2024-07-10T21:31:13+00:00 2023-08-31 350921680 CROWE LLP 575 Market Street Suite 3300 San Francisco CA 941055829 990PF 2022-09-01 366030614 WK Kellogg Foundation Trust - No 5315 WKKE 3124445615 ONE MICHIGAN AVE EAST BATTLE CREEK MI 49017 Michael Weiland CORPORATE TRUSTEE 2024-07-11 true Michael Weiland 999009999 DIANE KIRMACI P01578407 4155761100 2022 2023-04-26 12:10:37Z X 7615032022 X X 0 157418023 195832832 0 0 239336959 1321843199 211213306 0 0 0 0 0 0 -31807985 0 396754982 375238153 0 4164461 3208316 0 416446 0 0 1328469 1137175 0 0 314955 267915 0 0 6703351 6033018 0 0 7329000 2456665 0 7329000 6821130 2175209 0 0 0 0 0 0 373988 289883 0 35342 0 43903 8139204 0 57306 27079257 23707385 0 7838094 377000000 377000000 404079257 23707385 0 384838094 -7324275 351530768 0 49233116 115824034 115824034 0 0 0 0 0 0 0 0 0 0 0 0 0 81935728 79846372 79846372 4495166530 3723418913 3723418913 38317070 61432065 61432065 0 0 0 0 3581189691 3598904080 3598904080 0 0 0 0 36185381 35606558 35606558 8282027516 7615032022 7615032022 3053750 3053750 0 0 300000000 300000000 70773482 61484284 373827232 364538034 X 7908200284 7250493988 7908200284 7250493988 8282027516 7615032022 7908200284 -7324275 0 7900876009 650382021 7250493988 PUBLICLY TRADED SECURITIES 710307244 708112820 2194424 0 2194424 KELLOGG COMPANY STOCK 164003676 3117193 160886483 0 160886483 PARTNERSHIP NATIVE INVESTMENTS 447532279 399399880 48132399 0 48132399 211213306 0 4886278 4886278 4886278 6111351 1750000 7861351 X 0 2975073 2975073 0 false false false false false true true false true true IL MI true false false true false true www.wkkf.org THE NORTHERN TRUST COMPANY 3124445615 PO BOX 803878 CHICAGO IL 60680 true JA NL UK CA CJ DA FR GM false false true true false false false false false true false false false false false false true false false true false false false false LA JUNE MONTGOMERY TABRON ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 0 0 33709 STEVEN A CAHILLANE One Kellogg Square Battle Creek MI 49016 TRUSTEE 2.000 0 0 33709 RAMON MURGUIA ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 40000 0 33709 THE NORTHERN TRUST COMPANY 50 South LaSalle St B10 Chicago IL 606031006 CORPORATE TRUSTEE 40.000 4023333 0 0 HOULIHAN LOKEY CAPITAL INC 10250 CONSTELLATION BLVD 5TH FLOOR LOS ANGELES CA 900676802 INVESTMENT ADVISORY 2142586 MAYER BROWN LLP 71 SOUTH WACKER DRIVE CHICAGO IL 606064637 LEGAL ADVISORY 1299443 THE NORTHERN TRUST COMPANY 50 SOUTH LASALLE ST B10 CHICAGO IL 606031006 INVESTMENT ADVISORY/CUSTODIAN 804667 ALBOURNE AMERICA LLC 655 MONTGOMERY STREET SUITE 1910 SAN FRANCISCO CA 94111 INVESTMENT ADVISORY 753400 JPMORGAN CHASE BANK NA 10 SOUTH DEARBORN CHICAGO IL 606032300 BANKING/LENDING SERVICE 303333 6 0 5507874411 121517391 2079100903 7708492705 323707884 7708492705 115627391 7592865314 379643266 379643266 4886278 602357 5488635 374154631 374154631 374154631 384838094 0 0 384838094 374154631 0 2020 2019 2018 0 0 0 0 145068259 163086044 308154303 384838094 0 0 0 374154631 10683463 0 318837766 0 0 0 0 0 0 318837766 0 0 145068259 163086044 10683463 X WK KELLOGG FOUNDATION ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 NONE PF FUNDING THE FOUNDATION'S CHARITABLE ACTIVITIES 377000000 377000000 0 14 157418023 901101 6382804 18 232954153 6382804 390372176 0 396754980 false false false false false false false false false false Accounting Fees 314955 267915 0 0 PARTNERSHIP NATIVE INVESTMENTS 447532279 374118888 73413391 KELLOGG COMPANY STOCK 164003676 274532 163729144 PUBLICLY TRADED SECURITIES 710307244 708112820 2194424 CONTRIBUTIONS TO PRESELECTED CHARITABLE ORGANIZATIONS Form 990-PF, Part XIV, 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. MORTGAGES AND OTHER