 70.00% | 70.00% | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 44 | $ 44 | |||
Projected additions to unrecognized tax benefits related to ongoing intercompany pricing activity | 5 | ||||
Unrecognized tax benefits that would affect the Company's effective tax rate in future periods | 81 | 81 | |||
Deferred Tax Liabilities, Gross | 749 | 749 | 852 | ||
Deferred tax liabilities | 364 | 364 | 484 | ||
Discretionary pension contribution | |||||
Operating Loss Carryforwards [Line Items] | |||||
Pension contributions | $ 250 | ||||
Current liabilities | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase in Unrecognized Tax Benefits is Reasonably Possible | $ 19 | $ 19 |
Income Taxes Income before inco
Income Taxes Income before income taxes and the provision for U.S. federal, state and foreign taxes on earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, United States | $ 938 | $ 851 | $ 1,097 |
Income before income taxes, Foreign | 367 | 478 | 560 |
Income before income taxes | 1,305 | 1,329 | 1,657 |
Income taxes, currently payable, Federal | 345 | 7 | 358 |
Income taxes, currently payable, State | 52 | 28 | 31 |
Income taxes, currently payable, Foreign | 77 | 99 | 79 |
Income taxes, currently payable | 474 | 134 | 468 |
Income taxes, deferred, Federal | (124) | 109 | (41) |
Income taxes, deferred, State | (29) | (59) | 8 |
Income taxes, deferred, Foreign | 0 | (3) | (25) |
Income taxes, deferred | (153) | 47 | (58) |
Total income taxes | $ 321 | $ 181 | $ 410 |
Income Taxes Difference Between
Income Taxes Difference Between U.S. Federal Statutory Tax Rate and the Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21.00% | 21.00% | 35.00% |
Foreign rates varying from U.S. statutory rate | (2.50%) | (3.00%) | (6.70%) |
Excess tax benefits on share-based compensation | 0.00% | (0.30%) | (0.30%) |
State income taxes, net of federal benefit | 1.30% | 1.50% | 1.40% |
Cost (benefit) of remitted and unremitted foreign earnings | 0.80% | 0.70% | 0.10% |
Legal entity restructuring, deferred tax impact | 0.00% | (3.30%) | 0.00% |
Discretionary pension contributions | 0.00% | (2.30%) | 0.00% |
Revaluation of investment in foreign subsidiary | 2.50% | 0.00% | 0.00% |
Net change in valuation allowance | (1.60%) | 2.00% | (0.40%) |
U.S. deduction for qualified production activities | 0.00% | 0.00% | (1.40%) |
Statutory rate changes, deferred tax impact | 0.30% | 0.00% | (9.00%) |
U.S. deemed repatriation tax | 0.00% | (1.20%) | 10.40% |
Intangible property transfer | 0.00% | 0.00% | (2.40%) |
Divestiture | 2.90% | 0.00% | 0.00% |
Out-of-period adjustment | 3.00% | 0.00% | 0.00% |
Other | (3.10%) | (1.50%) | (1.90%) |
Effective Income Tax Rate Reconciliation, Percent | 24.60% | 13.60% | 24.80% |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 0 | $ 0 | ||
Deferred Tax Liabilities Us State Income Taxes | 6 | 19 | ||
Deferred Tax Assets Advertising And Promotion Related | 11 | 11 | ||
Deferred Tax Assets Wages And Payroll Taxes | 15 | 20 | ||
Deferred Tax Assets, Inventory | 17 | 14 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 143 | 132 | ||
Tax benefits of carryforwards | 279 | 270 | ||
Deferred Tax Assets, Hedging Transactions | 9 | 10 | ||
Deferred Tax Liabilities, Hedging Transactions | 0 | 0 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | 217 | 220 | ||
Deferred Tax Liabilities, Intangible Assets | 526 | 613 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 19 | 20 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 29 | 31 | ||
Deferred Tax Assets, Other | 9 | 26 | ||
Deferred Tax Assets, Gross | 531 | 534 | ||
Deferred Tax Liabilities, Gross | 749 | 852 | ||
Deferred Tax Liabilities, Net | (364) | (484) | ||
Deferred Tax Assets, Valuation Allowance | (146) | (166) | $ (153) | $ (131) |
Deferred Tax Assets, Net of Valuation Allowance | 385 | 368 | ||
Other Assets [Member] | ||||
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Net | 231 | 246 | ||
Other liabilities | ||||
Deferred Income Tax [Line Items] | ||||
Deferred Tax Liabilities, Net | $ (595) | $ (730) |
Income Taxes Change in Valuatio
Income Taxes Change in Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 166 | $ 153 | $ 131 |
Additions charged to income tax expense | 25 | 29 | 35 |
Reductions credited to income tax expense | (47) | (1) | (28) |
Currency translation adjustments | 2 | (15) | 15 |
Balance at end of year | $ 146 | $ 166 | $ 153 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Balance at beginning of year | $ 97 | $ 60 | $ 63 | |
Additions, current year | 5 | 51 | [1] | 6 |
Additions, prior year | 4 | 4 | 5 | |
Reductions, prior year | (14) | (13) | (8) | |
Settlements, decreases | (1) | (4) | (4) | |
Lapse in statute of limitations | (1) | (1) | (2) | |
Balance at end of year | 90 | 97 | 60 | |
