klg-20240629

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 29, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-41755

WK Kellogg Co

Delaware

92-1243173

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

One Kellogg Square,

Battle Creek

Michigan

49016-3599

(Address of principal executive offices)

(Zip Code)

269-401-3000

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $.0001 par value per share	KLG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of August 1, 2024 — 85,901,439 shares of the registrant's common stock were outstanding

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WK KELLOGG CO

INDEX


			Page
PART I — Financial Information
Item 1:
Financial Statements
Unaudited Consolidated Balance Sheet — June 29, 2024 and December 30, 2023			3
Unaudited Consolidated Statement of Income — quarter and year-to -date periods ended June 29, 2024 and July 1, 2023			4
Unaudited Consolidated Statement of Comprehensive Income – quarter and year-to-date periods ended June 29, 2024 and July 1, 2023			5
Unaudited Consolidated Statement of Equity — quarter and year-to-date periods ended June 29, 2024 and July 1, 2023			6
Unaudited Consolidated Statement of Cash Flows — quarter and year-to-date periods ended June 29, 2024 and July 1, 2023			8
Notes to Unaudited Consolidated Financial Statements			9
Item 2:
Management’s Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3:
Quantitative and Qualitative Disclosures about Market Risk			26
Item 4:
Controls and Procedures			27
PART II — Other Information
Item 1A:
Risk Factors			28


Item 5:
Other Information			28
Item 6:
Exhibits			29
Signatures			30

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Part I – FINANCIAL INFORMATION

Item 1. Financial Statements.

WK KELLOGG CO

CONSOLIDATED BALANCE SHEET (Unaudited)

(millions, except per share data)


	June 29, 2024		December 30, 2023
Current assets
Cash and cash equivalents	$	44	$	89
Accounts receivable, net	217		244
Inventories	360		345
Other current assets	21		28
Total current assets	642		706
Property, net	748		739

Goodwill	53		53
Other intangibles	57		57
Postretirement plan assets	300		283
Other assets	97		51
Total assets	$	1,897	$	1,889
Current liabilities
Notes payable	$	1	$	4
Current maturities of long-term debt	12		8
Accounts payable	538		541
Accrued advertising and promotion	89		121
Accrued salaries and wages	35		57
Other current liabilities	103		105
Total current liabilities	778		836
Long-term debt	478		487
Deferred income taxes	106		106
Pension liability	126		135

Other liabilities	73		25
Commitments and contingencies (Note 9)
Equity
Common stock, $0.0001 par value, 1,000,000,000 shares authorized Issued: 85,901,439 shares in 2024 and 85,812,883 shares in 2023	—		—
Capital in excess of par value	335		327
Retained earnings	37		1

Accumulated other comprehensive loss	(36)		(28)


Total equity	336		300
Total liabilities and equity	$	1,897	$	1,889

See accompanying Notes to Unaudited Consolidated Financial Statements.

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WK KELLOGG CO

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

(millions, except per share data)


	Quarter ended				Year-to-date period ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Net sales	$	672	$	700	$	1,379	$	1,420
Cost of goods sold	476		509		980		1,048
Selling, general and administrative expense	149		163		306		318
Operating profit	47		28		93		54
Interest expense	8		—		16		—
Other income (expense), net	4		7		10		15
Income before income taxes	43		35		87		69
Income taxes	12		8		23		16
Net income	$	31	$	27	$	64	$	53


Per share amounts (a):
Basic earnings	$	0.37	$	0.32	$	0.75	$	0.62
Diluted earnings	0.36		0.32		0.73		0.62

Average shares outstanding:
Basic	86		86		86		86
Diluted	88		86		87		86
Actual shares outstanding at period end	86		86		86		86

(a)On October 2, 2023, Kellanova, the former parent company of WK Kellogg Co, distributed 85,631,304 shares of WK Kellogg Co common stock to Kellanova's shareowners in connection with its Spin-Off of WK Kellogg Co (the "Spin-Off"). See Note 1 "Accounting Policies" to the Unaudited Consolidated Financial Statements for more information. Basic and diluted earnings per share were retrospectively recast for the number of shares of WK Kellogg Co common stock outstanding immediately following the Spin-Off for the quarter and year-to-date period ended July 1, 2023.

See accompanying Notes to Unaudited Consolidated Financial Statements.

