2018-06-05T18:00:42-05:00 2017-08-31 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990PF 2016-09-01 366030614 WK Kellogg Foundation Trust - No 5315 WKKE 2699681611 ONE MICHIGAN AVE EAST BATTLE CREEK MI 49017 MICHAEL WEILAND CORPORATE TRUSTEE 2018-03-05 true NICOLE BENCIK P00756195 3128997000 2016 2022-09-23 18:48:47Z X 7821092818 X X 158871439 195945548 258342941 1722729124 183777584 0 0 0 0 3074854 0 417214380 382797986 0 320000 288000 32000 839996 810406 0 0 113995 80722 0 0 8950156 8950156 0 0 5629227 1616963 0 0 0 0 0 216883 195195 21688 802961 18358682 0 390128 16873218 30300124 0 443816 387000000 387000000 403873218 30300124 0 387443816 13341162 352497862 0 32625011 36145787 36145787 0 0 0 0 0 0 0 0 0 0 0 0 0 0 286877125 170632043 170632043 6043713396 4844129516 4844129516 17622736 916003 916003 0 0 0 0 2422860132 2647608765 2647608765 0 0 0 0 36662968 121660704 121660704 8840361368 7821092818 7821092818 0 0 0 0 121133156 96790078 121133156 96790078 X 8719228212 7724302740 8719228212 7724302740 8840361368 7821092818 8719228212 13341162 0 8732569374 1008266634 7724302740 PARTNERSHIP CAPITAL GAINS/LOSSES 264424131 239829380 24594751 0 24594751 KELLOGG COMPANY STOCK 33438925 574540 32864385 0 32864385 PUBLICLY TRADED SECURITIES 1424866068 1298547620 126318448 0 126318448 183777584 0 false 386242261 7798556155 0.049527 363497870 7382575019 0.049237 361008867 7250615525 0.049790 300423876 7314050456 0.041075 325256341 6242683953 0.052102 0.241731 0.048346 7645277808 369618601 3524979 373143580 387443816 X 3524979 3524979 3524979 4868063 1300000 6168063 X 0 2643084 2643084 0 false false false 0 0 0 false false true true false true true AZ CA FL HI IL IN LA ME MD MI MS NM NY NC OK GA CO AL UT TN WV true false false false false true www.wkkf.org THE NORTHERN TRUST COMPANY 3124445615 PO BOX 803878 CHICAGO IL 60680 true JA SW false false false true false false false false false true false false false false false false true false false true false false false LA JUNE MONTGOMERY TABRON ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 0 0 9092 FREDERICK P KELLER (through 31517) ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 21667 0 4925 JOHN A BRYANT ONE KELLOGG SQUARE BATTLE CREEK MI 49016 TRUSTEE 2.000 0 0 9092 THE BANK OF NEW YORK MELLON TRUST COMPANY NA 500 GRANT STREET PITTSBURGH PA 15258 CORPORATE TRUSTEE 40.000 290000 0 0 RODERICK GILLUM (as of 31517) ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 8333 0 4167 0 BNY MELLON 500 GRANT STREET PITTSBURGH PA 15258 FINANCIAL/INVESTMENT ADVISORY 1152707 SIDLEY AUSTIN LLP ONE SOUTH DEARBORN CHICAGO IL 60603 LEGAL ADVISORY 725447 GARGOYLE INVESTMENT ADVISOR LLC ONE PATRIOT CENTRE 285 GRAND AVENUE ENGLEWOOD NJ 07631 FINANCIAL/INVESTMENT ADVISORY 707500 CAMBRIDGE ASSOCIATES LLC 125 HIGH STREET BOSTON MA 02110 INVESTMENT ADVISORY 403523 AKSIA LLC 599 LEXINGTON AVENUE 37TH FLOOR NEW YORK NY 10022 INVESTMENT ADVISORY 300000 12 0 6892350375 77751511 791601472 7761703358 429960746 7761703358 116425550 7645277808 382263890 382263890 3524979 3524979 378738911 378738911 378738911 387443816 0 0 387443816 3524979 383918837 378738911 31177799 0 0 0 0 0 0 0 387443816 31177799 0 0 356266017 0 0 0 0 0 0 22472894 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 367224536 367224536 0 0 0 367224536 367224536 X WK KELLOGG FOUNDATION ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 NONE PF FUNDING THE FOUNDATION'S CHARITABLE ACTIVITIES 387000000 387000000 0 14 158871439 18 258342941 0 417214380 0 417214380 false false false false false false false false false false Accounting Fees 113995 80722 States to which the Trust reports or with which it is registered Form 990-PF, Part VII, Section A Line8b The W.K. Kellogg Foundation Trust ("Trust") provides a copy of its Form 990-PF to the Attorney General of Michigan. The states of Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Indiana, Illinois, Louisiana, Maryland, Maine. Mississippi, New Mexico, New York, North Carolina, Oklahoma, Tennessee, Utah, and West Virginia do not