Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Kellanova, balance sheet: goodwill and intangible assets

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Goodwill	5,160)	5,686)	5,771)	5,799)	5,861)
Intangibles subject to amortization, gross amount	334)	489)	521)	544)	594)
Accumulated amortization	(154)	(162)	(143)	(121)	(101)
Intangibles subject to amortization, net amount	180)	327)	378)	423)	493)
Intangibles not subject to amortization	1,750)	1,969)	2,031)	2,068)	2,083)
Other intangibles, net	1,930)	2,296)	2,409)	2,491)	2,576)
Goodwill and other intangibles, net	7,090)	7,982)	8,180)	8,290)	8,437)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Kellanova goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Other intangibles, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Kellanova other intangibles, net decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and other intangibles, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Kellanova goodwill and other intangibles, net decreased from 2021 to 2022 and from 2022 to 2023.

Kellanova, adjustments to financial statements

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Adjustment to Total Assets
Total assets (as reported)	15,621)	18,496)	18,178)	17,996)	17,564)
Less: Goodwill	5,160)	5,686)	5,771)	5,799)	5,861)
Total assets (adjusted)	10,461)	12,810)	12,407)	12,197)	11,703)
Adjustment to Total Kellanova Equity
Total Kellanova equity (as reported)	3,175)	3,941)	3,720)	3,112)	2,747)
Less: Goodwill	5,160)	5,686)	5,771)	5,799)	5,861)
Total Kellanova equity (adjusted)	(1,985)	(1,745)	(2,051)	(2,687)	(3,114)

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

Kellanova, Financial Data: Reported vs. Adjusted

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Kellanova, adjusted financial ratios

	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Total Asset Turnover
Reported total asset turnover	0.84	0.83	0.78	0.77	0.77
Adjusted total asset turnover	1.25	1.20	1.14	1.13	1.16
Financial Leverage
Reported financial leverage	4.92	4.69	4.89	5.78	6.39
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	29.95%	24.36%	40.00%	40.20%	34.95%
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	6.09%	5.19%	8.19%	6.95%	5.47%
Adjusted ROA	9.09%	7.49%	11.99%	10.26%	8.20%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Kellanova adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Kellanova adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Kellanova, Financial Ratios: Reported vs. Adjusted

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	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	13,122)	15,315)	14,181)	13,770)	13,578)
Total assets	15,621)	18,496)	18,178)	17,996)	17,564)
Activity Ratio
Total asset turnover¹	0.84	0.83	0.78	0.77	0.77
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	13,122)	15,315)	14,181)	13,770)	13,578)
Adjusted total assets	10,461)	12,810)	12,407)	12,197)	11,703)
Activity Ratio
Adjusted total asset turnover²	1.25	1.20	1.14	1.13	1.16

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 13,122 ÷ 15,621 = 0.84

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 13,122 ÷ 10,461 = 1.25

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Kellanova adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	15,621)	18,496)	18,178)	17,996)	17,564)
Total Kellanova equity	3,175)	3,941)	3,720)	3,112)	2,747)
Solvency Ratio
Financial leverage¹	4.92	4.69	4.89	5.78	6.39
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	10,461)	12,810)	12,407)	12,197)	11,703)
Adjusted total Kellanova equity	(1,985)	(1,745)	(2,051)	(2,687)	(3,114)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Kellanova equity
= 15,621 ÷ 3,175 = 4.92

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Kellanova equity
= 10,461 ÷ -1,985 = —

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	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kellanova	951)	960)	1,488)	1,251)	960)
Total Kellanova equity	3,175)	3,941)	3,720)	3,112)	2,747)
Profitability Ratio
ROE¹	29.95%	24.36%	40.00%	40.20%	34.95%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Kellanova	951)	960)	1,488)	1,251)	960)
Adjusted total Kellanova equity	(1,985)	(1,745)	(2,051)	(2,687)	(3,114)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ ROE = 100 × Net income attributable to Kellanova ÷ Total Kellanova equity
= 100 × 951 ÷ 3,175 = 29.95%

² Adjusted ROE = 100 × Net income attributable to Kellanova ÷ Adjusted total Kellanova equity
= 100 × 951 ÷ -1,985 = —

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	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kellanova	951)	960)	1,488)	1,251)	960)
Total assets	15,621)	18,496)	18,178)	17,996)	17,564)
Profitability Ratio
ROA¹	6.09%	5.19%	8.19%	6.95%	5.47%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Kellanova	951)	960)	1,488)	1,251)	960)
Adjusted total assets	10,461)	12,810)	12,407)	12,197)	11,703)
Profitability Ratio
Adjusted ROA²	9.09%	7.49%	11.99%	10.26%	8.20%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

2023 Calculations

¹ ROA = 100 × Net income attributable to Kellanova ÷ Total assets
= 100 × 951 ÷ 15,621 = 6.09%

² Adjusted ROA = 100 × Net income attributable to Kellanova ÷ Adjusted total assets
= 100 × 951 ÷ 10,461 = 9.09%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Kellanova adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Kellanova (NYSE:K)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Kellanova, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Kellanova, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)