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WK KELLOGG CO

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

(millions)


	Quarter ended						Year-to-date period ended
	June 29, 2024						June 29, 2024
	Pre-tax amount		Tax (expense) benefit		After-tax amount		Pre-tax amount		Tax (expense) benefit		After-tax amount
Net income	$	43	$	(12)	$	31	$	87	$	(23)	$	64
Other comprehensive income (loss):
Foreign currency translation adjustments:
Foreign currency translation adjustments during period	(3)		1		(2)		(6)		2		(4)





Postretirement and postemployment benefits:
Amount arising during the period:



Prior service cost	(1)		—		(1)		(2)		—		(2)




Comprehensive income	$	39	$	(11)	$	28	$	79	$	(21)	$	58




	Quarter ended						Year-to-date period ended
	July 1, 2023						July 1, 2023
	Pre-tax amount		Tax (expense) benefit		After-tax amount		Pre-tax amount		Tax (expense) benefit		After-tax amount
Net income	$	35	$	(8)	$	27	$	69	$	(16)	$	53
Other comprehensive income (loss):
Foreign currency translation adjustments:
Foreign currency translation adjustments during period	2		—		2		4		—		4















Comprehensive income	$	37	$	(8)	$	29	$	73	$	(16)	$	57

See accompanying Notes to Unaudited Consolidated Financial Statements.

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WK KELLOGG CO

CONSOLIDATED STATEMENT OF EQUITY (Unaudited)

(millions)


	Quarter ended June 29, 2024
	Common stock			Capital in excess of par value		Retained earnings		Accumulated other comprehensive income (loss)			Total equity
(unaudited)	shares	amount
Balance, March 30, 2024	86	$	—	$	329	$	20		$	(32)		$	317

Net income	—	—		—		31			—			31


Dividends declared ($0.16 per share)	—	—		—		(13)			—			(13)

Other comprehensive income (loss)	—	—		—		—			(4)			(4)
Stock compensation	—	—		5		(1)			—			4

Share issuance	—	—		1		—			—			1

Balance, June 29, 2024	86	$	—	$	335	$	37		$	(36)		$	336



	Year-to-date period ended June 29, 2024
	Common stock			Capital in excess of par value		Retained earnings		Accumulated other comprehensive income (loss)			Total equity
(unaudited)	shares	amount
Balance, December 30, 2023	86	$	—	$	327	$	1		$	(28)		$	300

Net income	—	—		—		64			—			64


Dividends declared ($0.32 per share)	—	—		—		(27)						(27)

Other comprehensive income (loss)	—	—		—		—			(8)			(8)
Stock compensation				6		(1)			—			5

Stock issuance	—	—		2		—			—			2
Balance, June 29, 2024	86	$	—	$	335	$	37		$	(36)		$	336

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WK KELLOGG CO

CONSOLIDATED STATEMENT OF EQUITY (Unaudited)

(millions)


		Quarter ended July 1, 2023
	Net Kellanova investment	Capital in excess of par value		Retained earnings				Accumulated other comprehensive income (loss)			Total equity
(unaudited)
Balance, April 1, 2023		$	709			$	—		$	(36)		$	673

Net income		27		—		—			—			27
Net transfer (to)/from Kellanova		(52)		—		—			—			(52)


Other comprehensive income		—		—		—			2			2



Balance, July 1, 2023		$	684	$	—	$	—		$	(34)		$	650



		Year-to-date period ended July 1, 2023
	Net Kellanova Investment	Capital in excess of par value		Retained earnings				Accumulated other comprehensive income (loss)			Total equity
(unaudited)
Balance, December 31, 2023		$	725	$	—	$	—		$	(38)		$	687

Net income		53		—		—			—			53
Net transfer (to)/from Kellanova		(94)		—		—			—			(94)


Other comprehensive income		—		—		—			4			4



Balance, July 1, 2023		$	684	$	—	$	—		$	(34)		$	650

See accompanying Notes to Unaudited Consolidated Financial Statements.