Tax reserves for transition tax on foreign earnings | 47 | 47 | ||
Reduction to tax interest accrual | 11 | |||
Income tax examination interest payments | 2 | |||
Income Tax Examination, Interest Expense | 3 | 2 | ||
Accrued tax-related interest and penalties | $ 11 | $ 22 | $ 21 | |
[1] | During the fourth quarter of 2018, the Company recorded, as part of its final estimate under SAB 118, $47 million of tax reserves related to uncertainty in our interpretation of the statute and associated regulations. |
Derivative Instruments and Fa_3
Derivative Instruments and Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | ||
Long-term debt, carrying value | $ 7,815 | $ 8,717 |
Derivative, Collateral, Obligation to Return Cash | 7 | 2 |
Concentration of credit risk, maximum exposure | $ 58 | |
Five largest customers percentage of consolidated trade receivables | 23.00% | |
Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Long-term debt, carrying value | $ 2,600 | $ 2,600 |
Accounts receivable | ||
Derivative [Line Items] | ||
Collateral posting | 0 | |
Margin deposits | 12 | |
Other liabilities | ||
Derivative [Line Items] | ||
Derivative, Collateral, Obligation to Return Cash | $ 19 |
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. 28, 2019 | Dec. 29, 2018 |
Derivative [Line Items] | ||
Notional amount of derivatives | $ 6,563 | $ 5,085 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 2,628 | 1,863 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 1,540 | 1,197 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 1,871 | 1,608 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 524 | $ 417 |
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. 28, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | |||
Fair Value Of Related Hedge Portion Of Long Term Debt | $ 700 | $ 1,600 | |
Designated as hedging instrument | |||
Derivative [Line Items] | |||
Assets | 96 | 96 | |
Liabilities | (4) | (22) | |
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 | 96 | 96 | |
Liabilities | (4) | (22) | |
Designated as hedging instrument | Cross-currency contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 45 | 0 | |
Designated as hedging instrument | Cross-currency contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 40 | 79 | |
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 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 45 | 0 | |
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 40 | 79 | |
Designated as hedging instrument | Interest rate contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 7 | 0 |
Designated as hedging instrument | Interest rate contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 4 | 17 |
Designated as hedging instrument | Interest rate contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | (4) | 0 |
Designated as hedging instrument | Interest rate contracts | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | 0 | (22) |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 0 | 0 |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 0 | 0 |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | 0 | 0 |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | 0 | 0 |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 7 | 0 |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 4 | 17 |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | (4) | 0 |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | 0 | (22) |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Assets | 21 | 6 | |
Liabilities | (32) | (13) | |
Not Designated as Hedging Instrument [Member] | Level 1 [Member] | |||
Derivative [Line Items] | |||
Assets | 9 | 3 | |
Liabilities | (1) | (9) | |
Not Designated as Hedging Instrument [Member] | Level 2 [Member] | |||
Derivative [Line Items] | |||
Assets | 12 | 3 | |
Liabilities | (31) | (4) | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 12 | 3 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (18) | (4) | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other current 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 | 12 | 3 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (18) | (4) | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (13) | 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 liabilities | |||
Derivative [Line Items] | |||
Liabilities | (13) | 0 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 9 | 3 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (1) | (9) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 9 | 3 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (1) | (9) | |
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 $0.7 billion and $1.6 billion as of December 28, 2019 and December 29, 2018 |
Derivative Instruments and Fa_6
