The following table provides an analysis of net sales and operating profit performance for 2015 versus 2014: North America Other U.S Morning Foods U.S. U.S. Snacks Specialty Latin Asia Kellogg Europe America Pacific Corporate Consolidated S millions $2,992 $3,234 $3,329 $1,181 $1,198 $ 919 $1,007 2015 net sales $1,687 $1,864 $2,497 $2,869 $1,015 $1,205 $- S- $13,525 $14,580 2014 net sales $3,108 (13.0/% (15.8)% 0.0% 0.0% 0.0% 0.0% (3.7)% 0.0% 0.0% 0.0% (2.9)% 0.0% (1.4)96 0.0% 0.0% (0.8)% 1.3% (7.2)% 0.0% 0.0% 0.4% As Reported Project K and cost reduction activities. Integration and transaction costs. Acquisitions/divestitures Difference in shipping days Comparable growth. Foreign currency impact. Currency-Neutral Comparable growth. (9.5)% 0.0% 0.0% (8.8)% 0.0% (0.1)4 0.0% (0.8)9% (7.9) % 0.0% 0.0% (0.1)% 0.0% 2.0% (1.1)% (13.8)% 0.0% 0.0% (1.3)% (1.6)% 0.0% 0.0% 0.0% 0.0% 0.0% (1.5)% (8.0)% (4.8)% (3.2)% (1.3)% (6.3)% 7.5)6 (2.1)% (1.6)6 0.0% (15.8)% (13.2% (40.4)% (11.9% 0.7% 0.0% 0.0% 0.0% (1.6)% (1.6)% 0.7% (0.6)% 24.6% 4.0% 0.0% 1.2% Foreign exchange risk Our Company is exposed to fluctuations in foreign currency cash flows related to third-party purchases, intercompany transactions, and when applicable, nonfunctional currency denominated third-party debt. Our Company is also exposed to fluctuations in the value of foreign cur- rency investments in subsidiaries and cash flows related to repatriation of these investments. Addition- ally, our Company is exposed to volatility in the translation of foreign currency eamings to U.S. Dollars. Primary exposures include the U.S. Dollar versus the British Pound, Euro, Australian Dollar, Canadian Dollar, and Mexican Peso, and in the case of inter-subsidiary transactions, the British Pound versus the Euro. We assess foreign currency risk based on transactional cash flows and translational volatility and enter into forward contracts, options, and currency swaps to reduce fiuctuations in net long or short currency positions. Forward contracts and options are generally less than 18 months duration. Currency swap agreements are established in conjunction with the term of underlying debt issuances. a. Kellogg reported consolidated sales decreased by 7.2% during 2015. What gecographic segment ac- counted for this overall decrease? h. Kellogg reports "Comparable growth" that shows various adjustments to reported growth numbers. Explain why Kellogg provides this information in its financial statements. Explain the item labeled "Difference in shipping days." c. How did forcign currency exchange rates affect sales at cach of the geographic segments? What can we infer about the strength of the SUS vis-à-vis the currencies in Kellogg's segments? d. Describe how the accounting for forcign exchange translation affects reported sales and profits. e. How does Kellogg manage the risk related to its forcign exchange exposure? Describe the financial statement effects of this risk management activity.