UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 29, 2009
Kellogg Company
(Exact name of registrant as specified in its charter)
| Delaware | 1-4171 | 38-0710690 | ||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
One Kellogg Square
Battle Creek, Michigan 49016-3599
(Address of principal executive offices, including zip code)
(269) 961-2000
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
The information in this Current Report, including the attached Exhibit, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On October 29, 2009, Kellogg Company issued a press release announcing financial results for the period ended October 3, 2009, a copy of which is attached as Exhibit 99.1.
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits.
| Exhibit 99.1 | Press Release dated October 29, 2009 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KELLOGG COMPANY | ||||||
| October 29, 2009 | / S / J OHN A. B RYANT | |||||
| Name: | John A. Bryant | |||||
| Title: |
Executive Vice President, Chief Operating Officer and Chief Financial Officer |
|||||
EXHIBIT INDEX
| 99.1 | Press Release dated October 29, 2009 |
Exhibit 99.1
|
|
Kellogg Company News | |||||||
|
For release: Analyst Contact: Media Contact: |
October 29, 2009 Kim Stumm Kris Charles |
(269) 961-3565 (269) 961-3799
|
||||||
K ELLOGG D ELIVERS S TRONG Q3 2009; R AISES F ULL -Y EAR 2009 G UIDANCE ,
S ETS T ARGETS FOR 2010
BATTLE CREEK, Mich. Kellogg Company (NYSE: K) today reported third quarter 2009 financial results that included strong internal net sales and internal operating profit growth. Third quarter net earnings were $361 million, a 6% increase from last years third quarter net earnings of $342 million. Earnings per diluted share were $0.94 for the quarter, a year-over-year increase of 6% on a reported basis and 12% higher on a currency-neutral basis despite higher up-front costs.
The current economic environment has placed significant pressure on our consumers, said David Mackay, Kellogg Company chief executive officer. However, the environment also provided us with both the incentive and the opportunity to build an even stronger company for the future. We are aggressively pursuing productivity initiatives, as well as taking advantage of media deflation and efficiency programs to invest even more back into advertising to further drive the long-term health of our brands.
Third quarter reported net sales were $3.3 billion, representing a 0.3% decrease versus the third quarter of 2008. However, internal net sales growth, which excludes the effects of foreign currency translation and acquisitions, rose 3%, in line with the Companys long-term annual growth targets. Kellogg North America posted net sales growth of 1% on a reported basis, and 2% on an internal basis, building on strong year-ago internal net sales growth of 9%. Internal net sales growth for Kellogg North America consisted of 2% internal net sales growth delivery from North America Retail Cereal, 3% growth from North America Snacks, and a decline of 3% from North America Frozen and Specialty Channels.
Kellogg International posted a third quarter net sales decline of 4% on a reported basis, however net sales grew 6% on an internal basis, which excludes the effects of currency translation and acquisitions. Internal net sales for Kellogg International consisted of Latin Americas internal net sales growth of 9%, Asia Pacifics growth of 4%, and Europes growth of 5% versus the third quarter of last year. Of particular note is Europes strong return to internal net sales growth in the back half of the year, in line with guidance from the Companys second quarter conference call.
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Operating profit for the third quarter of $567 million was a solid 6% increase on a reported basis, and a strong 11% increase on an internal basis. Total up-front costs for cost-reduction initiatives totaled approximately $0.06 per share, out-pacing 2008s third quarter up-front costs of $0.01 per share. Gross margin for third quarter 2009 of 43.9% represents a 120 basis point increase over last years third quarter on a reported basis.
The benefit to third quarter earnings per share from favorability below the operating profit line in items such as interest expense and a lower effective tax rate was more than offset by unfavorability in other income and expense.