Derivative Instruments and Fair Value Measurements Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Current maturities of long-term debt | $ 620 | $ 510 | |
Long-term debt | 7,195 | 8,207 | |
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 | 493 | 503 | |
Long-term debt | 2,643 | 3,354 | |
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] | 0 | 3 |
Long-term debt | [1] | 19 | (18) |
Cumulative fair value adjustment | Discontinued hedging | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Current maturities of long-term debt | 3 | ||
Long-term debt | $ 15 | $ (12) | |
[1] | The current maturities of hedged long-term debt includes $3 million of hedging adjustment on discontinued hedging relationships as of December 29, 2018 . The hedged long-term debt includes $15 million and $(12) million of hedging adjustment on discontinued hedging relationships as of December 28, 2019 and December 29, 2018 , respectively. |
Derivative Instruments and Fa_7
Derivative Instruments and Fair Value Measurements Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net amount of assets presented in the balance sheet | $ 117 | $ 102 |
Financial instruments, gross amount not offset in balance sheet | (27) | (27) |
Cash collateral posted, gross amount not offset in balance sheet | (7) | (2) |
Net amount, assets derivatives | 83 | 73 |
Net amounts of liabilities presented in balance sheet | (36) | (35) |
Financial instruments, gross amount not offset in balance sheet | 27 | 27 |
Cash collateral received, gross amount not offset in balance sheet | 0 | 0 |
Net amount, liabilities derivatives | $ (9) | $ (8) |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 9 | ||
Gain (Loss) Recognized in AOCI | 5 | $ 3 | $ 0 |
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | 66 | 208 | |
Gain (loss) excluded from assessment of hedge effectiveness | 34 | 16 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (18) | (3) | |
Foreign currency exchange contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (16) | 19 | |
Foreign currency exchange contracts | SGA | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (2) | 1 | |
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 | (4) | 0 | |
Foreign Currency Denominated Long Term Debt | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | 60 | 129 | |
Gain (loss) excluded from assessment of hedge effectiveness | 0 | 0 | |
Cross-currency contracts | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | 6 | 79 | |
Gain (loss) excluded from assessment of hedge effectiveness | 34 | 16 | |
Commodity contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 4 | (23) | |
Commodity contracts | SGA | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ 0 | $ 0 |
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 | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense | $ 15 | $ 284 | $ 287 | |
Cost of goods sold | 9,197 | 8,821 | $ 8,155 | |
Other income (expense), net | 188 | (90) | $ 526 | |
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 | (33) | (5) | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 37 | 9 | ||
Interest rate contracts | Interest expense | Designated as hedging instrument | Cash Flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | (4) | (8) | ||
Foreign currency exchange contracts | Interest expense | Designated as hedging instrument | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | $ 0 | $ 0 |
Derivative Instruments and F_10
Derivative Instruments and Fair Value Measurements Assets Measured at Fair Value (Details) - North America Other - Property, Plant and Equipment - Manufacturing Facility [Member] - Fair Value, Nonrecurring [Member] - Level 3 [Member] - Project K $ in Millions | Dec. 28, 2019USD ($) |
Long-lived assets value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 19 |
Estimate fair value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 5 |
Derivative Instruments and F_11
Derivative Instruments and Fair Value Measurements Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 7,800 | |
Long-term debt, carrying value | $ 7,195 | $ 8,207 |
Derivative Instruments and F_12
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. 28, 2019 | Dec. 29, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, cost | $ 0 | $ 59 |
Available-for-sale securities, unrealized gain (loss) | 0 | 0 |
Available-for-sale securities, market value | 0 | $ 59 |
Level 2 [Member] | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, market value | 63 | |
Other Income (Expense), Net | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gain on sale of available-for-sale securities | $ 4 |
Quarterly Financial Data Narrat
Quarterly Financial Data Narrative (Details) | Dec. 28, 2019 |
Quarterly Financial Information Disclosure [Abstract] | |
Number Of Shareholders | 31,322 |
Quarterly Financial Data Net sa
