þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended April 29, 2012 | |
or | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
PENNSYLVANIA | 25-0542520 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) | |
One PPG Place | 15222 | |
Pittsburgh, Pennsylvania | (Zip Code) | |
(Address of principal executive offices) |
Title of each class | Name of each exchange on which registered | |
Common Stock, par value $.25 per share | The New York Stock Exchange | |
Third Cumulative Preferred Stock, | ||
$1.70 First Series, par value $10 per share | The New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Item 1. | Business. |
Factories | |||||||
Owned | Leased | Major Owned and Licensed Trademarks | |||||
North America | 15 | 4 | Heinz, Classico, Quality Chef Foods, Jack Daniel’s*, Catelli*, Wyler’s, Heinz Bell ’Orto, Bella Rossa, Chef Francisco, Ore-Ida, Tater Tots, Bagel Bites, Weight Watchers* Smart Ones, Poppers, T.G.I. Friday’s*, Delimex, Truesoups, Escalon, PPI, Todd’s, Nancy’s, Lea & Perrins, Renee’s Gourmet, HP, Diana, Bravo, Arthur’s Fresh | ||||
Europe | 17 | 1 | Heinz, Orlando, Karvan Cevitam, Brinta, Roosvicee, Venz, Weight Watchers*, Farley’s, Plasmon, Nipiol, Dieterba, Bi-Aglut, Aproten, Pudliszki, Ross, Honig, De Ruijter, Aunt Bessie*, Mum’s Own, Moya Semya, Picador, Derevenskoye, Mechta Hoziajki, Lea & Perrins, HP, Amoy*, Daddies, Squeezme!, Wyko, Benedicta | ||||
Asia/Pacific | 24 | — | Heinz, Tom Piper, Wattie’s, ABC, Chef, Craig’s, Winna, Hellaby, Hamper, Farley’s, Greenseas, Gourmet, Nurture, LongFong, Ore-Ida, SinSin, Lea & Perrins, HP, Classico, Weight Watchers*, Cottee’s, Rose’s*, Complan, Glucon D, Nycil, Golden Circle, La Bonne Cuisine, Original Juice Co., The Good Taste Company, Master, Guanghe | ||||
Rest of World | 7 | 2 | Heinz, Wellington’s, Today, Mama’s, John West, Farley’s, Complan, HP, Lea & Perrins, Classico, Banquete, Wattie’s, Quero | ||||
63 | 7 | * Used under license |
Age (as of | Positions and Offices Held with the Company and Principal Occupations or | ||||
Name | August 28, 2012) | Employment During Past Five Years | |||
William R. Johnson | 63 | Chairman, President, and Chief Executive Officer since September 2000. | |||
Theodore N. Bobby | 61 | Executive Vice President, General Counsel and Corporate Secretary since May 2012. Executive Vice President and General Counsel from January 2007 to May 2012. | |||
Stephen S. Clark | 44 | Vice President—Chief People Officer since October 2005. | |||
Edward J. McMenamin | 55 | Senior Vice President—Finance since May 2010; Senior Vice President—Finance and Corporate Controller from August 2004 to May 2010. | |||
Michael D. Milone(1) | 56 | Executive Vice President from May 2012; Executive Vice President—Heinz Rest of World, and Global Enterprise Risk Management and Global Infant/Nutrition from May 2010 to May 2012; Senior Vice President—Heinz Rest of World, Enterprise Risk Management and Global Infant/Nutrition from June 2008 to April 2010; Senior Vice President—Heinz Pacific, Rest of World and Enterprise Risk Management from May 2006 to June 2008. | |||
David C. Moran | 54 | Executive Vice President, President and Chief Executive Officer of Heinz Europe and Global Infant/Nutrition since May 2012. Executive Vice President and President and Chief Executive Officer of Heinz Europe from July 2009 to May 2012; Executive Vice President & Chief Executive Officer and President of Heinz North America from May 2007 to July 2009. | |||
Michael Mullen | 43 | Vice President—Corporate and Government Affairs since February 2009; Director Global Corporate Affairs from May 2006 to February 2009. | |||
Margaret R. Nollen | 49 | Senior Vice President—Investor Relations and Global Program Management Officer since January 2011; Senior Vice President—Investor Relations from May 2010 to January 2011; Vice President—Investor Relations from February 2007 to May 2010. | |||
C. Scott O’Hara | 51 | Executive Vice President and President and Chief Executive Officer of Heinz North America since July 2009; Executive Vice President—President and Chief Executive Officer Heinz Europe from May 2006 to July 2009. | |||
Robert P. Ostryniec | 51 | Senior Vice President, Chief Supply Chain Officer and Global Enterprise Risk Management, Environmental Health, Safety and Sustainability and Quality since May 2012; Senior Vice President and Chief Supply Chain Officer from February 2010 to May 2012; Chief Supply Chain Officer from January 2009 to February 2010; Global Supply Chain Officer from April 2008 to January 2009; Chief Supply Chain Officer from June 2005 to April 2008. | |||
Christopher J. Warmoth | 53 | Executive Vice President—Heinz Asia Pacific since June 2008; Senior Vice President—Heinz Asia from May 2006 to June 2008. | |||
Arthur B. Winkleblack | 55 | Executive Vice President and Chief Financial Officer since January 2002. | |||
David C. Woodward | 47 | Executive Vice President—Heinz Rest of World since May 2012; President—Heinz United Kingdom, Ireland, Africa and Middle East from January 2011 to May 2012; President—Heinz United Kingdom and Ireland from July 2006 to May 2012. |
Item 1A. | Risk Factors. |
• | sales, volume, earnings, or cash flow growth, |
• | general economic, political, and industry conditions, including those that could impact consumer spending, |
• | competitive conditions, which affect, among other things, customer preferences and the pricing of products, production, and energy costs, |
• | competition from lower-priced private label brands, |
• | increases in the cost and restrictions on the availability of raw materials including agricultural commodities and packaging materials, the ability to increase product prices in response, and the impact on profitability, |
• | the ability to identify and anticipate and respond through innovation to consumer trends, |
• | the need for product recalls, |
• | the ability to maintain favorable supplier and customer relationships, and the financial viability of those suppliers and customers, |
• | currency valuations and devaluations and interest rate fluctuations, |
• | changes in credit ratings, leverage, and economic conditions, and the impact of these factors on our cost of borrowing and access to capital markets, |
• | our ability to effectuate our strategy, including our continued evaluation of potential opportunities, such as strategic acquisitions, joint ventures, divestitures, and other initiatives, our ability to identify, finance and complete these transactions and other initiatives, and our ability to realize anticipated benefits from them, |
• | the ability to successfully complete cost reduction programs and increase productivity, |
• | the ability to effectively integrate acquired businesses, |
• | new products, packaging innovations, and product mix, |
• | the effectiveness of advertising, marketing, and promotional programs, |
• | supply chain efficiency, |
• | cash flow initiatives, |
• | risks inherent in litigation, including tax litigation, |
• | the ability to further penetrate and grow and the risk of doing business in international markets, particularly our emerging markets, economic or political instability in those markets, strikes, nationalization, and the performance of business in hyperinflationary environments, in each case such as Venezuela; and the uncertain global macroeconomic environment and sovereign debt issues, particularly in Europe, |
• | changes in estimates in critical accounting judgments and changes in laws and regulations, including tax laws, |
• | the success of tax planning strategies, |
• | the possibility of increased pension expense and contributions and other people-related costs, |
• | the potential adverse impact of natural disasters, such as flooding and crop failures, and the potential impact of climate change, |
• | the ability to implement new information systems, potential disruptions due to failures in information technology systems, and risks associated with social media, |
• | with regard to dividends, dividends must be declared by the Board of Directors and will be subject to certain legal |
• | other factors as described in “Risk Factors” above. |
Item 1B. | Unresolved Staff Comments. |
Item 2. | Properties. |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Item 6. | Selected Financial Data. |
Fiscal Year Ended | |||||||||||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | April 29, 2009 | April 30, 2008 | |||||||||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||||||||
Sales(1) | $ | 11,649,079 | $ | 10,706,588 | $ | 10,494,983 | $ | 10,011,331 | $ | 9,885,556 | |||||||||
Interest expense(1) | 294,104 | 275,398 | 295,711 | 339,635 | 364,808 | ||||||||||||||
Income from continuing operations attributable to H.J. Heinz Company common shareholders(1) | 923,159 | 989,510 | 914,489 | 929,511 | 846,623 | ||||||||||||||
Income from continuing operations per share attributable to H.J. Heinz Company common shareholders—diluted(1) | 2.85 | 3.06 | 2.87 | 2.91 | 2.62 | ||||||||||||||
Income from continuing operations per share attributable to H.J. Heinz Company common shareholders—basic(1) | 2.87 | 3.09 | 2.89 | 2.95 | 2.65 | ||||||||||||||
Short-term debt and current portion of long-term debt | 246,708 | 1,534,932 | 59,020 | 65,638 | 452,708 | ||||||||||||||
Long-term debt, exclusive of current portion(2) | 4,779,981 | 3,078,128 | 4,559,152 | 5,076,186 | 4,730,946 | ||||||||||||||
Total assets | 11,983,293 | 12,230,645 | 10,075,711 | 9,664,184 | 10,565,043 | ||||||||||||||
Cash dividends per common share | 1.92 | 1.80 | 1.68 | 1.66 | 1.52 |
(1) | Amounts exclude the operating results related to the Company’s private label frozen desserts business in the U.K. as well as the Kabobs and Appetizers And, Inc. businesses in the U.S., which were divested in Fiscal 2010 and have been presented as discontinued operations. |
(2) | Long-term debt, exclusive of current portion, includes $128.4 million, $150.5 million, $207.1 million, $251.5 million, and $198.3 million of hedge accounting adjustments associated with interest rate swaps at April 29, 2012, April 27, 2011, April 28, 2010, April 29, 2009, and April 30, 2008, respectively. H.J. Heinz Finance Company’s (“HFC”) mandatorily redeemable preferred shares of $350 million in Fiscals 2012-2009 and $325 million in Fiscal 2008 are classified as long-term debt. |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
(1) | Organic sales growth is defined as volume plus price or total sales growth excluding the impact of foreign exchange, acquisitions and divestitures. See “Non-GAAP Measures” section below for the reconciliation of all of these organic sales growth measures to the reported GAAP measure. |
(2) | All results excluding charges for productivity initiatives are non-GAAP measures used for management reporting and incentive compensation purposes. See “Non-GAAP Measures” section below and the following reconciliation of all non-GAAP measures to the reported GAAP measures. |
(3) | Operating Free Cash Flow is defined as cash from operations less capital expenditures net of proceeds from disposals of Property, Plant and Equipment. See “Non-GAAP Measures” section below for the reconciliation of this measure to the reported GAAP measure. |
Fiscal Year Ended | ||||||||||||||
April 29, 2012 | ||||||||||||||
Sales | Gross Profit | SG&A | Operating Income | Effective Tax Rate | Net Income attributable to H.J. Heinz Company | Diluted EPS | ||||||||
(In thousands except per share amounts) | ||||||||||||||
Reported results | $11,649,079 | $3,999,530 | $2,548,362 | $1,451,168 | 20.6 | % | $923,159 | $2.85 | ||||||
Charges for productivity initiatives | — | 139,830 | 84,487 | 224,317 | 27.4 | % | 162,874 | 0.50 | ||||||
Results excluding charges for productivity initiatives | $11,649,079 | $4,139,360 | $2,463,875 | $1,675,485 | 21.7 | % | $1,086,033 | $3.35 | ||||||
(Totals may not add due to rounding) |
Fiscal Year Ended | |
April 28, 2010 FY 2010 | |
(In millions) | |
Sales | $63.0 |