Kellogg Company continued to deliver strong cash flow, generating $978 million year-to-date, including an unfavorable impact from foreign exchange. The Companys year-to-date cash flow, defined as cash from operating activities less capital expenditures, surpassed the $893 million of cash flow generated during the comparable period in 2008. For the full-year 2009, Kellogg raised guidance for cash flow, as defined, to approximately $1.2 billion. Manage for Cash continues to be a key operating principle for Kellogg. Having re-doubled our efforts in this difficult environment, we will deliver a record cash flow performance in 2009 despite the adverse impact of foreign exchange, said Mackay.
Kellogg Raises Full-Year 2009 Guidance and Provides Guidance for 2010
Kellogg re-affirmed its internal sales growth guidance of 3 4% for full-year 2009, which is above the Companys long-term targets. The Company now anticipates increased gross margin expansion for full-year 2009 of approximately 100 basis points, reflecting strong productivity gains and slightly lower than expected inflation. Kellogg also raised guidance for 2009 internal operating profit growth to a range of 8 10%, above the Companys long-term targets and despite significant re-investment in advertising and up-front costs. In addition, the Company raised its currency-neutral earnings per share guidance for 2009 from a range of 8 10% to a range of 10 12%, reflecting strong profit growth slightly offset by higher interest expense.
Supported by the strong performance in 2009, continuing momentum and significant re-investment, the Company is well-positioned to deliver another year of strong growth in 2010. For 2010, Kellogg anticipates internal net sales growth of 2 3%, in line with the Companys long-term targets and reflecting less pricing year-on-year. Up-front costs for full-year 2010 will decrease from 2009s 26 cents per share to a range of 14 16 cents per share and this decrease will positively
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impact operating profit and net earnings. Accordingly, the Company anticipates internal operating profit growth in the high single-digit range, above its long-term annual targets. Reflecting this higher level of anticipated profit growth for 2010, the Company further guided to a range of 10 12% earnings per share growth on a currency-neutral basis, anticipating a second consecutive year of growth above its long-term annual targets.
CEO Mackay concluded, Although most aspects of our guidance for both 2009 and 2010 are above our long-term targets, we are pragmatic about the challenging environment we face. Hence, we are focused on continued reinvestment into our brands, as well as optimizing our business model and global organization while achieving cost savings and future visibility. We therefore remain confident in our ability to continue delivering sustainable, dependable performance in the future.
Conference Call / Webcast
Kellogg will host a conference call to discuss these results on October 29, 2009 at 9:30 am Eastern Daylight Time. The conference call and accompanying presentation slides will be broadcast live over the Internet at http://investor.kelloggs.com . Analysts and institutional investors may participate in the Q&A session by dialing 888-465-4043 (US) or 201-604-5146 (International). Members of the media and the public are invited to attend in a listen-only mode. Rebroadcast information is also available at http://investor.kelloggs.com .
About Kellogg Company
With 2008 sales of nearly $13 billion, Kellogg Company is the worlds leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The Companys brands include Kelloggs ® , Keebler ® , Pop-Tarts ® , Eggo ® , Cheez-It ® , Nutri-Grain ® , Rice Krispies ® , BearNaked ® , Morningstar Farms ® , Famous Amos ® , Special K ® , All-Bran ® , Frosted Mini-Wheats ® , Club ® and Kashi ® . Kellogg products are manufactured in 19 countries and marketed in more than 180 countries around the world. For more information, visit Kelloggs web site at http://www.kelloggcompany.com .
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Forward-Looking Statements Disclosure
This news release contains, or incorporates by reference, forward-looking statements with projections concerning, among other things, the Companys strategy, and the Companys sales, earnings, margin, operating profit, costs and expenditures, interest expense, tax rate, capital expenditure, dividends, cash flow, debt reduction, share repurchases, costs, brand building, ROIC, working capital, growth, new products, innovation, cost reduction projects, and competitive pressures. Forward-looking statements include predictions of future results or activities and may contain the words expects, believes, should, will, will deliver, anticipates, projects, estimates, or words or phrases of similar meaning.
