2023-07-14T20:00:16+00:00 2022-08-31 350921680 CROWE LLP 575 Market Street Suite 3300 San Francisco CA 941055829 990PF 2021-09-01 366030614 WK Kellogg Foundation Trust - No 5315 WKKE 3124445615 ONE MICHIGAN AVE EAST BATTLE CREEK MI 49017 Michael Weiland CORPORATE TRUSTEE 2023-07-14 true Michael Weiland 999009999 DIANE KIRMACI P01578407 4155761100 2021 2023-04-26 12:10:37Z X 8282027516 X X 169444252 208555392 347903576 2118466866 428580268 0 0 0 0 -14750952 0 517347828 622384708 0 4154212 3187761 415421 1187343 1012350 0 0 390890 346390 0 0 5287316 4949016 0 0 7329000 1691718 7329000 7000363 1819011 0 0 0 11276 0 71029 56325 4968 7218262 6395591 0 65258 32638415 19469438 0 7814647 384020372 534020372 416658787 19469438 0 541835019 100689041 602915270 0 225147540 49233116 49233116 0 0 0 0 0 0 0 0 0 0 0 0 0 0 145086102 81935728 81935728 4094008359 4495166530 4495166530 35499120 38317070 38317070 0 0 0 0 3811472381 3581189691 3581189691 0 0 0 0 35877642 36185381 36185381 8347091144 8282027516 8282027516 3053750 3053750 150000000 0 0 0 300000000 300000000 71947565 70773482 525001315 373827232 X 7822089829 7908200284 7822089829 7908200284 8347091144 8282027516 7822089829 100689041 0 7922778870 14578586 7908200284 Publicly Traded Securities 1456320057 1424365292 31954765 0 31954765 Kellogg Company Stock 162894943 3117193 159777750 0 159777750 Partnership & Alternative Investments 499251866 262404113 236847753 0 236847753 428580268 0 8380522 8380522 8380522 8416873 2000000 10416873 X 0 2036351 2036351 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 AS UK CA CJ DA FR 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 32629 STEVEN A CAHILLANE One Kellogg Square Battle Creek MI 49016 TRUSTEE 2.000 0 0 32629 RAMON MURGUIA ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 40000 0 32629 THE NORTHERN TRUST COMPANY 50 South LaSalle St B10 Chicago IL 606031006 CORPORATE TRUSTEE 40.000 4114212 0 0 0 MAYER BROWN LLP 71 SOUTH WACKER DRIVE CHICAGO IL 606064637 LEGAL ADVISORY 1145269 THE NORTHERN TRUST COMPANY 50 SOUTH LASALLE ST B10 CHICAGO IL 606031006 INVESTMENT ADVISORY/CUSTODIAN 822842 ALBOURNE AMERICA LLC 655 MONTGOMERY STREET SUITE 1910 SAN FRANCISCO CA 94111 INVESTMENT ADVISORY 494667 JPMORGAN CHASE BANK NA 10 SOUTH DEARBORN CHICAGO IL 606032300 BANKING/LENDING SERVICE 304161 JP Morgan Investment Management Inc PO Box 27169 New York NY 100877169 INVESTMENT ADVISORY 263005 1 0 5821494899 91229279 1955961570 7868685748 343201173 7868685748 118030286 7750655462 387532773 387532773 8380522 403276 8783798 378748975 378748975 378748975 541835019 0 0 541835019 378748975 0 2019 2018 2017 0 0 0 0 0 145068259 145068259 541835019 0 0 0 378748975 163086044 0 308154303 0 0 0 0 0 0 308154303 0 0 0 145068259 163086044 X WK Kellogg Foundation One Michigan Avenue East Battle Creek MI 49017 NONE PF Funding the Foundation's charitable activities 534020372 534020372 0 14 169444252 901101 4718451 18 343185125 4718451 512629377 0 517347828 false false false false false false false false false false Accounting Fees 390890 346390 0 Depletion from Partnerships 11276 PARTNERSHIP & ALTERNATIVE INVESTMENTS 499251866 345923466 153328400 KELLOGG COMPANY STOCK 162894943 274533 162620410 PUBLICLY TRADED SECURITIES 1456320057 1424365291 31954766 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, 2022. 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 5c 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, 2022, 15 payments in the aggregate amount of $534,020,372 were made from Trust 5315 to the W.K. Kellogg Foundation on the dates in the amounts set forth below: 09/27/2021: 50,000,000 10/12/2021: 41,000,000 11/02/2021: 15,000,000 11/09/2021: 25,500,000 12/20/2021: 44,500,000 01/25/2022: 55,000,000 01/28/2022: 100,019,633 02/07/2022: 739 03/09/2022: 20,000,000 04/12/2022: 52,000,000 05/10/2022: 20,000,000 06/08/2022: 20,000,000 07/21/2022: 65,000,000 08/09/2022: 10,000,000 08/29/2022: 16,000,000 --------------------------------- TOTAL: $534,020,372 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 28, 2023, 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, 2022, the Foundation has expended all funds received by it from the Trust for the fiscal year ended August 31, 2021, and has expended $385,021,619 of the funds received by it from the Trust during the fiscal year ended August 31, 2022. 