Cover Page Document
Cover Page Document - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 28, 2023 | Jul. 01, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-4171 | ||
Entity Registrant Name | Kellogg Company | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 38-0710690 | ||
Entity Address, Address Line One | One Kellogg Square | ||
Entity Address, City or Town | Battle Creek | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49016-3599 | ||
City Area Code | 269 | ||
Local Phone Number | 961-2000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 20.1 | ||
Entity Common Stock, Shares Outstanding | 341,830,292 | ||
Documents Incorporated by Reference [Text Block] | Parts of the registrant’s Proxy Statement for the Annual Meeting of Shareowners to be held on April 28, 2023 are incorporated by reference into Part III of this Report. | ||
Closing price per share of common stock | $ 71.78 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Entity Central Index Key | 0000055067 | ||
Current Fiscal Year End Date | --12-31 | ||
Common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.25 par value per share | ||
Trading Symbol | K | ||
Security Exchange Name | NYSE | ||
1.000% Senior Notes Due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.000% Senior Notes due 2024 | ||
Trading Symbol | K 24 | ||
Security Exchange Name | NYSE | ||
1.250% Senior Notes Due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2025 | ||
Trading Symbol | K 25 | ||
Security Exchange Name | NYSE | ||
0.500% Senior Notes Due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.500% Senior Notes due 2029 | ||
Trading Symbol | K 29 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Detroit, Michigan |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 15,315 | $ 14,181 | $ 13,770 |
Cost of goods sold | 10,700 | 9,621 | 9,043 |
Selling, general and administrative expense | 2,980 | 2,808 | 2,966 |
Operating profit | 1,635 | 1,752 | 1,761 |
Interest expense | 218 | 223 | 281 |
Other income (expense), net | (220) | 437 | 121 |
Income before income taxes | 1,197 | 1,966 | 1,601 |
Income taxes | 244 | 474 | 323 |
Earnings (loss) from unconsolidated entities | 9 | 3 | (14) |
Net income | 962 | 1,495 | 1,264 |
Net income (loss) attributable to noncontrolling interests | 2 | 7 | 13 |
Net income attributable to Kellogg Company | $ 960 | $ 1,488 | $ 1,251 |
Basic | $ 2.81 | $ 4.36 | $ 3.65 |
Diluted | $ 2.79 | $ 4.33 | $ 3.63 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 962 | $ 1,495 | $ 1,264 |
Foreign currency translation adjustments, pre-tax: | |||
Foreign currency translation adjustment before tax | (412) | (222) | (76) |
Net investment hedges gain (loss), pre-tax: | |||
Net investment hedge gain (loss), pre-tax | 287 | 236 | (329) |
Cash flow hedges, pre-tax: | |||
Net deferred gain (loss) on cash flow hedges, pre-tax | 221 | 38 | (9) |
Reclassifications to net income, pre-tax | (2) | 22 | 14 |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | |||
Net experience gain (loss) | 5 | (2) | (4) |
Prior service credit (cost) | (3) | (18) | (21) |
Postretirement and postemployment benefits reclassification to net income, pre-tax: | |||
Net experience (gain) loss, pre-tax | (2) | (2) | (3) |
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 | (5) | (1) | 3 |
Reclassification to net income on available-for-sale securities, pre-tax | 1 | (2) | 0 |
Other comprehensive income (loss), pre-tax | 91 | 49 | (426) |
Foreign Currency Translation Adjustment, tax (expense) benefit: | |||
Foreign currency translation adjustments tax (expense) benefit | 3 | 5 | (3) |
Net Investment Hedges, tax (expense) benefit | |||
Net investment hedges gain (loss), tax (expense) benefit | (72) | (62) | 87 |
Cash flow hedges, tax (expense) benefit: | |||
Net deferred gain (loss) on cash flow hedges, tax (expense) benefit | (57) | (10) | 2 |
Reclassification to net income, tax (expense) benefit | 1 | (6) | (4) |
Postretirement and postemployment benefit amounts arising during the period, tax (expense) benefit: | |||
Net experience gain (loss), tax (expense) benefit | (1) | 1 | 1 |
Prior service credit (cost), tax (expense) benefit | 1 | 4 | 6 |
Postretirement and postemployment benefits reclassification to net income, tax (expense) benefit: | |||
Net experience (gain) loss, tax (expense) benefit | 1 | 0 | 1 |
Prior service (credit) cost, tax (expense) benefit | 0 | 0 | 0 |
Available-for-sale securities, tax (expense) benefit | |||
Unrealized gain (loss) on available-for-sale securities, tax (expense) benefit | 0 | 0 | 0 |
Reclassification to net income on available-for-sale securities, tax (expense) benefit | 0 | 0 | 0 |
Other comprehensive income (loss), tax (expense) benefit | (124) | (68) | 90 |
Foreign currency translation adjustments, after tax: | |||
Foreign currency translation adjustments after tax | (409) | (217) | (79) |
Net Investment Hedges, after tax: | |||
Net investment hedges gain (loss), after-tax | 215 | 174 | (242) |
Cash flow hedges, after-tax: | |||
Net deferred gain (loss) on cash flow hedges, after-tax | 164 | 28 | (7) |
Reclassification to net income, after-tax | (1) | 16 | 10 |
Postretirement and postemployment benefit amounts arising during the period, after-tax | |||
Net experience gain (loss), after tax | 4 | (1) | (3) |
Prior service credit (cost), after-tax | (2) | (14) | (15) |
Postretirement and postemployment benefits reclassification to net income, after-tax | |||
Net experience loss, after-tax | (1) | (2) | (2) |
Prior service cost, after-tax | 1 | 0 | (1) |
Available-for-sale securities, after-tax | |||
Unrealized gain (loss) on available-for-sale securities, after-tax | (5) | (1) | 3 |
Reclassification to net income on available-for-sale securities, after-tax | 1 | (2) | 0 |
Other comprehensive income (loss) | (33) | (19) | (336) |
Comprehensive income | 929 | 1,476 | 928 |
Net income (loss) attributable to noncontrolling interests | 2 | 7 | 13 |
Other comprehensive income (loss) attributable to noncontrolling interests | (46) | (30) | (52) |
Comprehensive income attributable to Kellogg Company | $ 973 | $ 1,499 | $ 967 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 299 | $ 286 |
Accounts receivable, net | 1,736 | 1,489 |
Inventories | 1,768 | 1,398 |
Other current assets | 383 | 221 |
Total current assets | 4,186 | 3,394 |
Property, net | 3,789 | 3,827 |
Operating lease, right-of-use assets | 617 | 640 |
Goodwill | 5,686 | 5,771 |
Other intangibles, net | 2,296 | 2,409 |
Investment in unconsolidated entities | 432 | 424 |
Other assets | 1,490 | 1,713 |
Total assets | 18,496 | 18,178 |
Liabilities, Current [Abstract] | ||
Current maturities of long-term debt | 780 | 712 |
Notes payable | 467 | 137 |
Accounts payable | 2,973 | 2,573 |
Current operating lease liabilities | 121 | 116 |
Accrued advertising and promotion | 766 | 714 |
Accrued salaries and wages | 370 | 300 |
Other current liabilities | 872 | 763 |
Total current liabilities | 6,349 | 5,315 |
Long-term debt | 5,317 | 6,262 |
Operating lease liabilities | 486 | 502 |
Deferred income taxes | 760 | 722 |
Pension liability | 709 | 706 |
Other liabilities | 500 | 456 |
Commitments and contingencies | ||
Equity [Abstract] | ||
Common stock, $0.25 par value, 1,000,000,000 shares authorized Issued: 421,209,894 shares in 2022 and 421,098,799 shares in 2021 | 105 | 105 |
Capital in excess of par value | 1,068 | 1,023 |
Retained earnings | 9,197 | 9,028 |
Treasury stock, at cost 79,409,966 shares in 2022 and 79,721,563 shares in 2021 | (4,721) | (4,715) |
Accumulated other comprehensive income (loss) | (1,708) | (1,721) |
Total Kellogg Company equity | 3,941 | 3,720 |
Noncontrolling interests | 434 | 495 |
Total equity | 4,375 | 4,215 |
Total liabilities and equity | $ 18,496 | $ 18,178 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) CONSOLIDATED BALANCE SHEET - $ / shares | Dec. 31, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.25 | $ 0.25 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 421,209,894 | 421,098,799 |
Treasury Stock, Shares | 79,409,966 | 79,721,563 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common stock | Capital in excess of par value | Retained earnings | Treasury stock | Accumulated other comprehensive income (loss) | Total Kellogg Company equity | Non- controlling interests |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 28, 2019 | $ 3,314 | $ 567 | ||||||
Balance, in shares at Dec. 28, 2019 | 421 | 79 | ||||||
Balance at Dec. 28, 2019 | $ 105 | $ 921 | $ 7,859 | $ (4,690) | $ (1,448) | $ 2,747 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,264 | 1,251 | 1,251 | 13 | ||||
Divestiture | (3) | 0 | (3) | |||||
Dividends declared | (782) | (782) | (782) | |||||
Distributions to noncontrolling interest | (1) | 0 | (1) | |||||
Other comprehensive income (loss) | (336) | (284) | (284) | (52) | ||||
Stock compensation | 76 | 76 | 76 | |||||
Stock options exercised and other | 104 | (25) | (2) | $ 131 | 104 | |||
Stock options exercised and other (in shares) | 0 | (2) | ||||||
Balance, in shares at Jan. 02, 2021 | 421 | 77 | ||||||
Balance at Jan. 02, 2021 | $ 105 | 972 | 8,326 | $ (4,559) | (1,732) | 3,112 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 02, 2021 | 3,636 | 524 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | (240) | $ (240) | (240) | |||||
Common stock repurchases (in shares) | 4 | |||||||
Net income (loss) | 1,495 | 1,488 | 1,488 | 7 | ||||
Acquisition of noncontrolling interest | 52 | 22 | 22 | 30 | ||||
Dividends declared | (788) | (788) | (788) | |||||
Distributions to noncontrolling interest | (36) | 0 | (36) | |||||
Other comprehensive income (loss) | (19) | 11 | 11 | (30) | ||||
Stock compensation | 68 | 68 | 68 | |||||
Stock options exercised and other | 47 | (39) | 2 | $ 84 | 47 | |||
Stock options exercised and other (in shares) | 0 | (1) | ||||||
Balance, in shares at Jan. 01, 2022 | 421 | 80 | ||||||
Balance at Jan. 01, 2022 | 3,720 | $ 105 | 1,023 | 9,028 | $ (4,715) | (1,721) | 3,720 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 01, 2022 | 4,215 | 495 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | (300) | $ (300) | (300) | |||||
Common stock repurchases (in shares) | 5 | |||||||
Net income (loss) | 962 | 960 | 960 | 2 | ||||
Dividends declared | (797) | (797) | (797) | |||||
Distributions to noncontrolling interest | (17) | 0 | (17) | |||||
Other comprehensive income (loss) | (33) | 13 | 13 | (46) | ||||
Stock compensation | 96 | 96 | 96 | |||||
Stock options exercised and other | 249 | (51) | 6 | $ 294 | 249 | |||
Stock options exercised and other (in shares) | 0 | (6) | ||||||
Balance, in shares at Dec. 31, 2022 | 421 | 79 | ||||||
Balance at Dec. 31, 2022 | 3,941 | $ 105 | $ 1,068 | $ 9,197 | $ (4,721) | $ (1,708) | $ 3,941 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2022 | $ 4,375 | $ 434 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) CONSOLIDATED STATEMENT OF EQUITY - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 2.34 | $ 2.31 | $ 2.28 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Operating Activities | |||
Net income | $ 962 | $ 1,495 | $ 1,264 |
Adjustments to reconcile net income to operating cash flows | |||
Depreciation and amortization | 478 | 467 | 479 |
Postretirement benefit plan expense (benefit) | 240 | (392) | (77) |
Deferred income taxes | (46) | 125 | 69 |
Stock compensation | 96 | 68 | 76 |
Other | (42) | (44) | (21) |
Postretirement benefit plan contributions | (23) | (20) | (32) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables | (257) | (9) | 75 |
Inventories | (411) | (135) | (54) |
Accounts payable | 411 | 194 | (9) |
All other current assets and liabilities | 243 | (48) | 216 |
Net cash provided by (used in) operating activities | 1,651 | 1,701 | 1,986 |
Investing activities | |||
Additions to properties | (488) | (553) | (505) |
Issuance of notes receivable | (22) | (28) | (19) |
Repayments from notes receivable | 10 | 28 | 14 |
Purchases of marketable securities | 0 | 0 | (250) |
Sales of marketable securities | 0 | 0 | 250 |
Settlement of net investment hedges | 37 | 19 | 0 |
Investments in unconsolidated entities | 0 | (10) | 0 |
Purchases of available-for-sale securities | (17) | (61) | (81) |
Sales of available-for-sale securities | 19 | 72 | 19 |
Other | 13 | 5 | (13) |
Net cash provided by (used in) investing activities | (448) | (528) | (585) |
Financing activities | |||
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days | 337 | (27) | (16) |
Issuances of notes payable, with maturities greater than 90 days | 28 | 73 | 44 |
Reductions of notes payable, with maturities greater than 90 days | (35) | (63) | (34) |
Issuances of long-term debt | 39 | 361 | 557 |
Reductions of long-term debt | (648) | (650) | (1,229) |
Debt redemption costs | 0 | 0 | (20) |
Net issuances of common stock | 277 | 63 | 112 |
Common stock repurchases | (300) | (240) | 0 |
Cash dividends | (797) | (788) | (782) |
Other | 18 | (35) | (20) |
Net cash provided by (used in) financing activities | (1,081) | (1,306) | (1,388) |
Effect of exchange rate changes on cash and cash equivalents | (109) | (16) | 25 |
Increase (decrease) in cash and cash equivalents | 13 | (149) | 38 |
Cash and cash equivalents at beginning of period | 286 | 435 | 397 |
Cash and cash equivalents at end of period | 299 | 286 | 435 |
Supplemental cash flow disclosures: | |||
Interest paid | 220 | 213 | 249 |
Income taxes paid | 312 | 365 | 281 |
Supplemental cash flow disclosures of non-cash investing activities: | |||
Additions to properties included in accounts payable | $ 209 | $ 162 | $ 189 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of presentation The consolidated financial statements include the accounts of the Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest (Kellogg or the Company). The Company continually evaluates its involvement with variable interest entities (VIEs) to determine whether it has variable interests and is the primary beneficiary of the VIE. When these criteria are met, the Company is required to consolidate the VIE. The Company’s share of earnings or losses of nonconsolidated affiliates is included in its consolidated operating results using the equity method of accounting when it is able to exercise significant influence over the operating and financial decisions of the affiliate. The Company records investments in equity securities at fair value if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. The Company's investments in equity securities without a readily determinable fair value are recorded at original cost with adjustments for fair value only when observable price changes from orderly transactions for the investment are identified. Our investments in unconsolidated affiliates and equity securities without a readily determinable fair value are evaluated, at least annually, for indicators of an other-than-temporary impairment. Intercompany balances and transactions are eliminated. The Company’s fiscal year normally ends on the Saturday closest to December 31 and as a result, a 53rd week is added approximately every sixth year. The Company’s 2022 and 2021 fiscal years each contained 52 weeks and ended on December 31, 2022, and January 1, 2022, respectively. The Company's 2020 fiscal year ended on January 2, 2021 and included a 53rd week. While quarters normally consist of 13-week periods, the fourth quarter of fiscal 2020 included a 14th week. Certain prior period amounts have been updated to conform to the current period presentation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. The Company's critical estimates include those related to promotional expenditures, goodwill and other intangible assets, retirement benefits, and income taxes. Actual results could differ from those estimates and could be impacted from macroeconomic conditions. Cash and cash equivalents Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. Accounts receivable Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for expected credit losses and prompt payment discounts. Trade receivables do not bear interest. The allowance for expected credit losses represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances, historical loss information, and an evaluation of customer accounts for potential future losses. Account balances are written off against the allowance when management determines the receivable is uncollectible. For the fiscal years ended 2022 and 2021 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 3 for information on sales of accounts receivable. Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined on an average cost basis. Property The Company’s property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods, where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 15-30; office equipment 5; computer equipment and capitalized software 3-7; building components 20; building structures 10-50. Cost includes interest associated with significant capital projects. Plant and equipment are reviewed for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include an extended period of idleness or a plan of disposal. Assets to be disposed of at a future date are depreciated over the remaining period of use. Assets to be sold are written down to realizable value at the time the assets are being actively marketed for sale and a sale is expected to occur within one year. There were no material assets held for sale at the fiscal year-end 2022 or 2021. Goodwill and other intangible assets The Company reviews our operating segment and reporting unit structure annually or as significant changes in the organization occur and assesses goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our reporting units with goodwill. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In our quantitative testing, the Company compares a reporting unit’s estimated fair value with its carrying value with a reporting unit’s fair value being estimated using market multiples. This approach employs market multiples based on either sales or earnings before interest, taxes, depreciation and amortization for companies that are comparable to the Company’s reporting units. In the event the fair value determined using the market multiple approach is close to carrying value, the Company may supplement the fair value determination using discounted cash flows that incorporates assumptions surrounding planned growth rates, market-based discount rates and estimates of residual value. The assumptions used for the impairment test are consistent with those utilized by a market participant performing similar valuations for the Company’s reporting units. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. If the carrying value of a reporting unit exceeds its fair value, the Company considers the reporting unit impaired and reduces its carrying value of goodwill such that the reporting unit’s new carrying value is the estimated fair value. Similarly, the Company assesses indefinite-life intangible assets impairment risk throughout the year by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these intangible assets. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In the quantitative testing, the Company compares an intangible asset’s estimated fair value with its carrying value with the intangible asset’s fair value being determined using estimates of future cash flows to be generated from that asset based on estimates of future sales, as well as assumptions surrounding earnings growth rates, royalty rates and discount rates consistent with rates used by market participants. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. We amortize definite-life intangible assets over their estimated useful lives, which materially approximates the pattern of economic benefit and evaluate them for impairment as we do other long-lived assets. Accounts payable The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal is to capture overall supplier savings, in the form of payment terms or vendor funding, and the agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 31, 2022, $1.1 billion of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. As of January 1, 2022, $905 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. Revenue recognition The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements. The Company also recognizes revenue from the license of our trademarks granted to third parties who use these trademarks on their merchandise and revenue from hauling services provided to third parties within certain markets. Revenue from these licenses and hauling services is not material to the Company. Contract balances recognized in the current period that are not the result of current period performance are not material to the Company. The Company also does not incur costs to obtain or fulfill contracts. The Company does not adjust the promised amount of consideration for the effects of significant financing components as the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Company accounts for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities recorded in cost of goods sold (COGS) rather than as a promised service. The Company excludes from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales taxes. Performance obligations The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. The customer is invoiced with payment terms which are commensurate with the customer’s credit profile. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company assesses the goods and services promised in its customers’ purchase orders and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised, whether explicitly stated or implied based on customary business practices. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. Significant Judgments The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. Where applicable, future provisions are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company's promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in-store displays and events, feature price discounts, consumer coupons, contests and loyalty programs. The costs of these activities are generally recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. Differences between estimated expense and actual redemptions are normally immaterial in relation to net sales and recognized as a change in management estimate in a subsequent period. The liability associated with these promotions was recorded in accrued advertising and promotion. The Company classifies promotional expenditures to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. Advertising and promotion The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense is classified in selling, general and administrative (SGA) expense. The Company also classifies consumer promotional expenditures in SGA expense. These promotional expenses are estimated using various techniques including historical cash expenditure and redemption experience and patterns. Differences between estimated expense and actual redemptions are normally immaterial and recognized as a change in management estimate in a subsequent period. The liability associated with these advertising and promotional activities is recorded in accrued advertising and promotion. The cost of promotional package inserts is recorded in cost of goods sold (COGS). Research and development The costs of research and development (R&D) are expensed as incurred and are classified in SGA expense. R&D includes expenditures for new product and process innovation, as well as significant technological improvements to existing products and processes. The Company’s R&D expenditures primarily consist of internal salaries, wages, consulting, and supplies attributable to time spent on R&D activities. Other costs include depreciation and maintenance of research facilities and equipment, including assets at manufacturing locations that are temporarily engaged in pilot plant activities. Stock-based compensation The Company uses stock-based compensation, including stock options, restricted stock, restricted stock units, and executive performance shares, to provide long-term performance incentives for its global workforce. The Company classifies pre-tax stock compensation expense in SGA and COGS within its corporate operations. Expense attributable to awards of equity instruments is recorded in capital in excess of par value in the Consolidated Balance Sheet. Certain of the Company’s stock-based compensation plans contain provisions that prorate vesting of awards upon retirement, disability, or death of eligible employees and directors. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company recognizes compensation cost for stock option awards that have a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Income taxes The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax-related interest and penalties as interest expense and SGA expense, respectively, on the Consolidated Statement of Income. The current portion of the Company’s unrecognized tax benefits is presented in the Consolidated Balance Sheet in other current assets and other current liabilities, and the amounts expected to be settled after one year are recorded in other assets and other liabilities. Management monitors the Company’s ability to utilize certain future tax deductions, operating losses and tax credit carryforwards, prior to expiration as well as the reinvestment assertion regarding our undistributed foreign earnings. Changes resulting from management’s assessment will result in impacts to deferred tax assets and the corresponding impacts on the effective income tax rate. Valuation allowances were recorded to reduce deferred tax assets to an amount that will, more likely than not, be realized in the future. Derivative Instruments The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Derivative instruments are classified on the Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as other assets or other current liabilities on the Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Consolidated Balance Sheet. On the Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in the Consolidated Statement of Income in other income (expense), net (OIE) or interest expense. Cash flow hedges. Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in other comprehensive income until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive income (loss) (AOCI) to the Consolidated Statement of Income on the same line item as the underlying hedged transaction. Fair value hedges. Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item. Net investment hedges. Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments in AOCI. Derivatives not designated for hedge accounting. Gains and losses on these instruments are recorded in the Consolidated Statement of Income, on the same line item as the underlying hedged item. Foreign currency exchange risk. The Company is exposed to fluctuations in foreign currency cash flows related primarily to third-party purchases, intercompany transactions and when applicable, nonfunctional currency denominated third-party debt. The Company is also exposed to fluctuations in the value of foreign currency investments in subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation of foreign currency denominated earnings to U.S. dollars. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contracts, options, and currency swaps to reduce fluctuations in long or short currency positions. Forward contracts and options are generally less than 18 months duration. For foreign currency cash flow and fair value hedges, the assessment of effectiveness is generally based on changes in spot rates. Changes in time value are reported in OIE. Interest rate risk. The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing and future issuances of variable rate debt. The Company periodically uses interest rate swaps, including forward-starting swaps, to reduce interest rate volatility and funding costs associated with certain debt issues, and to achieve a desired proportion of variable versus fixed rate debt, based on current and projected market conditions. Fixed-to-variable interest rate swaps are accounted for as fair value hedges and the assessment of effectiveness is based on changes in the fair value of the underlying debt, using incremental borrowing rates currently available on loans with similar terms and maturities. Price risk. The Company is exposed to price fluctuations primarily as a result of anticipated purchases of raw and packaging materials, fuel, and energy. The Company has historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months. Pension benefits, nonpension postretirement and postemployment benefits The Company sponsors a number of U.S. and foreign plans to provide pension, health care, and other welfare benefits to retired employees, as well as salary continuance, severance, and long-term disability to former or inactive employees. The recognition of benefit expense is based on actuarial assumptions, such as discount rate, long-term rate of compensation increase, and long-term rate of return on plan assets and health care cost trend rate. Service cost is reported in COGS and SGA expense on the Consolidated Statement of Income. All other components of net periodic pension cost are included in OIE. Postemployment benefits. The Company recognizes an obligation for postemployment benefit plans that vest or accumulate with service. Obligations associated with the Company’s postemployment benefit plans, which are unfunded, are included in other current liabilities and other liabilities on the Consolidated Balance Sheet. All gains and losses are recognized over the average remaining service period of active plan participants. Postemployment benefits that do not vest or accumulate with service or benefits to employees in excess of those specified in the respective plans are expensed as incurred. Pension and nonpension postretirement benefits. The Company recognizes actuarial gains and losses in operating results in the year in which they occur. Experience gains and losses are recognized annually as of the measurement date, which is the Company’s fiscal year-end, or when remeasurement is otherwise required under generally accepted accounting principles. The Company uses the fair value of plan assets to calculate the expected return on plan assets. Reportable segments are allocated service cost. All other components of pension and postretirement benefit expense, including interest cost, expected return on assets, prior service cost, and experience gains and losses are considered unallocated corporate costs and are not included in the measure of reportable segment operating results. See Note 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. Leases The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. Finance lease obligations and activity are not material to the Consolidated Financial Statements. Lease obligations are primarily for real estate assets, with the remainder related to manufacturing and distribution related equipment, vehicles, information technology equipment, and rail cars. Leases with an initial term of 12 months or less are not recorded on the balance sheet. A portion of the Company's real estate leases include future variable rental payments that include inflationary adjustment factors. The future variability of these adjustments is unknown and therefore not included in the minimum lease payments. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases have remaining terms which range from less than 1 year to 19 years and the majority of leases provide the Company with the option to exercise one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed. The Company combines lease and non-lease components together in determining the minimum lease payments for the majority of leases. The Company has elected to not combine lease and non-lease components for assets controlled indirectly through third party service-related agreements that include significant production related costs. The Company has closely analyzed these agreements to ensure any embedded costs related to the securing of the leased asset is properly segregated and accounted for in measuring the lease assets and liabilities. The majority of the leases do not include a stated interest rate, and therefore the Company's periodic incremental borrowing rate is used to determine the present value of lease payments. This rate is calculated based on a collateralized rate for the specific currencies used in leasing activities and the borrowing ability of the applicable Company legal entity. Accounting standards to be adopted in future periods Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations. In September 2022, the FASB issued an ASU to improve the disclosures of supplier finance programs. Specifically, the ASU requires disclosure of key terms of the supplier finance programs and a rollforward of the related obligations. The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company has historically presented information regarding the nature and amount of outstanding Accounts Payable obligations confirmed into supplier finance programs within the Accounting Policies note of the financial statements. The Company is currently assessing the impact of any incremental disclosures required by this ASU and the planned timing of adoption. |
PROPOSED SEPARATION TRANSACTION
PROPOSED SEPARATION TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | PROPOSED SEPARATION TRANSACTIONS On June 21, 2022, the Company announced its intent to separate its North American cereal and plant-based foods businesses, via tax-free spin-offs, with a target to complete the transactions by the end of 2023, resulting in three independent public companies, each better positioned to unlock their full standalone potential. After exploring strategic options, the Company has decided to retain its plant-based business. We cannot assure that the North American cereal transaction will be completed on the anticipated timeline or at all or that the terms of the separation will not change. The transaction will follow the satisfaction of customary conditions, including reviews and final approval by Kellogg’s Board of Directors, receipt of an Internal Revenue Service ruling and relevant tax opinions with respect to the tax-free nature of the transaction, effectiveness of appropriate filings with the U.S. Securities and Exchange Commission, and the completion of audited financials of the new independent company. The Company incurred pre-tax charges related to the proposed separation of $61 million for the year ended December 31, 2022, including $4 million in COGS and $57 million in SGA expense. These charges were primarily related to legal and consulting costs. |
SALE OF ACCOUNTS RECEIVABLE
SALE OF ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | SALE OF ACCOUNTS RECEIVABLE The Company has a program in which a discrete group of customers are allowed to extend their payment terms in exchange for the elimination of early payment discounts (Extended Terms Program). The Company has two Receivable Sales Agreements (Monetization Programs) described below, which are intended to directly offset the impact the Extended Terms Program would have on the days-sales-outstanding (DSO) metric that is critical to the effective management of the Company's accounts receivable balance and overall working capital. The Monetization Programs are designed to effectively offset the impact on working capital of the Extended Terms Program. The Monetization Programs sell, on a revolving basis, certain trade accounts receivable invoices to third party financial institutions. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being de-recognized from the Consolidated Balance Sheet. The Monetization Programs provide for the continuing sale of certain receivables on a revolving basis until terminated by either party; however, the maximum receivables that may be sold at any time is approximately $920 million. During 2022 the Company amended the agreements to decrease the previous maximum receivables sold limit from approximately $1.1 billion as of January 1,2022. The Company has no retained interest in the receivables sold, however the Company does have collection and administrative responsibilities for the sold receivables. The Company has not recorded any servicing assets or liabilities as of December 31, 2022 and January 1, 2022 for these agreements as the fair value of these servicing arrangements as well as the fees earned were not material to the financial statements. Accounts receivable sold of $865 million and $549 million remained outstanding under these arrangements as of December 31, 2022 and January 1, 2022, respectively. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statement of Cash Flows. The recorded net loss on sale of receivables was $23 million, $8 million and $14 million for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. The recorded loss is included in OIE. Other programs Additionally, from time to time certain of the Company's foreign subsidiaries will transfer, without recourse, accounts receivable balances of certain customers to financial institutions. These transactions are accounted for as sales of the receivables resulting in the receivables being de-recognized from the Consolidated Balance Sheet. Accounts receivable sold of $31 million and $66 million remained outstanding under these programs as of December 31, 2022 and January 1, 2022, respectively. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statement of Cash Flows. The recorded net loss on the sale of these receivables is included in OIE and is not material. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | INVESTMENTS IN UNCONSOLIDATED ENTITIES AND DIVESTITURES West Africa investments The Company holds a 50% ownership interest in Tolaram Africa Foods, PTE LTD (TAF), a holding company with a 49% interest in Dufil Prima Foods, Plc, a food manufacturer in West Africa. The investment in TAF is accounted for under the equity method of accounting and comprises substantially all of the investment in unconsolidated entities balance on the Consolidated Balance Sheet. TAF, and other entities affiliated with TAF, are suppliers to Multipro, a consolidated subsidiary in West Africa. The related trade payables are generally settled on a monthly basis. These suppliers' net sales, totaling $900 million and $721 million for the years ended December 31, 2022 and January 1, 2022, respectively, consist primarily of inventory purchases by Multipro. Russia In December 2022 the Company entered into an agreement to sell our Russian business to a third party, pending a number of local government regulatory approvals. The business is a part of our Europe reportable segment. The pending sale includes the entirety of the Company’s operations in Russia and will result in a complete exit from the ma rket. Although the Company has entered into a definitive agreement to sell its Russian business, there is no assurance that we will obtain the necessary regulatory approvals or that the other conditions to complete the sale will be satisfied. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill, intangible assets subject to amortization, consisting primarily of customer relationships, and indefinite-lived intangible assets, consisting of brands and distribution agreements, are presented in the following tables: Carrying amount of goodwill (millions) North Europe Latin AMEA Consolidated January 2, 2021 $ 4,423 $ 367 $ 180 $ 829 $ 5,799 Acquisition — — — 33 33 Currency translation adjustment — (17) (9) (35) (61) January 1, 2022 $ 4,423 $ 350 $ 171 $ 827 $ 5,771 Currency translation adjustment (3) (22) 6 (66) (85) December 31, 2022 $ 4,420 $ 328 $ 177 $ 761 $ 5,686 Other intangible assets 2022 2021 (millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangibles subject to amortization (a) $ 489 $ (162) $ 327 $ 521 $ (143) $ 378 Intangibles not subject to amortization $ 1,969 $ — $ 1,969 $ 2,031 $ — $ 2,031 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $25 million per year through 2027. The change in intangible asset values presented in the table above include the impact of foreign currency translation adjustments. Annual impairment testing At December 31, 2022, goodwill and other intangible assets amounted to $8.0 billion, consisting primarily of goodwill and brands. Within this total, approximately $2.0 billion of non-goodwill intangible assets were classified as indefinite-lived, including $1.7 billion related to trademarks, comprised principally of Pringles and cracker-related trademarks. The majority of all goodwill and other intangible assets are recorded in our North America reporting unit. The Company currently believes the fair value of goodwill and other significant intangible assets exceeds their carrying value and that those intangibles so classified will contribute indefinitely to cash flows. The Company's impairment testing performed through the fourth quarter of 2022 consisted of qualitative testing for all reporting unit goodwill and all significant indefinite-lived intangible assets, except for one brand, for which quantitative testing was performed. No heightened risk or qualitative indicators of impairment of any significant individual intangible assets or reporting units was identified. |
RESTRUCTURING PROGRAMS
RESTRUCTURING PROGRAMS | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | RESTRUCTURING PROGRAMS Periodically, the Company may initiate a restructuring program to achieve its long-term profit growth targets. Initiatives undertaken are currently expected to recover cash implementation costs within a 3 to 5-year period subsequent to completion. Completion (or as each major stage is completed in the case of multi-year programs), is when the project begins to deliver cash savings and/or reduced depreciation. During 2021, the Company announced a reconfiguration of the North America reportable segment supply chain network, designed to drive increased productivity. The project is expected to be substantially completed by early 2024, with related productivity improvements commencing in 2023. The overall project is expected to result in cumulative pretax charges of approximately $45 million, which include employee-related costs of $4 million, other cash costs of $21 million and non-cash costs, primarily consisting of accelerated depreciation and asset write-off's, of $20 million. Charges incurred related to this restructuring program were approximately $6 million and $5 million during 2022 and 2021, respectively. These charges primarily related to severance, accelerated depreciation and asset write-offs, and were recorded in COGS. Total program costs to date for the life of this project was $11 million as of December 31, 2022. In addition to the project discussed above, the Company incurred restructuring costs in each of its reportable segments related to various reorganization and simplification initiatives and supply chain optimization projects. The Company recorded total restructuring charges of $11 million, $27 million and $29 million across all restructuring programs during 2022, 2021 and 2020, respectively, primarily related to employee severance charges, accelerated depreciation and asset write-offs. At December 31, 2022 total project reserves were $11 million, related to severance payments, of which a substantial portion will be paid in 2023. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | EQUITY Earnings per share Basic earnings per share is determined by dividing net income attributable to Kellogg Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, restricted stock units, and to a lesser extent, certain contingently issuable performance shares. The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (shares in millions): 2022-2.9; 2021-10.6; 2020-7.3. Stock transactions The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 10. In February 2020, the board of directors approved a new authorization to repurchase up to $1.5 billion of the Company's common stock through December 2022. In December 2022, the Board of Directors approved a new authorization to repurchase up to $1.5 billion of our common stock through December 2025. During 2022, the Company repurchased 5 million shares of common stock for a total of $300 million. During 2021, the Company repurchased 4 million shares of common stock for a total of $240 million. During 2020, the Company didn't repurchase any shares of common stock. Comprehensive income Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges, which are recorded in interest expense within the statement of income, upon reclassification from Accumulated Other Comprehensive Income (AOCI), adjustments for net experience gains (losses), prior service credit (costs) related to employee benefit plans and adjustments for unrealized (gains) losses on available-for-sale securities, which are recorded in other income (expense) within the statement of income, upon reclassification from AOCI. The related tax effects of these items are recorded in income tax expense within the statement of income, upon reclassification from AOCI. Accumulated other comprehensive income (loss) as of December 31, 2022 and January 1, 2022 consisted of the following: (millions) December 31, 2022 January 1, 2022 Foreign currency translation adjustments $ (2,111) $ (1,748) Net investment hedges gain (loss) 282 67 Cash flow hedges — net deferred gain (loss) 150 (13) Postretirement and postemployment benefits: Net experience gain (loss) 2 (1) Prior service credit (cost) (27) (26) Available-for-sale securities unrealized net gain (loss) (4) — Total accumulated other comprehensive income (loss) $ (1,708) $ (1,721) |
LEASES AND OTHER COMMITMENTS
LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases and other commitments | LEASES AND OTHER COMMITMENTS The Company recorded operating lease costs of $136 million, $139 million and $135 million for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. Lease related costs associated with variable rent, short-term leases, and sale-leaseback arrangements, as well as sublease income, are each immaterial. (millions) Year ended December 31, 2022 Year ended January 1, 2022 Year ended January 2, 2021 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 125 $ 138 $ 141 Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 86 $ 60 $ 144 Modified leases $ 27 $ 53 $ 84 Weighted-average remaining lease term - operating leases 7 years 8 years Weighted-average discount rate - operating leases 2.9% 2.7% At December 31, 2022 future maturities of operating leases were as follows: (millions) Operating 2023 $ 134 2024 113 2025 102 2026 78 2027 61 2028 and beyond 182 Total minimum payments $ 670 Less interest (63) Present value of lease liabilities $ 607 Operating lease payments presented in the table above exclude $81 million of minimum lease payments for real-estate leases signed but not yet commenced as of December 31, 2022. The leases are expected to commence in 2023. At December 31, 2022, future minimum annual lease commitments under non-cancelable finance leases were immaterial. The Company has provided various standard indemnifications in agreements to sell and purchase business assets and lease facilities over the past several years, related primarily to pre-existing tax, environmental, and employee benefit obligations. Certain of these indemnifications are limited by agreement in either amount and/or term and others are unlimited. The Company has also provided various “hold harmless” provisions within certain service type agreements. Because the Company is not currently aware of any actual exposures associated with these indemnifications, management is unable to estimate the maximum potential future payments to be made. At December 31, 2022, the Company had not recorded any liability related to these indemnifications. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Long-term Debt [Text Block] | DEBT The following table presents the components of notes payable at year end December 31, 2022 and January 1, 2022: (millions) 2022 2021 Principal Effective Principal Effective U.S. commercial paper $ 330 4.46 % $ — — % Bank borrowings 137 137 Total $ 467 $ 137 The following table presents the components of subordinated long-term debt at year end December 31, 2022 and January 1, 2022: (millions) 2022 2021 4.50% $650 million U.S. Dollar Notes due 2046 $ 639 $ 638 7.45% $625 million U.S. Dollar Debentures due 2031 622 622 2.10% $500 million U.S. Dollar Notes due 2030 497 496 0.50% €300 million Euro Notes due 2029 317 338 4.30% $600 million U.S. Dollar Notes due 2028 539 592 3.40% $600 million U.S. Dollar Notes due 2027 597 596 3.25% $750 million U.S. Dollar Notes due 2026 745 744 1.25% €600 million Euro Notes due 2025 648 693 1.00% €600 million Euro Notes due 2024 617 695 2.65% $600 million U.S. Dollar Notes due 2023 547 545 2.75% $400 million U.S. Dollar Notes due 2023 210 207 0.80% €600 million Euro Notes due 2022 — 682 Other 119 126 6,097 6,974 Less current maturities (780) (712) Balance at year end $ 5,317 $ 6,262 In November 2022, the Company repaid the €600 million, five-year 0.80% Euro Notes due 2022, upon maturity. All of the Company’s Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions and also contain a change of control provision. There are no significant restrictions on the payment of dividends by the Company. The Company was in compliance with all these covenants as of December 31, 2022. The Company and two of its subsidiaries (the Issuers) maintain a program under which the Issuers may issue euro-commercial paper notes up to a maximum aggregate amount outstanding at any time of $750 million or its equivalent in alternative currencies. The notes may have maturities ranging up to 364 days and will be senior unsecured obligations of the applicable Issuer. Notes issued by subsidiary Issuers will be guaranteed by the Company. The notes may be issued at a discount or may bear fixed or floating rate interest or a coupon calculated by reference to an index or formula. There were no commercial paper notes outstanding under this program as of December 31, 2022 and January 1, 2022. At December 31, 2022, the Company had $3.1 billion of short-term lines of credit and letters of credit, of which $3.0 billion were unused and available for borrowing primarily on an unsecured basis. These lines were comprised principally of the December 2021 unsecured $1.5 billion Five-Year Credit Agreement, which expires in December 2026, and an unsecured $1.0 billion 364-Day Credit Agreement. The Five-Year Credit Agreement allows the Company to borrow, on a revolving credit basis, up to $1.5 billion, which includes the ability to obtain European swingline loans in an aggregate principal amount up to the equivalent of $300 million. In December 2021, the Company terminated the original Five-Year Credit Agreement, which was originally set to expire in January of 2023, and entered into a new Five-Year Credit Agreement, which expires in December 2026. In December 2022, the Company entered into an unsecured 364-Day Credit Agreement to borrow, on a revolving credit basis, up to $1.0 billion at any time outstanding, and terminated the $1.0 billion 364-day facility that was originally set to expire in December 2022. The Five-Year and 364 Day Credit Agreements which had no outstanding borrowings as December 31, 2022, contain customary covenants and warranties, including specified restrictions on indebtedness, liens and a specified interest expense coverage ratio. If an event of default occurs, then, to the extent permitted, the administrative agents may terminate the commitments under the credit facilities, accelerate any outstanding loans under the agreements, and demand the deposit of cash collateral equal to the lender's letter of credit exposure plus interest. The Company was in compliance with all financial covenants contained in these agreements at December 31, 2022 and January 1, 2022 . Scheduled principal repayments on long-term debt are (in millions): 2023–$783; 2024–$655; 2025–$654; 2026–$764; 2027–$614; 2028 and beyond–$2,733. Financial institutions have issued standby letters of credit conditionally guaranteeing obligations on behalf of the Company totaling $116 million, including $74 million secured and $42 million unsecured, as of December 31, 2022. These obligations are related primarily to insurance programs. There were no amounts drawn down on the letters of credit as of December 31, 2022. The Company has issued guarantees for a certain portion of debt of unconsolidated affiliates. These arrangements include cross guarantees back from the other shareholder in proportion to their ownership of the unconsolidated affiliates. These guarantees are not material to the Company. Interest expense capitalized as part of the construction cost of fixed assets was immaterial for all periods presented. |