The Companys actual results or activities may differ materially from these predictions. The Companys future results could also be affected by a variety of factors, including the impact of competitive conditions; the effectiveness of pricing, advertising, and promotional programs; the success of innovation, renovation and new product introductions; the recoverability of the carrying value of goodwill and other intangibles; the success of productivity improvements and business transitions; commodity and energy prices; labor costs; the availability of and interest rates on short-term and long-term financing; actual market performance of benefit plan trust investments; the levels of spending on systems initiatives, properties, business opportunities, integration of acquired businesses, and other general and administrative costs; changes in consumer behavior and preferences; the effect of U.S. and foreign economic conditions on items such as interest rates, statutory tax rates, currency conversion and availability; legal and regulatory factors; the ultimate impact of product recalls; business disruption or other losses from war, terrorist acts or political unrest; and other items.
Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update them.
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Kellogg Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(millions, except per share data)
| Quarter ended | Year-to-date period ended | |||||||||||||||
| (Results are unaudited) |
October 3,
2009 |
September 27,
2008 |
October 3,
2009 |
September 27,
2008 |
||||||||||||
|
Net sales |
$ | 3,277 | $ | 3,288 | $ | 9,675 | $ | 9,889 | ||||||||
|
Cost of goods sold |
1,837 | 1,885 | 5,529 | 5,678 | ||||||||||||
|
Selling, general and administrative expense |
873 | 870 | 2,497 | 2,603 | ||||||||||||
|
Operating profit |
567 | 533 | 1,649 | 1,608 | ||||||||||||
|
Interest expense |
65 | 71 | 199 | 230 | ||||||||||||
|
Other income (expense), net |
(10 | ) | 12 | (1 | ) | (7 | ) | |||||||||
|
Income before income taxes |
492 | 474 | 1,449 | 1,371 | ||||||||||||
|
Income taxes |
132 | 133 | 416 | 403 | ||||||||||||
|
Earnings (loss) from joint ventures |
| | (1 | ) | | |||||||||||
|
Net income |
360 | 341 | $ | 1,032 | $ | 968 | ||||||||||
|
Net income (loss) attributable to noncontrolling interests (a) |
(1 | ) | (1 | ) | (4 | ) | (1 | ) | ||||||||
|
Net income attributable to Kellogg Company (a) |
$ | 361 | $ | 342 | $ | 1,036 | $ | 969 | ||||||||
|
Per share amounts: |
||||||||||||||||
|
Basic |
$ | .94 | $ | .90 | $ | 2.71 | $ | 2.54 | ||||||||
|
Diluted |
$ | .94 | $ | .89 | $ | 2.70 | $ | 2.51 | ||||||||
|
Dividends per share |
$ | .3750 | $ | .3400 | $ | 1.0550 | $ | .9600 | ||||||||
|
Average shares outstanding: |
||||||||||||||||
|
Basic |
382 | 380 | 382 | 382 | ||||||||||||
|
Diluted |
384 | 384 | 383 | 385 | ||||||||||||
|
Actual shares outstanding at period end |
379 | 381 | ||||||||||||||
| (a) | Accounting guidance for Noncontrolling interests in Consolidated Financial Statements requires retrospective presentation of amounts related to partially-owned subsidiaries. |
Kellogg Company and Subsidiaries
SELECTED OPERATING SEGMENT DATA
| Quarter ended | Year-to-date period ended | |||||||||||||||