Quarterly Financial Data Net sales and gross profit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 |
Gross Profit | $ 1,088 | $ 1,000 | $ 1,186 | $ 1,107 | $ 1,089 | $ 1,176 | $ 1,209 | $ 1,252 | $ 4,381 | $ 4,726 |
Quarterly Financial Data Net in
Quarterly Financial Data Net income and earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net income (loss) attributable to Kellogg Company, Basic | $ 145 | $ 247 | $ 286 | $ 282 | $ (84) | [1] | $ 380 | $ 596 | $ 444 | $ 960 | $ 1,336 | $ 1,254 |
Basic | $ 0.43 | $ 0.73 | $ 0.84 | $ 0.82 | $ (0.24) | $ 1.10 | $ 1.72 | $ 1.28 | $ 2.81 | $ 3.85 | $ 3.61 | |
Diluted | $ 0.42 | $ 0.72 | $ 0.84 | $ 0.82 | $ (0.24) | $ 1.09 | $ 1.71 | $ 1.27 | $ 2.80 | $ 3.83 | $ 3.58 | |
[1] | The significant decrease in the fourth quarter 2018 net income is primarily due to a mark-to-market adjustment recognized on pension assets. |
Quarterly Financial Data Divide
Quarterly Financial Data Dividends and stock prices (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Dividends per share | $ 0.57 | $ 0.57 | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.54 | $ 0.54 | $ 2.26 | $ 2.20 |
Quarterly Financial Data Asset
Quarterly Financial Data Asset impairment and MTM gains and losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating profit | $ 1,401 | $ 1,706 | $ 1,387 | ||||||||
Other income (expense) | 188 | (90) | $ 526 | ||||||||
Restructuring and cost reduction charges | |||||||||||
Operating profit | $ (27) | $ (18) | $ (65) | $ (8) | $ (84) | $ (64) | $ (5) | $ (20) | (118) | (173) | |
Other income (expense) | 5 | 0 | 0 | 0 | 0 | 30 | 0 | 0 | 5 | 30 | |
Gains (Losses) on mark-to-market adjustments | |||||||||||
Operating profit | 0 | (11) | 46 | (42) | (15) | (11) | 3 | 30 | (7) | 7 | |
Other income (expense) | $ (120) | $ 32 | $ (11) | $ 1 | $ (397) | $ 36 | $ 2 | $ 9 | $ (98) | $ (350) |
Reportable Segments Narrative (
Reportable Segments Narrative (Details) $ in Millions | Jul. 28, 2019USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of Operating Segments | 4 | |||||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 | |||
Operating profit | 1,401 | 1,706 | 1,387 | |||||||||||
Proceeds from divestiture of businesses | $ 1,332 | $ 0 | $ 0 | |||||||||||
Walmart Stores Inc [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Largest customer, percentage of consolidated net sales | 19.00% | 19.00% | 20.00% | |||||||||||
Europe transfer to AMEA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $ 273 | $ 241 | ||||||||||||
Operating profit | 46 | 56 | ||||||||||||
North America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $ 8,390 | 8,688 | 8,673 | |||||||||||
Operating profit | [1] | $ 1,215 | [2] | $ 1,397 | $ 1,246 | |||||||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Proceeds from divestiture of businesses | $ 1,300 | |||||||||||||
Net assets | 1,300 | |||||||||||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | North America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Proceeds from divestiture of businesses | 1,300 | |||||||||||||
Net assets | $ 1,300 | |||||||||||||
[1] | Corporate operating profit in 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 and 2017 totaling approximately $48 million and $47 million , respectively. | |||||||||||||
[2] | During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million . |
Reportable Segments Information
Reportable Segments Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 | |||
Operating profit | 1,401 | 1,706 | 1,387 | |||||||||||
Depreciation and amortization | 484 | 516 | 481 | |||||||||||
Interest expense | 284 | 287 | 256 | |||||||||||
Income taxes | 321 | 181 | 410 | |||||||||||
Property, Plant and Equipment, Additions | 586 | 578 | 501 | |||||||||||
Pre-tax charge, multi-employer pension plan withdrawal | 132 | 7 | 26 | |||||||||||
Research and development expense | 144 | 154 | 148 | |||||||||||
North America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 8,390 | 8,688 | 8,673 | |||||||||||
Operating profit | [1] | 1,215 | [2] | 1,397 | 1,246 | |||||||||
Depreciation and amortization | 291 | 341 | [3] | 330 | ||||||||||
Interest expense | 0 | 1 | 3 | |||||||||||
Property, Plant and Equipment, Additions | 356 | 336 | 329 | |||||||||||
Pre-tax charge, multi-employer pension plan withdrawal | 132 | |||||||||||||
Research and development expense | 48 | 47 | ||||||||||||
Europe | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,092 | 2,122 | 2,050 | |||||||||||
Operating profit | 222 | 251 | 220 | |||||||||||
Depreciation and amortization | 80 | 78 | 78 | |||||||||||
Interest expense | 6 | 6 | 14 | |||||||||||
Income taxes | 48 | 23 | (37) | |||||||||||
Property, Plant and Equipment, Additions | 83 | 84 | 102 | |||||||||||
Latin America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 940 | 947 | 944 | |||||||||||
