ITEM 6. SELECTED FINANCIAL DATA

Kellogg Company and Subsidiaries

Selected Financial Data
(millions, except per share data and number of employees) 2011 2010 2009 2008 2007
Operating trends (a)
Net sales $13,198 $12,397 $12,575 $12,822 $11,776
Gross profit as a % of net sales 41.3% 42.7% 42.9% 41.9% 44.0%
Depreciation 367 370 381 374 364
Amortization 2 22 3 1 8
Advertising expense 1,138 1,130 1,091 1,076 1,063
Research and development expense 192 187 181 181 179
Operating profit 1,976 1,990 2,001 1,953 1,868
Operating profit as a % of net sales 15.0% 16.1% 15.9% 15.2% 15.9%
Interest expense 233 248 295 308 319
Net income attributable to Kellogg Company 1,231 1,247 1,212 1,148 1,103
Average shares outstanding:
Basic 362 376 382 382 396
Diluted 364 378 384 385 400
Per share amounts:
Basic 3.40 3.32 3.17 3.01 2.79
Diluted 3.38 3.30 3.16 2.99 2.76
Cash flow trends
Net cash provided by operating activities $ 1,595 $1,008 $1,643 $1,267 $1,503
Capital expenditures 594 474 377 461 472
Net cash provided by operating activities reduced by capital expenditures (b) 1,001 534 1,266 806 1,031
Net cash used in investing activities (587) (465) (370) (681) (601)
Net cash used in financing activities (957) (439) (1,182) (780) (788)
Interest coverage ratio (c) 10.0 9.6 8.0 7.5 7.0
Capital structure trends
Total assets $11,901 $11,847 $11,200 $10,946 $11,397
Property, net 3,281 3,128 3,010 2,933 2,990
Short-term debt and current maturities of long-term debt 995 996 45 1,388 1,955
Long-term debt 5,037 4,908 4,835 4,068 3,270
Total Kellogg Company equity (d) 1,760 2,158 2,272 1,448 2,526
Share price trends
Stock price range $ 48-58 $ 47-56 $ 36-54 $ 40-59 $ 49-57
Cash dividends per common share 1.670 1.560 1.430 1.300 1.202
Number of employees 30,671 30,645 30,949 32,394 26,494
(a) Fiscal year 2008 contained a 53rd week. Refer to Note 1 for further information.
(b) The Company uses this non-GAAP financial measure, which is reconciled above, to focus management and investors on the amount of cash available for debt repayment, dividend distribution, acquisition opportunities, and share repurchase.
(c) Interest coverage ratio is calculated based on net income before interest expense, income taxes, depreciation and amortization, divided by interest expense.
(d) 2008 change due primarily to currency translation adjustments of ($431) and net experience losses in postretirement and postemployment benefit plans of ($865).