| ITEM 6. | SELECTED FINANCIAL DATA |
Kellogg
Company and Subsidiaries
Selected
Financial Data
| (millions, except per share data and number of employees) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
|
Operating trends
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Net sales
|
$ | 11,776 | $ | 10,907 | $ | 10,177 | $ | 9,614 | $ | 8,811 | ||||||||||||
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Gross profit as a % of net sales
|
44.0 | % | 44.2 | % | 44.9 | % | 44.9 | % | 44.4 | % | ||||||||||||
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Depreciation
|
364 | 351 | 390 | 399 | 360 | |||||||||||||||||
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Amortization
|
8 | 2 | 2 | 11 | 13 | |||||||||||||||||
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Advertising expense
|
1,063 | 916 | 858 | 806 | 699 | |||||||||||||||||
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Research and development expense
|
179 | 191 | 181 | 149 | 127 | |||||||||||||||||
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Operating profit
|
1,868 | 1,766 | 1,750 | 1,681 | 1,544 | |||||||||||||||||
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Operating profit as a % of net sales
|
15.9 | % | 16.2 | % | 17.2 | % | 17.5 | % | 17.5 | % | ||||||||||||
|
Interest expense
|
319 | 307 | 300 | 309 | 371 | |||||||||||||||||
|
Net earnings
|
1,103 | 1,004 | 980 | 891 | 787 | |||||||||||||||||
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Average shares outstanding:
|
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Basic
|
396 | 397 | 412 | 412 | 408 | |||||||||||||||||
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Diluted
|
400 | 400 | 416 | 416 | 411 | |||||||||||||||||
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Net earnings per share:
|
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Basic
|
2.79 | 2.53 | 2.38 | 2.16 | 1.93 | |||||||||||||||||
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Diluted
|
2.76 | 2.51 | 2.36 | 2.14 | 1.92 | |||||||||||||||||
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Cash flow trends
|
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Net cash provided by operating activities
|
$ | 1,503 | $ | 1,410 | $ | 1,143 | $ | 1,229 | $ | 1,171 | ||||||||||||
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Capital expenditures
|
472 | 453 | 374 | 279 | 247 | |||||||||||||||||
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Net cash provided by operating activities reduced by capital
expenditures (a)
|
1,031 | 957 | 769 | 950 | 924 | |||||||||||||||||
|
Net cash used in investing activities
|
(601 | ) | (445 | ) | (415 | ) | (270 | ) | (219 | ) | ||||||||||||
|
Net cash used in financing activities
|
(788 | ) | (789 | ) | (905 | ) | (716 | ) | (939 | ) | ||||||||||||
|
Interest coverage ratio (b)
|
7.0 | 6.9 | 7.1 | 6.8 | 5.1 | |||||||||||||||||
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Capital structure trends
|
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Total assets (c)
|
$ | 11,397 | $ | 10,714 | $ | 10,575 | $ | 10,562 | $ | 9,914 | ||||||||||||
|
Property, net
|
2,990 | 2,816 | 2,648 | 2,715 | 2,780 | |||||||||||||||||
|
Short-term debt
|
1,955 | 1,991 | 1,195 | 1,029 | 899 | |||||||||||||||||
|
Long-term debt
|
3,270 | 3,053 | 3,703 | 3,893 | 4,265 | |||||||||||||||||
|
Shareholders’ equity (c)
|
2,526 | 2,069 | 2,284 | 2,257 | 1,443 | |||||||||||||||||
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Share price trends
|
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Stock price range
|
$ | 49-57 | $ | 42-51 | $ | 42-47 | $ | 37-45 | $ | 28-38 | ||||||||||||
|
Cash dividends per common share
|
1.202 | 1.137 | 1.060 | 1.010 | 1.010 | |||||||||||||||||
|
Number of employees
|
26,494 | 25,856 | 25,606 | 25,171 | 25,250 | |||||||||||||||||
| (a) | The Company uses this non-GAAP financial measure to focus management and investors on the amount of cash available for debt repayment, dividend distribution, acquisition opportunities, and share repurchase, which is reconciled above. | |
| (b) | Interest coverage ratio is calculated based on earnings before interest expense, income taxes, depreciation, and amortization, divided by interest expense. | |
| (c) | The Company adopted SFAS No. 158 “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans” as of the end of its 2006 fiscal year. The standard generally requires company plan sponsors to reflect the net over- or under-funded position of a defined postretirement benefit plan as an asset or liability on the balance sheet. Accordingly, the 2006 balances associated with the identified captions within this summary were materially affected by the adoption of this standard. Refer to Note 1 for further information. |
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