Operating profit | 85 | 102 | 108 | |||||||||||
Depreciation and amortization | 30 | 37 | 37 | |||||||||||
Interest expense | 9 | 3 | 2 | |||||||||||
Income taxes | 16 | 30 | 33 | |||||||||||
Property, Plant and Equipment, Additions | 41 | 76 | 32 | |||||||||||
AMEA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,156 | 1,790 | 1,187 | |||||||||||
Operating profit | 195 | 174 | 140 | |||||||||||
Depreciation and amortization | 76 | 57 | 35 | |||||||||||
Interest expense | 14 | 9 | 4 | |||||||||||
Income taxes | 23 | 23 | 10 | |||||||||||
Property, Plant and Equipment, Additions | 101 | 79 | 34 | |||||||||||
Total Reportable Segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating profit | 1,717 | 1,924 | 1,714 | |||||||||||
Depreciation and amortization | 477 | 513 | 480 | |||||||||||
Corporate | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Operating profit | [1] | (316) | (218) | (327) | ||||||||||
Depreciation and amortization | 7 | 3 | 1 | |||||||||||
Interest expense | 255 | 268 | 233 | |||||||||||
Property, Plant and Equipment, Additions | 5 | 3 | 4 | |||||||||||
Corporate And North America | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income taxes | $ 234 | $ 105 | $ 404 | |||||||||||
[1] | Corporate operating profit in 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 and 2017 totaling approximately $48 million and $47 million , respectively. | |||||||||||||
[2] | During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million . | |||||||||||||
[3] | Includes asset impairment charges as discussed in Note 14 . |
Reportable Segments Net sales t
Reportable Segments Net sales to external customers and long-lived assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 |
Property, net | 3,612 | 3,731 | 3,612 | 3,731 | 3,716 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 7,885 | 8,176 | 8,160 | ||||||||
Property, net | 1,996 | 2,197 | 1,996 | 2,197 | 2,195 | ||||||
All Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 5,693 | 5,371 | 4,694 | ||||||||
Property, net | $ 1,616 | $ 1,534 | $ 1,616 | $ 1,534 | $ 1,521 |
Reportable Segments Supplementa
Reportable Segments Supplemental product information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 3,223 | $ 3,372 | $ 3,461 | $ 3,522 | $ 3,317 | $ 3,469 | $ 3,360 | $ 3,401 | $ 13,578 | $ 13,547 | $ 12,854 |
Snacks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 6,663 | 6,797 | 6,683 | ||||||||
Retail Channel Cereal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,029 | 5,203 | 5,222 | ||||||||
Frozen | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,037 | 1,020 | 949 | ||||||||
Noodles and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 849 | $ 527 | $ 0 |
Supplemental Financial Statem_3
Supplemental Financial Statement Data Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Supplemental Financial Statement Data [Abstract] | |||
Research and development expense | $ 144 | $ 154 | $ 148 |
Advertising Expense | $ 676 | $ 752 | $ 732 |
Supplemental Financial Statem_4
Supplemental Financial Statement Data Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Supplemental Financial Statement Data [Abstract] | ||||
Trade receivables | $ 1,315 | $ 1,163 | ||
Allowance for doubtful accounts | (10) | (10) | $ (10) | $ (8) |
Refundable income taxes | 56 | 28 | ||
Other Receivables | 215 | 194 | ||
Accounts receivable, net | 1,576 | 1,375 | ||
Raw materials and supplies | 303 | 339 | ||
Finished goods and materials in process | 923 | 991 | ||
Inventories, net | 1,226 | 1,330 | ||
Land | 116 | 120 | ||
Buildings | 2,021 | 2,061 | ||
Machinery and equipment | 5,852 | 5,971 | ||
Capitalized software | 496 | 438 | ||
Construction in progress | 566 | 583 | ||
Accumulated depreciation | (5,439) | (5,442) | ||
Property, net | 3,612 | 3,731 | 3,716 | |
Other intangibles | 2,677 | 3,448 | ||
Accumulated amortization | (101) | (87) | $ (67) | |
Other intangibles, net | 2,576 | 3,361 | ||
Pension | 241 | 228 | ||
Deferred income taxes | 231 | 246 | ||
Other | 667 | 594 | ||
Other Assets | 1,139 | 1,068 | ||
Accrued income taxes | 42 | 48 | ||
Accrued salaries and wages | 290 | 309 | ||
Accrued advertising and promotion | 641 | 557 | ||
Other | 577 | 502 | ||
Other Liabilities, Current | 1,550 | 1,416 | ||
Income taxes payable | 81 | 115 | ||
Nonpension postretirement benefits | 33 | 34 | ||
Other | 429 | 355 | ||
Other liabilities | $ 543 | $ 504 |
Supplemental Financial Statem_5
Supplemental Financial Statement Data Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Supplemental Financial Statement Data [Abstract] | |||
Balance at beginning of year | $ 10 | $ 10 | $ 8 |
Additions charged to expense | 9 | 4 | 14 |
Doubtful accounts charged to reserve | (9) | (4) | (12) |
Balance at end of year | $ 10 | $ 10 | $ 10 |