Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Kellanova, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
Federal	153)	151)	188)	129)	345)
State	29)	31)	44)	26)	52)
Foreign	114)	108)	117)	100)	77)
Currently payable	296)	290)	349)	255)	474)
Federal	(49)	(37)	40)	56)	(124)
State	23)	(8)	4)	9)	(29)
Foreign	(12)	(1)	81)	3)	—)
Deferred	(38)	(46)	125)	68)	(153)
Income taxes	258)	244)	474)	323)	321)

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
Currently payable	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Kellanova currently payable decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Kellanova deferred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Kellanova income taxes decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Kellanova, effective income tax rate (EITR) reconciliation

	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
U.S. statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign rates varying from U.S. statutory rate	-2.90%	-2.60%	-1.60%	-2.40%	-2.50%
State income taxes, net of federal benefit	2.00%	1.40%	1.90%	1.80%	1.30%
Cost (benefit) of remitted and unremitted foreign earnings	1.70%	1.50%	0.60%	1.00%	0.80%
Revaluation of investment in foreign subsidiary	0.00%	0.00%	0.00%	0.00%	2.50%
Net change in valuation allowance	3.00%	3.40%	2.70%	1.40%	-1.60%
Statutory rate changes, deferred tax impact	0.10%	0.20%	0.70%	0.20%	0.30%
U.S. deemed repatriation tax	0.00%	0.00%	0.00%	-2.00%	0.00%
Foreign derived intangible income	-1.30%	-1.80%	-0.80%	-0.40%	0.00%
Divestiture	0.00%	0.00%	0.00%	0.00%	2.90%
Out-of-period adjustment	0.00%	0.00%	0.00%	0.00%	3.00%
Other	1.20%	-2.70%	-0.40%	-0.40%	-3.10%
Effective income tax rate	24.80%	20.40%	24.10%	20.20%	24.60%

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
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Kellanova effective income tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Kellanova, components of deferred tax assets and liabilities

US$ in millions

	Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
U.S. state income taxes	—)	—)	—)	7)	—)
Advertising and promotion-related	12)	15)	14)	13)	11)
Wages and payroll taxes	15)	19)	27)	26)	15)
Inventory valuation	12)	19)	16)	17)	17)
Employee benefits	99)	64)	19)	118)	143)
Operating loss, credit and other carryforwards	350)	363)	363)	329)	279)
Research and development capitalization	40)	22)	—)	—)	—)
Hedging transactions	—)	—)	13)	49)	9)
Operating lease liabilities	147)	139)	144)	136)	—)
Deferred compensation	13)	27)	19)	18)	19)
Stock options	43)	28)	33)	32)	29)
Other	64)	34)	54)	41)	9)
Deferred tax assets	795)	730)	702)	786)	531)
Valuation allowance	(300)	(263)	(248)	(192)	(146)
Deferred tax assets, less valuation allowance	495)	467)	454)	594)	385)
U.S. state income taxes	(9)	(27)	(11)	—)	(6)
Hedging transactions	(8)	(37)	—)	—)	—)
Depreciation and asset disposals	(177)	(286)	(264)	(234)	(217)
Operating lease right-of-use assets	(149)	(138)	(146)	(141)	—)
Trademarks and other intangibles	(466)	(549)	(540)	(527)	(526)
Deferred tax liabilities	(809)	(1,037)	(961)	(902)	(749)
Net deferred tax asset (liability)	(314)	(570)	(507)	(308)	(364)

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
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Kellanova deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, less valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Kellanova deferred tax assets, less valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Kellanova net deferred tax asset (liability) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Kellanova, deferred tax assets and liabilities, classification