require a copy of the Form 990-PF to be filed with the state Attorney General. The Trust reports income and deductions from partnership investments as Unrelated Business Taxable Income ("UBTI") on Form 990-T. These partnerships have communicated the amount of state UBTI via Schedule K-1 footnotes or other detailed schedules provided, and therefore the Trust files a state tax return and copy of the Form 990-T in Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Indiana, Illinois, Louisiana, Maryland, Maine. Mississippi, New Mexico, New York, North Carolina, Oklahoma, Tennessee, Utah, and West Virginia. Contributions to Preselected Charitable Organizations Form 990-PF, Part XV, Line 2a Under the terms of the agreement ("Agreement") creating Trust 5315 (a/k/a W.K. Kellogg Foundation Trust), all income is paid to the W.K. Kellogg Foundation, a Michigan nonprofit corporation, whose address is One Michigan Avenue East, Battle Creek, Michigan 49017. The W.K. Kellogg Foundation is a private foundation exempt from tax under Section 501(c)(3) of the Internal Revenue Code. Expenditure Responsibility Form 990-PF, Part VII, Section B Line5 c Under the terms of the agreement ("Agreement") creating Trust 5315 (a/k/a W.K. Kellogg Foundation Trust), all income is paid to the W.K. Kellogg Foundation, a Michigan nonprofit corporation, whose address is One Michigan Avenue East, Battle Creek, Michigan 49017. The W.K. Kellogg Foundation is a private foundation exempt from tax under Section 501(c)(3) of the Internal Revenue Code. During the fiscal year ended August 31, 2017, 22 payments in the aggregate amount of $387,000,000 were made from Trust 5315 to the W.K. Kellogg Foundation on the dates in the amounts set forth below: 09/01/2016 -- 10,000,000 10/03/2016 -- 10,000,000 10/19/2016 -- 20,000,000 11/01/2016 -- 10,000,000 12/05/2016 -- 10,000,000 01/03/2017 -- 10,000,000 01/18/2017 -- 20,000,000 02/01/2017 -- 34,000,000 02/07/2017 -- 20,000,000 02/27/2017 -- 30,000,000 03/01/2017 -- 10,000,000 04/03/2017 -- 10,000,000 04/04/2017 -- 20,000,000 04/24/2017 -- 20,000,000 05/01/2017 -- 10,000,000 05/05/2017 -- 30,000,000 05/30/2017 -- 30,000,000 06/01/2017 -- 10,000,000 06/26/2017 -- 30,000,000 07/03/2017 -- 10,000,000 07/24/2017 -- 25,000,000 08/28/2017 -- 8,000,000 --------------------------------- TOTAL -- $387,000,000 Pursuant to the terms of the Agreement, the funds distributed from Trust 5315 ("the Trust") to the W.K. Kellogg Foundation (the "Foundation") are used exclusively for those charitable purposes set forth in the Articles of Association of the Foundation. In order for the Foundation to remain eligible to receive distributions from the Trust, the Foundation is required to comply with a number of conditions. These conditions include submission of reports and a prohibition against diversion of the funds of the Foundation for any other purpose other than charitable. The Trustees of the Foundation meet at least monthly and submit to the Trustees of the Trust a copy of the minutes of each meeting of the Trustees together with copies of the minutes of the committees of the Board of Trustees and bi-monthly reports of the President, Secretary and Treasurer of the Foundation. The Foundation also submits to the Trustees of the Trust an annual audit and an annual report, and has submitted a report dated January 31, 2018, including attachments, further detailing its redistribution of amounts received from the Trust. These reports, collectively, reflect the expenditure by the Foundation exclusively for its charitable purposes of all funds received by it from the Trust. As of August 31, 2017, the Foundation has expended all funds received by it from the Trust for the fiscal year ended August 31, 2016, and has expended $252,757,583 of the funds received by it from the Trust during the fiscal year ended August 31, 2017. Pursuant to Treas. Reg. 53.4945-5(b)(2), the Trustees of the Trust have verified that the Foundation has complied with the terms and conditions of the Agreement. Also, the Trustees of the Trust