2022-07-13T12:30:19-05:00 2021-08-31 350921680 CROWE LLP 575 Market Street Suite 3300 San Francisco CA 941055829 990PF 2020-09-01 366030614 WK Kellogg Foundation Trust - No 5315 WKKE 3124445615 ONE MICHIGAN AVE EAST BATTLE CREEK MI 49017 Michael Weiland CORPORATE TRUSTEE 2022-07-13 true Michael Weiland 999009999 DIANE KIRMACI P01578407 4155761100 2020 2022-09-23 18:48:47Z X 8347091144 X X 130865593 173871498 345375361 2254721972 347410328 0 0 0 0 -14385620 0 476240954 506896206 0 3990067 3746673 491787 916637 775932 0 0 304111 256771 0 0 8656162 8050216 0 0 6290725 2592819 1618488 5598214 1693599 0 0 0 2747 0 8212 4903 2420 -18460259 4790526 0 64835 7303869 21914186 0 2177530 658000000 508000000 665303869 21914186 0 510177530 -189062915 484982020 0 154732239 225147540 225147540 0 0 0 0 0 0 0 0 0 0 0 0 0 0 151033404 145086102 145086102 4815886049 4094008359 4094008359 20005892 35499120 35499120 0 0 0 0 2724814725 3811472381 3811472381 0 0 0 0 36401480 35877642 35877642 7902873789 8347091144 8347091144 1113366 3053750 150000000 0 0 0 300000000 97708835 71947565 98822201 525001315 X 7804051588 7822089829 7804051588 7822089829 7902873789 8347091144 7804051588 -189062915 207101156 7822089829 0 7822089829 Publicly Traded Securities 1646041778 1522803476 123238302 0 123238302 Kellogg Company Stock 126300108 2597661 123702447 0 123702447 Partnership & Alternative Investments 482380086 381910507 100469579 0 100469579 347410328 0 6741250 6741250 6741250 6958123 2500000 9458123 X 0 2716873 2716873 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 HK UK CJ 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 32417 STEVEN A CAHILLANE One Kellogg Square Battle Creek MI 49016 TRUSTEE 2.000 0 0 32417 RAMON MURGUIA ONE MICHIGAN AVENUE EAST BATTLE CREEK MI 49017 TRUSTEE 2.000 40000 0 32417 THE NORTHERN TRUST COMPANY 50 South LaSalle St B10 Chicago IL 606031006 CORPORATE TRUSTEE 40.000 4877871 0 0 0 MAYER BROWN LLP 71 SOUTH WACKER DRIVE CHICAGO IL 606064637 LEGAL ADVISORY 1411218 THE NORTHERN TRUST COMPANY 50 SOUTH LASALLE ST B10 CHICAGO IL 606031006 INVESTMENT ADVISORY/CUSTODIAN 975574 ALBOURNE AMERICA LLC 655 MONTGOMERY STREET SUITE 1910 SAN FRANCISCO CA 94111 INVESTMENT ADVISORY 504000 JPMORGAN CHASE BANK NA 10 SOUTH DEARBORN CHICAGO IL 606032300 BANKING/LENDING SERVICE 391742 JP Morgan Investment Management Inc PO Box 27169 New York NY 100877169 INVESTMENT ADVISORY 329182 3 0 5762047024 112387842 1472943374 7347378240 322373494 7347378240 110210674 7237167566 361858378 361858378 6741250 6741250 355117128 355117128 355117128 510177530 0 0 510177530 510177530 355117128 9992143 2018 2017 2016 0 0 0 0 0 0 0 510177530 9992143 0 0 355117128 145068259 0 145068259 0 0 0 0 0 0 145068259 0 0 0 0 145068259 X WK Kellogg Foundation One Michigan Avenue East Battle Creek MI 49017 NONE PF Funding the Foundation's charitable activities 508000000 508000000 WK Kellogg Foundation One Michigan Avenue East Battle Creek MI 49017 NONE PF Funding the Foundation's charitable activities 150000000 150000000 14 130865593 901101 1848460 18 343526901 1848460 474392494 0 476240954 false false false false false false false false false false Accounting Fees 304111 256771 Depletion from Partnerships 2747 PARTNERSHIP & ALTERNATIVE INVESTMENTS 482380086 386314358 96065728 KELLOGG COMPANY STOCK 126300108 228777 126071331 PUBLICLY TRADED SECURITIES 1646041778 1522803476 123238302 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, 2021, 15 payments in the aggregate amount of $508,000,000 were made from Trust 5315 to the W.K. Kellogg Foundation on the dates in the amounts set forth below: 09/17/2020: 40,000,000 10/29/2020: 15,000,000 11/06/2020: 30,000,000 12/10/2020: 100,000,000 12/10/2020: 40,000,000 12/17/2020: 52,000,000 01/25/2021: 14,000,000 02/03/2021: 20,000,000 03/17/2021: 25,000,000 05/10/2021: 15,000,000 05/28/2021: 13,000,000 06/18/2021: 40,000,000 07/19/2021: 24,000,000 07/19/2021: 50,000,000 08/27/2021: 30,000,000 --------------------------------- TOTAL: $508,000,000 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 23, 2022, 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, 2021, the Foundation has expended all funds received by it from the Trust for the fiscal year ended August 31, 2020, and has expended $383,437,337 of the funds received by it from the Trust during the fiscal year ended August 31, 2021. 