STOCK COMPENSATION
STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation [Text Block] | STOCK COMPENSATION The Company uses various equity-based compensation programs to provide long-term performance incentives for its global workforce. Currently, these incentives consist principally of stock options, restricted stock units and executive performance shares. The Company also sponsors a discounted stock purchase plan in the United States and matching-grant programs in several international locations. Additionally, the Company awards restricted stock to its outside directors. These awards are administered through several plans, as described within this Note. The 2022 Long-Term Incentive Plan (2022 Plan), approved by shareholders in April 2022, permits awards to employees and officers in the form of incentive and non-qualified stock options, performance units, restricted stock or restricted stock units, and stock appreciation rights. Through February 2022, the 2017 Long-Term Incentive Plan (2017) had a remaining 12.2 million remaining authorized by unissued shares which was replaced by the 2022 Plan. The 2022 Plan authorizes the issuance of a total of 12.4 million shares. At December 31, 2022, there were 12.2 million remaining authorized, but unissued, shares under the 2022 Plan In April 2020, the Amended and Restated Kellogg Company 2002 Employee Stock Purchase Plan was approved by shareholders, effective July 1, 2020. The plan is a tax-qualified employee stock purchase plan made available to substantially all U.S. employees, which allows participants to acquire Kellogg stock at a discounted price. The purpose of the plan is to encourage employees at all levels to purchase stock and become shareholders. Compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows: (millions) 2022 2021 2020 Pre-tax compensation expense $ 102 $ 75 $ 81 Related income tax benefit $ 27 $ 20 $ 21 As of December 31, 2022, total stock-based compensation cost related to non-vested awards not yet recognized was $134 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) 2022 2021 2020 Total cash received from option exercises and similar instruments $ 277 $ 63 $ 112 Tax windfall (shortfall) classified as cash flow from operating activities $ 3 $ (3) $ 2 Shares used to satisfy stock-based awards are normally issued out of treasury stock, although management is authorized to issue new shares to the extent permitted by respective plan provisions. Refer to Note 7 for information on shares issued during the periods presented to employees and directors under various long-term incentive plans and share repurchases under the Company’s stock repurchase authorizations. The Company does not currently have a policy of repurchasing a specified number of shares issued under employee benefit programs during any particular time period. Performance Shares and Restricted Stock Units During the periods presented, stock-based awards consisted principally of performance shares and restricted stock units granted under the 2022 and 2017 Plans. In the first quarter of 2022, the Company granted performance share units to eligible employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting, as well as dividend equivalent shares. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year performance period. The performance conditions of the award include net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2022 target performance share unit currently corresponds to approximately 747,000 shares, with a grant-date fair value of $66 per share. In 2021, the Company granted performance share units to a limited number of senior level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting, as well as dividend equivalent shares. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year performance period. The performance conditions of the award include net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2021 target performance share unit currently corresponds to approximately 365,000 shares, with a grant-date fair value of $58 per share. In 2020, the Company granted performance shares to a limited number of senior level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting, as well as dividend equivalent shares. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year performance period. The performance conditions of the award include net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2020 target performance share unit grant currently corresponds to approximately 294,000 shares, with a grant-date fair value of $66 per share. Based on the market price of the Company’s common stock at year-end 2022, the maximum future value that could be awarded on the vesting date was (in millions): 2022 award–$106; 2021 award– $52; and 2020 award–$42. The 2019 performance share award, payable in stock, was settled at 112% of target in February 2022 for a total dollar equivalent of $15 million. The Company also grants restricted stock units to eligible employees, 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 31, 2022, is presented in the following table: Employee restricted stock units Shares (thousands) Weighted-average grant-date fair value Non-vested, beginning of year 1,786 $ 60 Granted 709 67 Vested (619) 57 Forfeited (215) 62 Non-vested, end of year 1,661 $ 64 Additionally, restricted stock unit activity for 2021 and 2020 is presented in the following table: Employee restricted stock units 2021 2020 Shares (in thousands): Non-vested, beginning of year 1,736 1,901 Granted 727 596 Vested (489) (504) Forfeited (188) (257) Non-vested, end of year 1,786 1,736 Weighted-average exercise price: Non-vested, beginning of year $ 61 $ 61 Granted 58 65 Vested 63 65 Forfeited 60 58 Non-vested, end of year $ 60 $ 61 The total fair value of restricted stock units vesting in the periods presented was (in millions): 2022–$41; 2021–$29; 2020–$34. Stock options During 2020 and 2021, non-qualified stock options were granted to eligible employees under the 2017 Plans with exercise prices equal to the fair market value of the Company’s stock on the grant date, a contractual term of ten years, and a three-year graded vesting period. During 2022, the Company did not grant non-qualified stock options to eligible employees. The non-qualified stock option grant was replaced with performance shares for the population of Long-Term Incentive grantees. Management estimates the fair value of each annual stock option award on the date of grant using a lattice-based option valuation model. Composite assumptions are presented in the following table. Weighted-average values are disclosed for certain inputs which incorporate a range of assumptions. Expected volatilities are based principally on historical volatility of the Company’s stock, and to a lesser extent, on implied volatilities from traded options on the Company’s stock. Historical volatility corresponds to the contractual term of the options granted. The Company uses historical data to estimate option exercise and employee termination within the valuation models; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time that options granted are expected to be outstanding; the weighted-average expected term for all employee groups is presented in the following table. The risk-free rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. Stock option valuation model 2021 2020 Weighted-average expected volatility 20.00 % 18.00 % Weighted-average expected term (years) 6.7 6.7 Weighted-average risk-free interest rate 0.96 % 1.35 % Dividend yield 3.90 % 3.40 % Weighted-average fair value of options granted $ 6.39 $ 7.34 A summary of option activity for the year ended December 31, 2022 is presented in the following table: Employee and Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 15 $ 64 Granted — — Exercised (4) 61 Forfeitures and expirations (1) 63 Outstanding, end of year 10 $ 65 5.3 $ 26 Exercisable, end of year 8 $ 67 4.7 $ 16 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2021 2020 Outstanding, beginning of year 14 14 Granted 3 3 Exercised (1) (2) Forfeitures and expirations (1) (1) Outstanding, end of year 15 14 Exercisable, end of year 10 10 Weighted-average exercise price: Outstanding, beginning of year $ 65 $ 65 Granted 58 65 Exercised 56 59 Forfeitures and expirations 66 68 Outstanding, end of year $ 64 $ 65 Exercisable, end of year $ 66 $ 66 The total intrinsic value of options exercised during the periods presented was (in millions): 2022–$44; 2021–$6; 2020–$17. |
PENSION BENEFITS
PENSION BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Pension Benefits [Abstract] | |
Pension Benefits [Text Block] | PENSION BENEFITS The Company sponsors a number of U.S. and foreign pension plans to provide retirement benefits for its employees. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. See Note 13 for more information regarding the Company’s participation in multiemployer plans. Defined benefits for salaried employees are generally based on salary and years of service, while union employee benefits are generally a negotiated amount for each year of service. The Company uses a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end. Obligations and funded status The aggregate change in projected benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2022 2021 Change in projected benefit obligation Beginning of year $ 5,236 $ 5,675 Service cost 34 36 Interest cost 127 98 Plan participants’ contributions — 1 Amendments 3 18 Actuarial (gain)loss (1,297) (130) Benefits paid (482) (423) Curtailment and special termination benefits — (1) Other (1) — Foreign currency adjustments (149) (38) End of year $ 3,471 $ 5,236 Change in plan assets Fair value beginning of year $ 4,959 $ 5,211 Actual return on plan assets (1,253) 184 Employer contributions 3 4 Plan participants’ contributions 1 1 Benefits paid (454) (397) Foreign currency adjustments (189) (44) Fair value end of year $ 3,067 $ 4,959 Funded status $ (404) $ (277) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 320 $ 448 Other current liabilities (15) (19) Pension liability (709) (706) Net amount recognized $ (404) $ (277) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 57 $ 61 Net amount recognized $ 57 $ 61 The accumulated benefit obligation for all defined benefit pension plans was $3.4 billion at December 31, 2022 and $5.2 billion at January 1, 2022. Information for pension plans with accumulated benefit obligations in excess of plan assets were: (millions) 2022 2021 Projected benefit obligation $ 2,478 $ 3,623 Accumulated benefit obligation $ 2,469 $ 3,610 Fair value of plan assets $ 1,756 $ 2,906 Information for pension plans with projected benefit obligations in excess of plan assets were: (millions) 2022 2021 Projected benefit obligation $ 2,545 $ 3,707 Accumulated benefit obligation $ 2,517 $ 3,669 Fair value of plan assets $ 1,821 $ 2,984 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) 2022 2021 2020 Service cost $ 34 $ 36 $ 37 Interest cost 127 98 130 Expected return on plan assets (258) (301) (340) Amortization of unrecognized prior service cost 9 8 7 Other expense (income) (1) — 8 Recognized net (gain) loss 210 (12) 184 Net periodic benefit cost 121 (171) 26 Curtailment and special termination benefits — (1) (15) Pension (income) expense: Defined benefit plans 121 (172) 11 Defined contribution plans 5 7 20 Total $ 126 $ (165) $ 31 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): 2022 – $41 million; 2021 – $41 million; 2020 – $42 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: 2022 2021 2020 Discount rate 5.3 % 2.6 % 2.2 % Long-term rate of compensation increase 3.5 % 3.5 % 3.4 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2022 2021 2020 Discount rate 3.3 % 2.3 % 2.8 % Discount rate - interest 3.0 % 1.8 % 2.4 % Long-term rate of compensation increase 3.5 % 3.4 % 3.4 % Long-term rate of return on plan assets 6.0 % 6.0 % 6.8 % To determine the overall expected long-term rate of return on plan assets, the Company models expected returns over a 20-year investment horizon with respect to the specific investment mix of its major plans. The return assumptions used reflect a combination of rigorous historical performance analysis and forward-looking views of the financial markets including consideration of current yields on long-term bonds, price-earnings ratios of the major stock market indices, and long-term inflat ion. The U.S. model, which corresponds to approxima tely 69% of consolidated pension and other postretirement benefit plan assets, incorporates a long-term inflation assumption of 2.5% and an active management premium of 0.78% (net of fees) validated by historical analysis. Similar methods are used for various foreign plans with invested assets, reflecting local economic conditions. The expected rate of return for 20 22 of 6.25% for the U.S. plans equated to approximately the 65th percentile expectation. Refer to Note 1. In 2019, the Society of Actuaries (SOA) published updated mortality tables and an updated improvement scale. In 2021, the SOA released an updated improvement scale that incorporates an additional year of data. In determining the appropriate mortality assumptions as of 2022 fiscal year-end, the Company used the 2019 SOA tables with collar adjustments based on Kellogg’s current population, consistent with the prior year. In addition, based on mortality information available from the Social Security Administration and other sources, the Company developed assumptions for future mortality improvement in line with our expectations for future experience. There were no changes to the year-end pension and postretirement benefit obligations due to mortality assumption changes. To conduct our annual review of discount rates, we selected the discount rate based on a cash-flow matching analysis using Willis Towers Watson’s proprietary RATE:Link tool and projections of the future benefit payments constituting the projected benefit obligation for the plans. RATE:Link establishes the uniform discount rate that produces the same present value of the estimated future benefit payments, as is generated by discounting each year’s benefit payments by a spot rate applicable to that year. We use a December 31 measurement date for our defined benefit plans. Accordingly, we select yield curves to measure our benefit obligations that are consistent with market indices during December of each year. The Company may experience material actuarial gains or losses due to differences between assumed and actual experience and due to c hanging economic conditions. During 2022 , the Company recognized a net actuarial loss of approximatel y $210 million driven by lower than expected asset returns and a loss of plan experience, partially offset by assumption changes, including increases in the discount rate. Plan assets The Company categorized Plan assets within a three level fair value hierarchy described as follows: Investments stated at fair value as determined by quoted market prices (Level 1) include: Cash and cash equivalents: Value based on cost, which approximates fair value. Corporate stock, common: Value based on the last sales price on the primary exchange. Investments stated at estimated fair value using significant observable inputs (Level 2) include: Cash and cash equivalents: Institutional short-term investment vehicles valued daily. Mutual funds: Valued at exit prices quoted in active or non-active markets or based on observable inputs. Collective trusts : Valued at exit prices quoted in active or non-active markets or based on observable inputs. Bonds: Value based on matrices or models from pricing vendors. Equity options: Value is based on exit prices quoted in active or non-active markets. Investments stated at estimated fair value using significant unobservable inputs (Level 3) include: Buy-in annuity contract: Valued based on the estimated cost to enter an equivalent contract at the balance sheet date. Secure income fund: Valued at exit prices quoted in non-active markets or based on observable inputs. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s practice regarding the timing of transfers between levels is to measure transfers in at the beginning of the month and transfers out at the end of the month. For the year ended December 31, 2022, the Company had no transfers between Levels 1 and 2. The fair value of Plan assets as of December 31, 2022 and January 1, 2022 within the fair value hierarchy are as follows: (millions) Fair Value Hierarchy Level 2022 2021 Cash and cash equivalents (a) 1, 2 $ 11 $ 31 Corporate stock, common 1 199 318 Mutual funds: Debt 2 — 51 Collective trusts: Debt 2 302 599 Bonds, corporate 2 287 396 Bonds, government 2 111 597 Bonds, other 2 66 87 Buy-in annuity contract 3 173 269 Other (b) 2, 3 90 104 Sub-total $ 1,239 $ 2,452 Investments measured at net asset value (NAV) practical expedient (c) 1,828 $ 2,507 Total plan assets $ 3,067 $ 4,959 (a) Cash and cash equivalents includes Level 1 assets of $16 million and $36 million for 2022 and 2021, respectively, and Level 2 assets of ($5) million and ($5) million for 2022 and 2021, respectively. (b) Other includes Level 2 assets of $64 million and $104 million for 2022 and 2021, respectively, and Level 3 assets of $26 million and $0 million for 2022 and 2021, respectively. (c) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. There were no unfunded commitments to purchase investments at December 31, 2022 or January 1, 2022. The Company’s investment strategy for its major defined benefit plans is to maintain a diversified portfolio of asset classes with the primary goal of meeting long-term cash requirements as they become due. Assets are invested in a prudent manner to maintain the security of funds while maximizing returns within the Plan’s investment policy. The investment policy specifies the type of investment vehicles appropriate for the Plan, asset allocation guidelines, criteria for the selection of investment managers, procedures to monitor overall investment performance as well as investment manager performance. Derivatives, including swaps, forward and futures contracts, may be used as asset class substitutes or for hedging or other risk management purposes. It also provides guidelines enabling Plan fiduciaries to fulfill their responsibilities. The current weighted-average target asset allocation reflected by this strategy is: equity securities–30%; debt securities–38%; real estate and other–32%. Investment in Company common stock represented 2.1% and 1.2% of consolidated plan assets at December 31, 2022 and January 1, 2022, respectively. Plan funding strategies are influenced by tax regulations and funding requirements. The Company currently expects to contribute, before consideration of incremental discretionary contributions, approximately $5 million to its defined benefit pension plans during 2023. Level 3 gains and losses Changes in fair value of the Plan's Level 3 assets are summarized as follows: (millions) Annuity Contract Other January 2, 2021 $ 280 $ — Realized and unrealized loss (9) — Currency translation (2) — January 1, 2022 $ 269 $ — Additions — 27 Realized and unrealized loss (75) (1) Currency translation (21) — December 31, 2022 $ 173 $ 26 Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): 2023–$269; 2024–$280; 2025–$282; 2026–$283; 2027–$284; 2028 to 2032–$1,431. |
NONPENSION POSTRETIREMENT AND P
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Nonpension Postretirement And Postemployment Benefits [Abstract] | |
Nonpension Postretirement And Postemployment Benefits [Text Block] | NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS Postretirement The Company sponsors a number of plans to provide health care and other welfare benefits to retired employees in the United States and Canada, who have met certain age and service requirements. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. The Company contributes to voluntary employee benefit association (VEBA) trusts to fund certain U.S. retiree health and welfare benefit obligations. The Company uses a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end. Obligations and funded status The aggregate change in accumulated postretirement benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2022 2021 Change in accumulated benefit obligation Beginning of year $ 1,065 $ 1,157 Service cost 11 13 Interest cost 24 20 Actuarial (gain) loss (231) (68) Benefits paid (54) (57) Foreign currency adjustments (2) — End of year $ 813 $ 1,065 Change in plan assets Fair value beginning of year $ 1,608 $ 1,491 Actual return on plan assets (325) 175 Employer contributions 20 16 Benefits paid (77) (74) Fair value end of year $ 1,226 $ 1,608 Funded status $ 413 $ 543 Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 437 $ 577 Other current liabilities (2) (2) Other liabilities (22) (32) Net amount recognized $ 413 $ 543 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (32) (41) Net amount recognized $ (32) $ (41) Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were: (millions) 2022 2021 Accumulated benefit obligation $ 24 $ 34 Fair value of plan assets $ — $ — Expense The components of nonpension postretirement expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE. Components of postretirement benefit expense (income) were: (millions) 2022 2021 2020 Service cost $ 11 $ 13 $ 13 Interest cost 24 20 31 Expected return on plan assets (111) (92) (94) Amortization of unrecognized prior service credit (9) (9) (9) Recognized net (gain) loss 204 (152) (29) Net periodic benefit expense (income) 119 (220) (88) Postretirement benefit expense (income): Defined benefit plans 119 (220) (88) Defined contribution plans 13 13 13 Total $ 132 $ (207) $ (75) Assumptions The weighted-average actuarial assumptions used to determine benefit obligations were: 2022 2021 2020 Discount rate 5.5 % 2.9 % 2.5 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2022 2021 2020 Discount rate 2.9 % 2.5 % 3.3 % Discount rate - interest 2.4 % 1.8 % 2.8 % Long-term rate of return on plan assets 7.0 % 6.3 % 7.0 % The Company determines the overall discount rate and expected long-term rate of return on VEBA trust obligations and assets in the same manner as that described for pension trusts in Note 11. The assumed U.S. health care cost trend rate is 6.00% for 2023, remaining at this rate until 2025, then decreasing 0.5% annually to 4.5% by the year 2028 and remaining at that level thereafter. Th ese trend rates reflect the Company’s historical experience and management’s expectations regarding future trends. The Company may experience material actuarial gains or losses due to differences between assumed and actual experience and due to changing economic conditions. During 2022, the Company recognized a net actuarial loss of approximately $204 million driven by lower than expected asset returns, partially offset by the impact of higher discount rates. Plan assets The fair value of Plan assets as of December 31, 2022 and January 1, 2022 are summarized within fair value hierarchy described in Note 11, are as follows: (millions) Fair Value Hierarchy Level 2022 2021 Cash and cash equivalents (a) 1, 2 $ — $ 3 Corporate stock, common 1 172 263 Mutual funds: Equity 2 36 39 Debt 2 — 94 Bonds, corporate 2 166 247 Bonds, government 2 68 99 Bonds, other 2 10 13 Sub-total $ 452 $ 758 Investments measured at net asset value (NAV) practical expedient (b) 774 $ 850 Total plan assets $ 1,226 $ 1,608 (a) Cash and cash equivalents includes Level 1 assets of $0 million and $1 million for 2022 and 2021, respectively, and Level 2 assets of $0 million and $2 million for 2022 and 2021, respectively. (b) Certain Assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The Company’s asset investment strategy for its VEBA trusts is consistent with that described for its pension trusts in Note 11. The current target asset allocation is 60% equity securities, 33% debt securities, and 7% real estate. The Company currently expects to contribute approximately $21 million to its VEBA trusts during 2023. There were no Level 3 assets during 2022 and 2021. Postemployment Under certain conditions, the Company provides benefits to former or inactive employees, including salary continuance, severance, and long-term disability, in the United States and several foreign locations. The Company’s postemployment benefit plans are unfunded. Actuarial assumptions used are generally consistent with those presented for pension benefits in Note 11. The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were: (millions) 2022 2021 Change in accumulated benefit obligation Beginning of year $ 48 $ 48 Service cost 3 3 Interest cost 1 1 Actuarial (gain)loss (9) 1 Benefits paid (6) (5) End of year $ 37 $ 48 Funded status $ (37) $ (48) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (7) $ (5) Other liabilities (30) (43) Net amount recognized $ (37) $ (48) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 2 $ 1 Net experience gain (18) (14) Net amount recognized $ (16) $ (13) The components of postemployment benefit expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE. (millions) 2022 2021 2020 Service cost $ 3 $ 3 $ 2 Interest cost 1 1 1 Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (2) (2) (3) Net periodic benefit cost $ 3 $ 3 $ 1 Settlement cost (2) (1) (1) Postemployment benefit expense $ 1 $ 2 $ — Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (millions) Postretirement Postemployment 2023 $ 64 $ 7 2024 64 6 2025 64 5 2026 64 5 2027 64 5 2028-2032 314 19 |
