2017-06-08T18:00:08-05:00 2016-08-31 350921680 CROWE HORWATH LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990PF 2015-09-01 366030614 WK Kellogg Foundation Trust - No 5315 WKKE 4122348356 C/O BNYM TRUST CO 500 GRANT ST 410 Pittsburgh PA 15258 Meghan Dragina VP, BNYM Trust Co, as Corp Trustee 2017-05-23 true NICOLE BENCIK P00756195 3128997000 2015 2021-01-29 14:40:06Z X 8840361368 X X 159761645 194250888 294316970 243424601 0 0 0 0 -6147576 0 454078615 431527913 0 402500 362250 40250 514717 491734 0 0 104100 77075 0 0 8169078 8169078 0 0 23513207 1696600 0 0 0 0 0 276899 249209 27690 20711827 17880809 0 200333 53692328 28926755 0 268273 390000000 390000000 443692328 28926755 0 390268273 10386287 402601158 0 63112786 32625011 32625011 0 0 1420212 0 0 0 0 0 0 0 0 0 0 0 0 0 204292836 286877125 286877125 4985105574 6043713396 6043713396 51020297 17622736 17622736 0 0 0 0 0 2491382547 2422860132 2422860132 0 0 0 0 0 39322624 36662968 36662968 7835656876 8840361368 8840361368 0 0 0 0 98861837 121133156 98861837 121133156 X 7736795039 8719228212 7736795039 8719228212 7835656876 8840361368 7736795039 10386287 972046886 8719228212 0 8719228212 PARTNERSHIP CAPITAL GAINS/LOSSES 181338262 108749115 72589147 0 72589147 KELLOGG COMPANY STOCK 152554401 2597661 149956740 0 149956740 PUBLICLY TRADED SECURITIES 1355740253 1334861539 20878714 0 20878714 243424601 0 false 363497870 7382575019 0.049237 361008867 7250615525 0.049790 300423876 7314050456 0.041075 325256341 6242683953 0.052102 332795048 6595895804 0.050455 0.242659 0.048532 7798556155 378479527 4026012 382505539 390268273 X 4026012 4026012 4026012 4194075 4194075 X 0 168063 168063 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 true false false false false true www.wkkf.org BNY MELLON TRUST CO M DRAGINA 4122348356 500 Grant Street No 410 Pittsburgh PA 152580001 true TW false false false true false false false false false true false false false false false false true false false true false false false THE BANK OF NEW YORK MELLON TRUST COMPANY NA 500 GRANT STREET PITTSBURGH PA 15258 CORPORATE TRUSTEE 40.000 362500 0 0 LA JUNE MONTGOMERY TABRON ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 0 0 7435 FREDERICK P KELLER ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 40000 0 7435 JOHN A BRYANT ONE KELLOGG SQUARE BATTLE CREEK MI 49016 TRUSTEE 2.000 0 0 7435 0 BNY MELLON 500 GRANT STREET PITTSBURGH PA 15258 FINANCIAL/INVESTMENT ADVISORY 1391943 GARGOYLE INVESTMENT ADVISOR LLC ONE PATRIOT CENTRE 285 GRAND AVENUE ENGLEWOOD NJ 07631 FINANCIAL/INVESTMENT ADVISORY 671403 SIDLEY AUSTIN LLP ONE SOUTH DEARBORN CHICAGO IL 60603 LEGAL ADVISORY 507335 CAMBRIDGE ASSOCIATES LLC 125 HIGH STREET BOSTON MA 02110 INVESTMENT ADVISORY 454533 AKSIA LLC 599 LEXINGTON AVENUE 37TH FLOOR NEW YORK NY 10022 INVESTMENT ADVISORY 300000 12 0 7070334430 98321598 748659865 7917315893 460977767 7917315893 118759738 7798556155 389927808 389927808 4026012 4026012 385901796 385901796 385901796 390268273 0 0 390268273 4026012 386242261 385901796 35544276 0 0 0 0 0 0 0 390268273 35544276 0 0 354723997 0 0 0 0 0 0 31177799 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 367224536 367224536 0 0 367224536 367224536 X WK KELLOGG FOUNDATION ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 NONE PF FUNDING THE FOUNDATION&aposS CHARITABLE ACTIVITIES 390000000 390000000 0 14 159761645 18 194316970 0 354078615 0 354078615 false false false false false false false false false false Accounting Fees 104100 77075 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 (&quotTrust&quot) 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, and Utah 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 (&quotUBTI&quot) 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, and Utah. Contributions to Preselected Charitable Organizations Form 990-PF, Part XV, Line 2a Under the terms of the agreement (&quotAgreement&quot) 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 Ave. 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 (&quotAgreement&quot) 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 Ave. 