obtain written commitments by the Foundation which satisfy Treas. Reg. 53.4945-5(b)(3). To the knowledge of the Trustees of the Trust, there has been no diversion of any portion of the funds paid from the Trust to the Foundation from the charitable purposes specified for such funds. List of Officers, Directors and Trustees Form 990-PF, Part VIII, Line 1 During the fiscal year ended August 31, 2017, Frederick P. Keller and Roderick Gillum also served as trustees of the W. K. Kellogg Foundation ("Foundation") and La June Montgomery Tabron also served as President and CEO of the Foundation. Expense account, other allowances Form 990-PF, Part VIII, Line 1 The amounts shown in column (e) are the compensatory portion of the D&O liability premium for each individual trustee. This amount is included in the Insurance expense on Part I, line 23. Compensation Form 990-PF, Part VIII, Line 1 La June Montgomery Tabron and John A. Bryant did not receive compensation from the Trust for services performed during the year ended August 31, 2017. Reduction claimed for blockage Form 990-PF, Part X, Line 1e During the fiscal year ended August 31, 2017 the W.K. Kellogg Foundation Trust ("Trust") owned in excess of 67 million shares of the common stock of Kellogg Company (the "Company") with a monthly average total value of shares held for the Trust's tax year of approximately $4.9 billion before blockage discount. The percentage of outstanding common stock of the Company which the Trust held during the fiscal year amounted to approximately 20%. The fair market value of the stock before any reduction and the amount of discount (in connection with application of the maximum 10% provided in Section 4942(e)(2)(b) of the Internal Revenue Code) is supported by an independent valuation from William Blair & Company, LLC dated September 21, 2017. The claimed discount is appropriate in valuing the Trust's shares in the Company because the shares do not represent voting control of the Company and various factors affect the influence of a 20% block of shares. Due to the size of the block of shares, the maximum proceeds for this size block of Company shares is viewed by the valuation specialist to be through underwritten secondary offerings. The monthly blockage discount for the tax year was approximately 8.8%. Total Reduction Claimed for Blockage: $429,960,746 W.K. Kellogg Foundation Trust Corporate Trustee Form 990-PF The Bank of New York Mellon Trust Company, N.A. served as the Corporate Trustee of the W. K. Kellogg Foundation Trust through August 31, 2017. Effective September 1, 2017, The Northern Trust Company began serving as the Corporate Trustee of the W. K. Kellogg Foundation Trust. Corporate Bonds 916003 916003 Kellogg Company Stock 4446818115 4446818115 Other Corporate Stock 397311401 397311401 170632043 170632043 0 0 Private Equity Funds FMV 638147724 638147724 Real Estate Funds FMV 173319308 173319308 Hedge Funds FMV 592306820 592306820 Commingled Funds FMV 972210435 972210435 Public Equity & Other FMV 271624478 271624478 Legal Fees 839996 810406 Accrued Interest & Dividends 36662968 37758165 37758165 Receivable on Unsettled Trades 0 83902539 83902539 Unrealized Losses on Investments 1008266634 Insurance 181842 163658 18184 Line of Credit Fees 371944 371944 Reimbursed Salaries & Benefits 3508087 3450322 Software & Maintenance 192005 192005 Memberships & Subscriptions 350110 350110 Other Investment Expenses 215722 215722 Other Expenses - K-1s 16149008 13986865 Deferred Excise Tax -20165757 Other Income from K-1s 3074854 Deferred Excise Tax Liability 117959297 96687167 Payable to W.K. Kellogg Foundation 73292 102911 Payable on Unsettled Trades 3100567 0 Investment Management Fees 6688585 6688585 Consulting Fees 1393653 1393653 Custodial Fees 867918 867918 Description : See Part X, line 1e Supplemental information statement, Percent : 9, FMV : 4906343079, Amount Disclaimed : XXX-XX-XXXX, Explanation : See Part X, line 1e Supplemental information statement; Current Excise Tax 5629227 Tax from K-1s 1616963