Kellogg Company and Subsidiaries  Selected Financial Data (in millions, except per share data and number of employees) 2003 2002 2001 2000 1999 Operating trends Net sales $ 8,811.5 $ 8,304.1 $ 7,548.4 $ 6,086.7 $ 6,156.5 Gross profit as a % of net sales 44.4% 45.0% 44.2% 44.1% 45.2% Depreciation 359.8 346.9 331.0 275.6 273.6 Amortization 13.0 3.0 107.6 15.0 14.4 Advertising expense 698.9 588.7 519.2 604.2 674.1 Research and development expense 12 6.7 106.4 110.2 118.4 104.1 Operating profit (a) (d) 1,544.1 1,508.1 1,167.9 989.8 828.8 Operating profit as a % of net sales 17.5% 18.2% 15.5% 16.3% 13.5% Interest expense 371.4 391.2 351.5 137.5 118.8 Earnings before cumulative effect of accounting change (a) (b) (d) 787.1 720.9 474.6 587.7 338.3 Average shares outstanding:  Basic 407.9 408.4 406.1 405.6 405.2 Diluted 410.5 411.5 407.2 405.8 405.7 Earnings per share before cumulative  effect of accounting change (a) (b) (d): Basic 1.93 1.77 1.17 1.45 .83 Diluted 1.92 1.75 1.16 1.45 .83 Cash flow trends Net cash provided from operating activities $1 , 1 71.0 $ 999.9 $ 1,132.0 $ 880.9 $ 795.2 Capital expenditures 247.2 253.5 276.5 230.9 266.2 Net cash provided from operating activities reduced by capital expenditures (e) 923.8 74 6.4 855.5 650.0 529.0 Net cash used in investing activities (219.0) (188.8) (4,143.8) (379.3) (244.2) Net cash provided from (used in) financing activities (939.4) (944.4) 3,040.2 (441.8) (527.6) Interest coverage ratio (c) 5.1 4.8 4.5 9.4 7.9 Capital structure trends Total assets $10,230.8 $10,219.3 $10,368.6 $ 4,886.0 $ 4,808.7 Property, net 2,780.2 2,840.2 2,952.8 2,526.9 2,640.9 Short-term debt 898.9 1,197.3 595.6 1,386.3 521.5 Long-term debt 4,265.4 4,519.4 5,619.0 709.2 1,612.8 Shareholders’ equity 1,443.2 895.1 871.5 897.5 813.2 Share price trends Stock price range $ 28-38 $ 29-37 $ 25-34 $ 21-32 $ 30-42 Cash dividends per common share  1.0 10 1.010 1.010 .995 .960 Number of employees 25,250 25,676 26,424 15,196 15,051 (a) Operating profit for 2001 includes restructuring charges, net of credits, of $33.3 ($20.5 after tax or $.05 per share). Operating profit for 2000 includes restructuring charges of $86.5 ($64.2 after tax or $.16 per share). Operating profit for 1999 includes restructuring charges of $244.6 ($156.4 after tax or $.40 per share). Earnings before cumulative effect of accounting change for 1999 include disposition-related charges of $168.5 ($111.5 after tax or $.27 per share). (b) Earnings before cumulative effect of accounting change for 2001 exclude the effect of a charge of $1.0 after tax to adopt SFAS No. 133 “Accounting for Derivative Instruments and Hedging Activities.” Results for 2001 have been restated to reflect the adop- tion of SFAS No. 145 in 2003 concerning the income statement classification of losses from debt extinguishment. The net loss of $7.4 incurred in 2001, which was originally classified as an extraordinary loss, has been reclassified to Earnings before cumula- tive effect of accounting change. Refer to Note 1 within Notes to Consolidated Financial Statements for further information. (c) Interest coverage ratio is calculated based on earnings before interest expense, income taxes, depreciation, and amortization, divided by interest expense. (d) Results for 2001 include $103.6 ($85.0 after tax or $.21 per share) of amortization which has been eliminated by SFAS No. 142 on a pro forma basis. Amortization in pre-2001 years was insignificant. Refer to Note 1 within Notes to Consolidated Financial Statements for further information. (e) The Company uses this non-GAAP financial measure to focus management and investors on the amount of cash available for debt repayment, dividend distributions, acquisition opportunities, and share repurchases. Kellogg Company 31