Net after-tax losses | $(4.7) |
Tax benefit on losses | $2.0 |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Ketchup and Sauces | $ | 5,232,607 | $ | 4,607,971 | $ | 4,446,911 | |||||
Meals and Snacks | 4,479,502 | 4,282,318 | 4,289,977 | ||||||||
Infant/Nutrition | 1,232,248 | 1,175,438 | 1,157,982 | ||||||||
Other | 704,722 | 640,861 | 600,113 | ||||||||
Total | $ | 11,649,079 | $ | 10,706,588 | $ | 10,494,983 |
• | Proceeds from long-term debt were $1.91 billion in the current year and $230 million in the prior year. During the fourth quarter of Fiscal 2012, the Company issued $300 million 1.50% Notes due 2017 and $300 million 2.85% Notes due 2022. During the second quarter of Fiscal 2012, the Company issued $300 million 2.00% Notes due 2016 and $400 million 3.125% Notes due 2021. During the first quarter of Fiscal 2012, the Company issued $500 million of private placement notes at an average interest rate of 3.48% with maturities of three, five, seven and ten years. Additionally, during the first quarter of Fiscal 2012, the Company issued $100 million of private placement notes at an average interest rate of 3.38% with maturities of five and seven years. The prior year proceeds relate to a variable rate, three-year 16 billion Japanese yen denominated credit agreement entered into in the third quarter of Fiscal 2011which was swapped to $193 million and the interest rate was fixed at 2.66%. |
• | The current year proceeds discussed above were used for the repayment of commercial paper and to pay off the Company's $750 million of notes which matured on July 15, 2011 and $600 million notes which matured on March 15, 2012. Overall, payments on long-term debt were $1.44 billion in the current year compared to $46 million in the prior year. The prior year proceeds discussed above were used in the funding of the Foodstar acquisition and for general corporate purposes. |
• | Net payments on commercial paper and short-term debt were $43 million this year compared to $193 million in the prior year. |
• | Cash payments for treasury stock purchases, net of cash from option exercises, used $119 million of cash in the current year as the Company purchased 3.9 million shares of stock at a total cost of $202 million, in-line with its strategy to hold fully diluted shares outstanding flat. Cash proceeds from option exercises, net of treasury stock purchases, provided $85 million of cash in the prior year. During Fiscal 2011, the Company purchased 1.4 million shares of stock at a total cost of $70 million. |
• | Dividend payments totaled $619 million this year, compared to $580 million for the same period last year, reflecting an increase in the annualized dividend per common share to $1.92. |
• | During the second quarter of Fiscal 2012, the Company acquired an additional 10% interest in P.T. Heinz ABC Indonesia for $55 million. P.T. Heinz ABC Indonesia is an Indonesian subsidiary of the Company that manufacturers Asian sauces and condiments as well as juices and syrups. Prior to the transaction, the Company owned 65% of this business. During Fiscal 2011, $6 million of cash was paid for the purchase of the remaining 21% interest in Heinz UFE Ltd., a Chinese subsidiary of the Company that manufactures infant feeding products. |
Fiscal Year | |||||||||||||||||||
2013 | 2014-2015 | 2016-2017 | 2018 Forward | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Long Term Debt(1) | $ | 436,210 | $ | 1,490,363 | $ | 1,081,656 | $ | 5,529,263 | $ | 8,537,492 | |||||||||
Capital Lease Obligations | 9,208 | 19,463 | 19,522 | 17,707 | 65,900 | ||||||||||||||
Operating Leases | 96,385 | 137,253 | 86,009 | 172,877 | 492,524 | ||||||||||||||
Purchase Obligations | 985,678 | 676,159 | 92,989 | 28,013 | 1,782,839 | ||||||||||||||
Other Long Term Liabilities Recorded on the Balance Sheet | 150,650 | 398,228 | 304,661 | 316,651 | 1,170,190 | ||||||||||||||
Total | $ | 1,678,131 | $ | 2,721,466 | $ | 1,584,837 | $ | 6,064,511 | $ | 12,048,945 |
(1) | Amounts include expected cash payments for interest on fixed rate long-term debt. Due to the uncertainty of forecasting expected variable rate interest payments, those amounts are not included in the table. |
Aggregate Notional Amount | Net Unrealized Gains/(Losses) | ||||||||||||
April 29, 2012 | April 27, 2011 | April 29, 2012 | April 27, 2011 | ||||||||||
(In millions) | |||||||||||||
Purpose of Hedge: | |||||||||||||
Intercompany cash flows | $ | 1,090 | 1,031 | $ | 13 | 29 | |||||||
Forecasted purchases of raw materials and finished goods and foreign currency denominated obligations | 578 | 726 | (5 | ) | (32 | ) | |||||||
Forecasted sales and foreign currency denominated assets | 245 | 104 | 9 | 12 | |||||||||
$ | 1,913 | 1,861 | $ | 17 | 9 |
April 29, 2012 | April 27, 2011 | ||||||
(Dollars in millions) | |||||||
Pay floating swaps—notional amount | $ | 160 | $ | 1,510 | |||
Net unrealized gains | $ | 36 | $ | 55 | |||
Weighted average maturity (years) | 8.2 | 1.4 | |||||
Weighted average receive rate | 6.09 | % | 6.30 | % | |||
Weighted average pay rate | 1.57 | % | 1.32 | % |
Fair Value Effect | |||
(In millions) | |||
Foreign currency contracts | $ | 145 | |
Interest rate swap contracts | $ | 3 | |
Cross-currency interest rate swaps | $ | 40 |
Organic Sales Growth | + | Foreign Exchange | + | Acquisitions/ Divestitures | = | Total Net Sales Change | ||||||
FY12 Total Company | 3.5 | % | 1.8 | % | 3.5 | % | 8.8 | % | ||||
FY12 global ketchup | 8.0 | % | 0.5 | % | 1.2 | % | 9.7 | % | ||||
FY12 Emerging Markets | 16.4 | % | (0.4 | )% | 24.9 | % | 40.9 | % | ||||
FY12 Top 15 brands | 5.0 | % | 1.7 | % | 5.6 | % | 12.3 | % |
Total Company (in millions) | 2012 | ||
Cash provided by operating activities | $ | 1,493.1 | |
Capital expenditures | (418.7 | ) | |
Proceeds from disposals of property, plant and equipment | 9.8 | ||
Operating Free Cash Flow | $ | 1,084.2 | |
Cash paid for productivity initiatives | 121.9 | ||
Operating Free Cash Flow excluding cash paid for productivity initiatives | $ | 1,206.1 |
Plan Assets at | Target Allocation at | |||||||||||
Asset Category | 2012 | 2011 | 2012 | 2011 | ||||||||
Equity securities | 61 | % | 62 | % | 59 | % | 58 | % | ||||
Debt securities | 31 | % | 32 | % | 32 | % | 32 | % | ||||
Real estate | 7 | % | 3 | % | 8 | % | 9 | % | ||||
Other | 1 | % | 3 | % | 1 | % | 1 | % | ||||
100 | % | 100 | % | 100 | % | 100 | % |
100 Basis Point | |||
Increase | Decrease | ||
Pension benefits | |||
Discount rate used in determining projected benefit obligation | $(339) | $406 | |
Discount rate used in determining net pension expense | $(33) | $36 | |
Long-term rate of return on assets used in determining net pension expense | $(29) | $29 | |
Other benefits | |||
Discount rate used in determining projected benefit obligation | $(21) | $24 | |
Discount rate used in determining net benefit expense | $(2) | $1 |
Stock Price Range | |||||||
High | Low | ||||||
2012 | |||||||
First | $ | 55.00 | $ | 50.95 | |||
Second | 53.46 | 48.17 | |||||
Third | 54.82 | 49.75 | |||||
Fourth | 54.83 | 51.51 | |||||
2011 | |||||||
First | $ | 47.48 | $ | 40.00 | |||
Second | 49.95 | 44.35 | |||||
Third | 50.77 | 47.51 | |||||
Fourth | 51.38 | 46.99 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 8. | Financial Statements and Supplementary Data. |
/s/ William R. Johnson |
Chairman, President and Chief Executive Officer |
/s/ Arthur B. Winkleblack |
Executive Vice President and Chief Financial Officer |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||
(In thousands, except per share amounts) | |||||||||||
Sales | $ | 11,649,079 | $ | 10,706,588 | $ | 10,494,983 | |||||
Cost of products sold | 7,649,549 | 6,754,048 | 6,700,677 | ||||||||
Gross profit | 3,999,530 | 3,952,540 | 3,794,306 | ||||||||
Selling, general and administrative expenses | 2,548,362 | 2,304,350 | 2,235,078 | ||||||||
Operating income | 1,451,168 | 1,648,190 | 1,559,228 | ||||||||
Interest income | 34,615 | 22,565 | 45,137 | ||||||||
Interest expense | 294,104 | 275,398 | 295,711 | ||||||||
Other expense, net | (8,236 | ) | (21,188 | ) | (18,200 | ) | |||||
Income from continuing operations before income taxes | 1,183,443 | 1,374,169 | 1,290,454 | ||||||||
Provision for income taxes | 243,535 | 368,221 | 358,514 | ||||||||
Income from continuing operations | 939,908 | 1,005,948 | 931,940 | ||||||||
Loss from discontinued operations, net of tax | — | — | (49,597 | ) | |||||||
Net income | 939,908 | 1,005,948 | 882,343 | ||||||||
Less: Net income attributable to the noncontrolling interest | 16,749 | 16,438 | 17,451 | ||||||||
Net income attributable to H. J. Heinz Company | $ | 923,159 | $ | 989,510 | $ | 864,892 | |||||
Income/(loss) per common share: | |||||||||||
Diluted | |||||||||||
Continuing operations attributable to H. J. Heinz Company common shareholders | $ | 2.85 | $ | 3.06 | $ | 2.87 | |||||
Discontinued operations attributable to H. J. Heinz Company common shareholders | — | — | (0.16 | ) | |||||||
Net income attributable to H. J. Heinz Company common shareholders | $ | 2.85 | $ | 3.06 | $ | 2.71 | |||||
Average common shares outstanding—diluted | 323,321 | 323,042 | 318,113 | ||||||||
Basic | |||||||||||
Continuing operations attributable to H. J. Heinz Company common shareholders | $ | 2.87 | $ | 3.09 | $ | 2.89 | |||||
Discontinued operations attributable to H. J. Heinz Company common shareholders | — | — | (0.16 | ) | |||||||
Net income attributable to H. J. Heinz Company common shareholders | $ | 2.87 | $ | 3.09 | $ | 2.73 | |||||
Average common shares outstanding—basic | 320,686 | 320,118 | 315,948 | ||||||||
Cash dividends per share | $ | 1.92 | $ | 1.80 | $ | 1.68 | |||||
Amounts attributable to H. J. Heinz Company common shareholders: | |||||||||||
Income from continuing operations, net of tax | $ | 923,159 | $ | 989,510 | $ | 914,489 | |||||
Loss from discontinued operations, net of tax | — | — | (49,597 | ) | |||||||
Net income | $ | 923,159 | $ | 989,510 | $ | 864,892 |
April 29, 2012 | April 27, 2011 | ||||||
(In thousands) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,330,441 | $ | 724,311 | |||
Trade receivables (net of allowances: 2012—$10,680 and 2011—$10,909) | 815,600 | 1,039,064 | |||||
Other receivables (net of allowances: 2012—$607 and 2011—$503) | 177,910 | 225,968 | |||||
Inventories: | |||||||
Finished goods and work-in-process | 1,082,317 | 1,165,069 | |||||
Packaging material and ingredients | 247,034 | 286,477 | |||||
Total inventories | 1,329,351 | 1,451,546 | |||||
Prepaid expenses | 174,795 | 159,521 | |||||
Other current assets | 54,139 | 153,132 | |||||
Total current assets | 3,882,236 | 3,753,542 | |||||
Property, plant and equipment: | |||||||
Land | 81,185 | 85,457 | |||||
Buildings and leasehold improvements | 1,009,379 | 1,019,311 | |||||
Equipment, furniture and other | 4,175,997 | 4,119,947 | |||||
5,266,561 | 5,224,715 | ||||||
Less accumulated depreciation | 2,782,423 | 2,719,632 | |||||
Total property, plant and equipment, net | 2,484,138 | 2,505,083 | |||||
Other non-current assets: | |||||||
Goodwill | 3,185,527 | 3,298,441 | |||||
Trademarks, net | 1,090,892 | 1,156,221 | |||||
Other intangibles, net | 407,802 | 442,563 | |||||
Other non-current assets | 932,698 | 1,074,795 | |||||
Total other non-current assets | 5,616,919 | 5,972,020 | |||||
Total assets | $ | 11,983,293 | $ | 12,230,645 |
April 29, 2012 | April 27, 2011 | ||||||
(In thousands) | |||||||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 46,460 | $ | 87,800 | |||
Portion of long-term debt due within one year | 200,248 | 1,447,132 | |||||
Trade payables | 1,202,398 | 1,337,620 | |||||
Other payables | 146,414 | 162,047 | |||||
Accrued marketing | 303,132 | 313,389 | |||||
Other accrued liabilities | 647,769 | 715,147 | |||||
Income taxes | 101,540 | 98,325 | |||||
Total current liabilities | 2,647,961 | 4,161,460 | |||||
Long-term debt and other non-current liabilities: | |||||||
Long-term debt | 4,779,981 | 3,078,128 | |||||
Deferred income taxes | 817,928 | 897,179 | |||||