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, 2016, 21 payments in the aggregate amount of $390,000,000 were made from Trust 5315 to the W.K. Kellogg Foundation on the dates in the amounts set forth below: 09/16/2015 -- 20,000,000 11/02/2015 -- 10,000,000 12/01/2015 -- 10,000,000 12/05/2015 -- 2,000,000 01/04/2016 -- 10,000,000 02/10/2016 -- 20,000,000 02/24/2016 -- 20,000,000 03/10/2016 -- 20,000,000 03/28/2016 -- 30,000,000 04/19/2016 -- 30,000,000 05/02/2016 -- 10,000,000 05/06/2016 -- 20,000,000 05/27/2016 -- 30,000,000 06/01/2016 -- 10,000,000 06/16/2016 -- 30,000,000 07/01/2016 -- 40,000,000 07/21/2016 -- 30,000,000 08/01/2016 -- 10,000,000 08/09/2016 -- 8,000,000 08/26/2016 -- 26,000,000 08/29/2016 -- 4,000,000 --------------------------------- TOTAL -- $390,000,000 Pursuant to the terms of the Agreement, the funds distributed from Trust 5315 (&quotthe Trust&quot) to the W.K. Kellogg Foundation (the &quotFoundation&quot) 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 17, 2017, 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, 2016, the Foundation has expended all funds received by it from the Trust for the fiscal year ended August 31, 2015, and has expended $231,292,073 of the funds received by it from the Trust during the fiscal year ended August 31, 2016. 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. Reduction claimed for blockage Form 990-PF, Part X, Line 1e During the fiscal year ended August 31, 2016 the W.K. Kellogg Foundation Trust (&quotTrust&quot) owned in excess of 68 million shares of the common stock of Kellogg Company (the &quotCompany&quot) with a monthly average total value of shares held for the Trust&aposs tax year of approximately $5.2 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 &amp Company, LLC dated October 14, 2016. The claimed discount is appropriate in valuing the Trust&aposs shares in the Company because the shares do not represent voting control of the Company and various factors reduce 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 8.9%. Total Reduction Claimed for Blockage: $460,977,767 List of Officers, Directors and Trustees Form 990-PF, Part VIII, Line 1 During the fiscal year ended August 31, 2016, Mr. Frederick P. Keller also served as a trustee of the W. K. Kellogg Foundation (&quotFoundation&quot) and Mrs. 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&ampO 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 Mrs. La June Montgomery Tabron and Mr. John A. Bryant waived their trustee compensation during the year ended August 31, 2016. Corporate Bonds 17622736 17622736 Kellogg Company Stock 5621042160 5621042160 Other Corporate Stock 422671236 422671236 286877125 286877125 Land Building 0 LeasholdImprovement 0 Equipment 0 Other 0 Private Equity Funds FMV 553407488 585158068 Real Estate Funds FMV 166759370 154210324 Hedge Funds FMV 631327886 664692395 Commingled Funds FMV 938848453 826206495 Fixed Income Funds FMV 201039350 192592850 Land Building 0 LeasholdImprovement 0 Equipment 0 Other 0 Legal Fees 514717 491734 Accrued Interest &amp Dividends 36128761 36662968 36662968 Receivable on Unsettled Trades 28545 0 0 Other Receivables 3165318 0 0 Insurance 163602 147241 16360 Line of Credit Fees 181628 0 181628 Reimbursed Salaries &amp Benefits 2587136 2537142 0 Software &amp Maintenance 311441 311441 0 Memberships &amp Subscriptions 49891 49891 0 Other Investment Expenses 501279 501279 0 Other Expenses - K-1s 16916850 14333815 2345 Other Income from K-1s 0 -6147576 Unrealized Gains on Investments 972046886 Deferred Excise Tax Liability 98861837 117959297 Payable to W.K. Kellogg Foundation 0 73292 Payable on Unsettled Trades 0 3100567 Investment Management Fees 5968752 5968752 Consulting Fees 1165038 1165038 Custodial Fees 1035288 1035288 Description : See Part X, line 1e Supplemental information statement, Percent : 9, FMV : 5196509416, Amount Disclaimed : XXX-XX-XXXX, Explanation : See Part X, line 1e Supplemental information statement; Current Excise Tax 4065218 0 Deferred Excise Tax 19447989 0 Tax from K-1s 0 1696600