US$ in millions

		Dec 30, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 28, 2019
	Deferred tax assets	183)	190)	215)	254)	231)
	Deferred tax liabilities	497)	760)	722)	562)	595)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Kellanova deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Kellanova deferred tax liabilities increased from 2021 to 2022 but then decreased significantly 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: Noncurrent deferred tax assets, net	183)	190)	215)	254)	231)
Total assets (adjusted)	15,438)	18,306)	17,963)	17,742)	17,333)
Adjustment to Total Liabilities
Total liabilities (as reported)	12,252)	14,121)	13,963)	14,360)	14,250)
Less: Noncurrent deferred tax liabilities, net	497)	760)	722)	562)	595)
Total liabilities (adjusted)	11,755)	13,361)	13,241)	13,798)	13,655)
Adjustment to Total Kellanova Equity
Total Kellanova equity (as reported)	3,175)	3,941)	3,720)	3,112)	2,747)
Less: Net deferred tax assets (liabilities)	(314)	(570)	(507)	(308)	(364)
Total Kellanova equity (adjusted)	3,489)	4,511)	4,227)	3,420)	3,111)
Adjustment to Net Income Attributable To Kellanova
Net income attributable to Kellanova (as reported)	951)	960)	1,488)	1,251)	960)
Add: Deferred income tax expense (benefit)	(38)	(46)	125)	68)	(153)
Net income attributable to Kellanova (adjusted)	913)	914)	1,613)	1,319)	807)

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
Net Profit Margin
Reported net profit margin	7.25%	6.27%	10.49%	9.08%	7.07%
Adjusted net profit margin	6.96%	5.97%	11.37%	9.58%	5.94%
Total Asset Turnover
Reported total asset turnover	0.84	0.83	0.78	0.77	0.77
Adjusted total asset turnover	0.85	0.84	0.79	0.78	0.78
Financial Leverage
Reported financial leverage	4.92	4.69	4.89	5.78	6.39
Adjusted financial leverage	4.42	4.06	4.25	5.19	5.57
Return on Equity (ROE)
Reported ROE	29.95%	24.36%	40.00%	40.20%	34.95%
Adjusted ROE	26.17%	20.26%	38.16%	38.57%	25.94%
Return on Assets (ROA)
Reported ROA	6.09%	5.19%	8.19%	6.95%	5.47%
Adjusted ROA	5.91%	4.99%	8.98%	7.43%	4.66%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Kellanova adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
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 financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Kellanova adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Kellanova adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted 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 income attributable to Kellanova	951)	960)	1,488)	1,251)	960)
Net sales	13,122)	15,315)	14,181)	13,770)	13,578)
Profitability Ratio
Net profit margin¹	7.25%	6.27%	10.49%	9.08%	7.07%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kellanova	913)	914)	1,613)	1,319)	807)
Net sales	13,122)	15,315)	14,181)	13,770)	13,578)
Profitability Ratio
Adjusted net profit margin²	6.96%	5.97%	11.37%	9.58%	5.94%

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 Net profit margin = 100 × Net income attributable to Kellanova ÷ Net sales
= 100 × 951 ÷ 13,122 = 7.25%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Kellanova ÷ Net sales
= 100 × 913 ÷ 13,122 = 6.96%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Kellanova adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	13,122)	15,315)	14,181)	13,770)	13,578)
Adjusted total assets	15,438)	18,306)	17,963)	17,742)	17,333)
Activity Ratio
Adjusted total asset turnover²	0.85	0.84	0.79	0.78	0.78

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 ÷ 15,438 = 0.85

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	15,438)	18,306)	17,963)	17,742)	17,333)
Adjusted total Kellanova equity	3,489)	4,511)	4,227)	3,420)	3,111)
Solvency Ratio
Adjusted financial leverage²	4.42	4.06	4.25	5.19	5.57

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
= 15,438 ÷ 3,489 = 4.42

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Kellanova adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kellanova	913)	914)	1,613)	1,319)	807)
Adjusted total Kellanova equity	3,489)	4,511)	4,227)	3,420)	3,111)
Profitability Ratio
Adjusted ROE²	26.17%	20.26%	38.16%	38.57%	25.94%

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 × Adjusted net income attributable to Kellanova ÷ Adjusted total Kellanova equity
= 100 × 913 ÷ 3,489 = 26.17%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Kellanova adjusted ROE deteriorated from 2021 to 2022 but then slightly improved 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kellanova	913)	914)	1,613)	1,319)	807)
Adjusted total assets	15,438)	18,306)	17,963)	17,742)	17,333)
Profitability Ratio
Adjusted ROA²	5.91%	4.99%	8.98%	7.43%	4.66%

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 × Adjusted net income attributable to Kellanova ÷ Adjusted total assets
= 100 × 913 ÷ 15,438 = 5.91%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Kellanova, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Kellanova, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)