Non-pension post-retirement benefits | 231,452 | 216,172 | |||||
Other non-current liabilities | 581,390 | 570,571 | |||||
Total long-term debt and other non-current liabilities | 6,410,751 | 4,762,050 | |||||
Redeemable noncontrolling interest | 113,759 | 124,669 | |||||
Equity: | |||||||
Capital stock: | |||||||
Third cumulative preferred, $1.70 first series, $10 par value(1) | 61 | 69 | |||||
Common stock, 431,096 shares issued, $0.25 par value | 107,774 | 107,774 | |||||
107,835 | 107,843 | ||||||
Additional capital | 594,608 | 629,367 | |||||
Retained earnings | 7,567,278 | 7,264,678 | |||||
8,269,721 | 8,001,888 | ||||||
Less: | |||||||
Treasury shares, at cost (110,870 shares at April 29, 2012 and 109,818 shares at April 27, 2011) | 4,666,404 | 4,593,362 | |||||
Accumulated other comprehensive loss | 844,728 | 299,564 | |||||
Total H.J. Heinz Company shareholders’ equity | 2,758,589 | 3,108,962 | |||||
Noncontrolling interest | 52,233 | 73,504 | |||||
Total equity | 2,810,822 | 3,182,466 | |||||
Total liabilities and equity | $ | 11,983,293 | $ | 12,230,645 |
(1) | The preferred stock outstanding is convertible at a rate of one share of preferred stock into 15 shares of common stock. The Company can redeem the stock at $28.50 per share. As of April 29, 2012, there were authorized, but unissued, 2,200 shares of third cumulative preferred stock for which the series had not been designated. |
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||
(In thousands, expect per share amounts) | |||||||||||||||||||||
PREFERRED STOCK | |||||||||||||||||||||
Balance at beginning of year | 7 | $ | 69 | 7 | $ | 70 | 7 | $ | 70 | ||||||||||||
Conversion of preferred into common stock | (1 | ) | (8 | ) | — | (1 | ) | — | — | ||||||||||||
Balance at end of year | 6 | 61 | 7 | 69 | 7 | 70 | |||||||||||||||
Authorized shares- April 29, 2012 | 6 | ||||||||||||||||||||
COMMON STOCK | |||||||||||||||||||||
Balance at beginning of year | 431,096 | 107,774 | 431,096 | 107,774 | 431,096 | 107,774 | |||||||||||||||
Balance at end of year | 431,096 | 107,774 | 431,096 | 107,774 | 431,096 | 107,774 | |||||||||||||||
Authorized shares- April 29, 2012 | 600,000 | ||||||||||||||||||||
ADDITIONAL CAPITAL | |||||||||||||||||||||
Balance at beginning of year | 629,367 | 657,596 | 737,917 | ||||||||||||||||||
Conversion of preferred into common stock | (539 | ) | (39 | ) | (29 | ) | |||||||||||||||
Stock options exercised, net of shares tendered for payment | (15,220 | ) | (3) | (26,482 | ) | (3) | (21,717 | ) | (3) | ||||||||||||
Stock option expense | 10,864 | 9,447 | 7,897 | ||||||||||||||||||
Restricted stock unit activity | 4,305 | (8,119 | ) | (9,698 | ) | ||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | (34,483 | ) | (2,411 | ) | (54,209 | ) | |||||||||||||||
Other, net(2) | 314 | (625 | ) | (2,565 | ) | ||||||||||||||||
Balance at end of year | 594,608 | 629,367 | 657,596 | ||||||||||||||||||
RETAINED EARNINGS | |||||||||||||||||||||
Balance at beginning of year | 7,264,678 | 6,856,033 | 6,525,719 | ||||||||||||||||||
Net income attributable to H.J. Heinz Company | 923,159 | 989,510 | 864,892 | ||||||||||||||||||
Cash dividends: | |||||||||||||||||||||
Preferred (per share $1.70 per share in 2012, 2011 and 2010) | (9 | ) | (12 | ) | (9 | ) | |||||||||||||||
Common (per share $1.92, $1.80, and $1.68 in 2012, 2011 and 2010, respectively) | (619,095 | ) | (579,606 | ) | (533,543 | ) | |||||||||||||||
Other(4) | (1,455 | ) | (1,247 | ) | (1,026 | ) | |||||||||||||||
Balance at end of year | 7,567,278 | 7,264,678 | 6,856,033 | ||||||||||||||||||
TREASURY STOCK | |||||||||||||||||||||
Balance at beginning of year | (109,819 | ) | (4,593,362 | ) | (113,404 | ) | (4,750,547 | ) | (116,237 | ) | (4,881,842 | ) | |||||||||
Shares reacquired | (3,860 | ) | (201,904 | ) | (1,425 | ) | (70,003 | ) | — | — | |||||||||||
Conversion of preferred into common stock | 12 | 547 | 1 | 40 | 1 | 29 | |||||||||||||||
Stock options exercised, net of shares tendered for payment | 2,298 | 105,144 | 4,495 | 203,196 | 2,038 | 94,315 | |||||||||||||||
Restricted stock unit activity | 303 | 14,087 | 296 | 13,756 | 470 | 21,864 | |||||||||||||||
Other, net(2) | 195 | 9,084 | 218 | 10,196 | 324 | 15,087 | |||||||||||||||
Balance at end of year | (110,871 | ) | $ | (4,666,404 | ) | (109,819 | ) | $ | (4,593,362 | ) | (113,404 | ) | $ | (4,750,547 | ) |
(1) | See Note No. 5 for further details. |
(2) | Includes activity of the Global Stock Purchase Plan. |
(3) | Includes income tax benefit resulting from exercised stock options. |
(4) | Includes unpaid dividend equivalents on restricted stock units. |
(5) | Comprised of unrealized translation adjustment of $(23,152), pension and post-retirement benefits net prior service cost of $(12,134) and net losses of $(816,060), and deferred net losses on derivative financial instruments of $6,618. |
April 29, 2012 | April 27, 2011 | April 28, 2010 | ||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||
(In thousands, expect per share amounts) | ||||||||||||||||||
OTHER COMPREHENSIVE (LOSS)/INCOME | ||||||||||||||||||
Balance at beginning of year | $ | (299,564 | ) | $ | (979,581 | ) | $ | (1,269,700 | ) | |||||||||
Net pension and post-retirement benefit (losses)/gains | (258,067 | ) | 77,355 | 78,871 | ||||||||||||||
Reclassification of net pension and post-retirement benefit losses to net income | 56,813 | 53,353 | 38,903 | |||||||||||||||
Unrealized translation adjustments | (359,771 | ) | 563,060 | 193,600 | ||||||||||||||
Net change in fair value of cash flow hedges | 30,405 | 9,790 | (32,488 | ) | ||||||||||||||
Net hedging (gains)/losses reclassified into earnings | (14,088 | ) | (21,365 | ) | 13,431 | |||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | (456 | ) | (2,176 | ) | (2,198 | ) | ||||||||||||
Balance at end of year | (844,728 | ) | (5) | (299,564 | ) | (979,581 | ) | |||||||||||
TOTAL H.J. HEINZ COMPANY SHAREHOLDERS’ EQUITY | 2,758,589 | 3,108,962 | 1,891,345 | |||||||||||||||
NONCONTROLLING INTEREST | ||||||||||||||||||
Balance at beginning of year | 73,504 | 57,151 | 59,167 | |||||||||||||||
Net income attributable to the noncontrolling interest | 15,884 | 16,438 | 17,451 | |||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||
Net pension and post-retirement benefit losses | (12 | ) | (57 | ) | (1,266 | ) | ||||||||||||
Unrealized translation adjustments | (5,945 | ) | 4,816 | 8,411 | ||||||||||||||
Net change in fair value of cash flow hedges | (28 | ) | (395 | ) | (788 | ) | ||||||||||||
Net hedging losses reclassified into earnings | 277 | 571 | 254 | |||||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | (19,885 | ) | (1,750 | ) | (5,467 | ) | ||||||||||||
Dividends paid to noncontrolling interest | (11,562 | ) | (3,270 | ) | (20,611 | ) | ||||||||||||
Balance at end of year | 52,233 | 73,504 | 57,151 | |||||||||||||||
TOTAL EQUITY | $ | 2,810,822 | $ | 3,182,466 | $ | 1,948,496 | ||||||||||||
COMPREHENSIVE INCOME | ||||||||||||||||||
Net income | $ | 939,908 | $ | 1,005,948 | $ | 882,343 | ||||||||||||
Other comprehensive income/loss, net of tax: | ||||||||||||||||||
Net pension and post-retirement benefit (losses)/gains | (258,079 | ) | 77,298 | 77,605 | ||||||||||||||
Reclassification of net pension and post-retirement benefit losses to net income | 56,813 | 53,353 | 38,903 | |||||||||||||||
Unrealized translation adjustments | (377,491 | ) | 567,876 | 202,011 | ||||||||||||||
Net change in fair value of cash flow hedges | 30,377 | 9,395 | (33,276 | ) | ||||||||||||||
Net hedging (gains)/losses reclassified into earnings | (13,811 | ) | (20,794 | ) | 13,685 | |||||||||||||
Total comprehensive income | 377,717 | 1,693,076 | 1,181,271 | |||||||||||||||
Comprehensive loss/(income) attributable to the noncontrolling interest | 734 | (21,373 | ) | (24,062 | ) | |||||||||||||
Comprehensive income attributable to H.J. Heinz Company | $ | 378,451 | $ | 1,671,703 | $ | 1,157,209 | ||||||||||||
Note: See Footnote explanations on Page 36. |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Operating activities: | |||||||||||
Net income | $ | 939,908 | $ | 1,005,948 | $ | 882,343 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 295,718 | 255,227 | 254,528 | ||||||||
Amortization | 47,075 | 43,433 | 48,308 | ||||||||
Deferred tax (benefit)/provision | (94,816 | ) | 153,725 | 220,528 | |||||||
Net losses on divestitures | — | — | 44,860 | ||||||||
Pension contributions | (23,469 | ) | (22,411 | ) | (539,939 | ) | |||||
Asset write-downs from Fiscal 2012 productivity initiatives | 58,736 | — | — | ||||||||
Other items, net | 75,375 | 98,172 | 90,938 | ||||||||
Changes in current assets and liabilities, excluding effects of acquisitions and divestitures: | |||||||||||
Receivables (includes proceeds from securitization) | 171,832 | (91,057 | ) | 121,387 | |||||||
Inventories | 60,919 | (80,841 | ) | 48,537 | |||||||
Prepaid expenses and other current assets | (11,584 | ) | (1,682 | ) | 2,113 | ||||||
Accounts payable | (72,352 | ) | 233,339 | (2,805 | ) | ||||||
Accrued liabilities | (20,008 | ) | (60,862 | ) | 96,533 | ||||||
Income taxes | 65,783 | 50,652 | (5,134 | ) | |||||||
Cash provided by operating activities | 1,493,117 | 1,583,643 | 1,262,197 | ||||||||
Investing activities: | |||||||||||
Capital expenditures | (418,734 | ) | (335,646 | ) | (277,642 | ) | |||||
Proceeds from disposals of property, plant and equipment | 9,817 | 13,158 | 96,493 | ||||||||
Acquisitions, net of cash acquired | (3,250 | ) | (618,302 | ) | (11,428 | ) | |||||
Proceeds from divestitures | 3,828 | 1,939 | 18,637 | ||||||||
Sale of short-term investments | 56,780 | — | — | ||||||||
Change in restricted cash | (39,052 | ) | (5,000 | ) | 192,736 | ||||||
Other items, net | (11,394 | ) | (5,781 | ) | (5,353 | ) | |||||
Cash (used for)/provided by investing activities | (402,005 | ) | (949,632 | ) | 13,443 | ||||||
Financing activities: | |||||||||||
Payments on long-term debt | (1,440,962 | ) | (45,766 | ) | (630,394 | ) | |||||
Proceeds from long-term debt | 1,912,467 | 229,851 | 447,056 | ||||||||
Net payments on commercial paper and short-term debt | (42,543 | ) | (193,200 | ) | (427,232 | ) | |||||
Dividends | (619,104 | ) | (579,618 | ) | (533,552 | ) | |||||
Purchases of treasury stock | (201,904 | ) | (70,003 | ) | — | ||||||
Exercise of stock options | 82,714 | 154,774 | 67,369 | ||||||||
Acquisition of subsidiary shares from noncontrolling interests | (54,824 | ) | (6,338 | ) | (62,064 | ) | |||||
Other items, net | 1,321 | 27,791 | (9,099 | ) | |||||||
Cash used for financing activities | (362,835 | ) | (482,509 | ) | (1,147,916 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (122,147 | ) | 89,556 | (17,616 | ) | ||||||
Net increase in cash and cash equivalents | 606,130 | 241,058 | 110,108 | ||||||||
Cash and cash equivalents at beginning of year | 724,311 | 483,253 | 373,145 | ||||||||
Cash and cash equivalents at end of year | $ | 1,330,441 | $ | 724,311 | $ | 483,253 |
1. | Significant Accounting Policies |
2. | Recently Issued Accounting Standards |
• | The establishment of a European supply chain hub in the Netherlands in order to consolidate and centralize procurement, manufacturing, logistics and inventory control decisions, |
• | The exit of at least five factories, including two in Europe, two in the U.S., and one in Asia/Pacific in order to enhance manufacturing effectiveness and efficiency, and |
• | A reduction of the global workforce by approximately 800 to 1,000 positions. |
• | $58.7 million relating to asset write-downs and accelerated depreciation for the closure of eight factories, including two in Europe, three in the U.S. and three in Asia/Pacific, |
• | $89.8 million for severance and employee benefit costs relating to the reduction of the global workforce by approximately 2,900 positions, and |
• | $75.8 million associated with other implementation costs, primarily for professional fees, contract termination and relocation costs for the establishment of the European supply chain hub and to improve global manufacturing efficiencies. |
