XML 60 R41.htm IDEA: XBRL DOCUMENT v3.3.1.900
Employees' Stock Incentive Plans (Tables)
 12 Months Ended
Jan. 03, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
Our weighted average Black-Scholes fair value assumptions were:
 
Successor
 
Predecessor
(H. J. Heinz Company)
 
January 3,
2016
(53 weeks)
 
December 28,
2014
(52 weeks)
 
February 8 - December 29,
2013
(29 weeks)
 
April 29 - June 7,
2013
(6 weeks)
 
April 28,
2013
(52 weeks)
Risk-free interest rate
1.70
%
 
1.49
%
 
1.41
%
 
NA
 
1.00
%
Expected term
6.3 years

 
5 years

 
5 years

 
NA
 
7 years

Expected volatility
22.9
%
 
24.3
%
 
24.3
%
 
NA
 
19.4
%
Expected dividend yield
1.5
%
 
—
%
 
—
%
 
NA
 
3.7
%
Weighted average grant date fair value per share
$
9.60

 
$
5.53

 
$
5.48

 
NA
 
$
5.79
Schedule of Share-based Payment Award, Converted Options, Valuation Assumptions
Our Lattice model fair value assumptions for the Kraft converted options were:
 
January 3,
2016
(53 weeks)
Risk-free interest rate
1.72
%
Weighted average expected volatility
20.10
%
Expected dividend yield
3.00
%
Weighted average fair value per share
$
35.65
Schedule of Share-based Compensation, Stock Options, Activity
Our stock option activity and related information was:
 
Number of Stock Options
 
Weighted Average Exercise Price
(per share)
 
Aggregate Intrinsic Value
(in millions)
 
Average Remaining Contractual Term
Outstanding at December 28, 2014
8,570,796

 
$
22.56

 
 
 
 
Kraft options converted
13,887,135

 
37.69

 
 
 
 
Options granted
3,409,031

 
52.52

 
 
 
 
Options forfeited
(576,362
)
 
33.02

 
 
 
 
Options exercised
(1,084,988
)
 
30.30

 
 
 
 
Outstanding at January 3, 2016
24,205,612

 
34.86

 
$
920

 
7 years
Exercisable at January 3, 2016
10,713,602

 
35.92

 
395

 
6 years
Schedule of Nonvested Share Activity, Stock Options
Our unvested stock options and related information was:
 
Number of Options
 
Weighted Average Grant Date Fair Value
(per share)
Unvested options at December 28, 2014
8,570,796

 
$
5.38

Kraft options converted
5,510,511

 
26.38

Options granted
3,409,031

 
9.60

Options vested
(3,421,966
)
 
24.40

Options forfeited
(576,362
)
 
10.59

Unvested options at January 3, 2016
13,492,010

 
10.02
Schedule of Share-based Compensation, RSU Activity
Our RSU activity and related information was:
 
Number of Units
 
Weighted Average Grant Date Fair Value
(per share)
RSUs at December 28, 2014
—

 
$
—

Kraft RSUs converted
1,950,365

 
72.96

Granted
58,520

 
26.24

Forfeited
(31,538
)
 
72.96

Vested
(1,008,903
)
 
72.96

RSUs at January 3, 2016
968,444

 
70.14
Schedule of Compensation Costs Related to Equity Plans
The compensation cost related to equity awards was primarily recognized in general corporate expenses within SG&A. Equity award compensation cost and the related tax benefit was (in millions):
 
Successor
 
Predecessor
(H. J. Heinz Company)
 
January 3,
2016
(53 weeks)
 
December 28,
2014
(52 weeks)
 
February 8 - December 29,
2013
(29 weeks)
 
April 29 - June 7,
2013
(6 weeks)
 
April 28,
2013
(52 weeks)
Pre-tax compensation cost
$
133

 
$
8

 
$
1

 
$
26

 
$
34

Tax benefit
(48
)
 
(3
)
 
—

 
(8
)
 
(11
)
After-tax compensation cost
$
85

 
$
5

 
$
1

 
$
18

 
$
23