NOTES PAYABLE, PURPOSE OF LOAN Form 990-PF, Part II, Line 21 THE W.K. KELLOGG FOUNDATION TRUST ("TRUST") ISSUED THE SOCIAL BONDS TO DISTRIBUTE THE PROCEEDS TO THE W.K. KELLOGG FOUNDATION ("FOUNDATION"), TO INCREASE THE FOUNDATION'S GRANTMAKING, TO ADDRESS CRITICAL NEEDS OF CHILDREN, FAMILIES AND COMMUNITIES IN THE WAKE OF THE GLOBAL PANDEMIC, AS WELL AS URGENT ISSUES OF RACIAL INJUSTICE. COMPENSATION Form 990-PF, Part VII, Line 1 LA JUNE MONTGOMERY TABRON AND STEVEN A. CAHILLANE DID NOT RECEIVE COMPENSATION FROM THE TRUST FOR SERVICES PERFORMED DURING THE YEAR ENDED AUGUST 31, 2023. 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. EXPENDITURE RESPONSIBILITY Form 990-PF, Part VI, Section B Line 5d 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, 2023, 11 payments in the aggregate amount of $377,000,000 were made from Trust 5315 to the W.K. Kellogg Foundation on the dates in the amounts set forth below: 10/12/2022: 40,000,000 01/13/2023: 50,000,000 02/22/2023: 15,000,000 03/01/2023: 43,000,000 03/31/2023: 35,000,000 05/09/2023: 15,000,000 05/23/2023: 50,000,000 06/28/2023: 50,000,000 07/25/2023: 40,000,000 08/01/2023: 32,000,000 08/25/2023: 7,000,000 --------------------------------- TOTAL: $377,000,000 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 June 26, 2024, 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, 2023, the Foundation has expended all funds received by it from the Trust for the fiscal year ended August 31, 2022, and has expended $228,000,887 of the funds received by it from the Trust during the fiscal year ended August 31, 2023. 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 VII, Line 1 During the fiscal year ended August 31, 2023, Ramon Murguia also served as a Trustee of the W.K. Kellogg Foundation ("Foundation") and La June Montgomery Tabron also served as President and CEO of the Foundation, and as a Trustee of the Foundation. REDUCTION CLAIMED FOR BLOCKAGE Form 990-PF, Part IX, Line 1e During the fiscal year ended August 31, 2023, the W.K. Kellogg Foundation Trust ("Trust") owned in excess of 54 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 $3.8 billion before blockage discount. The percentage of outstanding common stock of the Company which the Trust held during the fiscal year amounted to approximately 16-17%. 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 Houlihan Lokey Capital, Inc. dated January 29, 2024. The claimed discount is appropriate in valuing the Trust's shares in the Company because the shares do not represent actual or effective control of the Company and various factors affect the influence of an approximate 16-17% block of shares. The annual blockage discount for the tax year was approximately 8.5%, using a methodology that took into consideration observations of marketed secondary offerings and block trades. Total Reduction Claimed for Blockage: $323,707,884 TRANSACTIONS WITH CONTROLLED ENTITY WITHIN THE MEANING OF SECTION 512(b)(13) Form 990-PF, Part VI, Section A Line 11 C-III RECOVERY FUND II CO-INVESTMENT II (NY2) LP: (487,159) Net income/(loss) per Schedule K-1* LIV Mexico Growth Fund IV LP: (205,592) Net income/(loss) per Schedule K-1* 67,759 Withdrawals & distributions during the year per Schedule K-1 (285,157) Capital contributed during the year per Schedule K-1 ---------------- (422,990) Net transfer (to)/from controlled entity AVANZ EM PARTNERSHIPS FEEDER SPC: 2,842,044 Distributions received (return of capital, realized gain/(loss), and other income) (63,802) Capital contributed during the year ---------------- 2,778,242 Net transfer (to)/from controlled entity AVANZ EM PARTNERSHIPS FUND SPC: No transactions STANDARD RENEWABLES HOLDINGS LTD: No transactions