v3.25.2
REPORTABLE SEGMENTS (Notes)
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Reportable Segments REPORTABLE SEGMENTS
Kellanova is the world's second largest producer of crackers and a leading producer of cereal, savory snacks, and frozen foods. Additional product offerings include toaster pastries, cereal bars, veggie foods and noodles. Kellanova products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom, France, Nigeria, Canada, Mexico, Brazil, 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. Each reportable segment derives its revenues primarily from the production and distribution of a mix of food products including snacks, cereal, frozen foods, noodles and other foods. Corporate includes corporate administration and initiatives as well as share-based compensation.
The Chairman and Chief Executive Officer is the Chief Operating Decision Maker (CODM) of the Company. The CODM uses operating profit as the reportable segment profitability measure to assess performance and allocate resources. This measure is utilized during our budgeting and forecasting process to assess profitability and enable decision making regarding strategic initiatives and capital investments across all reportable segments. Reportable segment operating profit is consistent with the presentation of operating profit in the Consolidated Statement of Income. The accounting policies of each reportable segment are consistent with those described in the summary of significant accounting policies in Note 1 included in the Company's 2024 Annual Report on Form 10-K. Inter-segment sales are not included in the segment profitability measure used by the CODM to assess performance of the reportable segments.
Reportable segment results including details of the significant expense categories provided to the CODM for the quarter and year-to-date periods ended June 28, 2025 and June 29, 2024 were as follows:
Quarter ended June 28, 2025
Reportable segments
(millions)North AmericaEuropeLatin AmericaAMEACorporateConsolidated
Net sales$1,594 $651 $309 $648 $1 $3,203 
Cost of goods sold978 436 205 477 17 2,113 
Selling, general, and administrative expense281 122 68 109 72 652 
Operating profit$335 $93 $36 $62 $(88)$438 
Year-to-date period ended June 28, 2025
Reportable segments
(millionsNorth AmericaEuropeLatin AmericaAMEACorporateConsolidated
Net sales$3,213 $1,230 $575 $1,268 $— $6,286 
Cost of good sold$1,984 $816 $390 $929 $18 $4,137 
Selling, general, and administrative expense$589 $231 $130 $203 $128 $1,281 
Operating profit$640 $183 $55 $136 $(146)$868 
Quarter ended June 29, 2024
Reportable segments
(millions)North AmericaEuropeLatin AmericaAMEACorporateConsolidated
Net sales$1,658 $639 $333 $564 $(2)$3,192 
Cost of goods sold1,017 406 217 397 (6)2,031 
Selling, general, and administrative expense302 122 70 107 67 668 
Operating profit$339 $111 $46 $60 $(63)$493 
Year-to-date period ended June 29, 2024
Reportable segments
(millions)North AmericaEuropeLatin AmericaAMEACorporateConsolidated
Net Sales$3,346 $1,238 $647 $1,164 $(3)$6,392 
Cost of goods sold$2,072 $866 $434 $824 $4 $4,200 
Selling, general, and administrative expense$600 $233 $140 $205 $128 $1,306 
Operating profit$674 $139 $73 $135 $(135)$886 
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.
 Quarter endedYear-to-date period ended
(millions)June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Depreciation and amortization
North America (a)$44 $48 $85 $111 
Europe (a)24 25 46 85 
Latin America7 9 20 17 
AMEA14 12 28 25 
Total Reportable Segments89 94 179 238 
Corporate2 1 4 3 
Consolidated$91 $95 $183 $241 
Interest expense
North America$— $2 $— $4 
Europe7 18 16 35 
Latin America1 2 2 3 
AMEA5 4 10 10 
Corporate50 57 98 114 
Consolidated$63 $83 $126 $166 
Income taxes
Europe$9 $13 $20 $17 
Latin America4 18 $9 $25 
AMEA16 11 $29 $25 
Corporate & North America54 55 $98 $112 
Consolidated$83 $97 $156 $179 
(a) Quarter ended March 30, 2024, includes asset impairment charges as discussed in Note 9.
Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by reportable segment. The CODM does review additions to property by reportable segment.
Quarter endedYear-to-date period ended
(millions)June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Additions to property
North America$54 $52 $105 $120 
Europe46 28 97 69 
Latin America16 26 49 50 
AMEA28 32 64 51 
Corporate4 4 9 7 
Consolidated$148 $142 $324 $297 
Supplemental product information is provided below for net sales to external customers:
Quarter endedYear-to-date period ended
(millions)June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Snacks$2,008 $2,069 $3,905 $4,084 
Cereal672 689 1,317 1,376 
Frozen256 262 546 552 
Noodles and other267 172 518 380 
Consolidated$3,203 $3,192 $6,286 $6,392