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WK KELLOGG CO

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(millions)


	Year-to-date period ended
	June 29, 2024		July 1, 2023
Operating activities
Net income	$	64	$	53
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization	39		32
Pension and postretirement plan benefit	(18)		(13)
Deferred income taxes	1		—
Stock compensation	6		2


Other	5		(1)
Pension plan contributions	(10)		(1)
Changes in operating assets and liabilities:
Trade receivables	36		(9)
Inventories	(17)		101
Accounts payable	(4)		(21)
Income taxes payable	3		—
Accrued advertising and promotion	(32)		8
Accrued salaries and wages	(22)		2
All other current assets and liabilities	(14)		(13)
Net cash provided by (used in) operating activities	37		140
Investing activities
Additions to properties	(47)		(60)











Property damage recoveries from insurance proceeds	—		4
Net cash provided by (used in) investing activities	(47)		(56)
Financing activities

Repayment of borrowings under the Credit Agreement	(6)		—


Issuance (repayment) of notes payables, with maturities less than 90 days	(3)		—

Net issuances of common stock	2		—

Dividends paid	(27)		—

Net transfers (to) from Kellanova	—		(82)
Other	1		—
Net cash provided by (used in) financing activities	(33)		(82)
Effect of exchange rate changes on cash and cash equivalents	(2)		—
Increase (decrease) in cash and cash equivalents	(45)		2
Cash and cash equivalents at beginning of period	89		—
Cash and cash equivalents at end of period	$	44	$	2

Supplemental cash flow disclosures of non-cash investing activities:
Additions to properties included in accounts payable	$	17	$	16

See accompanying Notes to Unaudited Consolidated Financial Statements.

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Notes to Unaudited Consolidated Financial Statements

for the quarter ended June 29, 2024 (unaudited)

Note 1 Accounting policies

Basis of presentation

On October 2, 2023 ("Spin-Off Date"), Kellanova (formerly known as Kellogg Company) completed the spin-off (the "Spin-Off") of its North American cereal business, resulting in a new independent public company, WK Kellogg Co (the "Company"). Prior to the Spin-Off, the Company historically operated as part of Kellanova.

For periods prior to the Spin-Off, the accompanying Unaudited Financial Statements were derived from the consolidated financial statements and accounting records of Kellanova. For all periods subsequent to the Spin-Off, the Unaudited Consolidated Financial Statements are based on actual results as a standalone company. Further information surrounding the Spin-Off and basis of presentation utilized for periods prior to the Spin-Off is included within Note 1 of the Company’s 2023 Annual Report on Form 10-K (the "2023 Annual Report").

In connection with the Spin-Off, the Company entered into several agreements with Kellanova that govern the relationship of the parties following the Spin-Off and allocate between WK Kellogg Co and Kellanova various assets, liabilities, and obligations, including, among other things, employee benefits, intellectual property, and tax related assets and liabilities. The agreements included a Separation and Distribution Agreement, Employee Matters Agreement, Supply Agreement, Master Ownership and License Agreements regarding Patents, Trademarks and Certain Related Intellectual Property, Tax Matters Agreement and Transition Services Agreement.

The allocation of expenses from Kellanova to the Company was reflected as follows in the Unaudited Consolidated Statement of Operations for the quarter and year-to-date ended July 1, 2023:


	Quarter ended		Year-to-date period ended
(millions)	July 1, 2023		July 1, 2023
Cost of goods sold	$	34	$	89
Selling, general and administrative	89		174
Other (income) expense, net	(5)		(11)
Total	$	118	$	252

The components of net parent investment for the year-to-date period ended July 1, 2023 were:


(millions)	July 1, 2023
Net transfers (to)/from Kellanova as reflected in the Unaudited Consolidated Statement of Cash Flow	$	(82)
Non-cash stock compensation expense	2
Non-cash pension and postretirement benefit	(14)
Net transfers from/(to) Kellanova as reflected in the Unaudited Consolidated Statement of Changes in Equity	$	(94)

The accompanying Unaudited Consolidated Financial Statements reflect the results of operations, financial position and cash flows of the Company prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The unaudited interim financial information of the Company included in this report reflects all adjustments, all of which are of a normal and recurring nature, that management believes are necessary for a fair statement of the results of operations, comprehensive income, financial position, equity and cash flows for the periods presented. This interim information should be read in conjunction with the financial statements and accompanying footnotes within the 2023 Annual Report.

The balance sheet information at December 30, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP in the United States. The results of operations for the quarter ended June 29, 2024 are not necessarily indicative of the results to be expected for other interim periods or the full year.