Fiscal 2012 | ||||
(In millions) | ||||
North American Consumer Products | $ | 25.6 | ||
Europe | 56.4 | |||
Asia/Pacific | 84.5 | |||
U.S. Foodservice | 52.8 | |||
Rest of World | 4.4 | |||
Non-Operating | 0.7 | |||
Total productivity charges | $ | 224.3 |
(In millions) | ||||
Fiscal 2012 productivity charges | $ | 165.6 | ||
Cash payments | (111.0 | ) | ||
Reserve balance at April 29, 2012 | $ | 54.6 |
4. | Discontinued Operations and Other Disposals |
Fiscal Year Ended | ||||
April 28, 2010 | ||||
FY 2010 | ||||
(In millions) | ||||
Sales | $ | 63.0 | ||
Net after-tax losses | $ | (4.7 | ) | |
Tax benefit on losses | $ | 2.0 |
5. | Acquisitions |
6. | Goodwill and Other Intangible Assets |
North American Consumer Products | Europe | Asia/ Pacific | U.S. Foodservice | Rest of World | Total | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at April 28, 2010 | $ | 1,102,891 | $ | 1,106,744 | $ | 289,425 | $ | 257,674 | $ | 14,184 | $ | 2,770,918 | |||||||||||
Acquisitions | — | — | 77,345 | — | 300,227 | 377,572 | |||||||||||||||||
Purchase accounting adjustments | — | (278 | ) | (10,688 | ) | — | — | (10,966 | ) | ||||||||||||||
Translation adjustments | 8,846 | 114,774 | 35,998 | — | 1,299 | 160,917 | |||||||||||||||||
Balance at April 27, 2011 | 1,111,737 | 1,221,240 | 392,080 | 257,674 | 315,710 | 3,298,441 | |||||||||||||||||
Purchase accounting adjustments | — | (600 | ) | — | — | 1,380 | 780 | ||||||||||||||||
Disposals | — | (1,532 | ) | — | — | — | (1,532 | ) | |||||||||||||||
Translation adjustments | (4,662 | ) | (73,820 | ) | 3,119 | — | (36,799 | ) | (112,162 | ) | |||||||||||||
Balance at April 29, 2012 | $ | 1,107,075 | $ | 1,145,288 | $ | 395,199 | $ | 257,674 | $ | 280,291 | $ | 3,185,527 |
April 29, 2012 | April 27, 2011 | ||||||||||||||||||||||
Gross | Accum Amort | Net | Gross | Accum Amort | Net | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Trademarks | $ | 282,937 | $ | (87,925 | ) | $ | 195,012 | $ | 297,020 | $ | (83,343 | ) | $ | 213,677 | |||||||||
Licenses | 208,186 | (163,945 | ) | 44,241 | 208,186 | (158,228 | ) | 49,958 | |||||||||||||||
Recipes/processes | 89,207 | (35,811 | ) | 53,396 | 90,553 | (31,988 | ) | 58,565 | |||||||||||||||
Customer-related assets | 216,755 | (69,244 | ) | 147,511 | 224,173 | (57,555 | ) | 166,618 | |||||||||||||||
Other | 48,643 | (25,442 | ) | 23,201 | 79,045 | (54,833 | ) | 24,212 | |||||||||||||||
$ | 845,728 | $ | (382,367 | ) | $ | 463,361 | $ | 898,977 | $ | (385,947 | ) | $ | 513,030 |
7. | Income Taxes |
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Current: | |||||||||||
U.S. federal | $ | 110,354 | $ | 38,686 | $ | (24,446 | ) | ||||
State | 12,048 | 14,507 | (809 | ) | |||||||
Foreign | 215,949 | 161,303 | 163,241 | ||||||||
338,351 | 214,496 | 137,986 | |||||||||
Deferred: | |||||||||||
U.S. federal | (16,262 | ) | 123,601 | 165,141 | |||||||
State | 4,186 | (4,318 | ) | 8,141 | |||||||
Foreign | (82,740 | ) | 34,442 | 47,246 | |||||||
(94,816 | ) | 153,725 | 220,528 | ||||||||
Provision for income taxes | $ | 243,535 | $ | 368,221 | $ | 358,514 |
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Domestic | $ | 312,197 | $ | 463,142 | $ | 499,059 | |||||
Foreign | 871,246 | 911,027 | 791,395 | ||||||||
From continuing operations | $ | 1,183,443 | $ | 1,374,169 | $ | 1,290,454 |
2012 | 2011 | 2010 | ||||||
U.S. federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Tax on income of foreign subsidiaries | (8.7 | ) | (5.6 | ) | (4.3 | ) | ||
Changes in valuation allowances | 2.6 | (0.2 | ) | 0.2 | ||||
Earnings repatriation | 2.1 | 3.0 | 1.2 | |||||
Tax free interest | (5.6 | ) | (4.2 | ) | (4.6 | ) | ||
Effects of revaluation of tax basis of foreign assets | (3.3 | ) | (1.6 | ) | (0.5 | ) | ||
Audit settlements and changes in uncertain tax positions | (2.1 | ) | — | (1.3 | ) | |||
Other | 0.6 | 0.4 | 2.1 | |||||
Effective tax rate | 20.6 | % | 26.8 | % | 27.8 | % |
2012 | 2011 | ||||||
(In thousands) | |||||||
Depreciation/amortization | $ | 910,987 | $ | 916,716 | |||
Benefit plans | 59,647 | 93,916 | |||||
Deferred income | 96,472 | 126,917 | |||||
Financing costs | 117,670 | 118,118 | |||||
Other | 48,371 | 48,839 | |||||
Deferred tax liabilities | 1,233,147 | 1,304,506 | |||||
Operating loss carryforwards | (141,358 | ) | (120,261 | ) | |||
Benefit plans | (195,697 | ) | (168,001 | ) | |||
Depreciation/amortization | (147,745 | ) | (86,044 | ) | |||
Tax credit carryforwards | (81,703 | ) | (46,452 | ) | |||
Deferred income | (20,286 | ) | (24,235 | ) | |||
Other | (96,502 | ) | (105,327 | ) | |||
Deferred tax assets | (683,291 | ) | (550,320 | ) | |||
Valuation allowance | 90,553 | 64,386 | |||||
Net deferred tax liabilities | $ | 640,409 | $ | 818,572 |
2012 | 2011 | 2010 | |||||||||
(In millions) | |||||||||||
Balance at the beginning of the fiscal year | $ | 70.7 | $ | 57.1 | $ | 86.6 | |||||
Increases for tax positions of prior years | 5.2 | 13.5 | 3.7 | ||||||||
Decreases for tax positions of prior years | (18.0 | ) | (26.0 | ) | (35.4 | ) | |||||
Increases based on tax positions related to the current year | 3.7 | 10.8 | 10.4 | ||||||||
Increases due to business combinations | — | 26.9 | — | ||||||||
Decreases due to settlements with taxing authorities | (2.2 | ) | (5.4 | ) | (0.8 | ) | |||||
Decreases due to lapse of statute of limitations | (6.7 | ) | (6.2 | ) | (7.4 | ) | |||||
Balance at the end of the fiscal year | $ | 52.7 | $ | 70.7 | $ | 57.1 |
8. | Debt and Financing Arrangements |
2012 | 2011 | ||||||
(In thousands) | |||||||
Commercial Paper (variable rate) | $ | — | $ | — | |||
6.625% U.S. Dollar Notes due July 2011 | — | 749,982 | |||||
6.00% U.S. Dollar Notes due March 2012 | — | 599,631 | |||||
Other U.S. Dollar Debt due May 2012 — November 2034 (1.08%—7.89%) | 43,164 | 112,829 | |||||
Other Non-U.S. Dollar Debt due May 2012 — May 2023 (3.50%—11.25%) | 64,060 | 67,964 | |||||
Japanese Yen Credit Agreement due October 2012 (variable rate) | 186,869 | 182,571 | |||||
5.35% U.S. Dollar Notes due July 2013 | 499,958 | 499,923 | |||||
8.0% Heinz Finance Preferred Stock due July 2013 | 350,000 | 350,000 | |||||
Japanese Yen Credit Agreement due December 2013 (variable rate) | 199,327 | 194,742 | |||||
U.S. Dollar Private Placement Notes due May 2014 — May 2021 (2.11% - 4.23%) | 500,000 | — | |||||
U.S. Dollar Private Placement Notes due July 2016 — July 2018 (2.86% - 3.55%) | 100,000 | — | |||||
2.00% U.S. Dollar Notes due September 2016 | 299,913 | — | |||||
1.50% U.S. Dollar Notes due March 2017 | 299,556 | — | |||||
U.S. Dollar Remarketable Securities due December 2020 | 119,000 | 119,000 | |||||
3.125% U.S. Dollar Notes due September 2021 | 395,268 | — | |||||
2.85% U.S. Dollar Notes due March 2022 | 299,516 | — | |||||
6.375% U.S. Dollar Debentures due July 2028 | 231,137 | 230,878 | |||||
6.25% British Pound Notes due February 2030 | 202,158 | 206,590 | |||||
6.75% U.S. Dollar Notes due March 2032 | 435,112 | 435,038 | |||||
7.125% U.S. Dollar Notes due August 2039 | 626,747 | 625,569 | |||||
4,851,785 | 4,374,717 | ||||||
Hedge Accounting Adjustments (See Note 13) | 128,444 | 150,543 | |||||
Less portion due within one year | (200,248 | ) | (1,447,132 | ) | |||
Total long-term debt | $ | 4,779,981 | $ | 3,078,128 | |||
Weighted-average interest rate on long-term debt, including the impact of applicable interest rate swaps | 4.28 | % | 4.23 | % |
9. | Supplemental Cash Flows Information |
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash Paid During the Year For: | |||||||||||
Interest | $ | 277,954 | $ | 268,131 | $ | 305,332 | |||||
Income taxes | $ | 265,547 | $ | 154,527 | $ | 138,953 | |||||
Details of Acquisitions: | |||||||||||
Fair value of assets | $ | — | $ | 1,057,870 | $ | 16,072 | |||||
Liabilities(1) | (3,250 | ) | 274,294 | 4,644 | |||||||
Redeemable noncontrolling interest(2) | — | 124,669 | — | ||||||||
Cash paid | 3,250 | 658,907 | 11,428 | ||||||||
Less cash acquired | — | 40,605 | — | ||||||||
Net cash paid for acquisitions | $ | 3,250 | $ | 618,302 | $ | 11,428 |
(1) | Includes contingent obligations to sellers of $44.5 million in 2011. |
(2) | See Note 18 for additional information. |
10. | Employees' Stock Incentive Plans and Management Incentive Plans |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(In millions) | |||||||||||
Pre-tax compensation cost | $ | 36.5 | $ | 32.7 | $ | 33.4 | |||||
Tax benefit | 12.0 | 10.4 | 10.3 | ||||||||
After-tax compensation cost | $ | 24.5 | $ | 22.3 | $ | 23.1 |
2003 Plan | ||
(In thousands) | ||
Number of shares authorized | 18,869 | |
Number of stock option shares granted | (9,992 | ) |
Number of stock option shares cancelled/forfeited and returned to the plan | 313 | |
Number of restricted stock units and restricted stock issued | (4,895 | ) |
Shares available for grant as stock options | 4,295 |
Fiscal Year Ended | ||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | ||||||
Dividend yield | 3.7 | % | 3.9 | % | 4.3 | % | ||
Expected volatility | 20.9 | % | 20.5 | % | 20.2 | % | ||
Expected term (years) | 5.0 | 5.5 | 5.5 | |||||
Risk-free interest rate | 1.0 | % | 1.7 | % | 2.7 | % |
Number of Options | Weighted Average Exercise Price (per share) | Aggregate Intrinsic Value | ||||||||
(In thousands, except per share data) | ||||||||||
Options outstanding at April 29, 2009 | 14,100 | $ | 38.59 | $ | 544,071 | |||||
Options granted | 1,768 | 39.12 | 69,166 | |||||||
Options exercised | (2,921 | ) | 35.46 | (103,558 | ) | |||||
Options cancelled/forfeited and returned to the plan | (26 | ) | 40.44 | (1,068 | ) | |||||
Options outstanding at April 28, 2010 | 12,921 | 39.36 | 508,611 | |||||||
Options granted | 1,733 | 46.42 | 80,460 | |||||||
Options exercised | (4,813 | ) | 35.73 | (171,980 | ) | |||||
Options cancelled/forfeited and returned to the plan | (73 | ) | 42.81 | (3,147 | ) | |||||
Options outstanding at April 27, 2011 | 9,768 | 42.38 | 413,944 | |||||||
Options granted | 1,649 | 52.19 | 86,068 | |||||||
Options exercised | (2,798 | ) | 37.99 | (106,287 | ) | |||||
Options cancelled/forfeited and returned to the plan | (11 | ) | 38.38 | (435 | ) | |||||
Options outstanding at April 29, 2012 | 8,608 | $ | 45.69 | $ | 393,290 | |||||
Options vested and exercisable at April 28, 2010 | 9,300 | $ | 37.59 | $ | 349,600 | |||||
Options vested and exercisable at April 27, 2011 | 5,744 | $ | 40.65 | $ | 233,507 | |||||
Options vested and exercisable at April 29, 2012 | 4,418 | $ | 43.90 | $ | 193,942 |
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- Average Remaining | Weighted- Average Remaining | Weighted- Average Remaining | Weighted- Average | |||||||||||||||||
Range of Exercise | Number | Life | Exercise Price | Number | Life | Exercise Price | ||||||||||||||
Price Per Share | Outstanding | (Years) | Per Share | Exercisable | (Years) | Per Share | ||||||||||||||
(Options in thousands) | ||||||||||||||||||||
$29.70-$34.00 | 495 | 1.1 | $ | 33.44 | 492 | 1.1 | $ | 33.45 | ||||||||||||
$34.01-$42.42 | 2,087 | 3.8 | 38.92 | 1,211 | 3.5 | 38.82 | ||||||||||||||
$42.43-$52.19 | 6,026 | 4.5 | 49.04 | 2,715 | 3.2 | 48.05 | ||||||||||||||
8,608 | 4.2 | $ | 45.69 | 4,418 | 3.1 | $ | 43.90 |
Number of Options | Weighted Average Grant Date Fair Value (per share) | |||||
(In thousands, except per share data) | ||||||
Unvested options at April 27, 2011 | 4,024 | $ | 5.27 | |||
Options granted | 1,649 | 5.80 | ||||
Options vested | (1,483 | ) | 5.41 | |||
Unvested options at April 29, 2012 | 4,190 | $ | 5.43 |
2003 Plan | ||
(In thousands) | ||
Number of shares authorized | 9,440 | |
Number of shares reserved for issuance | (6,377 | ) |
Number of shares returned to the plan | 1,482 | |
Shares available for grant | 4,545 |
Number of Units | Weighted Average Grant Date Fair Value (Per Share) | |||||
(In thousands, except per share data) | ||||||
Unvested units and stock at April 29, 2009 | 1,722 | $ | 44.08 | |||
Units and stock granted | 628 | 39.55 | ||||