MULTIEMPLOYER PENSION AND POSTR
MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Multiemployer Plan, Pension, Insignificant [Abstract] | |
Multiemployer Plan [Text Block] | MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS The Company contributes to multiemployer defined contribution pension and postretirement benefit plans under the terms of collective-bargaining agreements that cover certain unionized employee groups in the United States. Contributions to these plans are included in total pension and postretirement benefit expense as reported in Note 11 and Note 12, respectively. Pension benefits The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan are borne by the remaining participating employers. Total contributions to multiemployer pension benefit plans were as follows (millions): 2022 - $5; 2021 - $7; 2020 - $7. As discussed in Note 5, the Company engages in restructuring and cost reduction projects to help achieve its long-term growth targets. Current and future restructuring and cost reduction activities and other strategic initiatives could impact the Company's participation in certain multiemployer plans. In addition to regular contributions, the Company could be obligated to pay additional amounts, known as a withdrawal liability, if a multiemployer pension plan has unfunded vested benefits and the Company decreases or ceases participation in that plan. During 2019, the Company withdrew from two multi-employer pension plans. Additionally, the Company previously exited several multiemployer plans as part of past restructuring activities. The related liabilities recognized are our best estimate of the ultimate cost of withdrawing from these plans. At this time we have not yet reached agreement on the ultimate amount of these withdrawal liabilities. As a result, the actual cost could differ from our estimate based on final funding assessments. The net present value of the liabilities were determined using a risk free interest rate. The Company recognized expense related to the withdrawals as follows (millions ): 2022 - $0; 2021 - $0; 2020 - $(5). The charges were recorded within Cost of goods sold on the Consolidated Statement of Income. The cash obligation associated with the 2019 withdrawal activity is approximately $8 million annually and is payable over a maximum 20-year period. Withdrawal liability payments made to multiemployer plans were as follows (millions): 2022 - $10; 2021 - $10; 2020 - $21. The Company had withdrawal liabilities of $117 million and $123 million at December 31, 2022 and January 1, 2022, respectively, included within Other current liabilities and Other liabilities on the Consolidated Balance Sheet. Postretirement benefits Multiemployer postretirement benefit plans provide health care and other welfare benefits to active and retired employees who have met certain age and service requirements. Contributions to multiemployer postretirement benefit plans were (in millions): 2022 – $13; 2021 – $13; 2020 – $13. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The components of income before income taxes and the provision for income taxes were as follows: (millions) 2022 2021 2020 Income before income taxes United States $ 623 $ 1,158 $ 1,018 Foreign 574 808 583 1,197 1,966 1,601 Income taxes Currently payable Federal 151 188 129 State 31 44 26 Foreign 108 117 100 290 349 255 Deferred Federal (37) 40 56 State (8) 4 9 Foreign (1) 81 3 (46) 125 68 Total income taxes $ 244 $ 474 $ 323 The difference between the U.S. federal statutory tax rate and the Company’s effective income tax rate was: 2022 2021 2020 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rates varying from U.S. statutory rate (2.6) (1.6) (2.4) State income taxes, net of federal benefit 1.4 1.9 1.8 Cost (benefit) of remitted and unremitted foreign earnings 1.5 0.6 1.0 Net change in valuation allowance 3.4 2.7 1.4 Statutory rate changes, deferred tax impact 0.2 0.7 0.2 U.S. deemed repatriation tax — — (2.0) Foreign derived intangible income (1.8) (0.8) (0.4) Other (2.7) (0.4) (0.4) Effective income tax rate 20.4 % 24.1 % 20.2 % As presented in the preceding table, the Company’s 2022 consolidated effective tax rate was 20.4%, as compared to 24.1% in 2021 and 20.2% in 2020. The lower effective tax rate for the year ended December 31, 2022 as compared to prior year was mainly due to mark-to-market loss items and the resulting impact on mix of earnings. The 2021 effective income tax rate was unfavorably impacted by the following items. During the second quarter of 2021, the Company recorded tax expense of $23 million as a result of tax legislation enacted in the UK in June 2021, which increased the statutory UK tax rate from 19 percent to 25 percent for tax periods after April 1, 2023. The Company revalued its net deferred tax balances related to the UK business to reflect the increased tax rate. During the third quarter, the Company determined that certain foreign deferred tax assets were no longer more likely than not to be realized in the future and a full valuation allowance totaling $20 million was recorded on a discrete period basis. The 2020 effective income tax rate was favorably impacted by the reversal of a liability for uncertain tax positions of $32 million, resulting from the finalization of a tax examination during the third quarter. The reserves were related to the Company's estimate of the transition tax liability in conjunction with the finalization of accounting under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. Transition tax on foreign earnings: The transition tax is a tax on the previously untaxed accumulated and current earnings and profits of certain of our foreign subsidiaries. In order to determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 earnings and profits (E&P) of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. E&P is similar to retained earnings of the subsidiary, but requires other adjustments to conform to U.S. tax rules. During the third quarter of 2020, the Company reversed $32 million of a liability previously recorded as a result of the finalization of an IRS tax examination. As of December 31, 2022, approximately $800 million of unremitted earnings were considered indefinitely reinvested. The unrecognized deferred tax liability for these earnings is estimated at approximately $43 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 2022 and 2021 were $363 million and $363 million, respectively, with related valuation allowances at year-end 2022 and 2021 of $263 million and $248 million, respectively. Of the total carryforwards at year-end 2022, $21 million expire in 5 years or less, $79 million expire in 2027 and later, and $263 million do not expire. The following table provides an analysis of the Company’s deferred tax assets and liabilities as of year-end 2022 and 2021: Deferred tax Deferred tax (millions) 2022 2021 2022 2021 U.S. state income taxes $ — $ — $ 27 $ 11 Advertising and promotion-related 15 14 — — Wages and payroll taxes 19 27 — — Inventory valuation 19 16 — — Employee benefits 64 19 — — Operating loss, credit and other carryforwards 363 363 — — Hedging transactions — 13 37 — Depreciation and asset disposals — — 286 264 Operating lease right-of-use assets — — 138 146 Operating lease liabilities 139 144 — — Trademarks and other intangibles — — 549 540 Deferred compensation 27 19 — — Stock options 28 33 — — Other 56 54 — — 730 702 1,037 961 Less valuation allowance (263) (248) — — Total deferred taxes $ 467 $ 454 $ 1,037 $ 961 Net deferred tax asset (liability) $ (570) $ (507) Classified in balance sheet as: Other assets $ 190 $ 215 Other liabilities (760) (722) Net deferred tax asset (liability) $ (570) $ (507) The change in valuation allowance reducing deferred tax assets was: (millions) 2022 2021 2020 Balance at beginning of year $ 248 $ 192 $ 146 Additions charged to income tax expense (a) 44 59 62 Reductions credited to income tax expense (3) (6) (24) Acquisition of noncontrolling interest — 13 — Currency translation adjustments (26) (10) 8 Balance at end of year $ 263 $ 248 $ 192 (a) During 2021, the Company increased the valuation allowance $20 million to fully reserve for net deferred tax assets of a foreign subsidiary. During 2020, the Company increased the valuation allowance by $41 million related to the revaluation of its investment in a foreign subsidiary. Uncertain tax positions The Company is subject to federal income taxes in the U.S. as well as various state, local, and foreign jurisdictions. The Company’s 2022 provision for U.S. federal income taxes represents approximately 50% of the Company’s consolidated income tax provision. The Company was chosen to participate in the Internal Revenue Service (IRS) Compliance Assurance Program (CAP) beginning with the 2008 tax year. As a result, with limited exceptions, the Company is no longer subject to U.S. federal examinations by the IRS for years prior to 2020. The Company is under examination for income and non-income tax filings in various state and foreign jurisdictions. As of December 31, 2022, the Company has classif ied $18 million of unrecognized tax benefits as a current tax liability. Managements estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability expected to be settled within one year, offset by approximately $3 million of projected additions during the next twelve months related primarily to ongoing intercompany transfer pricing activity. Management is currently unaware of any issues under review that could result in significant additional payments, accruals, or other material deviation in this estimate. Following is a reconciliation of the Company’s total gross unrecognized tax benefits as of the years ended December 31, 2022, January 1, 2022 and January 2, 2021. For the 2022 year, approximately $30 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods. (millions) 2022 2021 2020 Balance at beginning of year $ 50 $ 65 $ 90 Tax positions related to current year: Additions 6 5 5 Tax positions related to prior years: Additions 1 5 8 Reductions (a) (18) (13) (35) Settlements (1) (9) (2) Lapses in statutes of limitation (2) (3) (1) Balance at end of year $ 36 $ 50 $ 65 (a) During the third quarter of 2020, the Company released $32 million of tax reserves as a result of finalization of an IRS tax examination. During the year ended December 31, 2022, the Company recognized $1 million of tax related interest, increasing the balance to $8 million at year-end. During the year ended January 1, 2022, the Company paid tax-related interest totaling $2 million and recognized $(4) million of tax related interest, increasing the balance to $7 million at year-end. During the year ended January 2, 2021, the Company paid tax-related interest totaling $1 million and recognized $3 million of tax-related interest, increasing the balance to $13 million at year-end. |
DERIVATIVE INSTRUMENTS AND FAIR
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company is exposed to certain market risks such as changes in interest rates, foreign currency exchange rates, and commodity prices, which exist as a part of its ongoing business operations. Management uses derivative and nonderivative financial and commodity instruments, including futures, options, and swaps, where appropriate, to manage these risks. Instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged. The Company designates derivatives and nonderivative hedging instruments as cash flow hedges, fair value hedges, net investment hedges, and uses other contracts to reduce volatility in interest rates, foreign currency and commodities. As a matter of policy, the Company does not engage in trading or speculative hedging transactions. Derivative instruments are classified on the Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as other assets or other current liabilities on the Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Consolidated Balance Sheet. On the Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. Total notional amounts of the Company’s derivative instruments as of December 31, 2022 and January 1, 2022 were as follows: (millions) 2022 2021 Foreign currency exchange contracts $ 2,502 $ 2,828 Cross-currency contracts 1,983 1,343 Interest rate contracts 2,657 2,816 Commodity contracts 230 360 Total $ 7,372 $ 7,347 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 31, 2022 and January 1, 2022, measured on a recurring basis. Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market. For the Company, level 1 financial assets and liabilities consist primarily of commodity derivative contracts. Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. For the Company, level 2 financial assets and liabilities consist of interest rate swaps, cross-currency contracts and foreign currency contracts. The Company’s calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve. Foreign currency contracts are valued using an income approach based on forward rates less the contract rate multiplied by the notional amount. Cross-currency contracts are valued based on changes in the spot rate at the time of valuation compared to the spot rate at the time of execution, as well as the change in the interest differential between the two currencies. The Company’s calculation of the fair value of level 2 financial assets and liabilities takes into consideration the risk of nonperformance, including counterparty credit risk. Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company did not have any level 3 financial assets or liabilities as of December 31, 2022 or January 1, 2022. The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 31, 2022 and January 1, 2022: Derivatives designated as hedging instruments 2022 2021 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 88 $ 88 $ — $ 32 $ 32 Other Assets — 36 36 — 15 15 Interest rate contracts (a): Other current assets — 45 45 — 10 10 Other assets — 25 25 — 8 8 Total assets $ — $ 194 $ 194 $ — $ 65 $ 65 Liabilities: Cross currency contracts: Other current liabilities $ — $ — $ — $ — $ (2) $ (2) Other liabilities — — — — (7) (7) Interest rate contracts (a): Other current liabilities — — — — (1) (1) Other liabilities — (86) (86) — (4) (4) Total liabilities $ — $ (86) $ (86) $ — $ (14) $ (14) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.1 billion and $1.2 billion as of December 31, 2022 and January 1, 2022, respectively. Derivatives not designated as hedging instruments 2022 2021 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 74 $ 74 $ — $ 18 $ 18 Other assets — 14 14 — 5 5 Interest rate contracts: Other current assets — 4 4 — 4 4 Other assets — 14 14 — — — Commodity contracts: Other current assets 4 — 4 5 — 5 Total assets $ 4 $ 106 $ 110 $ 5 $ 27 $ 32 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (50) $ (50) $ — $ (20) $ (20) Other liabilities — (9) (9) — (6) (6) Interest rate contracts: Other current liabilities — (7) (7) — (6) (6) Other liabilities — (18) (18) — (7) (7) Commodity contracts: Other current liabilities (2) — (2) (6) — (6) Total liabilities $ (2) $ (84) $ (86) $ (6) $ (39) $ (45) The Company has designated a portion of its outstanding foreign currency denominated long-term debt as a net investment hedge of a portion of the Company’s investment in its subsidiaries foreign currency denominated net assets. The carrying value of this debt was $1.6 billion and $2.4 billion as of December 31, 2022 and January 1, 2022, respectively. The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of December 31, 2022 and January 1, 2022. (millions) Line Item in the Consolidated Balance Sheet in which the hedged item is included Carrying amount of the hedged liabilities Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a) December 31, January 1, December 31, January 1, Interest rate contracts Current maturities of long-term debt $ 483 $ — $ (3) $ — Interest rate contracts Long-term debt $ 2,250 $ 2,903 $ (74) $ 12 (a) The fair value adjustment related to current maturities of long-term debt includes $(3) million from discontinued hedging relationships as of December 31, 2022. The hedged long-term debt includes $13 million of hedging adjustment on discontinued hedging relationships as of December 31, 2022 and January 1, 2022, respectively. The Company has elected to not offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if the Company were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheet as of December 31, 2022 and January 1, 2022 would be adjusted as detailed in the following table: As of December 31, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 304 $ (153) $ (33) $ 118 Total liability derivatives $ (172) $ 153 $ 19 $ — As of January 1, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 97 $ (47) $ 8 $ 58 Total liability derivatives $ (59) $ 47 $ 12 $ — During the year ended December 31, 2022, the Company settled certain interest rate contracts resulting in a net realized gain of approximately $165 million. These derivatives were accounted for as cash flow hedges and the related net gains were recorded in accumulated other comprehensive income and will be amortized to interest expense over the term of the related forecasted fixed rate debt, once issued. During the third quarter of 2022, the Company recognized an $18 million gain related to a portion of certain forward-starting interest rate swaps no longer designated as cash flow hedges due to changes in forecasted debt issuance. Additionally, during the year ended December 31, 2022, the Company settled certain cross currency swaps resulting in a net gain of $37 million. T hese cross currency swaps were accounted for as net investment hedges and the related net gain was recorded in accumulated other comprehensive income. The effect of derivative instruments on the Consolidated Statement of Income for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) Gain (loss) excluded from assessment of hedge effectiveness Location of gain (loss) in income of excluded component 2022 2021 2020 2022 2021 2020 Foreign currency denominated long-term debt $ 164 $ 175 $ (236) $ — $ — $ — Cross-currency contracts 123 61 (93) 39 26 34 Interest expense Total $ 287 $ 236 $ (329) $ 39 $ 26 $ 34 Derivatives not designated as hedging instruments (millions) Location of gain Gain (loss) 2022 2021 2020 Foreign currency exchange contracts COGS $ 37 $ (21) $ 11 Foreign currency exchange contracts SGA expense 4 13 (1) Foreign currency exchange contracts OIE (4) (3) (6) Interest rate contracts Interest expense 4 1 2 Commodity contracts COGS 23 107 6 Total $ 64 $ 97 $ 12 The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: December 31, 2022 January 1, 2022 January 2, 2021 (millions) Interest expense Interest expense Interest expense Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded $ 218 $ 223 $ 281 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items 89 14 (7) Derivatives designated as hedging instruments (85) (12) 7 Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income 2 (22) (14) During the next 12 months, the Company expects $18 million of net deferred losses reported in accumulated other comprehensive income (AOCI) at December 31, 2022 to be reclassified to income, assuming market rates remain constant through contract maturities. Certain of the Company’s derivative instruments contain provisions requiring the Company to post collateral on those derivative instruments that are in a liability position if the Company’s credit rating falls below BB+ (S&P), or Baa1 (Moody’s). The fair value of all derivative instruments with credit-risk-related contingent features in a liability position on December 31, 2022 was not material. In addition, certain derivative instruments contain provisions that would be triggered in the event the Company defaults on its debt agreements. There were no collateral posting requirements as of December 31, 2022 triggered by credit-risk-related contingent features. Other fair value measurements Available for sale securities The following is a summary of the carrying and market values of the Company's available for sale securities: 2022 2021 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ 52 $ (5) $ 47 $ 52 $ — $ 52 During the year ended December 31, 2022, the Company sold approximately $19 million of investments in level 2 corporate bonds. The resulting loss was approximately $1 million and recorded in Other income and (expense). Also during the year ended December 31, 2022, the Company purchased approximately $17 million in level 2 corporate bonds. During the year ended January 1, 2022, the Company sold approximately $72 million of investments in level 2 corporate bonds. The resulting gain was approximately $2 million and recorded in Other income and (expense). Also during the year ended January 1, 2022, the Company purchased approximately $61 million in level 2 corporate bonds. The market values of the Company's investments in level 2 corporate bonds are based on matrices or models from pricing vendors. Unrealized gains and losses were included in the Consolidated Statement of Comprehensive Income. Additionally, these investments are recorded within Other current assets and Other assets on the Consolidated Balance Sheet, based on the maturity of the individual security. The maturity dates of the securities range from 2024 to 2036. The Company reviews its investment portfolio for any unrealized losses that would be deemed other-than-temporary and requires the recognition of an impairment loss in earnings. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than its cost, the Company's intent to hold the investment, and whether it is more likely than not that the Company will be required to sell the investment before recovery of the cost basis. The Company also considers the type of security, related industry and sector performance, and published investment ratings. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. If conditions within individual markets, industry segments, or macro-economic environments deteriorate, the Company could incur future impairments. Equity investments We hold equity investments in certain companies that we do not have the ability to exercise significant influence. Equity investments without a readily determinable fair value are recorded at original cost. Investments with a readily determinable fair value, which are level 2 investments, are measured at fair value based on observable market price changes, with gains and losses recorded through net earnings. During 2021, we recorded a $20 million mark-to-market gain on these investments. Equity investments were approximately $40 million as of December 31, 2022 and January 1, 2022, respectively. Additionally, these investments were recorded within Other noncurrent assets on the Consolidated Balance Sheet. Financial instruments The carrying values of the Company’s short-term items, including cash, cash equivalents, accounts receivable, accounts payable, notes payable and current maturities of long-term debt approximate fair value. The fair value of the Company’s long-term debt, which are level 2 liabilities, is calculated based on broker quotes. The fair value and carrying value of the Company's long-term debt was $5.1 billion and $5.3 billion, respectively, as of December 31, 2022. The fair value and carrying value of the Company's long-term debt was $6.9 billion and $6.3 billion, respectively, as of January 1, 2022. 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 $89 million, net of collateral already received from those counterparties as of December 31, 2022. For certain derivative contracts, reciprocal collateralization agreements with counterparties call for the posting of collateral in the form of cash, treasury securities or letters of credit if a fair value loss position to the Company or its counterparties exceeds a certain amount. In addition, the company is required to maintain cash margin accounts in connection with its open positions for exchange-traded commodity derivative instruments executed with the counterparty that are subject to enforceable netting agreements. As of December 31, 2022, the Company posted $14 million in margin deposits for exchange-traded commodity derivative instruments, which was reflected as an increase in accounts receivable, net on the Consolidated Balance Sheet. Management believes concentrations of credit risk with respect to accounts receivable is limited due to the generally high credit quality of the Company’s major customers, as well as the large number and geographic dispersion of smaller customers. However, the Company conducts a disproportionate amount of business with a small number of large multinational grocery retailers, with the five largest accounts encompassing approximately 28% of consolidated trade receivables at December 31, 2022. Refer to Note 1 for disclosures regarding the Company’s accounting policies for derivative instruments. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Loss Contingencies [Abstract] | |
Contingencies Disclosure [Text Block] | CONTINGENCIES The Company is subject to various legal proceedings, claims, and governmental inspections or investigations in the ordinary course of business covering matters such as general commercial, governmental regulations, antitrust and trade regulations, product liability, environmental, intellectual property, workers’ compensation, employment and other actions. These matters are subject to uncertainty and the outcome is not predictable with assurance. The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability and product liability. |