TI BC CO-INVESTMENT FUND LP: (1,851,654) Net income/(loss) per Schedule K-1* (1,460,000) Capital contributed during the year per Schedule K-1 ---------------- (3,311,654) Net transfer (to)/from controlled entity DOCKYARD CAPITAL OFFSHORE FUND LP: 1,371,163 Distributions received (return of capital, realized gain/(loss), and other income) OPERATOR COLLECTIVE CAPITAL I LLC: (16,983) Net income/(loss) per Schedule K-1* (25,000) Capital contributed during the year per Schedule K-1 ---------------- (41,983) Net transfer (to)/from controlled entity WATERFRONT CP SELECT PARTNERS LP: (3,901,937) Net income/(loss) per Schedule K-1* (30,000,000) Capital contributed during the year per Schedule K-1 ---------------- (33,901,937) Net transfer (to)/from controlled entity *Net income/(loss) per Schedule K-1 includes: net rental real estate income/(loss), interest income, dividend income, gain/(loss) from trading activities, other/portfolio income, portfolio deductions, investment interest expenses, and foreign tax expense. Corporate Bonds 61432065 61432065 Kellogg Company Stock 3315328755 3315328755 Other Corporate Stock 408090158 408090158 79846372 79846372 0 0 Private Equity Funds FMV 1271993695 1271993695 Real Estate Funds FMV 208898850 208898850 Hedge Funds FMV 1625510881 1625510881 Commingled Funds FMV 492500654 492500654 Legal Fees 1328469 1137175 0 0 300000000 JP Morgan Series 2020 Social Bond None 300000000 300000000 2020-10 2050-10 2.443 SEE PART II, LINE 21 SUPPLEMENTAL INFORMATION STATEMENT Accrued Interest & Dividends 34581133 33786547 33786547 Excise tax receivable 1604248 1820011 1820011 CHANGE IN UNREALIZED GAINS/(LOSSES) ON INVESTMENTS 650382021 Insurance 573057 441485 0 57306 Line of Credit Fees 303333 0 0 0 Reimbursed Salaries & Benefits 6791456 6658515 0 0 Memberships & Subscriptions 807988 691641 0 0 Other Expenses - Partnerships native Investments 89945 0 0 0 Other Investment Expenses 406030 347563 0 0 Deferred Excise Tax -8927906 0 0 0 Other Income/(Loss) from Partnerships 0 -31807985 0 Deferred Excise Tax Liability 70362428 61322118 Payable to W.K. Kellogg Foundation 411054 162166 Investment Management Fees 2048130 2048130 0 0 Consulting Fees 3850554 3296090 0 0 Custodial Fees 804667 688798 0 0 Description : REDUCTION CLAIMED FOR BLOCKAGE, Percent : 9, FMV : 3832816185, Amount Disclaimed : XXX-XX-XXXX, Explanation : 8.5% UNROUNDED. SEE PART IX, LINE 1E SUPPLEMENTAL INFORMATION STATEMENT; Excise & Income Tax 6821130 0 0 0 Partnerships native Investments Taxes 2175209 0 0 AVANZ EM PARTNERSHIPS FEEDER SPC PO BOX 309 UGLAND HOUSE GRAND CAYMAN CJ KY11104 981107923 SEE SUPPLEMENTAL INFORMATION 2778242 AVANZ EM PARTNERSHIPS FUND SPC 600 BRICKELL AVENUE MIAMI FL 33131 981107280 SEE SUPPLEMENTAL INFORMATION 0 STANDARD RENEWABLES HOLDINGS LTD C/O WALTER CORPORATE LIMITED CAYMAN CORPORATE CTR 27 HOSPITAL R GEORGE TOWN GRAND CAYMAN CJ KY19005 981194824 SEE SUPPLEMENTAL INFORMATION 0 DOCKYARD CAPITAL OFFSHORE FUND LP c/o Morgan Stanley Fund Services 7-11 Sie John Rogersons Quay Dublin EI 2 981429245 SEE SUPPLEMENTAL INFORMATION 1371163 C-III RECOVERY FUND II CO-INVESTMENT II (NY2) LP 6031 CONNECTION DR SUITE 200 IRVING TX 75039 320496111 SEE SUPPLEMENTAL INFORMATION 487159 LIV MEXICO GROWTH FUND IV LP 155 WELLINGTON ST WEST TORONTO ONTARIO CA M5V3J7 000000000 SEE SUPPLEMENTAL INFORMATION 422990 TI BC CO-INVESTMENT FUND LP 4304 18TH STREET 14427 SAN FRANCISCO CA 941149991 831185697 SEE SUPPLEMENTAL INFORMATION 3311654 OPERATOR COLLECTIVE CAPITAL I LLC PO BOX 620733 WOODSIDE CA 94062 854043528 SEE SUPPLEMENTAL INFORMATION 41983 WATERFRONT CP SELECT PARTNERS LP 10 EAST 53RD STREET 34TH FLOOR NEW YORK NY 10022 873936463 SEE SUPPLEMENTAL INFORMATION 33901937