Units and stock vested | (834 | ) | 40.59 | |||
Units and stock cancelled/forfeited and returned to the plan | (20 | ) | 44.12 | |||
Unvested units and stock at April 28, 2010 | 1,496 | 44.13 | ||||
Units and stock granted | 574 | 46.74 | ||||
Units and stock vested | (725 | ) | 44.96 | |||
Units and stock cancelled/forfeited and returned to the plan | (49 | ) | 43.47 | |||
Unvested units and stock at April 27, 2011 | 1,296 | 44.84 | ||||
Units and stock granted | 526 | 52.31 | ||||
Units and stock vested | (520 | ) | 45.27 | |||
Units and stock cancelled/forfeited and returned to the plan | (32 | ) | 45.90 | |||
Unvested units and stock at April 29, 2012 | 1,270 | $ | 47.75 |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(In millions) | |||||||||||
Pre-tax compensation cost | $ | 18.4 | $ | 21.5 | $ | 20.7 | |||||
Tax benefit | 6.5 | 7.4 | 7.0 | ||||||||
After-tax compensation cost | $ | 11.9 | $ | 14.1 | $ | 13.7 |
11. | Fair Value Measurements |
April 29, 2012 | April 27, 2011 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivatives(a) | $ | — | $ | 90,221 | $ | — | $ | 90,221 | $ | — | $ | 115,705 | $ | — | $ | 115,705 | |||||||||||||||
Short-term investments(b) | $ | — | $ | — | $ | — | $ | — | $ | 60,125 | $ | — | $ | — | $ | 60,125 | |||||||||||||||
Total assets at fair value | $ | — | $ | 90,221 | $ | — | $ | 90,221 | $ | 60,125 | $ | 115,705 | $ | — | $ | 175,830 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivatives(a) | $ | — | $ | 15,379 | $ | — | $ | 15,379 | $ | — | $ | 43,007 | $ | — | $ | 43,007 | |||||||||||||||
Earn-out(c) | $ | — | $ | — | $ | 46,881 | $ | 46,881 | $ | — | $ | — | $ | 45,325 | $ | 45,325 | |||||||||||||||
Total liabilities at fair value | $ | — | $ | 15,379 | $ | 46,881 | $ | 62,260 | $ | — | $ | 43,007 | $ | 45,325 | $ | 88,332 |
(a) | Foreign currency derivative contracts are valued based on observable market spot and forward rates, and are classified within Level 2 of the fair value hierarchy. Interest rate swaps are valued based on observable market swap rates, and are classified within Level 2 of the fair value hierarchy. Cross-currency interest rate swaps are valued based on observable market spot and swap rates, and are classified within Level 2 of the fair value hierarchy. The total rate of return swap is valued based on observable market swap rates and the Company's credit spread, and is classified within Level 2 of the fair value hierarchy. |
(b) | The Company acquired Coniexpress in Brazil in Fiscal 2011. The acquisition included short-term investments that are valued based on observable market rates and classified within Level 1 of the fair value hierarchy. |
(c) | The Company acquired Foodstar in China in Fiscal 2011. Consideration for this acquisition included a potential earn-out payment in Fiscal 2014 contingent upon certain net sales and EBITDA (earnings before interest, taxes, depreciation and amortization) targets during Fiscals 2013 and 2014. The fair value of the earn-out was estimated using a discounted cash flow model and is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Key assumptions in determining the fair value of the earn-out include the discount rate, and revenue and EBITDA projections for Fiscals 2013 and 2014. As of April 29, 2012 there were no significant changes to the fair value of the earn-out recorded for Foodstar at the acquisition date. A change in fair value of the earn-out could have a material impact on the Company's earnings. |
12. | Pension and Other Postretirement Benefit Plans |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
Change in Benefit Obligation: | |||||||||||||||
Benefit obligation at the beginning of the year | $ | 2,765,316 | $ | 2,585,984 | $ | 234,431 | $ | 235,297 | |||||||
Service cost | 33,719 | 32,329 | 5,967 | 6,311 | |||||||||||
Interest cost | 139,525 | 142,133 | 11,457 | 12,712 | |||||||||||
Participants’ contributions | 2,281 | 2,444 | 712 | 822 | |||||||||||
Amendments | 3,396 | 377 | 735 | (3,710 | ) | ||||||||||
Actuarial loss/(gain) | 196,606 | (8,457 | ) | 17,278 | (3,786 | ) | |||||||||
Settlement | (1,854 | ) | (3,275 | ) | — | — | |||||||||
Benefits paid | (152,342 | ) | (159,307 | ) | (19,574 | ) | (16,986 | ) | |||||||
Exchange/other | (56,300 | ) | 173,088 | (1,989 | ) | 3,771 | |||||||||
Benefit obligation at the end of the year | $ | 2,930,347 | $ | 2,765,316 | $ | 249,017 | $ | 234,431 | |||||||
Change in Plan Assets: | |||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 3,261,881 | $ | 2,869,971 | $ | — | $ | — | |||||||
Actual return on plan assets | 84,004 | 318,494 | — | — | |||||||||||
Settlement | (1,854 | ) | (3,275 | ) | — | — | |||||||||
Employer contribution | 23,469 | 22,411 | 18,862 | 16,164 | |||||||||||
Participants’ contributions | 2,281 | 2,444 | 712 | 822 | |||||||||||
Benefits paid | (152,342 | ) | (159,307 | ) | (19,574 | ) | (16,986 | ) | |||||||
Exchange/other | (76,605 | ) | 211,143 | — | — | ||||||||||
Fair value of plan assets at the end of the year | 3,140,834 | 3,261,881 | — | — | |||||||||||
Funded status | $ | 210,487 | $ | 496,565 | $ | (249,017 | ) | $ | (234,431 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
Other non-current assets | $ | 399,868 | $ | 644,598 | $ | — | $ | — | |||||||
Other accrued liabilities | (15,943 | ) | (31,589 | ) | (17,565 | ) | (18,259 | ) | |||||||
Other non-current liabilities | (173,438 | ) | (116,444 | ) | (231,452 | ) | (216,172 | ) | |||||||
Net asset/(liabilities) recognized | $ | 210,487 | $ | 496,565 | $ | (249,017 | ) | $ | (234,431 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Components of defined benefit net periodic benefit cost: | |||||||||||||||||||||||
Service cost | $ | 33,719 | $ | 32,329 | $ | 30,486 | $ | 5,967 | $ | 6,311 | $ | 5,999 | |||||||||||
Interest cost | 139,525 | 142,133 | 149,640 | 11,457 | 12,712 | 15,093 | |||||||||||||||||
Expected return on assets | (234,717 | ) | (229,258 | ) | (211,408 | ) | — | — | — | ||||||||||||||
Amortization of: | |||||||||||||||||||||||
Prior service cost/(credit) | 1,995 | 2,455 | 2,173 | (6,127 | ) | (5,155 | ) | (3,796 | ) | ||||||||||||||
Net actuarial loss | 83,800 | 77,687 | 53,882 | 1,095 | 1,604 | 540 | |||||||||||||||||
Loss due to curtailment, settlement and special termination benefits | 1,120 | 2,039 | 612 | — | — | — | |||||||||||||||||
Net periodic benefit cost | 25,442 | 27,385 | 25,385 | 12,392 | 15,472 | 17,836 | |||||||||||||||||
Defined contribution plans | 46,572 | 49,089 | 47,356 | — | — | — | |||||||||||||||||
Total cost | 72,014 | 76,474 | 72,741 | 12,392 | 15,472 | 17,836 | |||||||||||||||||
Less periodic benefit cost associated with discontinued operations | — | — | 618 | — | — | — | |||||||||||||||||
Periodic benefit cost associated with continuing operations | $ | 72,014 | $ | 76,474 | $ | 72,123 | $ | 12,392 | $ | 15,472 | $ | 17,836 |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
Net actuarial loss | $ | 1,174,199 | $ | 909,796 | $ | 28,000 | $ | 11,816 | |||||||
Prior service cost/(credit) | 30,051 | 28,649 | (13,474 | ) | (20,335 | ) | |||||||||
Net amount recognized | $ | 1,204,250 | $ | 938,445 | $ | 14,526 | $ | (8,519 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In thousands) | |||||||||||||||
Net actuarial loss | $ | 77,238 | $ | 85,932 | $ | 1,803 | $ | 1,095 | |||||||
Prior service cost/(credit) | 2,569 | 2,020 | (6,174 | ) | (6,116 | ) | |||||||||
Net amount recognized | $ | 79,807 | $ | 87,952 | $ | (4,371 | ) | $ | (5,021 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Discount rate | 4.8 | % | 5.5 | % | 4.1 | % | 5.0 | % | |||
Compensation increase rate | 3.4 | % | 3.8 | % | — | % | — | % |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||
Expected rate of return | 8.2 | % | 8.2 | % | 8.1 | % | — | % | — | % | — | % | |||||
Discount rate | 4.8 | % | 5.6 | % | 6.5 | % | 4.1 | % | 5.5 | % | 6.4 | % | |||||
Compensation increase rate | 3.4 | % | 4.0 | % | 4.3 | % | — | % | — | % | — | % |
1% Increase | 1% Decrease | ||||||
(In thousands) | |||||||
Effect on total service and interest cost components | $ | 1,592 | $ | 1,426 | |||
Effect on postretirement benefit obligations | $ | 17,501 | $ | 15,882 |
Target | ||||||||||||
Plan Assets at | Allocation at | |||||||||||
Asset Category | 2012 | 2011 | 2012 | 2011 | ||||||||
Equity securities | 61 | % | 62 | % | 59 | % | 58 | % | ||||
Debt securities | 31 | % | 32 | % | 32 | % | 32 | % | ||||
Real estate | 7 | % | 3 | % | 8 | % | 9 | % | ||||
Other | 1 | % | 3 | % | 1 | % | 1 | % | ||||
100 | % | 100 | % | 100 | % | 100 | % |
April 29, 2012 | ||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Equity Securities | $ | 822,184 | $ | — | $ | — | $ | 822,184 | ||||||||
Equity Securities (mutual and pooled funds) | 147,865 | 943,745 | — | 1,091,610 | ||||||||||||
Fixed Income Securities | 76,032 | 894,978 | 10,486 | 981,496 | ||||||||||||
Other Investments | — | — | 216,234 | 216,234 | ||||||||||||
Cash and Cash Equivalents | 10,335 | 18,975 | — | 29,310 | ||||||||||||
Total | $ | 1,056,416 | $ | 1,857,698 | $ | 226,720 | $ | 3,140,834 |
April 27, 2011 | ||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Equity Securities | $ | 863,404 | $ | — | $ | — | $ | 863,404 | ||||||||
Equity Securities (mutual and pooled funds) | 157,296 | 1,005,678 | — | 1,162,974 | ||||||||||||
Fixed Income Securities | 53,381 | 966,157 | 9,649 | 1,029,187 | ||||||||||||
Other Investments | — | — | 131,095 | 131,095 | ||||||||||||
Cash and Cash Equivalents | 16,270 | 58,951 | — | 75,221 | ||||||||||||
Total | $ | 1,090,351 | $ | 2,030,786 | $ | 140,744 | $ | 3,261,881 |
Fair Value April 27, 2011 | Acquisitions | Transfers In | Dispositions | Realized Gain/(Loss) | Unrealized Gain/(Loss) | Fair Value April 29, 2012 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Fixed Income Securities | $ | 9,649 | $ | — | $ | — | $ | — | $ | — | $ | 837 | $ | 10,486 | |||||||||||||
Other Investments | 131,095 | 96,938 | 10,138 | (21,262 | ) | 753 | (1,428 | ) | 216,234 | ||||||||||||||||||
Total | $ | 140,744 | $ | 96,938 | $ | 10,138 | $ | (21,262 | ) | $ | 753 | $ | (591 | ) | $ | 226,720 |
Fair Value April 28, 2010 | Acquisitions | Dispositions | Realized Gain/(Loss) | Unrealized Gain/(Loss) | Fair Value April 27, 2011 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Fixed Income Securities | $ | 8,646 | $ | — | $ | — | $ | — | $ | 1,003 | $ | 9,649 | |||||||||||
Other Investments | 35,569 | 95,518 | (619 | ) | 2,727 | (2,100 | ) | 131,095 | |||||||||||||||
Total | $ | 44,215 | $ | 95,518 | $ | (619 | ) | $ | 2,727 | $ | (1,097 | ) | $ | 140,744 |
Pension Benefits | Other Retiree Benefits | ||||||
(In thousands) | |||||||
2013 | $ | 171,479 | $ | 17,565 | |||
2014 | $ | 186,555 | $ | 18,265 | |||
2015 | $ | 171,446 | $ | 18,706 | |||
2016 | $ | 174,053 | $ | 19,240 | |||
2017 | $ | 174,488 | $ | 19,831 | |||
Years 2018-2022 | $ | 891,680 | $ | 99,799 |
13. | Derivative Financial Instruments and Hedging Activities |
April 29, 2012 | April 27, 2011 | ||||||||||||||||||||||
Foreign Exchange Contracts | Interest Rate Contracts | Cross- Currency Interest Rate Swap Contracts | Foreign Exchange Contracts | Interest Rate Contracts | Cross- Currency Interest Rate Swap Contracts | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Other receivables, net | $ | 17,318 | $ | 6,851 | $ | 18,222 | $ | 28,139 | $ | 38,703 | $ | — | |||||||||||
Other non-current assets | 8,188 | 29,393 | 4,974 | 7,913 | 16,723 | 14,898 | |||||||||||||||||
25,506 | 36,244 | 23,196 | 36,052 | 55,426 | 14,898 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Other receivables, net | 5,041 | — | — | 9,329 | — | — | |||||||||||||||||
Other non-current assets | — | 234 | — | — | — | — | |||||||||||||||||
5,041 | 234 | — | 9,329 | — | — | ||||||||||||||||||
Total assets | $ | 30,547 | $ | 36,478 | $ | 23,196 | $ | 45,381 | $ | 55,426 | $ | 14,898 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Other payables | $ | 10,653 | $ | — | $ | 2,760 | $ | 27,804 | $ | — | $ | 6,125 | |||||||||||