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, 2022, 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, 2022 the W.K. Kellogg Foundation Trust ("Trust") owned in excess of 55 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 16-18%. 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 27, 2022. 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 an approximate 16-18% 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: $343,201,173 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: (368,716) Net income/(loss) per Schedule K-1* LIV Mexico Growth Fund IV LP: (175,900) Net income/(loss) per Schedule K-1* 162,763 Withdrawals & distributions during the year per Schedule K-1 (2,223,399) Capital contributed during the year per Schedule K-1 ---------------- (2,236,536) Net transfer (to)/from controlled entity AVANZ EM PARTNERSHIPS FEEDER SPC: 2,237,954 Distributions received (return of capital, realized gain/(loss), and other income) (121,985) Capital contributed during the year ---------------- 2,115,969 Net transfer (to)/from controlled entity STANDARD RENEWABLES HOLDINGS LTD: No transactions TI BC CO-INVESTMENT FUND LP: 9,967 Net income/(loss) per Schedule K-1* (2,415,000) Capital contributed during the year per Schedule K-1 ---------------- (2,405,033) Net transfer (to)/from controlled entity DOCKYARD CAPITAL OFFSHORE FUND LP: 16,614,021 Distributions received (return of capital, realized gain/(loss), and other income) (10,000,000) Capital contributed during the year ---------------- 6,614,021 Net transfer (to)/from controlled entity OPERATOR COLLECTIVE CAPITAL I LLC: (7,060) Net income/(loss) per Schedule K-1* *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 38317070 38317070 Kellogg Company Stock 4126673896 4126673896 Other Corporate Stock 368492634 368492634 81935728 81935728 0 0 Private Equity Funds FMV 1275398424 1275398424 Real Estate Funds FMV 216917808 216917808 Hedge Funds FMV 1573964062 1573964062 Commingled Funds FMV 514909397 514909397 Legal Fees 1187343 1012350 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 35312759 34581133 34581133 Excise tax receivable 564883 1604248 1604248 change in unrealized gains/(losses) on investments 14578586 Insurance 652576 500758 65258 Line of Credit Fees 304161 0 0 Reimbursed Salaries & Benefits 5528241 5416922 0 Memberships & Subscriptions 536831 457712 0 Other Expenses - Partnerships & Alternative Investments 172763 0 0 Other Investment Expenses 23690 20199 0 Other Income/(Loss) from Partnerships 0 -14750952 Deferred Excise Tax Liability 70601012 70362428 Payable to W.K. Kellogg Foundation 1346553 411054 Investment Management Fees 2991915 2991915 0 Consulting Fees 1472559 1255531 0 Custodial Fees 822842 701570 0 Description : REDUCTION CLAIMED FOR BLOCKAGE, Percent : 9, FMV : 3851702045, Amount Disclaimed : XXX-XX-XXXX, Explanation : SEE PART IX, LINE 1E SUPPLEMENTAL INFORMATION STATEMENT; Excise & Income Tax 7000363 0 0 Partnerships & Alternative Investments Taxes 0 1819011 0 AVANZ EM PARTNERSHIPS FEEDER SPC 3 BETHESDA METRO CENTRE SUITE 700 BETHESDA MD 20814 981107923 SEE SUPPLEMENTAL INFORMATION 2115969 DOCKYARD CAPITAL OFFSHORE FUND LP c/o Morgan Stanley Fund Services 7-11 Sie John Rogersons Quay Dublin EI 2 981429245 SEE SUPPLEMENTAL INFORMATION 6614021 C-III RECOVERY FUND II CO-INVESTMENT II (NY2) LP 5221 N OCONNOR BLVD SUITE 800 IRVING TX 75039 320496111 SEE SUPPLEMENTAL INFORMATION 368716 LIV MEXICO GROWTH FUND IV LP 330 East 79th Street Suite 1D New York NY 10075 260257407 SEE SUPPLEMENTAL INFORMATION 2236536 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 TI BC CO-INVESTMENT FUND LP 302 2ND ST SUITE 200 SAN FRANCISCO CA 94107 831185697 SEE SUPPLEMENTAL INFORMATION 2405033 OPERATOR COLLECTIVE CAPITAL I LLC PO BOX 620733 WOODSIDE CA 94062 854043528 SEE SUPPLEMENTAL INFORMATION 7060