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Accounts payable - Supplier Finance Programs

The Company establishes competitive market-based terms with our suppliers, regardless of whether they participate in supplier finance programs, which generally range from 0 to 135 days depending on their respective industry and geography.

The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in Net cash provided by (used in) operating activities in the Unaudited Consolidated Statement of Cash Flows. As of June 29, 2024, $158 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. As of December 30, 2023, $142 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system.

Disaggregated net sales

The following table presents the Company's disaggregated net sales by country:


	Quarter ended				Year-to-date period ended
(millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
United States	$	588	$	618	$	1,212	$	1,255
Canada	76		72		150		146
Other	8		10		17		19
Total	$	672	$	700	$	1,379	$	1,420

Accounting standards to be adopted in future periods

Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard requires all public entities that are subject to segment reporting requirements to disclose additional information, including significant segment expenses and other segment items on an annual and interim basis. It also requires the disclosure of the title and the position of the chief operating decision maker and how the reported measures are used for making business decisions. This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company intends to adopt the updated standard for the fiscal year ending December 28, 2024. The Company is currently evaluating the impact the adoption of this standard will have on its disclosures.

Income Taxes: Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard primarily expands the required disclosures surrounding the rate reconciliation and income taxes paid. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company intends to adopt the updated standard for the fiscal year ending January 3, 2026. The Company is currently evaluating the impact the adoption of this standard will have on its disclosures.

Note 2 Sale of accounts receivable

The Company has a program in which a discrete group of customers are allowed to extend their payment terms in exchange for the elimination of early payment discounts (Extended Terms Program).

The Company has a monetization agreement with an unaffiliated financial institution specifically designed to factor trade receivables with certain customers that participate in the Extended Terms Program. Under this monetization

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arrangement, from time to time, the Company sells these customers’ trade receivables at a discount on a non-recourse basis. A portion of the cash proceeds is subject to certain restrictions. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being de-recognized from the Unaudited Consolidated Balance Sheets. The monetization program provides for the continuing sale of certain receivables on a revolving basis until terminated by either party; however, the maximum receivables that may be sold at any time is approximately $350 million.

For all periods prior to the Spin-Off, the Company participated in Kellanova's monetization program and received an allocation of the recorded net loss on sale of receivables, based on the proportion of monetized receivables.

The Company has no retained interest in the receivables sold; however, the Company does have collection and administrative responsibilities for the receivables sold. The Company has not recorded any servicing assets or liabilities as of June 29, 2024 and December 30, 2023 for these agreements, as the fair value of these servicing arrangements as well as the fees earned were not material to the financial statements.

Accounts receivable sold of $313 million and $266 million remained outstanding under these arrangements as of June 29, 2024 and December 30, 2023, respectively. The proceeds from these sales of receivables are included in Net cash provided by (used in) operating activities in the Unaudited Consolidated Statement of Cash Flows in the period of sale. The recorded net loss on sale of receivables was $5 million and $9 million for the quarter and year-to-date period ended June 29, 2024, respectively, and $4 million and $8 million for the quarter and year-to-date period ended July 1, 2023, respectively. The recorded loss is included in Other income (expense), net ("OIE").

A portion of cash received related to the accounts receivable monetization program is restricted as part of the Extended Terms collateralization agreement. As of June 29, 2024 and December 30, 2023, the amount of restricted cash was $16 million and $13 million, respectively, and is included in Cash and cash equivalents in the Unaudited Consolidated Balance Sheets.

Note 3 Equity

Earnings per share

Basic earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential shares of common stock had been issued. Dilutive potential shares of common stock consist principally of unvested restricted stock units. As of June 29, 2024, the Company had approximately two million dilutive shares and no anti-dilutive shares.