Other non-current liabilities | 14 | — | — | 8,054 | — | — | |||||||||||||||||
10,667 | — | 2,760 | 35,858 | — | 6,125 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Other payables | 1,952 | — | — | 1,024 | — | — | |||||||||||||||||
Total liabilities | $ | 12,619 | $ | — | $ | 2,760 | $ | 36,882 | $ | — | $ | 6,125 |
Fiscal Year Ended | |||||||||||
April 29, 2012 | |||||||||||
Foreign Exchange Contracts | Interest Rate Contracts | Cross-Currency Interest Rate Swap Contracts | |||||||||
(In thousands) | |||||||||||
Cash flow hedges: | |||||||||||
Net gains/(losses) recognized in other comprehensive loss (effective portion) | $ | 45,658 | $ | (2,341 | ) | $ | 5,725 | ||||
Net gains/(losses) reclassified from other comprehensive loss into earnings (effective portion): | |||||||||||
Sales | $ | 8,033 | $ | — | $ | — | |||||
Cost of products sold | (19,880 | ) | — | — | |||||||
Selling, general and administrative expenses | (62 | ) | — | — | |||||||
Other income, net | 33,401 | — | 8,901 | ||||||||
Interest income/(expense) | 199 | (146 | ) | (5,966 | ) | ||||||
21,691 | (146 | ) | 2,935 | ||||||||
Fair value hedges: | |||||||||||
Net losses recognized in other expense, net | — | (19,181 | ) | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Net losses recognized in other expense, net | (2,183 | ) | — | — | |||||||
Net gains recognized in interest income | — | 234 | — | ||||||||
(2,183 | ) | 234 | — | ||||||||
Total amount recognized in statement of income | $ | 19,508 | $ | (19,093 | ) | $ | 2,935 |
Fiscal Year Ended | |||||||||||
April 27, 2011 | |||||||||||
Foreign Exchange Contracts | Interest Rate Contracts | Cross-Currency Interest Rate Swap Contracts | |||||||||
(In thousands) | |||||||||||
Cash flow hedges: | |||||||||||
Net gains recognized in other comprehensive loss (effective portion) | $ | 3,626 | $ | — | $ | 16,649 | |||||
Net gains/(losses) reclassified from other comprehensive loss into earnings (effective portion): | |||||||||||
Sales | $ | 3,375 | $ | — | $ | — | |||||
Cost of products sold | (23,372 | ) | — | — | |||||||
Selling, general and administrative expenses | (141 | ) | — | — | |||||||
Other income, net | 35,744 | — | 24,644 | ||||||||
Interest income/(expense) | 226 | — | (4,484 | ) | |||||||
15,832 | — | 20,160 | |||||||||
Fair value hedges: | |||||||||||
Net losses recognized in other expense, net | — | (51,125 | ) | — | |||||||
Net losses recognized in interest expense, net | — | (351 | ) | — | |||||||
— | (51,476 | ) | — | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Net gains recognized in other expense, net | 3,351 | — | — | ||||||||
Total amount recognized in statement of income | $ | 19,183 | $ | (51,476 | ) | $ | 20,160 |
Fiscal Year Ended | |||||||||||
April 28, 2010 | |||||||||||
Foreign Exchange Contracts | Interest Rate Contracts | Cross-Currency Interest Rate Swap Contracts | |||||||||
(In thousands) | |||||||||||
Cash flow hedges: | |||||||||||
Net losses recognized in other comprehensive loss (effective portion) | $ | (38,422 | ) | $ | — | $ | (13,692 | ) | |||
Net gains/(losses) reclassified from other comprehensive loss into earnings (effective portion): | |||||||||||
Sales | $ | 1,141 | $ | — | $ | — | |||||
Cost of products sold | (5,104 | ) | — | — | |||||||
Selling, general and administrative expenses | 108 | — | — | ||||||||
Other expense, net | (11,574 | ) | — | (7,819 | ) | ||||||
Interest income/(expense) | 20 | — | (1,867 | ) | |||||||
(15,409 | ) | — | (9,686 | ) | |||||||
Fair value hedges: | |||||||||||
Net losses recognized in other expense, net | — | (41,730 | ) | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Net losses recognized in other expense, net | (59 | ) | — | — | |||||||
Net gains recognized in interest income | — | 30,469 | — | ||||||||
(59 | ) | 30,469 | — | ||||||||
Total amount recognized in statement of income | $ | (15,468 | ) | $ | (11,261 | ) | $ | (9,686 | ) |
14. | Income Per Common Share |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Income from continuing operations attributable to H.J. Heinz Company | $ | 923,159 | $ | 989,510 | $ | 914,489 | |||||
Allocation to participating securities | 1,939 | 1,746 | 2,153 | ||||||||
Preferred dividends | 9 | 12 | 9 | ||||||||
Income from continuing operations applicable to common stock | $ | 921,211 | $ | 987,752 | $ | 912,327 | |||||
Average common shares outstanding-basic | 320,686 | 320,118 | 315,948 | ||||||||
Effect of dilutive securities: | |||||||||||
Convertible preferred stock | 104 | 105 | 105 | ||||||||
Stock options, restricted stock and the global stock purchase plan | 2,531 | 2,819 | 2,060 | ||||||||
Average common shares outstanding-diluted | 323,321 | 323,042 | 318,113 |
15. | Other Comprehensive Income |
H. J. Heinz Company | Noncontrolling Interest | Total | |||||||||
(In thousands) | |||||||||||
April 29, 2012 | |||||||||||
Net pension and post-retirement benefit losses | $ | 112,665 | $ | 9 | $ | 112,674 | |||||
Reclassification of net pension and post-retirement benefit losses to net income | $ | 25,070 | $ | — | $ | 25,070 | |||||
Unrealized translation adjustments | $ | 180 | $ | — | $ | 180 | |||||
Net change in fair value of cash flow hedges | $ | (17,770 | ) | $ | 9 | $ | (17,761 | ) | |||
Net hedging gains/losses reclassified into earnings | $ | (10,756 | ) | $ | 92 | $ | (10,664 | ) | |||
April 27, 2011 | |||||||||||
Net pension and post-retirement benefit gains/losses | $ | (25,670 | ) | $ | 14 | $ | (25,656 | ) | |||
Reclassification of net pension and post-retirement benefit losses to net income | $ | 25,276 | $ | — | $ | 25,276 | |||||
Unrealized translation adjustments | $ | (1,158 | ) | $ | — | $ | (1,158 | ) | |||
Net change in fair value of cash flow hedges | $ | (10,348 | ) | $ | 132 | $ | (10,216 | ) | |||
Net hedging gains/losses reclassified into earnings | $ | (15,149 | ) | $ | 191 | $ | (14,958 | ) | |||
April 28, 2010 | |||||||||||
Net pension and post-retirement benefit gains/losses | $ | (39,186 | ) | $ | 351 | $ | (38,835 | ) | |||
Reclassification of net pension and post-retirement benefit losses to net income | $ | 18,468 | $ | — | $ | 18,468 | |||||
Unrealized translation adjustments | $ | 20,491 | $ | — | $ | 20,491 | |||||
Net change in fair value of cash flow hedges | $ | 13,713 | $ | 260 | $ | 13,973 | |||||
Net hedging losses reclassified into earnings | $ | 7,885 | $ | 83 | $ | 7,968 |
16. | Segment Information |
• | North American Consumer Products—This segment primarily manufactures, markets and sells ketchup, condiments, sauces, pasta meals, and frozen potatoes, entrees, snacks, and appetizers to the grocery channels in the United States of America and includes our Canadian business. |
• | Europe—This segment includes the Company’s operations in Europe and products in all of the Company’s categories. |
• | Asia/Pacific—This segment includes the Company’s operations in Australia, New Zealand, India, Japan, China, Papua New Guinea, South Korea, Indonesia, Vietnam and Singapore. This segment’s operations include products in all of the Company’s categories. |
• | U.S. Foodservice—This segment primarily manufactures, markets and sells branded and customized products to commercial and non-commercial food outlets and distributors in the United States of America including ketchup, condiments, sauces, frozen soups and desserts. |
• | Rest of World—This segment includes the Company’s operations in Africa, Latin America, and the Middle East that sell products in all of the Company’s categories. |
Fiscal Year Ended | |||||||||||||||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | April 29, 2012 | April 27, 2011 | April 28, 2010 | ||||||||||||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Net External Sales | Operating Income (Loss) | ||||||||||||||||||||||
North American Consumer Products | $ | 3,241,533 | $ | 3,265,857 | $ | 3,192,219 | $ | 812,056 | $ | 832,719 | $ | 771,497 | |||||||||||
Europe | 3,441,282 | 3,236,800 | 3,332,619 | 608,829 | 581,148 | 554,300 | |||||||||||||||||
Asia/Pacific | 2,568,716 | 2,320,789 | 2,007,252 | 206,306 | 221,580 | 195,261 | |||||||||||||||||
U.S. Foodservice | 1,418,970 | 1,413,456 | 1,429,511 | 166,298 | 175,977 | 150,628 | |||||||||||||||||
Rest of World | 978,578 | 469,686 | 533,382 | 105,080 | 53,371 | 69,219 | |||||||||||||||||
Non-Operating(a) | — | — | — | (223,084 | ) | (216,605 | ) | (158,989 | ) | ||||||||||||||
Productivity initiatives(d) | — | — | — | (224,317 | ) | — | (37,665 | ) | |||||||||||||||
Gain on property disposal in the Netherlands(e) | — | — | — | — | — | 14,977 | |||||||||||||||||
Consolidated Totals | $ | 11,649,079 | $ | 10,706,588 | $ | 10,494,983 | $ | 1,451,168 | $ | 1,648,190 | $ | 1,559,228 | |||||||||||
Depreciation and Amortization Expenses | Capital Expenditures(b) | ||||||||||||||||||||||
Total North America | $ | 133,589 | $ | 123,817 | $ | 122,774 | $ | 103,958 | $ | 101,001 | $ | 88,841 | |||||||||||
Europe | 98,384 | 91,222 | 105,684 | 113,420 | 97,964 | 74,095 | |||||||||||||||||
Asia/Pacific | 63,102 | 53,326 | 46,976 | 99,912 | 71,419 | 46,105 | |||||||||||||||||
Rest of World | 19,290 | 6,324 | 6,638 | 38,539 | 12,829 | 11,785 | |||||||||||||||||
Non-Operating(a) | 28,428 | 23,971 | 16,978 | 62,905 | 52,433 | 56,816 | |||||||||||||||||
Consolidated Totals | $ | 342,793 | $ | 298,660 | $ | 299,050 | $ | 418,734 | $ | 335,646 | $ | 277,642 | |||||||||||
Identifiable Assets | |||||||||||||||||||||||
Total North America | $ | 3,394,387 | $ | 3,633,276 | $ | 3,532,477 | |||||||||||||||||
Europe | 4,158,349 | 4,398,944 | 3,815,179 | ||||||||||||||||||||
Asia/Pacific | 2,544,332 | 2,424,739 | 1,869,591 | ||||||||||||||||||||
Rest of World | 1,145,696 | 1,149,802 | 276,902 | ||||||||||||||||||||
Non-Operating(c) | 740,529 | 623,884 | 581,562 | ||||||||||||||||||||
Consolidated Totals | $ | 11,983,293 | $ | 12,230,645 | $ | 10,075,711 |
(a) | Includes corporate overhead, intercompany eliminations and charges not directly attributable to operating segments. |
(b) | Excludes property, plant and equipment obtained through acquisitions. |
(c) | Includes identifiable assets not directly attributable to operating segments. |
(d) | See Note 3 for further details on Fiscal 2012 productivity initiatives. Fiscal 2010 includes costs associated with targeted workforce reductions and asset write-offs, that were part of a corporation-wide initiative to improve productivity. The asset write-offs related to two factory closures and the exit of a formula business in the U.K. |
(e) | Includes payments received from the government in the Netherlands net of estimated costs to exit the facility. See Note 4 for additional explanation. |
Fiscal Year Ended | |||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Ketchup and Sauces | $ | 5,232,607 | $ | 4,607,971 | $ | 4,446,911 | |||||
Meals and Snacks | 4,479,502 | 4,282,318 | 4,289,977 | ||||||||
Infant/Nutrition | 1,232,248 | 1,175,438 | 1,157,982 | ||||||||
Other | 704,722 | 640,861 | 600,113 | ||||||||
Total | $ | 11,649,079 | $ | 10,706,588 | $ | 10,494,983 |
Fiscal Year Ended | |||||||||||||||||||||||
Net External Sales | Long-Lived Assets | ||||||||||||||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | |||||||||||||||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | April 29, 2012 | April 27, 2011 | April 28, 2010 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
United States | $ | 3,958,259 | $ | 3,991,344 | $ | 3,993,692 | $ | 2,419,518 | $ | 2,425,446 | $ | 2,403,078 | |||||||||||
United Kingdom | 1,611,177 | 1,506,607 | 1,519,278 | 1,207,918 | 1,245,047 | 1,151,660 | |||||||||||||||||
Other | 6,079,643 | 5,208,637 | 4,982,013 | 3,540,923 | 3,731,815 | 2,605,690 | |||||||||||||||||
Total | $ | 11,649,079 | $ | 10,706,588 | $ | 10,494,983 | $ | 7,168,359 | $ | 7,402,308 | $ | 6,160,428 |
17. | Quarterly Results |
2012 | |||||||||||||||||||
First (13 Weeks) | Second (13 Weeks) | Third (13 Weeks) | Fourth (13 1/2 Weeks) | Total (52 1/2 Weeks) | |||||||||||||||