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | REPORTABLE SEGMENTS Kellogg Company is the world’s leading producer of cereal, second largest producer of crackers and a leading producer of savory snacks and frozen foods. Additional product offerings include toaster pastries, cereal bars, veggie foods, and noodles. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom, Nigeria, Canada, Mexico and Australia. The Company manages its operations through four operating segments that are based on geographic location - North America which includes U.S. businesses and Canada; Europe which consists of European countries; Latin America which consists of Central and South America and includes Mexico; and AMEA (Asia Middle East Africa) which consists of Africa, Middle East, Australia and other Asian and Pacific markets. These operating segments also represent our reportable segments. 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) 2022 2021 2020 Net sales North America $ 8,958 $ 8,174 $ 8,361 Europe 2,310 2,397 2,232 Latin America 1,123 997 914 AMEA 2,933 2,613 2,263 Total Reportable Segments 15,324 14,181 13,770 Corporate (9) — — Consolidated $ 15,315 $ 14,181 $ 13,770 Operating profit North America $ 1,356 $ 1,329 $ 1,473 Europe 329 350 301 Latin America 124 109 97 AMEA 253 246 202 Total Reportable Segments 2,062 2,034 2,073 Corporate (427) (282) (312) Consolidated $ 1,635 $ 1,752 $ 1,761 Depreciation and amortization North America $ 260 $ 262 $ 282 Europe 81 92 84 Latin America 34 25 30 AMEA 94 84 79 Total Reportable Segments 469 463 475 Corporate 9 4 4 Consolidated $ 478 $ 467 $ 479 Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by the chief operating decision maker (CODM) for the Company’s internationally-based reportable segments as shown below. (millions) 2022 2021 2020 Interest expense North America $ 1 $ — $ — Europe 20 4 4 Latin America 2 1 6 AMEA 22 17 8 Corporate 173 201 263 Consolidated $ 218 $ 223 $ 281 Income taxes Europe $ 38 $ 48 $ 29 Latin America 24 52 20 AMEA 42 40 33 Corporate & North America 140 334 241 Consolidated $ 244 $ 474 $ 323 Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by operating segment. The CODM does review additions to property based on operating segment. (millions) 2022 2021 2020 Additions to property North America $ 252 $ 324 $ 270 Europe 107 102 120 Latin America 48 42 31 AMEA 69 73 77 Corporate 12 12 7 Consolidated $ 488 $ 553 $ 505 The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 18% of consolidated net sales during 2022, and 19%% of consolidated net sales during 2021 and 2020, comprised principally of sales within the United States. Supplemental geographic information is provided below for net sales to external customers and long-lived assets (property and right-of-use lease assets): (millions) 2022 2021 2020 Net sales United States $ 8,397 $ 7,646 $ 7,821 All other countries 6,918 6,535 5,949 Consolidated $ 15,315 $ 14,181 $ 13,770 Long-lived assets United States $ 2,477 $ 2,447 $ 2,436 All other countries 1,929 2,020 1,935 Consolidated $ 4,406 $ 4,467 $ 4,371 Supplemental product information is provided below for net sales to external customers: (millions) 2022 2021 2020 Snacks $ 7,563 $ 6,807 $ 6,281 Cereal 5,280 5,123 5,433 Frozen 1,097 1,106 1,139 Noodles and other 1,375 1,145 917 Consolidated $ 15,315 $ 14,181 $ 13,770 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT DATA | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Data [Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT DATA Consolidated Statement of Income (millions) 2022 2021 2020 Research and development expense $ 127 $ 134 $ 135 Advertising expense $ 756 $ 790 $ 781 Consolidated Balance Sheet (millions) 2022 2021 Trade receivables $ 1,449 $ 1,240 Allowance for expected credit losses (13) (15) Refundable income taxes 82 62 Other receivables 218 202 Accounts receivable, net $ 1,736 $ 1,489 Raw materials, spare parts, and supplies $ 426 $ 383 Finished goods and materials in process 1,342 1,015 Inventories $ 1,768 $ 1,398 Land $ 108 $ 123 Buildings 2,274 2,238 Machinery and equipment 6,339 6,277 Capitalized software 500 594 Construction in progress 660 623 Accumulated depreciation (6,092) (6,028) Property, net $ 3,789 $ 3,827 Other intangibles $ 2,458 $ 2,552 Accumulated amortization (162) (143) Other intangibles, net $ 2,296 $ 2,409 Pension $ 320 $ 448 Deferred income taxes 190 215 Nonpension post retirement benefits 437 577 Other 543 473 Other assets $ 1,490 $ 1,713 Accrued income taxes $ 49 $ 49 Customer deposits 150 138 Other 673 576 Other current liabilities $ 872 $ 763 Income taxes payable $ 37 $ 40 Nonpension postretirement benefits 22 32 Other 441 384 Other liabilities $ 500 $ 456 Allowance for expected credit losses (millions) 2022 2021 2020 Balance at beginning of year $ 15 $ 19 $ 10 Additions (reductions) charged to expense 4 (1) 13 Expected credit losses charged to reserve (6) (3) (4) Balance at end of year $ 13 $ 15 $ 19 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of accounting [Policy Text Block] | The consolidated financial statements include the accounts of the Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest (Kellogg or the Company). The Company continually evaluates its involvement with variable interest entities (VIEs) to determine whether it has variable interests and is the primary beneficiary of the VIE. When these criteria are met, the Company is required to consolidate the VIE. The Company’s share of earnings or losses of nonconsolidated affiliates is included in its consolidated operating results using the equity method of accounting when it is able to exercise significant influence over the operating and financial decisions of the affiliate. The Company records investments in equity securities at fair value if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. The Company's investments in equity securities without a readily determinable fair value are recorded at original cost with adjustments for fair value only when observable price changes from orderly transactions for the investment are identified. Our investments in unconsolidated affiliates and equity securities without a readily determinable fair value are evaluated, at least annually, for indicators of an other-than-temporary impairment. Intercompany balances and transactions are eliminated. The Company’s fiscal year normally ends on the Saturday closest to December 31 and as a result, a 53rd week is added approximately every sixth year. The Company’s 2022 and 2021 fiscal years each contained 52 weeks and ended on December 31, 2022, and January 1, 2022, respectively. The Company's 2020 fiscal year ended on January 2, 2021 and included a 53rd week. While quarters normally consist of 13-week periods, the fourth quarter of fiscal 2020 included a 14th week. Certain prior period amounts have been updated to conform to the current period presentation. |
Use of estimates [Policy Text Block] | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. The Company's critical estimates include those related to promotional expenditures, goodwill and other intangible assets, retirement benefits, and income taxes. Actual results could differ from those estimates and could be impacted from macroeconomic conditions. |
Cash and cash equivalents [Policy Text Block] | Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. |
Accounts receivables [Policy Text Block] | Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for expected credit losses and prompt payment discounts. Trade receivables do not bear interest. The allowance for expected credit losses represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances, historical loss information, and an evaluation of customer accounts for potential future losses. Account balances are written off against the allowance when management determines the receivable is uncollectible. For the fiscal years ended 2022 and 2021 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 3 for information on sales of accounts receivable. |
Inventories [Policy Text Block] | Inventories are valued at the lower of cost or net realizable value. Cost is determined on an average cost basis. |
Property [Policy Text Block] | The Company’s property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods, where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 15-30; office equipment 5; computer equipment and capitalized software 3-7; building components 20; building structures 10-50. Cost includes interest associated with significant capital projects. Plant and equipment are reviewed for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include an extended period of idleness or a plan of disposal. Assets to be disposed of at a future date are depreciated over the remaining period of use. Assets to be sold are written down to realizable value at the time the assets are being actively marketed for sale and a sale is expected to occur within one year. There were no material assets held for sale at the fiscal year-end 2022 or 2021. |
Goodwill and other intangible assets [Policy Text Block] | The Company reviews our operating segment and reporting unit structure annually or as significant changes in the organization occur and assesses goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our reporting units with goodwill. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In our quantitative testing, the Company compares a reporting unit’s estimated fair value with its carrying value with a reporting unit’s fair value being estimated using market multiples. This approach employs market multiples based on either sales or earnings before interest, taxes, depreciation and amortization for companies that are comparable to the Company’s reporting units. In the event the fair value determined using the market multiple approach is close to carrying value, the Company may supplement the fair value determination using discounted cash flows that incorporates assumptions surrounding planned growth rates, market-based discount rates and estimates of residual value. The assumptions used for the impairment test are consistent with those utilized by a market participant performing similar valuations for the Company’s reporting units. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. If the carrying value of a reporting unit exceeds its fair value, the Company considers the reporting unit impaired and reduces its carrying value of goodwill such that the reporting unit’s new carrying value is the estimated fair value. Similarly, the Company assesses indefinite-life intangible assets impairment risk throughout the year by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these intangible assets. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In the quantitative testing, the Company compares an intangible asset’s estimated fair value with its carrying value with the intangible asset’s fair value being determined using estimates of future cash flows to be generated from that asset based on estimates of future sales, as well as assumptions surrounding earnings growth rates, royalty rates and discount rates consistent with rates used by market participants. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. We amortize definite-life intangible assets over their estimated useful lives, which materially approximates the pattern of economic benefit and evaluate them for impairment as we do other long-lived assets. |
Accounts payable [Policy Text Block] | The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal is to capture overall supplier savings, in the form of payment terms or vendor funding, and the agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of December 31, 2022, $1.1 billion of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. As of January 1, 2022, $905 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. |
Revenue recognition [Policy Text Block] | The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements. The Company also recognizes revenue from the license of our trademarks granted to third parties who use these trademarks on their merchandise and revenue from hauling services provided to third parties within certain markets. Revenue from these licenses and hauling services is not material to the Company. Contract balances recognized in the current period that are not the result of current period performance are not material to the Company. The Company also does not incur costs to obtain or fulfill contracts. The Company does not adjust the promised amount of consideration for the effects of significant financing components as the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Company accounts for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities recorded in cost of goods sold (COGS) rather than as a promised service. The Company excludes from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales taxes. Performance obligations The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. The customer is invoiced with payment terms which are commensurate with the customer’s credit profile. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company assesses the goods and services promised in its customers’ purchase orders and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised, whether explicitly stated or implied based on customary business practices. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. Significant Judgments The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. Where applicable, future provisions are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company's promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in-store displays and events, feature price discounts, consumer coupons, contests and loyalty programs. The costs of these activities are generally recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. Differences between estimated expense and actual redemptions are normally immaterial in relation to net sales and recognized as a change in management estimate in a subsequent period. The liability associated with these promotions was recorded in accrued advertising and promotion. The Company classifies promotional expenditures to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. |
Advertising and promotion [Policy Text Block] | The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense is classified in selling, general and administrative (SGA) expense. The Company also classifies consumer promotional expenditures in SGA expense. These promotional expenses are estimated using various techniques including historical cash expenditure and redemption experience and patterns. Differences between estimated expense and actual redemptions are normally immaterial and recognized as a change in management estimate in a subsequent period. The liability associated with these advertising and promotional activities is recorded in accrued advertising and promotion. |
Research and development [Policy Text Block] | The costs of research and development (R&D) are expensed as incurred and are classified in SGA expense. R&D includes expenditures for new product and process innovation, as well as significant technological improvements to existing products and processes. The Company’s R&D expenditures primarily consist of internal salaries, wages, consulting, and supplies attributable to time spent on R&D activities. Other costs include depreciation and maintenance of research facilities and equipment, including assets at manufacturing locations that are temporarily engaged in pilot plant activities. |
Share-based compensation [Policy Text Block] | The Company uses stock-based compensation, including stock options, restricted stock, restricted stock units, and executive performance shares, to provide long-term performance incentives for its global workforce. The Company classifies pre-tax stock compensation expense in SGA and COGS within its corporate operations. Expense attributable to awards of equity instruments is recorded in capital in excess of par value in the Consolidated Balance Sheet. Certain of the Company’s stock-based compensation plans contain provisions that prorate vesting of awards upon retirement, disability, or death of eligible employees and directors. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. |
Income taxes [Policy Text Block] | The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax-related interest and penalties as interest expense and SGA expense, respectively, on the Consolidated Statement of Income. The current portion of the Company’s unrecognized tax benefits is presented in the Consolidated Balance Sheet in other current assets and other current liabilities, and the amounts expected to be settled after one year are recorded in other assets and other liabilities. Management monitors the Company’s ability to utilize certain future tax deductions, operating losses and tax credit carryforwards, prior to expiration as well as the reinvestment assertion regarding our undistributed foreign earnings. Changes resulting from management’s assessment will result in impacts to deferred tax assets and the corresponding impacts on the effective income tax rate. Valuation allowances were recorded to reduce deferred tax assets to an amount that will, more likely than not, be realized in the future. |
Derivatives instruments[Policy Text Block] | The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Derivative instruments are classified on the Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as other assets or other current liabilities on the Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Consolidated Balance Sheet. On the Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in the Consolidated Statement of Income in other income (expense), net (OIE) or interest expense. Cash flow hedges. Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in other comprehensive income until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive income (loss) (AOCI) to the Consolidated Statement of Income on the same line item as the underlying hedged transaction. Fair value hedges. Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item. Net investment hedges. Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments in AOCI. Derivatives not designated for hedge accounting. Gains and losses on these instruments are recorded in the Consolidated Statement of Income, on the same line item as the underlying hedged item. Foreign currency exchange risk. The Company is exposed to fluctuations in foreign currency cash flows related primarily to third-party purchases, intercompany transactions and when applicable, nonfunctional currency denominated third-party debt. The Company is also exposed to fluctuations in the value of foreign currency investments in subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation of foreign currency denominated earnings to U.S. dollars. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contracts, options, and currency swaps to reduce fluctuations in long or short currency positions. Forward contracts and options are generally less than 18 months duration. For foreign currency cash flow and fair value hedges, the assessment of effectiveness is generally based on changes in spot rates. Changes in time value are reported in OIE. Interest rate risk. The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing and future issuances of variable rate debt. The Company periodically uses interest rate swaps, including forward-starting swaps, to reduce interest rate volatility and funding costs associated with certain debt issues, and to achieve a desired proportion of variable versus fixed rate debt, based on current and projected market conditions. Fixed-to-variable interest rate swaps are accounted for as fair value hedges and the assessment of effectiveness is based on changes in the fair value of the underlying debt, using incremental borrowing rates currently available on loans with similar terms and maturities. Price risk. The Company is exposed to price fluctuations primarily as a result of anticipated purchases of raw and packaging materials, fuel, and energy. The Company has historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months. |
Pension benefits, nonpension postretirement and postemployment benefits [Policy Text Block] | The Company sponsors a number of U.S. and foreign plans to provide pension, health care, and other welfare benefits to retired employees, as well as salary continuance, severance, and long-term disability to former or inactive employees. The recognition of benefit expense is based on actuarial assumptions, such as discount rate, long-term rate of compensation increase, and long-term rate of return on plan assets and health care cost trend rate. Service cost is reported in COGS and SGA expense on the Consolidated Statement of Income. All other components of net periodic pension cost are included in OIE. Postemployment benefits. The Company recognizes an obligation for postemployment benefit plans that vest or accumulate with service. Obligations associated with the Company’s postemployment benefit plans, which are unfunded, are included in other current liabilities and other liabilities on the Consolidated Balance Sheet. All gains and losses are recognized over the average remaining service period of active plan participants. Postemployment benefits that do not vest or accumulate with service or benefits to employees in excess of those specified in the respective plans are expensed as incurred. Pension and nonpension postretirement benefits. The Company recognizes actuarial gains and losses in operating results in the year in which they occur. Experience gains and losses are recognized annually as of the measurement date, which is the Company’s fiscal year-end, or when remeasurement is otherwise required under generally accepted accounting principles. The Company uses the fair value of plan assets to calculate the expected return on plan assets. Reportable segments are allocated service cost. All other components of pension and postretirement benefit expense, including interest cost, expected return on assets, prior service cost, and experience gains and losses are considered unallocated corporate costs and are not included in the measure of reportable segment operating results. See Note 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. |
Leases [Policy Text Block] | The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. Finance lease obligations and activity are not material to the Consolidated Financial Statements. Lease obligations are primarily for real estate assets, with the remainder related to manufacturing and distribution related equipment, vehicles, information technology equipment, and rail cars. Leases with an initial term of 12 months or less are not recorded on the balance sheet. A portion of the Company's real estate leases include future variable rental payments that include inflationary adjustment factors. The future variability of these adjustments is unknown and therefore not included in the minimum lease payments. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases have remaining terms which range from less than 1 year to 19 years and the majority of leases provide the Company with the option to exercise one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed. The Company combines lease and non-lease components together in determining the minimum lease payments for the majority of leases. The Company has elected to not combine lease and non-lease components for assets controlled indirectly through third party service-related agreements that include significant production related costs. The Company has closely analyzed these agreements to ensure any embedded costs related to the securing of the leased asset is properly segregated and accounted for in measuring the lease assets and liabilities. |
New Accounting Standards [Policy Text Block] | Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations. In September 2022, the FASB issued an ASU to improve the disclosures of supplier finance programs. Specifically, the ASU requires disclosure of key terms of the supplier finance programs and a rollforward of the related obligations. The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company has historically presented information regarding the nature and amount of outstanding Accounts Payable obligations confirmed into supplier finance programs within the Accounting Policies note of the financial statements. The Company is currently assessing the impact of any incremental disclosures required by this ASU and the planned timing of adoption. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill, intangible assets subject to amortization, consisting primarily of customer relationships, and indefinite-lived intangible assets, consisting of brands and distribution agreements, are presented in the following tables: Carrying amount of goodwill (millions) North Europe Latin AMEA Consolidated January 2, 2021 $ 4,423 $ 367 $ 180 $ 829 $ 5,799 Acquisition — — — 33 33 Currency translation adjustment — (17) (9) (35) (61) January 1, 2022 $ 4,423 $ 350 $ 171 $ 827 $ 5,771 Currency translation adjustment (3) (22) 6 (66) (85) December 31, 2022 $ 4,420 $ 328 $ 177 $ 761 $ 5,686 |
Schedule of Intangible Assets | Other intangible assets 2022 2021 (millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangibles subject to amortization (a) $ 489 $ (162) $ 327 $ 521 $ (143) $ 378 Intangibles not subject to amortization $ 1,969 $ — $ 1,969 $ 2,031 $ — $ 2,031 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | (millions) December 31, 2022 January 1, 2022 Foreign currency translation adjustments $ (2,111) $ (1,748) Net investment hedges gain (loss) 282 67 Cash flow hedges — net deferred gain (loss) 150 (13) Postretirement and postemployment benefits: Net experience gain (loss) 2 (1) Prior service credit (cost) (27) (26) Available-for-sale securities unrealized net gain (loss) (4) — Total accumulated other comprehensive income (loss) $ (1,708) $ (1,721) |
LEASES AND OTHER COMMITMENTS (T
LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of supplemental operating lease information | (millions) Year ended December 31, 2022 Year ended January 1, 2022 Year ended January 2, 2021 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 125 $ 138 $ 141 Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 86 $ 60 $ 144 Modified leases $ 27 $ 53 $ 84 Weighted-average remaining lease term - operating leases 7 years 8 years Weighted-average discount rate - operating leases 2.9% 2.7% |
Operating leases future maturities | At December 31, 2022 future maturities of operating leases were as follows: (millions) Operating 2023 $ 134 2024 113 2025 102 2026 78 2027 61 2028 and beyond 182 Total minimum payments $ 670 Less interest (63) Present value of lease liabilities $ 607 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | (millions) 2022 2021 Principal Effective Principal Effective U.S. commercial paper $ 330 4.46 % $ — — % Bank borrowings 137 137 Total $ 467 $ 137 |
Schedule of Debt [Table Text Block] | The following table presents the components of subordinated long-term debt at year end December 31, 2022 and January 1, 2022: (millions) 2022 2021 4.50% $650 million U.S. Dollar Notes due 2046 $ 639 $ 638 7.45% $625 million U.S. Dollar Debentures due 2031 622 622 2.10% $500 million U.S. Dollar Notes due 2030 497 496 0.50% €300 million Euro Notes due 2029 317 338 4.30% $600 million U.S. Dollar Notes due 2028 539 592 3.40% $600 million U.S. Dollar Notes due 2027 597 596 3.25% $750 million U.S. Dollar Notes due 2026 745 744 1.25% €600 million Euro Notes due 2025 648 693 1.00% €600 million Euro Notes due 2024 617 695 2.65% $600 million U.S. Dollar Notes due 2023 547 545 2.75% $400 million U.S. Dollar Notes due 2023 210 207 0.80% €600 million Euro Notes due 2022 — 682 Other 119 126 6,097 6,974 Less current maturities (780) (712) Balance at year end $ 5,317 $ 6,262 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Compensation Expense For Equity Programs And Related Tax Benefits Text Block [Table Text Block] | (millions) 2022 2021 2020 Pre-tax compensation expense $ 102 $ 75 $ 81 Related income tax benefit $ 27 $ 20 $ 21 |
Schedule of Cash and Tax Benefits Received Upon Exercise of Stock Options and Similar Instruments [Table Text Block] | (millions) 2022 2021 2020 Total cash received from option exercises and similar instruments $ 277 $ 63 $ 112 Tax windfall (shortfall) classified as cash flow from operating activities $ 3 $ (3) $ 2 |
Summary of Restricted Stock Summary [Table Text Block] | Employee restricted stock units Shares (thousands) Weighted-average grant-date fair value Non-vested, beginning of year 1,786 $ 60 Granted 709 67 Vested (619) 57 Forfeited (215) 62 Non-vested, end of year 1,661 $ 64 Additionally, restricted stock unit activity for 2021 and 2020 is presented in the following table: Employee restricted stock units 2021 2020 Shares (in thousands): Non-vested, beginning of year 1,736 1,901 Granted 727 596 Vested (489) (504) Forfeited (188) (257) Non-vested, end of year 1,786 1,736 Weighted-average exercise price: Non-vested, beginning of year $ 61 $ 61 Granted 58 65 Vested 63 65 Forfeited 60 58 Non-vested, end of year $ 60 $ 61 |
Schedule of Stock Option Valuation Model Assumptions for Grants [Table Text Block] | Stock option valuation model 2021 2020 Weighted-average expected volatility 20.00 % 18.00 % Weighted-average expected term (years) 6.7 6.7 Weighted-average risk-free interest rate 0.96 % 1.35 % Dividend yield 3.90 % 3.40 % Weighted-average fair value of options granted $ 6.39 $ 7.34 |
Share-based Payment Arrangement, Activity [Table Text Block] | Employee and Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 15 $ 64 Granted — — Exercised (4) 61 Forfeitures and expirations (1) 63 Outstanding, end of year 10 $ 65 5.3 $ 26 Exercisable, end of year 8 $ 67 4.7 $ 16 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2021 2020 Outstanding, beginning of year 14 14 Granted 3 3 Exercised (1) (2) Forfeitures and expirations (1) (1) Outstanding, end of year 15 14 Exercisable, end of year 10 10 Weighted-average exercise price: Outstanding, beginning of year $ 65 $ 65 Granted 58 65 Exercised 56 59 Forfeitures and expirations 66 68 Outstanding, end of year $ 64 $ 65 Exercisable, end of year $ 66 $ 66 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) - Pension | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Company Plan Benefit Expense [Table Text Block] | (millions) 2022 2021 Change in projected benefit obligation Beginning of year $ 5,236 $ 5,675 Service cost 34 36 Interest cost 127 98 Plan participants’ contributions — 1 Amendments 3 18 Actuarial (gain)loss (1,297) (130) Benefits paid (482) (423) Curtailment and special termination benefits — (1) Other (1) — Foreign currency adjustments (149) (38) End of year $ 3,471 $ 5,236 Change in plan assets Fair value beginning of year $ 4,959 $ 5,211 Actual return on plan assets (1,253) 184 Employer contributions 3 4 Plan participants’ contributions 1 1 Benefits paid (454) (397) Foreign currency adjustments (189) (44) Fair value end of year $ 3,067 $ 4,959 Funded status $ (404) $ (277) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 320 $ 448 Other current liabilities (15) (19) Pension liability (709) (706) Net amount recognized $ (404) $ (277) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 57 $ 61 Net amount recognized $ 57 $ 61 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | (millions) 2022 2021 Projected benefit obligation $ 2,478 $ 3,623 Accumulated benefit obligation $ 2,469 $ 3,610 Fair value of plan assets $ 1,756 $ 2,906 |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets | Information for pension plans with projected benefit obligations in excess of plan assets were: (millions) 2022 2021 Projected benefit obligation $ 2,545 $ 3,707 Accumulated benefit obligation $ 2,517 $ 3,669 Fair value of plan assets $ 1,821 $ 2,984 |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2022 2021 2020 Service cost $ 34 $ 36 $ 37 Interest cost 127 98 130 Expected return on plan assets (258) (301) (340) Amortization of unrecognized prior service cost 9 8 7 Other expense (income) (1) — 8 Recognized net (gain) loss 210 (12) 184 Net periodic benefit cost 121 (171) 26 Curtailment and special termination benefits — (1) (15) Pension (income) expense: Defined benefit plans 121 (172) 11 Defined contribution plans 5 7 20 Total $ 126 $ (165) $ 31 |
Defined Benefit Plan, Assumptions [Table Text Block] | 2022 2021 2020 Discount rate 5.3 % 2.6 % 2.2 % Long-term rate of compensation increase 3.5 % 3.5 % 3.4 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2022 2021 2020 Discount rate 3.3 % 2.3 % 2.8 % Discount rate - interest 3.0 % 1.8 % 2.4 % Long-term rate of compensation increase 3.5 % 3.4 % 3.4 % Long-term rate of return on plan assets 6.0 % 6.0 % 6.8 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Fair Value Hierarchy Level 2022 2021 Cash and cash equivalents (a) 1, 2 $ 11 $ 31 Corporate stock, common 1 199 318 Mutual funds: Debt 2 — 51 Collective trusts: Debt 2 302 599 Bonds, corporate 2 287 396 Bonds, government 2 111 597 Bonds, other 2 66 87 Buy-in annuity contract 3 173 269 Other (b) 2, 3 90 104 Sub-total $ 1,239 $ 2,452 Investments measured at net asset value (NAV) practical expedient (c) 1,828 $ 2,507 Total plan assets $ 3,067 $ 4,959 (a) Cash and cash equivalents includes Level 1 assets of $16 million and $36 million for 2022 and 2021, respectively, and Level 2 assets of ($5) million and ($5) million for 2022 and 2021, respectively. (b) Other includes Level 2 assets of $64 million and $104 million for 2022 and 2021, respectively, and Level 3 assets of $26 million and $0 million for 2022 and 2021, respectively. (c) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Changes in fair value of the Plan's Level 3 assets are summarized as follows: (millions) Annuity Contract Other January 2, 2021 $ 280 $ — Realized and unrealized loss (9) — Currency translation (2) — January 1, 2022 $ 269 $ — Additions — 27 Realized and unrealized loss (75) (1) Currency translation (21) — December 31, 2022 $ 173 $ 26 |
NONPENSION POSTRETIREMENT AND_2
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Nonpension postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (millions) 2022 2021 Change in accumulated benefit obligation Beginning of year $ 1,065 $ 1,157 Service cost 11 13 Interest cost 24 20 Actuarial (gain) loss (231) (68) Benefits paid (54) (57) Foreign currency adjustments (2) — End of year $ 813 $ 1,065 Change in plan assets Fair value beginning of year $ 1,608 $ 1,491 Actual return on plan assets (325) 175 Employer contributions 20 16 Benefits paid (77) (74) Fair value end of year $ 1,226 $ 1,608 Funded status $ 413 $ 543 Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 437 $ 577 Other current liabilities (2) (2) Other liabilities (22) (32) Net amount recognized $ 413 $ 543 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (32) (41) Net amount recognized $ (32) $ (41) |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were: (millions) 2022 2021 Accumulated benefit obligation $ 24 $ 34 Fair value of plan assets $ — $ — |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2022 2021 2020 Service cost $ 11 $ 13 $ 13 Interest cost 24 20 31 Expected return on plan assets (111) (92) (94) Amortization of unrecognized prior service credit (9) (9) (9) Recognized net (gain) loss 204 (152) (29) Net periodic benefit expense (income) 119 (220) (88) Postretirement benefit expense (income): Defined benefit plans 119 (220) (88) Defined contribution plans 13 13 13 Total $ 132 $ (207) $ (75) |
Defined Benefit Plan, Assumptions [Table Text Block] | 2022 2021 2020 Discount rate 5.5 % 2.9 % 2.5 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2022 2021 2020 Discount rate 2.9 % 2.5 % 3.3 % Discount rate - interest 2.4 % 1.8 % 2.8 % Long-term rate of return on plan assets 7.0 % 6.3 % 7.0 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Fair Value Hierarchy Level 2022 2021 Cash and cash equivalents (a) 1, 2 $ — $ 3 Corporate stock, common 1 172 263 Mutual funds: Equity 2 36 39 Debt 2 — 94 Bonds, corporate 2 166 247 Bonds, government 2 68 99 Bonds, other 2 10 13 Sub-total $ 452 $ 758 Investments measured at net asset value (NAV) practical expedient (b) 774 $ 850 Total plan assets $ 1,226 $ 1,608 (a) Cash and cash equivalents includes Level 1 assets of $0 million and $1 million for 2022 and 2021, respectively, and Level 2 assets of $0 million and $2 million for 2022 and 2021, respectively. (b) 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) 2022 2021 Change in accumulated benefit obligation Beginning of year $ 48 $ 48 Service cost 3 3 Interest cost 1 1 Actuarial (gain)loss (9) 1 Benefits paid (6) (5) End of year $ 37 $ 48 Funded status $ (37) $ (48) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (7) $ (5) Other liabilities (30) (43) Net amount recognized $ (37) $ (48) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 2 $ 1 Net experience gain (18) (14) Net amount recognized $ (16) $ (13) |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2022 2021 2020 Service cost $ 3 $ 3 $ 2 Interest cost 1 1 1 Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (2) (2) (3) Net periodic benefit cost $ 3 $ 3 $ 1 Settlement cost (2) (1) (1) Postemployment benefit expense $ 1 $ 2 $ — |
Schedule of Expected Benefit Payments [Table Text Block] | (millions) Postretirement Postemployment 2023 $ 64 $ 7 2024 64 6 2025 64 5 2026 64 5 2027 64 5 2028-2032 314 19 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block] | (millions) 2022 2021 2020 Income before income taxes United States $ 623 $ 1,158 $ 1,018 Foreign 574 808 583 1,197 1,966 1,601 Income taxes Currently payable Federal 151 188 129 State 31 44 26 Foreign 108 117 100 290 349 255 Deferred Federal (37) 40 56 State (8) 4 9 Foreign (1) 81 3 (46) 125 68 Total income taxes $ 244 $ 474 $ 323 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2022 2021 2020 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rates varying from U.S. statutory rate (2.6) (1.6) (2.4) State income taxes, net of federal benefit 1.4 1.9 1.8 Cost (benefit) of remitted and unremitted foreign earnings 1.5 0.6 1.0 Net change in valuation allowance 3.4 2.7 1.4 Statutory rate changes, deferred tax impact 0.2 0.7 0.2 U.S. deemed repatriation tax — — (2.0) Foreign derived intangible income (1.8) (0.8) (0.4) Other (2.7) (0.4) (0.4) Effective income tax rate 20.4 % 24.1 % 20.2 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax Deferred tax (millions) 2022 2021 2022 2021 U.S. state income taxes $ — $ — $ 27 $ 11 Advertising and promotion-related 15 14 — — Wages and payroll taxes 19 27 — — Inventory valuation 19 16 — — Employee benefits 64 19 — — Operating loss, credit and other carryforwards 363 363 — — Hedging transactions — 13 37 — Depreciation and asset disposals — — 286 264 Operating lease right-of-use assets — — 138 146 Operating lease liabilities 139 144 — — Trademarks and other intangibles — — 549 540 Deferred compensation 27 19 — — Stock options 28 33 — — Other 56 54 — — 730 702 1,037 961 Less valuation allowance (263) (248) — — Total deferred taxes $ 467 $ 454 $ 1,037 $ 961 Net deferred tax asset (liability) $ (570) $ (507) Classified in balance sheet as: Other assets $ 190 $ 215 Other liabilities (760) (722) Net deferred tax asset (liability) $ (570) $ (507) |
Summary of Valuation Allowance [Table Text Block] | (millions) 2022 2021 2020 Balance at beginning of year $ 248 $ 192 $ 146 Additions charged to income tax expense (a) 44 59 62 Reductions credited to income tax expense (3) (6) (24) Acquisition of noncontrolling interest — 13 — Currency translation adjustments (26) (10) 8 Balance at end of year $ 263 $ 248 $ 192 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | (millions) 2022 2021 2020 Balance at beginning of year $ 50 $ 65 $ 90 Tax positions related to current year: Additions 6 5 5 Tax positions related to prior years: Additions 1 5 8 Reductions (a) (18) (13) (35) Settlements (1) (9) (2) Lapses in statutes of limitation (2) (3) (1) Balance at end of year $ 36 $ 50 $ 65 |
DERIVATIVE INSTRUMENTS AND FA_2
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Total Notional Amounts of the Company's Derivative Instruments | (millions) 2022 2021 Foreign currency exchange contracts $ 2,502 $ 2,828 Cross-currency contracts 1,983 1,343 Interest rate contracts 2,657 2,816 Commodity contracts 230 360 Total $ 7,372 $ 7,347 |
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 31, 2022 and January 1, 2022: Derivatives designated as hedging instruments 2022 2021 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 88 $ 88 $ — $ 32 $ 32 Other Assets — 36 36 — 15 15 Interest rate contracts (a): Other current assets — 45 45 — 10 10 Other assets — 25 25 — 8 8 Total assets $ — $ 194 $ 194 $ — $ 65 $ 65 Liabilities: Cross currency contracts: Other current liabilities $ — $ — $ — $ — $ (2) $ (2) Other liabilities — — — — (7) (7) Interest rate contracts (a): Other current liabilities — — — — (1) (1) Other liabilities — (86) (86) — (4) (4) Total liabilities $ — $ (86) $ (86) $ — $ (14) $ (14) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.1 billion and $1.2 billion as of December 31, 2022 and January 1, 2022, respectively. Derivatives not designated as hedging instruments 2022 2021 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 74 $ 74 $ — $ 18 $ 18 Other assets — 14 14 — 5 5 Interest rate contracts: Other current assets — 4 4 — 4 4 Other assets — 14 14 — — — Commodity contracts: Other current assets 4 — 4 5 — 5 Total assets $ 4 $ 106 $ 110 $ 5 $ 27 $ 32 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (50) $ (50) $ — $ (20) $ (20) Other liabilities — (9) (9) — (6) (6) Interest rate contracts: Other current liabilities — (7) (7) — (6) (6) Other liabilities — (18) (18) — (7) (7) Commodity contracts: Other current liabilities (2) — (2) (6) — (6) Total liabilities $ (2) $ (84) $ (86) $ (6) $ (39) $ (45) |
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 31, 2022 and January 1, 2022. (millions) Line Item in the Consolidated Balance Sheet in which the hedged item is included Carrying amount of the hedged liabilities Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a) December 31, January 1, December 31, January 1, Interest rate contracts Current maturities of long-term debt $ 483 $ — $ (3) $ — Interest rate contracts Long-term debt $ 2,250 $ 2,903 $ (74) $ 12 (a) The fair value adjustment related to current maturities of long-term debt includes $(3) million from discontinued hedging relationships as of December 31, 2022. The hedged long-term debt includes $13 million of hedging adjustment on discontinued hedging relationships as of December 31, 2022 and January 1, 2022, respectively. |
Offsetting Assets | As of December 31, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 304 $ (153) $ (33) $ 118 Total liability derivatives $ (172) $ 153 $ 19 $ — As of January 1, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 97 $ (47) $ 8 $ 58 Total liability derivatives $ (59) $ 47 $ 12 $ — |
Offsetting Liabilities | As of December 31, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 304 $ (153) $ (33) $ 118 Total liability derivatives $ (172) $ 153 $ 19 $ — As of January 1, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 97 $ (47) $ 8 $ 58 Total liability derivatives $ (59) $ 47 $ 12 $ — |
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 31, 2022, January 1, 2022 and January 2, 2021: Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) Gain (loss) excluded from assessment of hedge effectiveness Location of gain (loss) in income of excluded component 2022 2021 2020 2022 2021 2020 Foreign currency denominated long-term debt $ 164 $ 175 $ (236) $ — $ — $ — Cross-currency contracts 123 61 (93) 39 26 34 Interest expense Total $ 287 $ 236 $ (329) $ 39 $ 26 $ 34 Derivatives not designated as hedging instruments (millions) Location of gain Gain (loss) 2022 2021 2020 Foreign currency exchange contracts COGS $ 37 $ (21) $ 11 Foreign currency exchange contracts SGA expense 4 13 (1) Foreign currency exchange contracts OIE (4) (3) (6) Interest rate contracts Interest expense 4 1 2 Commodity contracts COGS 23 107 6 Total $ 64 $ 97 $ 12 The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended December 31, 2022, January 1, 2022 and January 2, 2021: December 31, 2022 January 1, 2022 January 2, 2021 (millions) Interest expense Interest expense Interest expense Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded $ 218 $ 223 $ 281 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items 89 14 (7) Derivatives designated as hedging instruments (85) (12) 7 Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income 2 (22) (14) |
Available-for-sale securities | The following is a summary of the carrying and market values of the Company's available for sale securities: 2022 2021 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ 52 $ (5) $ 47 $ 52 $ — $ 52 |
REPORTABLE SEGMENTS (Tables)
REPORTABLE SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (millions) 2022 2021 2020 Net sales North America $ 8,958 $ 8,174 $ 8,361 Europe 2,310 2,397 2,232 Latin America 1,123 997 914 AMEA 2,933 2,613 2,263 Total Reportable Segments 15,324 14,181 13,770 Corporate (9) — — Consolidated $ 15,315 $ 14,181 $ 13,770 Operating profit North America $ 1,356 $ 1,329 $ 1,473 Europe 329 350 301 Latin America 124 109 97 AMEA 253 246 202 Total Reportable Segments 2,062 2,034 2,073 Corporate (427) (282) (312) Consolidated $ 1,635 $ 1,752 $ 1,761 Depreciation and amortization North America $ 260 $ 262 $ 282 Europe 81 92 84 Latin America 34 25 30 AMEA 94 84 79 Total Reportable Segments 469 463 475 Corporate 9 4 4 Consolidated $ 478 $ 467 $ 479 |
Schedule of Interest Expense and Income Tax Expense by Segment [Table Text Block] | (millions) 2022 2021 2020 Interest expense North America $ 1 $ — $ — Europe 20 4 4 Latin America 2 1 6 AMEA 22 17 8 Corporate 173 201 263 Consolidated $ 218 $ 223 $ 281 Income taxes Europe $ 38 $ 48 $ 29 Latin America 24 52 20 AMEA 42 40 33 Corporate & North America 140 334 241 Consolidated $ 244 $ 474 $ 323 |
Schedule of Additions to Long Lived Assets by Segment [Table Text Block] | (millions) 2022 2021 2020 Additions to property North America $ 252 $ 324 $ 270 Europe 107 102 120 Latin America 48 42 31 AMEA 69 73 77 Corporate 12 12 7 Consolidated $ 488 $ 553 $ 505 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | (millions) 2022 2021 2020 Net sales United States $ 8,397 $ 7,646 $ 7,821 All other countries 6,918 6,535 5,949 Consolidated $ 15,315 $ 14,181 $ 13,770 Long-lived assets United States $ 2,477 $ 2,447 $ 2,436 All other countries 1,929 2,020 1,935 Consolidated $ 4,406 $ 4,467 $ 4,371 |
Revenue from External Customers by Products and Services [Table Text Block] | (millions) 2022 2021 2020 Snacks $ 7,563 $ 6,807 $ 6,281 Cereal 5,280 5,123 5,433 Frozen 1,097 1,106 1,139 Noodles and other 1,375 1,145 917 Consolidated $ 15,315 $ 14,181 $ 13,770 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Data Consolidated Statement Of Income [Table Text Block] | Consolidated Statement of Income (millions) 2022 2021 2020 Research and development expense $ 127 $ 134 $ 135 Advertising expense $ 756 $ 790 $ 781 |
Supplemental Financial Data Consolidated Balance Sheet [Table Text Block] | Consolidated Balance Sheet (millions) 2022 2021 Trade receivables $ 1,449 $ 1,240 Allowance for expected credit losses (13) (15) Refundable income taxes 82 62 Other receivables 218 202 Accounts receivable, net $ 1,736 $ 1,489 Raw materials, spare parts, and supplies $ 426 $ 383 Finished goods and materials in process 1,342 1,015 Inventories $ 1,768 $ 1,398 Land $ 108 $ 123 Buildings 2,274 2,238 Machinery and equipment 6,339 6,277 Capitalized software 500 594 Construction in progress 660 623 Accumulated depreciation (6,092) (6,028) Property, net $ 3,789 $ 3,827 Other intangibles $ 2,458 $ 2,552 Accumulated amortization (162) (143) Other intangibles, net $ 2,296 $ 2,409 Pension $ 320 $ 448 Deferred income taxes 190 215 Nonpension post retirement benefits 437 577 Other 543 473 Other assets $ 1,490 $ 1,713 Accrued income taxes $ 49 $ 49 Customer deposits 150 138 Other 673 576 Other current liabilities $ 872 $ 763 Income taxes payable $ 37 $ 40 Nonpension postretirement benefits 22 32 Other 441 384 Other liabilities $ 500 $ 456 |
Supplemental Financial Data Allowance For Doubtful Accounts [Table Text Block] | Allowance for expected credit losses (millions) 2022 2021 2020 Balance at beginning of year $ 15 $ 19 $ 10 Additions (reductions) charged to expense 4 (1) 13 Expected credit losses charged to reserve (6) (3) (4) Balance at end of year $ 13 $ 15 $ 19 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Policies and New Accounting Standards [Line Items] | ||
Income tax examination percentage likelihood of being realized upon settlement | 50% | |
Maximum length of time, forward contracts and options | 18 months | |
Maximum length of time hedged in price risk cash flow hedge | 18 months | |
Payables Placed On Tracking System | $ 1,100 | $ 905 |
Minimum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Expected rates of return | 25th | |
Operating lease, term of contract | 12 months | |
Operating Lease, remaining lease term | 1 year | |
Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Expected rates of return | 75th | |
Operating Lease, remaining lease term | 19 years | |
Machinery and Equipment [Member] | Minimum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Machinery and Equipment [Member] | Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Office Equipment [Member] | Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Computer Equipment and Capitalized Software [Member] | Minimum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer Equipment and Capitalized Software [Member] | Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Building [Member] | Minimum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Building [Member] | Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years | |
Building Components [Member] | Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years |
PROPOSED SEPARATION TRANSACTI_2
PROPOSED SEPARATION TRANSACTIONS (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proposed separation transaction related costs | $ 61 |
SGA | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proposed separation transaction related costs | 57 |
Cost of goods sold | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proposed separation transaction related costs | $ 4 |
SALE OF ACCOUNTS RECEIVABLE (De
SALE OF ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Monetization Program | Other Income (Expense), Net | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Gain (Loss) on Sale of Accounts Receivable | $ (23) | $ (8) | $ (14) |
Monetization Program | Maximum | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfers Of Accounts Receivable Agreements | 920 | 1,100 | |
Monetization Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | 865 | 549 | |
Kellogg Foreign Subsidiaries Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | $ 31 | $ 66 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND DIVESTITURES - West Africa Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Business Acquisition [Line Items] | |||
Net sales | $ 15,315 | $ 14,181 | $ 13,770 |
Tolaram Africa Foods (TAF) PTE LTD | |||
Business Acquisition [Line Items] | |||
Equity method investment ownership percentage | 50% | ||
TAF Investment in Affiliated Food Manufacturer | |||
Business Acquisition [Line Items] | |||
Equity method investment ownership percentage | 49% | ||
Tolaram Africa Foods (TAF) PTE LTD | |||
Business Acquisition [Line Items] | |||
Net sales | $ 900 | $ 721 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND DIVESTITURES - Russia Narrative (Details) - Disposal group - Europe - Russia | 12 Months Ended |
Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Percentage of total Company assets | 1% |
Sales as a percentage of consolidated net sales | 1% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 5,771 | $ 5,799 |
Goodwill Additions | 33 | |
Goodwill, Currency Translation Adjustments | (85) | (61) |
Goodwill | 5,686 | 5,771 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill | 4,423 | 4,423 |