On the Spin-Off Date, Kellanova distributed 85,631,304 shares of the Company's common stock to Kellanova's shareowners in connection with the Spin-Off. For comparative purposes, weighted average shares outstanding for the quarter and year-to-date period ended July 1, 2023 have been retroactively recast to reflect the effects of the changes in equity structure resulting from the Spin-Off and assume the same basic weighted average shares as of the Spin-Off Date. For periods prior to the Spin-Off, it is assumed that there are no dilutive securities as there were no stock-based awards of the Company outstanding. Refer to the Unaudited Consolidated Statement of Income for basic and diluted earnings per share for the quarters and year-to-date periods ended June 29, 2024 and July 1, 2023.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareowners. Other comprehensive income consists of foreign currency translation adjustments, adjustments for net experience gains (losses), prior service credit (costs) related to employee benefit plans, which are recorded in OIE within the statement of income, upon reclassification from Accumulated other comprehensive income ("AOCI"). The related tax effects of these items are recorded in Income taxes within the Unaudited Consolidated Statement of Income, upon reclassification from AOCI.

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AOCI as of June 29, 2024 and December 30, 2023 consisted of the following:


(millions)	June 29, 2024		December 30, 2023
Foreign currency translation adjustments	$	(41)	$	(35)


Postretirement and postemployment benefits:

Prior service credit (cost)	5		7

Total accumulated other comprehensive income (loss)	$	(36)	$	(28)

Note 4 Pension and postretirement benefits

The Company sponsors a pension plan in the United States and several plans in the United States and Canada that provide health care and other welfare benefits to retired employees who have met certain age and service requirements. These plans are described within the footnotes to the Consolidated Financial Statements included in the 2023 Annual Report. Components of Company benefit plans (income) expense for the periods presented are included in the tables below. Excluding the service cost component, these amounts are included within OIE in the Unaudited Consolidated Statement of Income.

The following tables present the pension expense and nonpension postretirement income directly attributable to the Company for the quarter and year-to-date period ended June 29, 2024:

Pension


	Quarter ended		Year-to-date period ended
(millions)	June 29, 2024		June 29, 2024
Service cost	$	2	$	4
Interest cost	7		14
Expected return on plan assets	(9)		(18)
Amortization of unrecognized prior service cost	1		2

Total pension expense	$	1	$	2

Other nonpension postretirement


	Quarter ended		Year-to-date period ended
(millions)	June 29, 2024			June 29, 2024
Service cost	$	1		$	2
Interest cost	6			12
Expected return on plan assets	(15)			(30)
Amortization of unrecognized prior service cost	(2)			(4)



Total postretirement benefit income	$	(10)		$	(20)

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For the quarter and year-to-date period ended July 1, 2023, there were no direct pension and nonpension postretirement costs. The following table summarizes the expenses that were allocated to the Company's plans prior to the Spin-Off:


		Quarter ended		Year-to-date period ended
(millions)		July 1, 2023		July 1, 2023

Pension plan:
Shared plans (multiemployer)	Cost allocation - COGS	$	2	$	4
	Cost allocation - OIE	—		—
Total pension expense		$	2	$	4

Nonpension postretirement plan:
Shared plans (multiemployer)	Cost allocation - COGS	$	1	$	2
	Cost allocation - OIE	(10)		(20)
Total postretirement benefit income		$	(9)	$	(18)

Company contributions to employee benefit plans are summarized as follows:


(millions)	Pension		Nonpension postretirement		Total
Quarter ended:
June 29, 2024	$	7	$	—	$	7
July 1, 2023	$	—	$	—	$	—
Year-to-date period ended:
June 29, 2024	$	10	$	—	$	10
July 1, 2023	$	—	$	—	$	—
Full year:
Fiscal year 2024 (projected) (a)	$	24	$	—	$	24
Fiscal year 2023 (actual)	$	—	$	—	$	—

(a)Projected 2024 amounts have been corrected from $0 million as previously disclosed in our 2023 Annual Report to $24 million.

Plan funding strategies may be modified in response to management's evaluation of tax deductibility, market conditions, and competing investment alternatives.

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Note 5 Operating leases

The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. The Company recorded operating lease costs of $4 million and $7 million for the quarter and year-to-date period ended June 29, 2024, respectively. Operating lease costs for the quarter and year-to-date period ended July 1, 2023 were immaterial to the consolidated financial statements. Right-of-use assets and liabilities associated with the operating leases are classified in Other assets and Other liabilities, respectively, on the Unaudited Consolidated Balance Sheets.


	Quarter ended				Year-to-date period ended
(millions)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3	$	—	$	5	$	—
Right-of-use assets obtained in exchange for operating lease liabilities
New leases	$	16	$	—	$	52	$	—
Modified leases	$

SEC Form 10-Q filed by WK Kellogg Co