|
(millions) (Results are unaudited) |
October 3,
2009 |
September 27,
2008 |
October 3,
2009 |
September 27,
2008 |
||||||||||||
|
Net sales |
||||||||||||||||
|
North America |
$ | 2,187 | $ | 2,156 | $ | 6,574 | $ | 6,431 | ||||||||
|
Europe |
631 | 666 | 1,805 | 2,089 | ||||||||||||
|
Latin America |
262 | 277 | 750 | 813 | ||||||||||||
|
Asia Pacific (a) |
197 | 189 | 546 | 556 | ||||||||||||
|
Consolidated |
$ | 3,277 | $ | 3,288 | $ | 9,675 | $ | 9,889 | ||||||||
|
Segment operating profit |
||||||||||||||||
|
North America |
$ | 415 | $ | 380 | $ | 1,244 | $ | 1,163 | ||||||||
|
Europe |
105 | 113 | 304 | 347 | ||||||||||||
|
Latin America |
51 | 61 | 157 | 166 | ||||||||||||
|
Asia Pacific (a) |
28 | 26 | 74 | 79 | ||||||||||||
|
Corporate |
(32 | ) | (47 | ) | (130 | ) | (147 | ) | ||||||||
|
Consolidated |
$ | 567 | $ | 533 | $ | 1,649 | $ | 1,608 | ||||||||
| (a) | Includes Australia, Asia and South Africa. |
Kellogg Company and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
(millions)
| Year-to-date period ended | ||||||||
| October 3, | September 27, | |||||||
| (unaudited) | 2009 | 2008 | ||||||
|
Operating activities |
||||||||
|
Net income |
$ | 1,032 | $ | 968 | ||||
|
Adjustments to reconcile net income to operating cash flows: |
||||||||
|
Depreciation and amortization |
282 | 274 | ||||||
|
Deferred income taxes |
(9 | ) | (12 | ) | ||||
|
Other |
(18 | ) | 123 | |||||
|
Postretirement benefit plan contributions |
(93 | ) | (60 | ) | ||||
|
Changes in operating assets and liabilities |
36 | (105 | ) | |||||
|
Net cash provided by operating activities |
1,230 | 1,188 | ||||||
|
Investing activities |
||||||||
|
Additions to properties |
(252 | ) | (295 | ) | ||||
|
Acquisitions of businesses, net of cash acquired |
| (212 | ) | |||||
|
Property disposals |
1 | 11 | ||||||
|
Net cash used in investing activities |
(251 | ) | (496 | ) | ||||
|
Financing activities |
||||||||
|
Net issuances (reductions) of notes payable |
(915 | ) | 48 | |||||
|
Issuances of long-term debt |
745 | 756 | ||||||
|
Reductions of long-term debt |
| (466 | ) | |||||
|
Issuances of common stock |
34 | 155 | ||||||
|
Common stock repurchases |
(187 | ) | (650 | ) | ||||
|
Cash dividends |
(403 | ) | (365 | ) | ||||
|
Other |
2 | 14 | ||||||
|
Net cash used in financing activities |
(724 | ) | (508 | ) | ||||
|
Effect of exchange rate changes on cash |
17 | (24 | ) | |||||
|
Increase in cash and cash equivalents |
272 | 160 | ||||||
|
Cash and cash equivalents at beginning of period |
255 | 524 | ||||||
|
Cash and cash equivalents at end of period |
$ | 527 | $ | 684 | ||||
|
Supplemental Financial Data: |
||||||||
|
Cash Flow (operating cash flow less property additions) (a) |
$ | 978 | $ | 893 | ||||
| (a) | We use this non-GAAP measure of cash flow to focus management and investors on the amount of cash available for debt reduction, dividend distributions, acquisition opportunities, and share repurchase. |
Kellogg Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(millions, except per share data)
|
October 3,
(unaudited) |
January 3,
* |
|||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
$ | 527 | $ | 255 | ||||
|
Accounts receivable, net |
1,254 | 1,100 | ||||||