Goodwill Additions | 0 | |
Goodwill, Currency Translation Adjustments | (3) | 0 |
Goodwill | 4,420 | 4,423 |
Europe | ||
Goodwill [Roll Forward] | ||
Goodwill | 350 | 367 |
Goodwill Additions | 0 | |
Goodwill, Currency Translation Adjustments | (22) | (17) |
Goodwill | 328 | 350 |
Latin America | ||
Goodwill [Roll Forward] | ||
Goodwill | 171 | 180 |
Goodwill Additions | 0 | |
Goodwill, Currency Translation Adjustments | 6 | (9) |
Goodwill | 177 | 171 |
AMEA | ||
Goodwill [Roll Forward] | ||
Goodwill | 827 | 829 |
Goodwill Additions | 33 | |
Goodwill, Currency Translation Adjustments | (66) | (35) |
Goodwill | $ 761 | $ 827 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Other intangible assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $ 489 | $ 521 |
Accumulated amortization | (162) | (143) |
Finite-Lived Intangible Assets, Net | 327 | 378 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangibles not subject to amortization, gross | 1,969 | 2,031 |
Intangibles not subject to amortization, accumulated amortization | 0 | 0 |
Intangibles not subject to amortization, net | 1,969 | $ 2,031 |
Estimated aggregate annual amortization expense for next twelve months | 25 | |
Estimated aggregate annual amortization expense for year two | 25 | |
Estimated aggregate annual amortization expense for year three | 25 | |
Estimated aggregate annual amortization expense for year four | 25 | |
Estimated aggregate annual amortization expense for year five | $ 25 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Annual Impairment Testing (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill and other intangible assets | $ 8,000 | |
Other intangible assets excluding goodwill | 1,969 | $ 2,031 |
Pringles and cracker related trademarks | North America | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets excluding goodwill | 1,700 | |
Snacks category | North America | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets excluding goodwill | $ 184 |
RESTRUCTURING PROGRAMS - Narrat
RESTRUCTURING PROGRAMS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | $ 11 | $ 27 | $ 29 |
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash implementation costs recovery time frame | 3 years | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash implementation costs recovery time frame | 5 years | ||
North America Supply Chain Reconfiguration | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Program cost to date | $ 11 | ||
Restructuring charge | 6 | $ 5 | |
North America | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 45 | ||
North America | Employee related cost | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 4 | ||
North America | Other cost | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 21 | ||
North America | Asset related costs | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | $ 20 |
RESTRUCTURING PROGRAMS - Schedu
RESTRUCTURING PROGRAMS - Schedule of Restructuring Reserves Rollforward Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Restructuring and Related Activities [Abstract] | |
Project reserves | $ 11 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.9 | 10.6 | 7.3 |
Common stock repurchased | $ 300 | $ 240 | |
2020 share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 1,500 | ||
Common stock repurchases (in shares) | 5 | 4 | |
Common stock repurchased | $ 300 | $ 240 | |
2022 share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 1,500 |
EQUITY - Summary of Accumulated
EQUITY - Summary of Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (2,111) | $ (1,748) |
Net investment hedges gain (loss) | 282 | 67 |
Cash flow hedges — net deferred gain (loss) | 150 | (13) |
Postretirement and postemployment benefits: | ||
Net experience gain (loss) | 2 | (1) |
Prior service credit (cost) | (27) | (26) |
Total accumulated other comprehensive income (loss) | ||
AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax | (4) | 0 |
Accumulated other comprehensive income (loss) | $ (1,708) | $ (1,721) |
LEASES AND OTHER COMMITMENTS -
LEASES AND OTHER COMMITMENTS - Schedule of Supplemental Operating Lease Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 136 | $ 139 | $ 135 |
LEASES AND OTHER COMMITMENTS _2
LEASES AND OTHER COMMITMENTS - Supplemental Operating Leases Information Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Leases [Abstract] | |||
Operating lease, payments | $ 125 | $ 138 | $ 141 |
Right-of-use asset obtained in exchange for operating lease liability, new leases | 86 | 60 | 144 |
Right-of-use asset obtained in exchange for operating lease liability, modified leases | $ 27 | $ 53 | $ 84 |
Operating lease, weighted average remaining lease term | 7 years | 8 years | |
Operating lease, weighted average discount rate, percent | 2.90% | 2.70% |
LEASES AND OTHER COMMITMENTS _3
LEASES AND OTHER COMMITMENTS - Operating Leases Future Maturities Table (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Operating leases, 2023 | $ 134 |
Operating leases, 2024 | 113 |
Operating leases, 2025 | 102 |
Operating leases, 2026 | 78 |
Operating leases, 2027 | 61 |
Operating leases, 2028 and beyond | 182 |
Total minimum payments | 670 |
Interest | (63) |
Present value of lease liabilities | $ 607 |
LEASES AND OTHER COMMITMENTS _4
LEASES AND OTHER COMMITMENTS - Operating Leases Future Maturities Table Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Minimum lease payments for real-estate leases signed but not yet commenced | $ 81 |
DEBT - Components of Notes Paya
DEBT - Components of Notes Payable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Components of Notes Payable | ||
Notes payable | $ 467 | $ 137 |
U.S. Commercial Paper | ||
Components of Notes Payable | ||
Notes payable | $ 330 | $ 0 |
Debt Instrument, Interest Rate, Effective Percentage | 4.46% | 0% |
Bank Borrowings | ||
Components of Notes Payable | ||
Notes payable | $ 137 | $ 137 |
DEBT - Schedule of Long-term De
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Debt Instrument [Line Items] | ||
Other long-term debt | $ 119 | $ 126 |
Long-term debt, including current maturities of long-term debt | 6,097 | 6,974 |
Long-term Debt, Current Maturities | (780) | (712) |
Long-term Debt, Excluding Current Maturities | 5,317 | 6,262 |
4.5% U.S. Dollar Notes Due 2046 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 639 | 638 |
7.45% U.S. Dollar Debentures Due 2031 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 622 | 622 |
2.10% U.S. Dollar Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 497 | 496 |
0.50% Euro Note Due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 317 | 338 |
4.30% U.S. Dollar Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 539 | 592 |
3.40% U.S. Dollar Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 597 | 596 |
3.25% U.S. Dollar Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 745 | 744 |
1.25% Euro Note Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 648 | 693 |
1.00% Euro Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 617 | 695 |
2.65% U.S. Dollar Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 547 | 545 |
2.75% U.S. Dollar Note Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 210 | 207 |
.80% Euro Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | $ 682 |
DEBT - Debt Redemption Narrativ
DEBT - Debt Redemption Narrative (Details) - .80% Euro Notes Due 2022 $ in Millions | Nov. 30, 2022 USD ($) Rate |
Debt Instrument [Line Items] | |
Debt instrument, stated interest rate | Rate | 0.80% |
Debt Instrument, Face Amount | $ | $ 600 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,100 |
Line of Credit Facility, Remaining Borrowing Capacity | 3,000 |
Principal repayments on long-term debt in 2023 | 783 |
Principal repayments on long-term debt in 2024 | 655 |
Principal repayments on long-term debt in 2025 | 654 |
Principal repayments on long-term debt in 2026 | 764 |
Principal repayments on long-term debt in 2027 | 614 |
Principal repayments on long-term debt in 2028 and beyond | 2,733 |
Five Year Credit Agreement | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,500 |
Three Hundred Sixty Four Day Revolving Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 |
Expired Three Hundred Sixty Four Day Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 |
December 2021 Five Year Credit Agreement | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,500 |
Euro Commercial Paper [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 750 |
Debt Instrument, Term | 364 days |
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 |
European Swingline Loans [Member] | Five Year Credit Agreement | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 |
DEBT - Standby Letters of Credi
DEBT - Standby Letters of Credit (Details) - Standby Letters of Credit $ in Millions | Dec. 31, 2022 USD ($) |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 116 |
Secured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | 74 |
Unsecured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 42 |
STOCK COMPENSATION - Equity bas
STOCK COMPENSATION - Equity based compensation programs (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2022 shares | |
2017 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted remaining authorized, but unissued, shares | 12.2 |
Vesting period, years | 3 years |
Contractual term, years | 10 years |
2022 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized, but unissued | 12.4 |
Options granted remaining authorized, but unissued, shares | 12.2 |
STOCK COMPENSATION - Schedule o
STOCK COMPENSATION - Schedule of Compensation Expense for Equity Programs and Related Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Pre-tax compensation expense | $ 102 | $ 75 | $ 81 |
Related income tax benefit | 27 | $ 20 | $ 21 |
Non-vested stock-based compensation awards not yet recognized | $ 134 | ||
Weighted-average period of recognition, years | 2 years |
STOCK COMPENSATION - Cash used
STOCK COMPENSATION - Cash used to settle equity instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Total cash received from option exercises and similar instruments | $ 277 | $ 63 | $ 112 |
Tax windfall (shortfall) classified as cash flow from operating activities | $ 3 | $ (3) | $ 2 |
STOCK COMPENSATION - Maximum Fu
STOCK COMPENSATION - Maximum Future Value of Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 26, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 31, 2022 | |
2022 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 106 | ||||
2021 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | 52 | ||||
2020 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 42 | ||||
2022 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0% | ||||
Performance Shares Issued On Vesting Date Maximum | 200% | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 66 | ||||
Performance Share Target Grant | 747,000 | ||||
2021 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0% | ||||
Performance Shares Issued On Vesting Date Maximum | 200% | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 58 | ||||
Performance Share Target Grant | 365,000 | ||||
2020 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0% | ||||
Performance Shares Issued On Vesting Date Maximum | 200% | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 66 | ||||
Performance Share Target Grant | 294,000 | ||||
2019 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
2019 Performance share award settlement in terms of original target | 112% | ||||
2019 Performance share award settlement in dollars | $ 15 |
STOCK COMPENSATION - Summary of
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. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, years | 3 years | ||
Non-vested, beginning of year - shares | 1,786 | 1,736 | 1,901 |
Granted - shares | 709 | 727 | 596 |
Vested - shares | (619) | (489) | (504) |
Forfeited - shares | (215) | (188) | (257) |
Non-vested, end of year - shares | 1,661 | 1,786 | 1,736 |
Non-vested, beginning of year - weighted-average grant-date fair value | $ 60 | $ 61 | $ 61 |
Granted - weighted average grant-date fair value | 67 | 58 | 65 |
Vested - weighted-average grant-date fair value | 57 | 63 | 65 |
Forfeited - weighted-average grant-date fair value | 62 | 60 | 58 |
Non-vested, end of year - weighted-average grant-date fair value | $ 64 | $ 60 | $ 61 |
Total fair value of restricted stock and restricted stock units vested during period | $ 41 | $ 29 | $ 34 |
STOCK COMPENSATION - Fair Value
STOCK COMPENSATION - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Weighted-average expected volatility | 20% | 18% |
Weighted-average expected term (years) | 6 years 8 months 12 days | 6 years 8 months 12 days |
Weighted-average risk-free interest rate | 0.96% | 1.35% |
Dividend yield | 3.90% | 3.40% |
Weighted-average fair value of options granted | $ 6.39 | $ 7.34 |
STOCK COMPENSATION - Summary _2
STOCK COMPENSATION - Summary of Share-based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Outstanding, beginning of period - shares | 15 | 14 | 14 |
Granted - shares | 0 | 3 | 3 |
Exercised - shares | (4) | (1) | (2) |
Forfeitures and expirations | (1) | (1) | (1) |
Outstanding, end of period - shares | 10 | 15 | 14 |
Exerciseable, end of period - shares | 8 | 10 | 10 |
Outstanding, beginning of period - weighted-average exercise price | $ 64 | $ 65 | $ 65 |
Granted - weighted-average exercise price | 0 | 58 | 65 |
Exercised - weighted-average exercise price | 61 | 56 | 59 |
Forfeitures and expirations - weighted-average exercise price | 63 | 66 | 68 |
Outstanding, end of period - weighted-average exercise price | 65 | 64 | 65 |
Exercisable, end of period - weighted-average exercise price | $ 67 | $ 66 | $ 66 |
Outstanding, end of period - weighted-average remaining contractual term (years) | 5 years 3 months 18 days | ||
Excerciseable, end of period - weighted-average remaining contractual term (years) | 4 years 8 months 12 days | ||
Outstanding, end of period - aggregate intrinsic value | $ 26 | ||
Exerciseable, end of period - aggregate intrinsic value | 16 | ||
Total intrinsic value of options exercised | $ 44 | $ 6 | $ 17 |
PENSION BENEFITS - Change in Pr
PENSION BENEFITS - Change in Projected Benefit Obligations, Plan Assets, and Funding Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | $ 320 | $ 448 | |
Other liabilities | (709) | (706) | |
Pension | |||
Change in Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | 210 | ||
Global plans | Pension | |||
Change in Benefit Obligation [Roll Forward] | |||
Beginning of Year | 5,236 | 5,675 | |
Service Cost | 34 | 36 | $ 37 |
Interest Cost | 127 | 98 | 130 |
Plan participants' contributions | 0 | 1 | |
Plan Amendments | 3 | 18 | |
Actuarial (gain) loss | (1,297) | (130) | |
Benefits paid | (482) | (423) | |
Curtailments and special termination benefits | 0 | (1) | |
Other | (1) | 0 | 8 |
Foreign Currency Adjustments | (149) | (38) | |
End of Year | 3,471 | 5,236 | 5,675 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value, Beginning of Year | 4,959 | 5,211 | |
Actual Return on Plan Assets | (1,253) | 184 | |
Employer Contributions | 3 | 4 | |
Plan participants' contributions | 1 | 1 | |
Benefits Paid, Plan Assets | (454) | (397) | |
Currency translation | (189) | (44) | |
Fair Value, End of Year | 3,067 | 4,959 | $ 5,211 |
Funded Status | (404) | (277) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | 57 | 61 | |
Net Amount Recognized | 57 | 61 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | 320 | 448 | |
Other Current Liabilities | (15) | (19) | |
Other liabilities | (709) | (706) | |
Net Amount Recognized | (404) | (277) | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 3,400 | $ 5,200 |
PENSION BENEFITS - Accumulated
PENSION BENEFITS - Accumulated Benefit Obligations (Details) - Global plans - Pension - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 2,478 | $ 3,623 |
Accumulated benefit obligation | 2,469 | 3,610 |
Fair value of plan assets | $ 1,756 | $ 2,906 |
PENSION BENEFITS - Projected Be
PENSION BENEFITS - Projected Benefit Obligations (Details) - Pension - Global Plans [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 2,545 | $ 3,707 |
Projected benefit obligation, accumulated benefit obligation | 2,517 | 3,669 |
Projected benefit obligation, fair value of plan assets | $ 1,821 | $ 2,984 |
PENSION BENEFITS - Components o
PENSION BENEFITS - Components of Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 126 | $ (165) | $ 31 |
Global plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) expense | 41 | 41 | 42 |
Global plans | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 34 | 36 | 37 |
Interest Cost | 127 | 98 | 130 |
Expected Return on Plan Assets | (258) | (301) | (340) |
Amortization of Unrecognized Prior Service Cost (Credit) | 9 | 8 | 7 |
Other | (1) | 0 | 8 |
Recognized net (gain) loss | 210 | (12) | 184 |
Net periodic benefit cost | 121 | (171) | 26 |
Curtailment and special termination benefits | 0 | (1) | (15) |
Pension (income) expense | 121 | (172) | 11 |
Foreign and U.S. multiemployer defined contribution plan | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 5 | $ 7 | $ 20 |
PENSION BENEFITS - Benefit Assu
PENSION BENEFITS - Benefit Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 5.30% | 2.60% | 2.20% |
Long-term rate of compensation increase | 3.50% | 3.50% | 3.40% |
Actuarial (gain) loss | $ 210 | ||
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 | 3.30% | 2.30% | 2.80% |
Discount rate - interest | 3% | 1.80% | 2.40% |
Long-term rate of compensation increase | 3.50% | 3.40% | 3.40% |
Long-term rate of return on plan assets | 6% | 6% | 6.80% |
Actuarial (gain) loss | $ (1,297) | $ (130) | |
United States | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of consolidated pension and postretirement benefit plan assets | 69% | ||
Long-term inflation assumption | 2.50% | ||
Active management premium | 0.78% | ||
Expected rate of return on foreign plan assets | 6.25% | ||
Expected rates of return | 65th percentile |
PENSION BENEFITS - Plan Assets
PENSION BENEFITS - Plan Assets (Details) - Global plans - Pension - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 3,067 | $ 4,959 | $ 5,211 | |
Expected contribution by Company | 5 | |||
Net Asset Value (NAV) Practical Expedient | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [1] | 1,828 | 2,507 | |
Cash and Cash Equivalents | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 16 | 36 | ||
Cash and Cash Equivalents | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | (5) | (5) | ||
Cash and Cash Equivalents | Level 1, Level 2, and Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | [2] | 11 | 31 | |
Corporate stock, common | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 199 | $ 318 | ||
Domestic Corporate Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of consolidated plan assets represented by investment in Company comon stock | 2.10% | 1.20% | ||
Mutual Funds Domestic Debt | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 0 | $ 51 | ||
Collective Trusts Other International Debt | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 302 | 599 | ||
Bonds, corporate | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 287 | 396 | ||
Bonds, government | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 111 | 597 | ||
Bonds, other | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 66 | 87 | ||
Other | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 64 | 104 | ||
Other | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 26 | 0 | 0 | |
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 26 | 0 | ||
Other | Level 1, Level 2, and Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | [3] | $ 90 | 104 | |
Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 38% | |||
Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 30% | |||
Real Estate And Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 32% | |||
Buy-in annuity contract | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 173 | 269 | $ 280 | |
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 173 | 269 | ||
Sub-Total | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 1,239 | $ 2,452 | ||
[1]Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.[2]Cash and cash equivalents includes Level 1 assets of $16 million and $36 million for 2022 and 2021, respectively, and Level 2 assets of ($5) million and ($5) million for 2022 and 2021, respectively.[3]Other includes Level 2 assets of $64 million and $104 million for 2022 and 2021, respectively, and Level 3 assets of $26 million and $0 million for 2022 and 2021, respectively. |
PENSION BENEFITS - Level 3 Gain
PENSION BENEFITS - Level 3 Gains and Losses (Details) - Pension - Global Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | $ 4,959 | $ 5,211 |
Currency translation | (189) | (44) |
Fair Value, End of Year | 3,067 | 4,959 |
Other Investments [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 0 | 0 |
Additions | 27 | |
Realized gain and unrealized gain (loss) | (1) | 0 |
Currency translation | 0 | 0 |
Fair Value, End of Year | 26 | 0 |
Buy-in annuity contract | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 269 | 280 |
Additions | 0 | |
Realized gain and unrealized gain (loss) | (75) | (9) |
Currency translation | (21) | (2) |
Fair Value, End of Year | $ 173 | $ 269 |
PENSION BENEFITS - Benefit Paym
PENSION BENEFITS - Benefit Payments (Details) - Global plans - Pension $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2023 | $ 269 |
Benefit payments in 2024 | 280 |
Benefit payments in 2025 | 282 |
Benefit payments in 2026 | 283 |
Benefit payments in 2027 | 284 |
Benefit payments in 2028 through 2032 | $ 1,431 |
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. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | $ 320 | $ 448 | |
Other Liabilities | (22) | (32) | |
Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | 204 | ||
U.S. and Canada | Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Beginning of Year | 1,065 | 1,157 | |
Service Cost | 11 | 13 | $ 13 |
Interest Cost | 24 | 20 | 31 |
Actuarial (gain) loss | (231) | (68) | |
Benefits paid | (54) | (57) | |
Foreign Currency Adjustments | (2) | 0 | |
End of Year | 813 | 1,065 | 1,157 |
Change in plan assets | |||
Fair Value, Beginning of Year | 1,608 | 1,491 | |
Actual Return on Plan Assets | (325) | 175 | |
Employer Contributions | 20 | 16 | |
Benefits Paid, Plan Assets | (77) | (74) | |
Fair Value, End of Year | 1,226 | 1,608 | $ 1,491 |
Funded Status | 413 | 543 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | 437 | 577 | |
Other Current Liabilities | (2) | (2) | |
Other Liabilities | (22) | (32) | |
Net Amount Recognized | 413 | 543 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | (32) | (41) | |
Net Amount Recognized | $ (32) | $ (41) |
NONPENSION POSTRETIREMENT AND_4
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Accumulated Benefit Obligations (Details) - Nonpension postretirement - U.S. and Canada - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 24 | $ 34 |
Fair value of plan assets | $ 0 | $ 0 |
NONPENSION POSTRETIREMENT AND_5
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Components of Postretirement Expense (Details) - Nonpension postretirement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ 132 | $ (207) | $ (75) |
U.S. and Canada defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 11 | 13 | 13 |
Interest Cost | 24 | 20 | 31 |
Expected Return on Plan Assets | (111) | (92) | (94) |
Amortization of Unrecognized Prior Service Cost (Credit) | (9) | (9) | (9) |
Recognized net (gain) loss | 204 | (152) | (29) |
Net periodic benefit cost | 119 | (220) | (88) |
Postretirement Benefit Expense | 119 | (220) | (88) |
U.S. and Canada defined contribution plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ 13 | $ 13 | $ 13 |
NONPENSION POSTRETIREMENT AND_6
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Assumptions (Details) - Nonpension postretirement | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligation | 5.50% | 2.90% | 2.50% |
U.S. and Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.90% | 2.50% | 3.30% |
Discount rate - interest | 2.40% | 1.80% | 2.80% |
Long-term rate of return on plan assets | 7% | 6.30% | 7% |
NONPENSION POSTRETIREMENT AND_7
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Health Care Cost Trend Rates (Details) - Nonpension postretirement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed healthcare cost trend rate for 2023 | 6% | |
Annual change in assumed healthcare cost trend rate | 0.50% | |
Assumed health care cost trend rate by 2028 and thereafter | 4.50% | |
Actuarial (gain) loss | $ 204 | |
U.S. and Canada | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial (gain) loss | $ (231) | $ (68) |
NONPENSION POSTRETIREMENT AND_8
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Plan Assets (Details) - U.S. and Canada - Nonpension postretirement - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 1,226 | $ 1,608 | $ 1,491 | |
Net Asset Value (NAV) Practical Expedient | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 774 | 850 | |
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 amounts, investments within plan ssset category, amount | 0 | 1 | ||
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 amounts, investments within plan ssset category, amount | 0 | 2 | ||
Cash and Cash Equivalents | Level 1, Level 2, and Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | [2] | 0 | 3 | |
Corporate stock, common | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 172 | 263 | ||
Mutual Funds Domestic Equity | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 36 | 39 | ||
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 amounts, investments within plan ssset category, amount | 0 | 94 | ||
Bonds, corporate | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 166 | 247 | ||
Bonds, government | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 68 | 99 | ||
Bonds, other | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 10 | 13 | ||