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, 2021, 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 X, Line 1e During the fiscal year ended August 31, 2021 the W.K. Kellogg Foundation Trust ("Trust") owned in excess of 60 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 17-18%. 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 October 12, 2021. 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 17-18% 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 8.6%. Total Reduction Claimed for Blockage: $322,373,494 Transactions with controlled entity within the meaning of section 512(b)(13) Form 990-PF, Part VII, Section A Line11 C-III RECOVERY FUND II CO-INVESTMENT II (NY2) LP: (196,017) Net income/(loss) per Schedule K-1* LIV Mexico Growth Fund IV LP: (377,324) Net income/(loss) per Schedule K-1* (1,849,797) Capital contributed during the year per Schedule K-1 ---------------- (2,227,121) Net transfer (to)/from controlled entity AVANZ EM PARTNERSHIPS FEEDER SPC: 1,172,980 Distributions received (return of capital, realized gain/(loss), and other income) (1,637,471) Capital contributed during the year ---------------- (464,491) Net transfer (to)/from controlled entity STANDARD RENEWABLES HOLDINGS LTD: No transactions TI BC CO-INVESTMENT FUND LP (603,843) Net income/(loss) per Schedule K-1* (2,939,900) Capital contributed during the year per Schedule K-1 ---------------- (3,543,742) Net transfer (to)/from controlled entity True Green Capital Fund IV LP: (245,841) Net income/(loss) per Schedule K-1* 9,778,479 Withdrawals & distributions during the year per Schedule K-1 (628,479) Capital contributed during the year per Schedule K-1 ---------------- 8,904,159 Net transfer (to)/from controlled entity DOCKYARD CAPITAL OFFSHORE FUND LP: (23,062,489) Capital contributed during the year *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. Compensation Form 990-PF, Part VIII, 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, 2021. 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. 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. Corporate Bonds 35499120 35499120 Kellogg Company Stock 3733584251 3733584251 Other Corporate Stock 360424108 360424108 145086102 145086102 0 0 Private Equity Funds FMV 1179378735 1179378735 Real Estate Funds FMV 226173498 226173498 Hedge Funds FMV 1705171646 1705171646 Commingled Funds FMV 700748502 700748502 Legal Fees 916637 775932 0 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 35723691 35312759 35312759 Excise tax receivable 677789 564883 564883 Insurance 648345 493941 64835 Line of Credit Fees 415075 23333 0 Reimbursed Salaries & Benefits 3985752 3902897 0 Memberships & Subscriptions 422581 357714 0 Deferred Excise Tax -26737150 0 0 Other Expenses - Partnerships & Alternative Investments 46822 0 0 Debt Issuance Costs 2743383 0 0 Other Investment Expenses 14933 12641 0 Other Income/(Loss) from Partnerships -14385620 change in unrealized gains/(losses) on investments 207101156 Deferred Excise Tax Liability 97452042 70601012 Payable to W.K. Kellogg Foundation 256793 1346553 Investment Management Fees 3685375 3685375 Consulting Fees 4180774 3539019 Custodial Fees 790013 825822 Description : REDUCTION CLAIMED FOR BLOCKAGE, Percent : 9, FMV : 3808306561, Amount Disclaimed : XXX-XX-XXXX, Explanation : See Part X, line 1e Supplemental information statement; Excise & Income Tax 5598214 0 Partnerships & Alternative Investments Taxes 0 1693599 True Green Capital Fund IV LP 315 POST ROAD WEST 2nd FLOOR WESTPORT CT 06880 843936749 SEE SUPPLEMENTAL INFORMATION 8904159 C-III RECOVERY FUND II CO-INVESTMENT II (NY2) LP 5221 N OCONNOR BLVD SUITE 800 IRVING TX 75039 320496111 SEE SUPPLEMENTAL INFORMATION 196017 LIV MEXICO GROWTH FUND IV LP 330 East 79th Street Suite 1D New York NY 10075 260257407 SEE SUPPLEMENTAL INFORMATION 2227121 AVANZ EM PARTNERSHIPS FEEDER SPC 3 BETHESDA METRO CENTRE SUITE 700 BETHESDA MD 20814 981107923 SEE SUPPLEMENTAL INFORMATION 464491 STANDARD RENEWABLES HOLDINGS LTD C/O WALTER CORPORATE LIMITED CAYMAN CORPORATE CTR 27 HOSPITAL RD 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 3543742 DOCKYARD CAPITAL OFFSHORE FUND LP c/o Morgan Stanley Fund Services 7-11 Sie John Rogersons Quay Dublin EI 2 981429245 SEE SUPPLEMENTAL INFORMATION 23062489