|
Inventories: |
||||||||
|
Raw materials and supplies |
232 | 203 | ||||||
|
Finished goods and materials in process |
631 | 694 | ||||||
|
Deferred income taxes |
128 | 112 | ||||||
|
Other prepaid assets |
126 | 157 | ||||||
|
Total current assets |
2,898 | 2,521 | ||||||
|
Property, net of accumulated depreciation of $4,498 and $4,171 |
3,000 | 2,933 | ||||||
|
Goodwill |
3,643 | 3,637 | ||||||
|
Other intangibles, net of accumulated amortization of $43 and $42 |
1,460 | 1,461 | ||||||
|
Pension |
172 | 96 | ||||||
|
Other assets |
347 | 298 | ||||||
|
Total assets |
$ | 11,520 | $ | 10,946 | ||||
|
Current liabilities |
||||||||
|
Current maturities of long-term debt |
$ | 1 | $ | 1 | ||||
|
Notes payable |
475 | 1,387 | ||||||
|
Accounts payable |
1,082 | 1,135 | ||||||
|
Accrued advertising and promotion |
479 | 357 | ||||||
|
Accrued income taxes |
21 | 51 | ||||||
|
Accrued salaries and wages |
289 | 280 | ||||||
|
Other current liabilities |
386 | 341 | ||||||
|
Total current liabilities |
2,733 | 3,552 | ||||||
|
Long-term debt |
4,823 | 4,068 | ||||||
|
Deferred income taxes |
338 | 300 | ||||||
|
Pension liability |
603 | 631 | ||||||
|
Other liabilities |
993 | 940 | ||||||
|
Commitments and contingencies |
||||||||
|
Equity |
||||||||
|
Common stock, $.25 par value |
105 | 105 | ||||||
|
Capital in excess of par value |
454 | 438 | ||||||
|
Retained earnings |
5,461 | 4,836 | ||||||
|
Treasury stock, at cost |
(1,927 | ) | (1,790 | ) | ||||
|
Accumulated other comprehensive income (loss) |
(2,066 | ) | (2,141 | ) | ||||
|
Total Kellogg Company equity |
2,027 | 1,448 | ||||||
|
Noncontrolling interests (a) |
3 | 7 | ||||||
|
Total equity |
2,030 | 1,455 | ||||||
|
Total liabilities and equity |
$ | 11,520 | $ | 10,946 | ||||
| * | Condensed from audited financial statements. |
| (a) | Accounting guidance for Noncontrolling interests in Consolidated Financial Statements requires retrospective presentation of amounts related to partially-owned subsidiaries. |
Kellogg Company and Subsidiaries
Analysis of net sales and operating profit performance
Third quarter of 2009 versus 2008
| (dollars in millions) |
North
America |
Europe |
Latin
America |
Asia Pacific
(a) |
Corporate |
Consoli-
dated |
||||||||||||||||||
|
2009 net sales |
$ | 2,187 | $ | 631 | $ | 262 | $ | 197 | $ | | $ | 3,277 | ||||||||||||
|
2008 net sales |
$ | 2,156 | $ | 666 | $ | 277 | $ | 189 | $ | | $ | 3,288 | ||||||||||||
|
% change - 2009 vs. 2008: |
||||||||||||||||||||||||
|
Volume (tonnage) (b) |
-.8 | % | 4.2 | % | 6.4 | % | -1.5 | % | | .7 | % | |||||||||||||
|
Pricing/mix |
2.5 | % | .5 | % | 2.9 | % | 5.5 | % | | 2.4 | % | |||||||||||||
|
Subtotal - internal business |
1.7 | % | 4.7 | % | 9.3 | % | 4.0 | % | | 3.1 | % | |||||||||||||
|
Acquisitions (c) |
.1 | % | | | 1.8 | % | | .1 | % | |||||||||||||||
|
Foreign currency impact |
-.3 | % | -10.0 | % | -14.7 | % | -1.6 | % | | -3.5 | % | |||||||||||||
|
Total change |
1.5 | % | -5.3 | % | -5.4 | % | 4.2 | % | | -.3 | % | |||||||||||||
| (dollars in millions) |
North
America |
Europe |
Latin
America |
Asia Pacific
(a) |
Corporate |
Consoli- dated |
||||||||||||||||||
|
2009 operating profit |
$ | 415 | $ | 105 | $ | 51 | $ | 28 | $ | (32 | ) | $ | 567 | |||||||||||
