Note 14 Operating segments The principal market for trading Kellogg shares is the New York Stock Exchange (NYSE). The shares are also traded on the Boston, Chicago, Cincinnati, Pacific, and Philadelphia Stock Exchanges. At year-end 2003, the closing price (on the NYSE) was $37.80 and there were 44,635 shareholders of record. Dividends paid per share and the quarterly price ranges on the NYSE during the last two years were: Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, and meat alternatives. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States and United Kingdom. In recent years, the Company has been managed in two major divi- sions - the United States and International - with International fur- ther delineated into Europe, Latin America, Canada, Australia, and Asia. Thus, the Company’s reportable operating segments under SFAS No. 131 “Disclosures about Segments of an Enterprise and Related Information” consist of the United States, Europe, and Latin America. All other geographic areas have been combined un- der the quantitative threshold guidelines of SFAS No. 131 for pur- poses of the information presented below. While this historical or- ganizational structure is the basis of the operating segment data presented in this report, we recently reorganized our geographic management structure to North America, Europe, Latin America, and Asia Pacific, and we will begin reporting on this basis for 2004. The measurement of operating segment results is generally consis- tent with the presentation of the Consolidated Statement of Earnings and Balance Sheet. Intercompany transactions between reportable operating segments were insignificant in all periods presented. (a) Refer to Note 3 for further information on restructuring charges. (b) Pro forma impact of amorization eliminated by SFAS No. 142. Refer to Note 1 for further information. (millions) 2003 2002 2001 Net sales United States $ 5,629.3 $ 5,525.4 $ 4,889.4 Europe 1,734.2 1,469.8 1,360.7 Latin America 645.7 631.1 650.0 All other operating segments 802.3 677.8 648.3 Consolidated $ 8,811.5 $ 8,304.1 $ 7,548.4 Dividend Stock price 2003 – Quarter per share High Low First $. 2525 $34.96 $ 28.02 Second .2525 35.36 30.46 Third .2525 35.04 33.06 Fourth .2525 37.80 32.92 $1.0100 2002 – Quarter First $ .2525 $ 34.95 $ 29.35 Second .2525 36.89 32.75 Third .2525 35.63 30.00 Fourth .2525 36.06 31.81 $ 1.0100 United States $1 , 055.0 $ 1,073.0 $ 875.5 Europe 279.8 252.5 245.6 Latin America 168.5 170.1 171.1 All other operating segments 14 0.0 104.0 103.1 Corporate (99.2) ( 91.5) ( 90.5) Consolidated $ 1,544.1 $ 1,508.1 $ 1,304.8 Amortization eliminated by SFAS No. 142 (b) — — (103.6) Restructuring charges (a) — — (33.3) Operating profit as reported $ 1,544.1 $ 1,508.1 $ 1,167.9 United States $ — $ — $ 29.5 Europe — — (.2) Latin America — — (.1) All other operating segments — — 1.4 Corporate — — 2.7 Consolidated $ — $ — $ 33.3 United States $ 238.2 $ 221.2 $ 275.9 Europe 71.1 65.7 59.5 Latin America 21.6 17.1 21.7 All other operating segments 28.2 30.0 31.4 Corporate 13.7 15.9 50.1 Consolidated $ 372.8 $ 349.9 $ 438.6 United States $ 1.0 $ 3.3 $ 5.7 Europe 18.2 22.3 2.9 Latin America .2 .6 2.8 All other operating segments 3.3 3.4 1.5 Corporate 348.7 361.6 338.6 Consolidated $ 371.4 $ 391.2 $ 351.5 United States $ 325.0 $ 349.8 $ 235.5 Europe 54.6 46.3 54.4 Latin America 40.0 42.5 40.3 All other operating segments 23.3 22.2 18.1 Corporate (60.5) (37.4) (17.6) Consolidated $ 382.4 $ 423.4 $ 330.7 Effect of charges — — (12.8) Income taxes as reported $ 382.4 $ 423.4 $ 317.9 United States $10,061.4 $ 9,784.7 $ 9,634.4 Europe 1,801.7 1,687.3 1,801.0 Latin America 341.2 337.4 415.5 All other operating segments 620.8 554.0 681.2 Corporate 6,362.3 6,112.1 5,697.6 Elimination entries (8,956.6) (8,256.2) (7,861.1) Consolidated $1 0,230.8 $1 0,219.3 $ 10,368.6 Total assets Income taxes excluding charges (a) Interest expense Depreciation and amortization Restructuring charges (a) Segment operating profit 49 Kellogg Company