(Unaudited) (In thousands, except per share amounts) | |||||||||||||||||||
Sales | $ | 2,849,581 | $ | 2,831,832 | $ | 2,918,077 | $ | 3,049,589 | $ | 11,649,079 | |||||||||
Gross profit | 985,493 | 970,038 | 1,040,722 | 1,003,277 | 3,999,530 | ||||||||||||||
Net income attributable to H.J. Heinz Company | 226,114 | 237,009 | 284,694 | 175,342 | 923,159 | ||||||||||||||
Per Share Amounts: | |||||||||||||||||||
Net income—diluted | $ | 0.70 | $ | 0.73 | $ | 0.88 | $ | 0.54 | $ | 2.85 | |||||||||
Net income—basic | 0.70 | 0.74 | 0.89 | 0.55 | 2.87 | ||||||||||||||
Cash dividends | 0.48 | 0.48 | 0.48 | 0.48 | 1.92 |
2011 | |||||||||||||||||||
First (13 Weeks) | Second (13 Weeks) | Third (13 Weeks) | Fourth (13 Weeks) | Total (52 Weeks) | |||||||||||||||
(Unaudited) (In thousands, except per share amounts) | |||||||||||||||||||
Sales | $ | 2,480,825 | $ | 2,614,623 | $ | 2,722,350 | $ | 2,888,790 | $ | 10,706,588 | |||||||||
Gross profit | 907,977 | 966,627 | 1,028,293 | 1,049,643 | 3,952,540 | ||||||||||||||
Net income attributable to H.J. Heinz Company | 240,427 | 251,435 | 273,785 | 223,863 | 989,510 | ||||||||||||||
Per Share Amounts: | |||||||||||||||||||
Net income—diluted | $ | 0.75 | $ | 0.78 | $ | 0.84 | $ | 0.69 | $ | 3.06 | |||||||||
Net income—basic | 0.76 | 0.78 | 0.85 | 0.70 | 3.09 | ||||||||||||||
Cash dividends | 0.45 | 0.45 | 0.45 | 0.45 | 1.80 |
2012 | |||||||||||
Pre-tax charges | After-tax charges | EPS impact | |||||||||
(Unaudited) (In millions, except per share amounts) | |||||||||||
First Quarter | $ | 40.5 | $ | 28.4 | $ | 0.09 | |||||
Second Quarter | 37.3 | 25.5 | 0.08 | ||||||||
Third Quarter | 33.8 | 22.8 | 0.07 | ||||||||
Fourth Quarter | 112.7 | 86.2 | 0.27 | ||||||||
Total | $ | 224.3 | $ | 162.9 | $ | 0.50 | |||||
(Totals may not add due to rounding) |
18. | Commitments and Contingencies |
19. | Advertising Costs |
20. | Venezuela- Foreign Currency and Inflation |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
Item 10. | Directors, Executive Officers and Corporate Governance. |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
(a) | (b) | (c) | |||||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation Plans (excluding securities reflected in column (a)) | |||||||
Equity compensation plans approved by stockholders | 10,864,554 | $ | 45.47 | 4,295,249 | |||||
Equity compensation plans not approved by stockholders(1) | 64,413 | N/A | (2) | N/A | |||||
Total | 10,928,967 | $ | 45.47 | 4,295,249 |
(1) | The Executive Deferred Compensation Plan, as amended and restated effective January 1, 2005 and the Deferred Compensation Plan for Non-Employee Directors as amended and restated effective January 1, 2005, permit full-time salaried personnel based in the U.S. who have been identified as key employees and non-employee directors, to defer all or part of his or her cash compensation into either a cash account that accrues interest or a Heinz stock account. The election to defer is irrevocable. The Management Development & Compensation Committee of the Board of Directors administers the Plan. All amounts are payable at the times and in the amounts elected by the executives at the time of the deferral. The deferral period shall be at least one year and shall be no greater than the date of retirement or other termination, whichever is earlier. Amounts deferred into cash accounts are payable in cash, and amounts deferred into the Heinz stock account are payable in Heinz Common Stock. Compensation deferred into the Heinz stock account appreciates or depreciates according to the fair market value of Heinz Common Stock. |
(2) | The grants made under the Executive Deferred Compensation Plan and the Deferred Compensation Plan for Non-Employee Directors are restricted or reserved shares of Common Stock, and therefore there is no exercise price. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accountant Fees and Services. |
Item 15. | Exhibits and Financial Statement Schedules. |
(a)(1) | The following financial statements and reports are filed as part of this report under Item 8—“Financial Statements and Supplementary Data”: | ||||
Consolidated Balance Sheets as of April 29, 2012 and April 27, 2011 | |||||
Consolidated Statements of Income for the fiscal years ended April 29, 2012, April 27, 2011 and April 28, 2010 | |||||
Consolidated Statements of Equity for the fiscal years ended April 29, 2012, April 27, 2011 and April 28, 2010 | |||||
Consolidated Statements of Cash Flows for the fiscal years ended April 29, 2012, April 27, 2011 and April 28, 2010 | |||||
Notes to Consolidated Financial Statements | |||||
Report of Independent Registered Public Accounting Firm of PricewaterhouseCoopers LLP dated June 15, 2012, on the Company’s consolidated financial statements and financial statement schedule filed as a part hereof for the fiscal years ended April 29, 2012, April 27, 2011 and April 28, 2010 | |||||
(2) | The following report and schedule is filed herewith as a part hereof: | ||||
Schedule II (Valuation and Qualifying Accounts and Reserves) for the three fiscal years ended April 29, 2012, April 27, 2011 and April 28, 2010 | |||||
All other schedules are omitted because they are not applicable or the required information is included herein or is shown in the consolidated financial statements or notes thereto filed as part of this report incorporated herein by reference. | |||||
(3) | Exhibits required to be filed by Item 601 of Regulation S-K are listed below. Documents not designated as being incorporated herein by reference are filed herewith. The paragraph numbers correspond to the exhibit numbers designated in Item 601 of Regulation S-K. | ||||
3(i) | Third Amended and Restated Articles of Incorporation of H. J. Heinz Company dated August 21, 2008, are incorporated herein by reference to Exhibit 3(i) of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
3(ii) | The Company’s By-Laws, as amended effective April 29, 2012, are incorporated herein by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K dated March 16, 2012. | ||||
4 | Except as set forth below, there are no instruments with respect to long-term unregistered debt of the Company that involve indebtedness or securities authorized thereunder in amounts that exceed 10 percent of the total assets of the Company on a consolidated basis. The Company agrees to furnish a copy of any instrument or agreement defining the rights of holders of long-term debt of the Company upon request of the Securities and Exchange Commission. | ||||
(a) | Indenture among the Company, H. J. Heinz Finance Company, and Bank One, National Association dated as of July 6, 2001 relating to H. J. Heinz Finance Company’s $550,000,000 6.75% Guaranteed Notes due 2032 and $250,000,000 7.125% Guaranteed Notes due 2039 is incorporated herein by reference to Exhibit 4 of the Company’s Annual Report on Form 10-K for the fiscal year ended May 1, 2002. | ||||
(b) | Indenture among H. J. Heinz Company and Union Bank of California, N.A. dated as of July 15, 2008 relating to the Company’s $500,000,000 5.35% Notes due 2013, $300,000,000 2.000% Notes due 2016, $400,000,000 3.125% Notes due 2021, $300,000,000 1.50% Notes due 2017, $300,000,000 2.85% Notes due 2022 is incorporated herein by reference to Exhibit 4(d) of the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(c) | Five-Year Credit Agreement dated June 30, 2011 among H.J. Heinz Company, H.J. Heinz Finance Company, the banks listed on the signature pages thereto and J.P. Morgan Chase Bank, N.A. as Administrative Agent is incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated July 7, 2011. | ||||
10(a) | Management contracts and compensatory plans: | ||||
(i) | 1986 Deferred Compensation Program for H. J. Heinz Company and affiliated companies, as amended and restated in its entirety effective January 1, 2005, is incorporated herein by reference to Exhibit 10(a)(xi) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. |
(ii) | H. J. Heinz Company Supplemental Executive Retirement Plan, as amended and restated effective November 12, 2008, is incorporated herein by reference to Exhibit 10(a)(ii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 29, 2008. | ||||
(iii) | H. J. Heinz Company Executive Deferred Compensation Plan, as amended and restated effective January 1, 2005, is incorporated herein by reference to Exhibit 10(a)(xii) of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(iv) | H. J. Heinz Company Stock Compensation Plan for Non-Employee Directors is incorporated herein by reference to Appendix A to the Company’s Proxy Statement dated August 3, 1995. | ||||
(v) | H. J. Heinz Company 1996 Stock Option Plan, as amended and restated effective August 13, 2008, is incorporated herein by reference to Exhibit 10(a)(vii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(vi) | H. J. Heinz Company Deferred Compensation Plan for Directors is incorporated herein by reference to Exhibit 10(a)(xiii) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 1998. | ||||
(vii) | H. J. Heinz Company 2000 Stock Option Plan, as amended and restated effective August 13, 2008, is incorporated herein by reference to Exhibit 10(a)(viii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(viii) | H. J. Heinz Company Executive Estate Life Insurance Program is incorporated herein by reference to Exhibit 10(a)(xv) to the Company’s Annual Report on Form 10-K for the fiscal year ended May 1, 2002. | ||||
(ix) | H. J. Heinz Company Senior Executive Incentive Compensation Plan, as amended and restated effective January 1, 2008, is incorporated herein by reference to Exhibit 10(a)(xiii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ending July 30, 2008. | ||||
(x) | Deferred Compensation Plan for Non-Employee Directors of H. J. Heinz Company, as amended and restated effective January 1, 2005, is incorporated herein by reference to Exhibit 10(a)(x) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xi) | Form of Stock Option Award and Agreement for U.S. Employees is incorporated herein by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended January 26, 2005. | ||||
(xii) | Named Executive Officer and Director Compensation | ||||
(xiii) | Form of Revised Severance Protection Agreement is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 29, 2008. | ||||
(xiv) | Form of Fiscal Year 2007 Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 1, 2006. | ||||
(xv) | Form of Fiscal Year 2008 Stock Option Award and Agreement (U.S. Employees) is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xvi) | Form of Stock Option Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xvii) | Form of Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xviii) | Form of Revised Fiscal Year 2008 Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xix) | Form of Restricted Stock Award and Agreement (U.S. Employees Retention) is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. |
(xx) | Third Amended and Restated Fiscal Year 2003 Stock Incentive Plan is incorporated herein by reference to Exhibit 10(a)(ix) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxi) | Third Amended and Restated Global Stock Purchase Plan is incorporated herein by reference to Exhibit 10(a)(xiv) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxii) | Time Sharing Agreement dated as of September 14, 2007, between H. J. Heinz Company and William R. Johnson is incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K dated September 14, 2007. | ||||
(xxiii) | H. J. Heinz Company Annual Incentive Plan (as amended and restated effective January 1, 2008, as amended June 12, 2012). | ||||