|
2008 operating profit |
$ | 380 | $ | 113 | $ | 61 | $ | 26 | $ | (47 | ) | $ | 533 | |||||||||||
|
% change - 2009 vs. 2008: |
||||||||||||||||||||||||
|
Internal business |
9.5 | % | 7.0 | % | -3.3 | % | 8.6 | % | 34.4 | % | 11.3 | % | ||||||||||||
|
Acquisitions (c) |
| | | -3.5 | % | | -.1 | % | ||||||||||||||||
|
Foreign currency impact |
-.3 | % | -14.5 | % | -13.9 | % | -.1 | % | | -4.9 | % | |||||||||||||
|
Total change |
9.2 | % | -7.5 | % | -17.2 | % | 5.0 | % | 34.4 | % | 6.3 | % | ||||||||||||
| (a) | Includes Australia, Asia, and South Africa. |
| (b) | We measure the volume impact (tonnage) on revenues based on the stated weight of our product shipments. |
| (c) | Impact of results for the quarterly period ended October 3, 2009 from the acquisitions of Specialty Cereal and certain assets and liabilities of IndyBake. |
Kellogg Company and Subsidiaries
Analysis of net sales and operating profit performance
Year-to-date 2009 versus 2008
| (dollars in millions) |
North
America |
Europe |
Latin
America |
Asia Pacific
(a) |
Corporate |
Consoli-
dated |
||||||||||||||||||
|
2009 net sales |
$ | 6,574 | $ | 1,805 | $ | 750 | $ | 546 | $ | | $ | 9,675 | ||||||||||||
|
2008 net sales |
$ | 6,431 | $ | 2,089 | $ | 813 | $ | 556 | $ | | $ | 9,889 | ||||||||||||
|
% change - 2009 vs. 2008: |
||||||||||||||||||||||||
|
Volume (tonnage) (b) |
-.8 | % | -1.9 | % | 3.4 | % | 2.0 | % | | -.5 | % | |||||||||||||
|
Pricing/mix |
3.8 | % | 3.3 | % | 5.2 | % | 3.8 | % | | 3.8 | % | |||||||||||||
|
Subtotal - internal business |
3.0 | % | 1.4 | % | 8.6 | % | 5.8 | % | | 3.3 | % | |||||||||||||
|
Acquisitions (c) |
.1 | % | .4 | % | | 4.8 | % | | .4 | % | ||||||||||||||
|
Foreign currency impact |
-.9 | % | -15.4 | % | -16.3 | % | -12.4 | % | | -5.9 | % | |||||||||||||
|
Total change |
2.2 | % | -13.6 | % | -7.7 | % | -1.8 | % | | -2.2 | % | |||||||||||||
| (dollars in millions) |
North
America |
Europe |
Latin
America |
Asia Pacific
(a) |
Corporate |
Consoli-
dated |
||||||||||||||||||
|
2009 operating profit |
$ | 1,244 | $ | 304 | $ | 157 | $ | 74 | $ | (130 | ) | $ | 1,649 | |||||||||||
|
2008 operating profit |
$ | 1,163 | $ | 347 | $ | 166 | $ | 79 | $ | (147 | ) | $ | 1,608 | |||||||||||
|
% change - 2009 vs. 2008: |
||||||||||||||||||||||||
|
Internal business |
8.2 | % | 6.4 | % | 10.7 | % | 19.1 | % | 12.1 | % | 10.4 | % | ||||||||||||
|
Acquisitions (c) |
| | | -9.8 | % | | -.5 | % | ||||||||||||||||
|
Foreign currency impact |
-1.2 | % | -18.9 | % | -16.5 | % | -16.0 | % | | -7.4 | % | |||||||||||||
|
Total change |
7.0 | % | -12.5 | % | -5.8 | % | -6.7 | % | 12.1 | % | 2.5 | % | ||||||||||||
| (a) | Includes Australia, Asia, and South Africa. |
| (b) | We measure the volume impact (tonnage) on revenues based on the stated weight of our product shipments. |
| (c) | Impact of results for the year-to-date period ended October 3, 2009 from the acquisitions of United Bakers, Navigable Foods, Specialty Cereal and certain assets and liabilities of IndyBake. |
Kellogg Company and Subsidiaries
Up-Front Costs*
$ millions
| * | Up-front costs are charges incurred by the Company which will result in future cash savings and/or reduced depreciation |