Sub-Total | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 452 | $ 758 | ||
[1]Certain Assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.[2]Cash and cash equivalents includes Level 1 assets of $0 million and $1 million for 2022 and 2021, respectively, and Level 2 assets of $0 million and $2 million for 2022 and 2021, respectively. |
NONPENSION POSTRETIREMENT AND_9
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - VEBA Trusts (Details) - U.S. and Canada - Nonpension postretirement $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected contribution by Company | $ 21 |
Debt Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 33% |
Equity Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 60% |
Real Estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 7% |
NONPENSION POSTRETIREMENT AN_10
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Change in Projected Benefit Obligations, Plan Assets, and Funded Status, Postemployment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Other Assets | $ 320 | $ 448 |
Amounts Recognized in Balance Sheet | ||
Other Liabilities | (22) | (32) |
Postemployment | ||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Beginning of Year | 48 | 48 |
Service Cost | 3 | 3 |
Interest Cost | 1 | 1 |
Actuarial (gain) loss | (9) | 1 |
Benefits paid | (6) | (5) |
End of Year | 37 | 48 |
Funded Status | (37) | (48) |
Amounts Recognized in Balance Sheet | ||
Other Current Liabilities | (7) | (5) |
Other Liabilities | (30) | (43) |
Net Amount Recognized | (37) | (48) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | 2 | 1 |
Net experience loss | (18) | (14) |
Net Amount Recognized | $ (16) | $ (13) |
NONPENSION POSTRETIREMENT AN_11
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Components of Postretirement Expense, Postemployment (Details) - Postemployment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 3 | $ 3 | |
Interest Cost | 1 | 1 | |
Global plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 3 | 3 | $ 2 |
Interest Cost | 1 | 1 | 1 |
Amortization of Unrecognized Prior Service Cost (Credit) | 1 | 1 | 1 |
Recognized net (gain) loss | (2) | (2) | (3) |
Net periodic benefit cost | 3 | 3 | 1 |
Settlement cost | (2) | (1) | (1) |
Postemployment Benefits, Period Expense | $ 1 | $ 2 | $ 0 |
NONPENSION POSTRETIREMENT AN_12
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
U.S. and Canada | Nonpension postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2023 | $ 64 |
Benefit payments in 2024 | 64 |
Benefit payments in 2025 | 64 |
Benefit payments in 2026 | 64 |
Benefit payments in 2027 | 64 |
Benefit payments in 2028 through 2032 | 314 |
Global plans | Postemployment | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2023 | 7 |
Benefit payments in 2024 | 6 |
Benefit payments in 2025 | 5 |
Benefit payments in 2026 | 5 |
Benefit payments in 2027 | 5 |
Benefit payments in 2028 through 2032 | $ 19 |
MULTIEMPLOYER PENSION AND POS_2
MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS - Multiemployer Pension Plans Trusts Funds Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Multiemployer Plans [Line Items] | |||
Multiemployer withdrawal obligation annual cash obligation | $ 8 | ||
Multiemployer Plans, Withdrawal Obligation | $ 117 | $ 123 | |
Multiemployer plan withdrawal obligation term | 20 years | ||
Multiemployer withdrawal liability payments | $ 10 | 10 | $ 21 |
Pension | |||
Multiemployer Plans [Line Items] | |||
Contributions | 5 | 7 | 7 |
Project K | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan withdrawal expense | $ 0 | $ 0 | $ (5) |
MULTIEMPLOYER PENSION AND POS_3
MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS - Multiemployer Postretirement Plans Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Nonpension postretirement | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions | $ 13 | $ 13 | $ 13 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Sep. 26, 2020 | Dec. 28, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||||
Effective income tax rate | 20.40% | 24.10% | 20.20% | |||||
Income tax expense | $ 244 | $ 474 | $ 323 | |||||
Pension contributions | 23 | 20 | 32 | |||||
Undistributed earnings of foreign subsidiaries | 800 | |||||||
Amount of unrecognized deferred tax liability on undistributed earnings of foreign subsidiaries | 43 | |||||||
Tax benefits of carryforwards | 363 | 363 | ||||||
Valuation allowance | 263 | 248 | ||||||
Income taxes paid | $ 312 | 365 | 281 | |||||
U.S percentage of tax provision | 50% | |||||||
Projected additions to unrecognized tax benefits related to ongoing intercompany pricing activity | $ 3 | |||||||
Unrecognized tax benefits that would affect the Company's effective tax rate in future periods | 30 | |||||||
Deferred Tax Liabilities, Gross | 1,037 | 961 | ||||||
Deferred tax liabilities | 570 | 507 | ||||||
Tax reserves released as a result of finalization of an IRS tax examination | $ 32 | $ 32 | $ 32 | |||||
Deferred Tax Assets, Valuation Allowance | 263 | $ 248 | $ 192 | $ 20 | $ 146 | |||
Expire in 5 Years or Less | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Tax benefits of carryforwards | 21 | |||||||
Expire in 2027 and later | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Tax benefits of carryforwards | 79 | |||||||
Do Not Expire | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Tax benefits of carryforwards | 263 | |||||||
UNITED KINGDOM | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Income tax expense | $ 23 | |||||||
UNITED KINGDOM | Minimum | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Effective income tax rate | 19% | |||||||
UNITED KINGDOM | Maximum | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Effective income tax rate | 25% | |||||||
Current liabilities | ||||||||
Operating Loss Carryforwards [Line Items] | ||||||||
Increase in Unrecognized Tax Benefits is Reasonably Possible | $ 18 |
INCOME TAXES - Income before in
INCOME TAXES - Income before income taxes and the provision for U.S. federal, state and foreign taxes on earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, United States | $ 623 | $ 1,158 | $ 1,018 |
Income before income taxes, Foreign | 574 | 808 | 583 |
Income before income taxes | 1,197 | 1,966 | 1,601 |
Income taxes, currently payable, Federal | 151 | 188 | 129 |
Income taxes, currently payable, State | 31 | 44 | 26 |
Income taxes, currently payable, Foreign | 108 | 117 | 100 |
Income taxes, currently payable | 290 | 349 | 255 |
Income taxes, deferred, Federal | (37) | 40 | 56 |
Income taxes, deferred, State | (8) | 4 | 9 |
Income taxes, deferred, Foreign | (1) | 81 | 3 |
Income taxes, deferred | (46) | 125 | 68 |
Total income taxes | $ 244 | $ 474 | $ 323 |
INCOME TAXES - Difference Betwe
INCOME TAXES - Difference Between U.S. Federal Statutory Tax Rate and the Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21% | 21% | 21% |
Foreign rates varying from U.S. statutory rate | (2.60%) | (1.60%) | (2.40%) |
State income taxes, net of federal benefit | 1.40% | 1.90% | 1.80% |
Cost (benefit) of remitted and unremitted foreign earnings | 1.50% | 0.60% | 1% |
Net change in valuation allowance | 3.40% | 2.70% | 1.40% |
Statutory rate changes, deferred tax impact | 0.20% | 0.70% | 0.20% |
U.S. deemed repatriation tax | 0% | 0% | (2.00%) |
Foreign derived intangible income | (1.80%) | (0.80%) | (0.40%) |
Other | (2.70%) | (0.40%) | (0.40%) |
Effective Income Tax Rate Reconciliation, Percent | 20.40% | 24.10% | 20.20% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 01, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Deferred Income Tax [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 0 | $ 0 | |||
Deferred Tax Liabilities Us State Income Taxes | 27 | 11 | |||
Deferred Tax Assets Advertising And Promotion Related | 15 | 14 | |||
Deferred Tax Assets Wages And Payroll Taxes | 19 | 27 | |||
Deferred Tax Assets, Inventory | 19 | 16 | |||
Deferred Tax Assets, Tax Deferred Expense, Employee Benefits | 64 | 19 | |||
Tax benefits of carryforwards | 363 | 363 | |||
Deferred Tax Assets, Hedging Transactions | 0 | 13 | |||
Deferred Tax Liabilities, Hedging Transactions | 37 | 0 | |||
Deferred Tax Liabilities, Property, Plant and Equipment | 286 | 264 | |||
Deferred Tax Liabilities, Operating Lease Right-of-Use Assets | 138 | 146 | |||
Deferred Tax Asset, Operating Lease Liabilities | 139 | 144 | |||
Deferred Tax Liabilities, Intangible Assets | 549 | 540 | |||
Deferred Tax Assets, Tax Deferred Expense, Deferred Compensation | 27 | 19 | |||
Deferred Tax Assets, Tax Deferred Expense, Stock Options | 28 | 33 | |||
Deferred Tax Assets, Other | 56 | 54 | |||
Deferred Tax Assets, Gross | 730 | 702 | |||
Deferred Tax Liabilities, Gross | 1,037 | 961 | |||
Deferred Tax Liabilities, Net | (570) | (507) | |||
Deferred Tax Assets, Valuation Allowance | (263) | $ (20) | (248) | $ (192) | $ (146) |
Deferred Tax Assets, Net of Valuation Allowance | 467 | 454 | |||
Other Assets [Member] | |||||
Deferred Income Tax [Line Items] | |||||
Deferred Tax Assets, Net | 190 | 215 | |||
Other liabilities | |||||
Deferred Income Tax [Line Items] | |||||
Deferred Tax Liabilities, Net | $ (760) | $ (722) |
INCOME TAXES - Change in Valuat
INCOME TAXES - Change in Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |||
Income Tax Disclosure [Abstract] | |||||
Balance at beginning of year | $ 248 | $ 192 | $ 146 | ||
Additions charged to income tax expense | 44 | 59 | [1] | 62 | [1] |
Reductions credited to income tax expense | (3) | (6) | (24) | ||
Acquisition of noncontrolling interest | 0 | 13 | 0 | ||
Currency translation adjustments | (26) | (10) | 8 | ||
Balance at end of year | $ 263 | 248 | 192 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 20 | $ 41 | |||
[1]During 2021, the Company increased the valuation allowance $20 million to fully reserve for net deferred tax assets of a foreign subsidiary. During 2020, the Company increased the valuation allowance by $41 million related to the revaluation of its investment in a foreign subsidiary. |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Sep. 26, 2020 | ||
Income Tax Disclosure [Abstract] | |||||||
Balance at beginning of year | $ 50 | $ 65 | $ 90 | ||||
Additions, current year | 6 | 5 | 5 | ||||
Additions, prior year | 1 | 5 | 8 | ||||
Reductions, prior year | (18) | (13) | (35) | [1] | |||
Settlements, decreases | (1) | (9) | (2) | ||||
Lapse in statute of limitations | (2) | (3) | (1) | ||||
Balance at end of year | 36 | 50 | 65 | ||||
Income tax examination interest payments | 2 | 1 | |||||
Tax reserves released as a result of finalization of an IRS tax examination | $ 32 | $ 32 | $ 32 | ||||
Income Tax Examination, Interest Expense | 1 | (4) | 3 | ||||
Accrued tax-related interest and penalties | $ 8 | 7 | 13 | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (20) | $ (41) | |||||
[1]During the third quarter of 2020, the Company released $32 million of tax reserves as a result of finalization of an IRS tax examination. |
DERIVATIVE INSTRUMENTS AND FA_3
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Oct. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative [Line Items] | ||||
Concentration of credit risk, maximum exposure | $ 89 | |||
Five largest customers percentage of consolidated trade receivables | 28% | |||
Long-term debt, including current maturities of long-term debt | $ 6,097 | $ 6,974 | ||
Unrealized gain (loss) on cash flow hedges, pre-tax | 221 | 38 | $ (9) | |
Reclassifications to net income, pre-tax | 2 | (22) | (14) | |
Gain (loss) recognized in AOCI | 287 | 236 | (329) | |
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI | 287 | 236 | $ (329) | |
Interest expense | Cash Flow hedges | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) on cash flow hedges, pre-tax | 165 | |||
Reclassifications to net income, pre-tax | $ 18 | |||
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Long-term debt, including current maturities of long-term debt | 1,600 | $ 2,400 | ||
Cross Currency Interest Rate Contract | Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI | 37 | |||
Accounts receivable | ||||
Derivative [Line Items] | ||||
Margin deposits | $ 14 |
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. 31, 2022 | Jan. 01, 2022 |
Derivative [Line Items] | ||
Notional amount of derivatives | $ 7,372 | $ 7,347 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 2,502 | 2,828 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 1,983 | 1,343 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 2,657 | 2,816 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 230 | $ 360 |
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. 31, 2022 | Jan. 01, 2022 | ||
Derivative [Line Items] | ||||
Fair Value Of Related Hedge Portion Of Long Term Debt | $ 1,100 | $ 1,200 | ||
Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Assets | 194 | 65 | ||
Liabilities | (86) | (14) | ||
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 | 194 | 65 | ||
Liabilities | (86) | (14) | ||
Designated as hedging instrument | Cross-currency contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 88 | 32 | ||
Designated as hedging instrument | Cross-currency contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 36 | 15 | ||
Designated as hedging instrument | Cross-currency contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | (2) | ||
Designated as hedging instrument | Cross-currency contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | (7) | ||
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 88 | 32 | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 36 | 15 | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | (2) | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | (7) | ||
Designated as hedging instrument | Interest rate contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 45 | 10 | |
Designated as hedging instrument | Interest rate contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 25 | 8 | |
Designated as hedging instrument | Interest rate contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | (1) | [1] | |
Designated as hedging instrument | Interest rate contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | [1] | (86) | (4) | |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 45 | 10 | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 25 | 8 | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | (1) | [1] | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | [1] | (86) | (4) | |
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Assets | 110 | 32 | ||
Liabilities | (86) | (45) | ||
Not Designated as Hedging Instrument [Member] | Level 1 [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 5 | ||
Liabilities | (2) | (6) | ||
Not Designated as Hedging Instrument [Member] | Level 2 [Member] | ||||
Derivative [Line Items] | ||||
Assets | 106 | 27 | ||
Liabilities | (84) | (39) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 74 | 18 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 14 | 5 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (50) | (20) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (9) | (6) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 74 | 18 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 14 | 5 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (50) | (20) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (9) | (6) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 4 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 14 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (7) | (6) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (18) | (7) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 4 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 14 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (7) | (6) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (18) | (7) | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 5 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (2) | (6) | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 5 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (2) | (6) | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | $ 0 | $ 0 | ||
[1]The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.1 billion and $1.2 billion as of December 31, 2022 and January 1, 2022, respectively. |
DERIVATIVE INSTRUMENTS AND FA_6
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Long-term debt | $ 5,317 | $ 6,262 | |
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 | 483 | 0 | |
Long-term debt | 2,250 | 2,903 | |
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] | (3) | 0 |
Long-term debt | [1] | (74) | 12 |
Cumulative fair value adjustment | Discontinued hedging | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Current maturities of long-term debt | (3) | ||
Long-term debt | $ 13 | $ 13 | |
[1]The fair value adjustment related to current maturities of long-term debt includes $(3) million from discontinued hedging relationships as of December 31, 2022. The hedged long-term debt includes $13 million of hedging adjustment on discontinued hedging relationships as of December 31, 2022 and January 1, 2022, respectively. |
DERIVATIVE INSTRUMENTS AND FA_7
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net amount of assets presented in the balance sheet | $ 304 | $ 97 |
Financial instruments, gross amount not offset in balance sheet | (153) | (47) |
Derivative, Collateral, Obligation to Return Cash | (33) | 8 |
Net amount, assets derivatives | 118 | 58 |
Net amounts of liabilities presented in balance sheet | (172) | (59) |
Financial instruments, gross amount not offset in balance sheet | 153 | 47 |
Cash collateral received, gross amount not offset in balance sheet | 19 | 12 |
Net amount, liabilities derivatives | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND FA_8
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - The Effect of Derivative Instruments on the Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 18 | ||
Gain (loss) recognized in AOCI | 287 | $ 236 | $ (329) |
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 287 | 236 | (329) |
Gain (loss) excluded from assessment of hedge effectiveness | 39 | 26 | 34 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 64 | 97 | 12 |
Foreign currency exchange contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 37 | (21) | 11 |
Foreign currency exchange contracts | SGA | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 4 | 13 | (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) | (3) | (6) |
Foreign Currency Denominated Long Term Debt | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 164 | 175 | (236) |
Gain (loss) excluded from assessment of hedge effectiveness | 0 | 0 | 0 |
Cross-currency contracts | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 123 | 61 | (93) |
Gain (loss) excluded from assessment of hedge effectiveness | 39 | 26 | 34 |
Interest rate contracts | Interest expense | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 4 | 1 | 2 |
Commodity contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ 23 | $ 107 | $ 6 |
DERIVATIVE INSTRUMENTS AND FA_9
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense | $ 218 | $ 223 | $ 281 |
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 | 89 | 14 | (7) |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (85) | (12) | 7 |
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 | $ 2 | $ (22) | $ (14) |
DERIVATIVE INSTRUMENTS AND F_10
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Carrying and Market Values of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, cost | $ 52 | $ 52 | |
Available-for-sale securities unrealized gain (loss) | (5) | 0 | |
Available-for-sale securities, market value | 47 | 52 | |
Sales of available-for-sale securities | 19 | 72 | $ 19 |
Payments to Acquire Debt Securities, Available-for-sale | 17 | 61 | $ 81 |
Level 2 [Member] | Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sales of available-for-sale securities | 19 | 72 | |
Payments to Acquire Debt Securities, Available-for-sale | 17 | 61 | |
Other Income (Expense), Net | Level 2 [Member] | Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gain (loss) on sale of available-for-sale securities | $ (1) | $ 2 |
DERIVATIVE INSTRUMENTS AND F_11
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Equity Investments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Equity investment fair value adjustment, mark-to-market gain | $ 20 |
Level 2 [Member] | Other Assets [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Equity Method Investments, Fair Value Disclosure | $ 40 |
DERIVATIVE INSTRUMENTS AND F_12
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 5,100 | $ 6,900 |
Long-term debt, carrying value | $ 5,317 | $ 6,262 |
REPORTABLE SEGMENTS - Narrative
REPORTABLE SEGMENTS - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | 4 | ||
Walmart Stores Inc [Member] | Customer Concentration Risk [Member] | Sales [Member] | United States | Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 18% | 19% | 19% |
REPORTABLE SEGMENTS - Segments
REPORTABLE SEGMENTS - Segments Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 15,315 | $ 14,181 | $ 13,770 |
Operating profit | 1,635 | 1,752 | 1,761 |
Depreciation and amortization | 478 | 467 | 479 |
Interest expense | 218 | 223 | 281 |
Income taxes | 244 | 474 | 323 |
Property, Plant and Equipment, Additions | 488 | 553 | 505 |
North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 8,958 | 8,174 | 8,361 |
Operating profit | 1,356 | 1,329 | 1,473 |
Depreciation and amortization | 260 | 262 | 282 |
Interest expense | 1 | 0 | 0 |
Property, Plant and Equipment, Additions | 252 | 324 | 270 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,310 | 2,397 | 2,232 |
Operating profit | 329 | 350 | 301 |
Depreciation and amortization | 81 | 92 | 84 |
Interest expense | 20 | 4 | 4 |
Income taxes | 38 | 48 | 29 |
Property, Plant and Equipment, Additions | 107 | 102 | 120 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,123 | 997 | 914 |
Operating profit | 124 | 109 | 97 |
Depreciation and amortization | 34 | 25 | 30 |
Interest expense | 2 | 1 | 6 |
Income taxes | 24 | 52 | 20 |
Property, Plant and Equipment, Additions | 48 | 42 | 31 |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,933 | 2,613 | 2,263 |
Operating profit | 253 | 246 | 202 |
Depreciation and amortization | 94 | 84 | 79 |
Interest expense | 22 | 17 | 8 |
Income taxes | 42 | 40 | 33 |
Property, Plant and Equipment, Additions | 69 | 73 | 77 |
Total Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 15,324 | 14,181 | 13,770 |
Operating profit | 2,062 | 2,034 | 2,073 |
Depreciation and amortization | 469 | 463 | 475 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net sales | (9) | 0 | 0 |
Operating profit | (427) | (282) | (312) |
Depreciation and amortization | 9 | 4 | 4 |
Interest expense | 173 | 201 | 263 |
Property, Plant and Equipment, Additions | 12 | 12 | 7 |
Corporate And North America | |||
Segment Reporting Information [Line Items] | |||
Income taxes | $ 140 | $ 334 | $ 241 |
REPORTABLE SEGMENTS - Segment_2
REPORTABLE SEGMENTS - Segments Net sales to external customers and long-lived assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 15,315 | $ 14,181 | $ 13,770 |
Long-lived assets | 4,406 | 4,467 | 4,371 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 8,397 | 7,646 | 7,821 |
Long-lived assets | 2,477 | 2,447 | 2,436 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,918 | 6,535 | 5,949 |
Long-lived assets | $ 1,929 | $ 2,020 | $ 1,935 |
REPORTABLE SEGMENTS - Supplemen
REPORTABLE SEGMENTS - Supplemental product information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 15,315 | $ 14,181 | $ 13,770 |
Snacks | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,563 | 6,807 | 6,281 |
Retail Channel Cereal | |||
Segment Reporting Information [Line Items] | |||
Net sales | 5,280 | 5,123 | 5,433 |
Frozen | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,097 | 1,106 | 1,139 |
Noodles and other | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,375 | $ 1,145 | $ 917 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT DATA - Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Disclosure Text Block Supplement [Abstract] | |||
Research and development expense | $ 127 | $ 134 | $ 135 |
Advertising expense | $ 756 | $ 790 | $ 781 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT DATA - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Disclosure Text Block Supplement [Abstract] | ||||
Trade receivables | $ 1,449 | $ 1,240 | ||
Allowance for doubtful accounts | (13) | (15) | $ (19) | $ (10) |
Refundable income taxes | 82 | 62 | ||
Other Receivables | 218 | 202 | ||
Accounts receivable, net | 1,736 | 1,489 | ||
Raw materials, spare parts and supplies | 426 | 383 | ||
Finished goods and materials in process | 1,342 | 1,015 | ||
Inventories, net | 1,768 | 1,398 | ||
Land | 108 | 123 | ||
Buildings | 2,274 | 2,238 | ||
Machinery and equipment | 6,339 | 6,277 | ||
Capitalized software | 500 | 594 | ||
Construction in progress | 660 | 623 | ||
Accumulated depreciation | (6,092) | (6,028) | ||
Property, net | 3,789 | 3,827 | ||
Other intangibles | 2,458 | 2,552 | ||
Accumulated amortization | (162) | (143) | ||
Other intangibles, net | 2,296 | 2,409 | ||
Pension | 320 | 448 | ||
Deferred income taxes | 190 | 215 | ||
Nonpension post retirement benefits | 437 | 577 | ||
Other | 543 | 473 | ||
Other assets | 1,490 | 1,713 | ||
Accrued income taxes | 49 | 49 | ||
Customer deposits | 150 | 138 | ||
Other | 673 | 576 | ||
Other Liabilities, Current | 872 | 763 | ||
Income taxes payable | 37 | 40 | ||
Nonpension postretirement benefits | 22 | 32 | ||
Other | 441 | 384 | ||
Other liabilities | $ 500 | $ 456 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT DATA - Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Disclosure Text Block Supplement [Abstract] | |||
Balance at beginning of year | $ 15 | $ 19 | $ 10 |
Additions (reductions) charged to expense | 4 | (1) | 13 |
Doubtful accounts charged to reserve | (6) | (3) | (4) |
Balance at end of year | $ 13 | $ 15 | $ 19 |