August 15, 2011
Disclosure Analysis of the Kellogg Company
The disclosure notes of the consolidated financial statements presented in the 2010 Annual Report of the Kellogg Company and subsidiaries shows three areas of interest. This paper will focus on those areas of cash and cash equivalents, accounts receivable, and inventories. A list of components that make up the cash and cash equivalents section will be identified. The first part of the paper will introduce the Kellogg Company and provide some history of the company. The main focal point is the analysis of the annual disclosure notes as it relates to cash and cash equivalents, accounts receivable, and the company’s inventories.
Kellogg’s stemmed out from the invention of flakes cereal in 1894 at the Battle Creek Sanatorium. The Kellogg brothers had invented a new industry. In 1906, production of Kellogg’s Corn Flakes® begins at W.K. Kellogg’s newly formed Battle Creek Toasted Corn Flake Company. After 16 years, the company was renamed Kellogg Company. Kellogg’s brand has become the world’s leading producer of cereal and a leading producer of convenience foods. The company reached international claim early by selling Kellogg’s Corn Flakes in Canada in 1914. International manufacturing facilities were built in Sydney, Australia, in 1924, and in Manchester, England, in 1938 (Kellogg Company, 2011). Over the years, Kellogg created new brands of cereals, toaster pastries, toaster waffles, nutri-grain bars, and ready-to-eat products. The company purchased Worthington Foods, Stretch Island Fruit, United Bakers Group, and Navigable Foods. Kellogg’s acquired several businesses including Kashi, Keebler Foods, Wholesome Hearty Foods, and Bear Naked, Incorporated. Today Kellogg products are manufactured in 18 countries and marketed in more than 180 countries around the world. For more than 100 years, Kellogg has been a leader...