(xxiv) | Form of Stock Option Award and Agreement for U.K. Employees on International Assignment is incorporated herein by reference to Exhibit 10(a)(xvii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxv) | Form of Fiscal Year 2008 Restricted Stock Unit Award and Agreement (U.S. Employees—Retention) is incorporated herein by reference to Exhibit 10(a)(xxx) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(xxvi) | Form of Fiscal Year 2009 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxvii) | Form of Fiscal Year 2010-11 Long-Term Performance Program Award Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xxxiv) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(xxviii) | Form of Fiscal Year 2010 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2009. | ||||
(xxix) | Form of Fiscal Year 2010 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(ii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2009. | ||||
(xxx) | Form of Fiscal Year 2010 Restricted Stock Unit Award and Agreement (U.S. Employees—Time Based Vesting) is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2009. | ||||
(xxxi) | Form of Fiscal Year 2010-11 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to the Exhibit 10(a)(xxxv) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(xxxii) | Form of Fiscal Year 2011 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to the Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxiii) | Form of Fiscal Year 2011 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) is incorporated herein by reference to the Exhibit 10(a)(ii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxiv) | Form of Fiscal Year 2011 Stock Option Award Agreement for U.S. Employees is incorporated herein by reference to the Exhibit 10(a)(iii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxv) | Form of Fiscal Year 2011 Stock Option Award and Agreement for U.K. Expatriates on International Assignment is incorporated herein by reference to the Exhibit 10(a)(iv) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. |
(xxxvi) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xxxvii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xxxvii) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xxxviii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xxxviii) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (U.S. Employees — Time Based Vesting) is incorporated herein by reference to Exhibit 10(a)(xxxix) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xxxix) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (U.S. Employees — Retention) is incorporated herein by reference to Exhibit 10(a)(xl) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xl) | Form of Fiscal Year 2012 Stock Option Award and Agreement for U.S. Employees is incorporated herein by reference to Exhibit 10(a)(xli) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xli) | Form of Fiscal Year 2012 Stock Option Award and Agreement for U.K. Expatriates on International Assignment is incorporated herein by reference to Exhibit 10(a)(xlii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xlii) | Form of Fiscal Year 2012-13 Long-Term Performance Program Award Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xliii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xliii) | Form of Fiscal Year 2012-13 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xliv) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xliv) | First Amendment to Third Amended and Restated Global Stock Purchase Plan—H.J. Heinz Company U.K. Sub-Plan is incorporated herein by reference to Exhibit 10(a)(xlv) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xlv) | Form of Fiscal Year 2013-14 Long-Term Performance Program Award Agreement (U.S. Employees). | ||||
(xlvi) | Form of Fiscal Year 2013-14 Long-Term Performance Program Award Agreement (Non-U.S. Employees). | ||||
12 | Computation of Ratios of Earnings to Fixed Charges. | ||||
21 | Subsidiaries of the Registrant. | ||||
23 | Consent of PricewaterhouseCoopers LLP. | ||||
24 | Powers-of-attorney of the Company’s directors. | ||||
31(a) | Rule 13a-14(a)/15d-14(a) Certification by William R. Johnson. | ||||
31(b) | Rule 13a-14(a)/15d-14(a) Certification by Arthur B. Winkleblack. | ||||
32(a) | Certification by the Chief Executive Officer Relating to the Annual Report Containing Financial Statements. | ||||
32(b) | Certification by the Chief Financial Officer Relating to the Annual Report Containing Financial Statements. | ||||
101.INS | XBRL Instance Document | ||||
101.SCH | XBRL Schema Document | ||||
101.CAL | XBRL Calculation Linkbase Document | ||||
101.LAB | XBRL Labels Linkbase Document | ||||
101.PRE | XBRL Presentation Linkbase Document | ||||
101.DEF | XBRL Definition Linkbase Document | ||||
Copies of the exhibits listed above will be furnished upon request to holders or beneficial holders of any class of the Company’s stock, subject to payment in advance of the cost of reproducing the exhibits requested. |
H. J. HEINZ COMPANY | ||
(Registrant) | ||
By: | /s/ Arthur B. Winkleblack | |
Arthur B. Winkleblack | ||
Executive Vice President and Chief Financial Officer |
Signature | Capacity | |
/s/ William R. Johnson | Chairman, President and | |
William R. Johnson | Chief Executive Officer (Principal Executive Officer) | |
/s/ Arthur B. Winkleblack | Executive Vice President and | |
Arthur B. Winkleblack | Chief Financial Officer (Principal Financial Officer) | |
/s/ Edward J. McMenamin | Senior Vice President-Finance | |
Edward J. McMenamin | (Principal Accounting Officer) |
William R. Johnson | Director } | |
Charles E. Bunch | Director } | |
Leonard S. Coleman, Jr. | Director } | |
John G. Drosdick | Director } | |
Edith E. Holiday | Director } | By: /s/ Arthur B. Winkleblack |
Candace Kendle | Director } | Arthur B. Winkleblack |
Dean R. O’Hare | Director } | Attorney-in-Fact |
Nelson Peltz | Director } | |
Dennis H. Reilley | Director } | |
Lynn C. Swann | Director } | |
Thomas J. Usher | Director } | |
Michael F. Weinstein | Director } |
Description | Balance at beginning of period | Charged to costs and expenses | Deductions | Exchange | Balance at end of period | |||||||||||||||
Fiscal year ended April 29, 2012: | ||||||||||||||||||||
Reserves deducted in the balance sheet from the assets to which they apply: | ||||||||||||||||||||
Trade receivables | $ | 10,909 | $ | 4,220 | $ | 3,807 | $ | (642 | ) | $ | 10,680 | |||||||||
Other receivables | $ | 503 | $ | 108 | $ | 8 | $ | 4 | $ | 607 | ||||||||||
Fiscal year ended April 27, 2011: | ||||||||||||||||||||
Reserves deducted in the balance sheet from the assets to which they apply: | ||||||||||||||||||||
Trade receivables | $ | 10,196 | $ | 1,997 | $ | 2,053 | $ | 769 | $ | 10,909 | ||||||||||
Other receivables | $ | 268 | $ | 203 | $ | — | $ | 32 | $ | 503 | ||||||||||
Fiscal year ended April 28, 2010: | ||||||||||||||||||||
Reserves deducted in the balance sheet from the assets to which they apply: | ||||||||||||||||||||
Trade receivables | $ | 10,233 | $ | 2,158 | $ | 2,575 | $ | 380 | $ | 10,196 | ||||||||||
Other receivables | $ | 1,162 | $ | (367 | ) | $ | 602 | $ | 75 | $ | 268 |
Description of Exhibit | |||||
Exhibits required to be filed by Item 601 of Regulation S-K are listed below. Documents not designated as being incorporated herein by reference are filed herewith. The paragraph numbers correspond to the exhibit numbers designated in Item 601 of Regulation S-K. | |||||
3(i) | Third Amended and Restated Articles of Incorporation of H. J. Heinz Company dated August 21, 2008, are incorporated herein by reference to Exhibit 3(i) of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
3(ii) | The Company’s By-Laws, as amended effective April 29, 2012, are incorporated herein by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K dated March 16, 2012. | ||||
4 | Except as set forth below, there are no instruments with respect to long-term unregistered debt of the Company that involve indebtedness or securities authorized thereunder in amounts that exceed 10 percent of the total assets of the Company on a consolidated basis. The Company agrees to furnish a copy of any instrument or agreement defining the rights of holders of long-term debt of the Company upon request of the Securities and Exchange Commission. | ||||
(a) | Indenture among the Company, H. J. Heinz Finance Company, and Bank One, National Association dated as of July 6, 2001 relating to H. J. Heinz Finance Company’s $550,000,000 6.75% Guaranteed Notes due 2032 and $250,000,000 7.125% Guaranteed Notes due 2039 is incorporated herein by reference to Exhibit 4 of the Company’s Annual Report on Form 10-K for the fiscal year ended May 1, 2002. | ||||
(b) | Indenture among H. J. Heinz Company and Union Bank of California, N.A. dated as of July 15, 2008 relating to the Company’s $500,000,000 5.35% Notes due 2013, $300,000,000 2.000% Notes due 2016, $400,000,000 3.125% Notes due 2021, $300,000,000 1.50% Notes due 2017, $300,000,000 2.85% Notes due 2022 is incorporated herein by reference to Exhibit 4(d) of the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(c) | Five-Year Credit Agreement dated June 30, 2011 among H.J. Heinz Company, H.J. Heinz Finance Company, the banks listed on the signature pages thereto and J.P. Morgan Chase Bank, N.A. as Administrative Agent is incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated July 7, 2011. | ||||
10(a) | Management contracts and compensatory plans: | ||||
(i) | 1986 Deferred Compensation Program for H.J. Heinz Company and affiliated companies, as amended and restated in its entirety effective January 1, 2005, is incorporated herein by reference to the Exhibit 10(a)(xi) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(ii) | H. J. Heinz Company Supplemental Executive Retirement Plan, as amended and restated effective November 12, 2008, is incorporated herein by reference to Exhibit 10(a)(ii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 29, 2008. | ||||
(iii) | H. J. Heinz Company Executive Deferred Compensation Plan, as amended and restated effective January 1, 2005, is incorporated herein by reference to Exhibit 10(a)(xii) of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(iv) | H. J. Heinz Company Stock Compensation Plan for Non-Employee Directors is incorporated herein by reference to Appendix A to the Company’s Proxy Statement dated August 3, 1995. | ||||
(v) | H. J. Heinz Company 1996 Stock Option Plan, as amended and restated effective August 13, 2008, is incorporated herein by reference to Exhibit 10(a)(vii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(vi) | H. J. Heinz Company Deferred Compensation Plan for Directors is incorporated herein by reference to Exhibit 10(a)(xiii) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 1998. | ||||
(vii) | H. J. Heinz Company 2000 Stock Option Plan, as amended and restated effective August 13, 2008, is incorporated herein by reference to Exhibit 10(a)(viii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(viii) | H. J. Heinz Company Executive Estate Life Insurance Program is incorporated herein by reference to Exhibit 10(a)(xv) to the Company’s Annual Report on Form 10-K for the fiscal year ended May 1, 2002. | ||||
(ix) | H. J. Heinz Company Senior Executive Incentive Compensation Plan, as amended and restated effective January 1, 2008, is incorporated herein by reference to Exhibit 10(a)(xiii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ending July 30, 2008. | ||||
(x) | Deferred Compensation Plan for Non-Employee Directors of H. J. Heinz Company, as amended and restated effective January 1, 2005, is incorporated herein by reference to Exhibit 10(a)(x) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. |
(xi) | Form of Stock Option Award and Agreement for U.S. Employees is incorporated herein by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended January 26, 2005. | ||||
(xii) | Named Executive Officer and Director Compensation. | ||||
(xiii) | Form of Revised Severance Protection Agreement is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 29, 2008. | ||||
(xiv) | Form of Fiscal Year 2007 Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 1, 2006. | ||||
(xv) | Form of Fiscal Year 2008 Stock Option Award and Agreement (U.S. Employees) is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xvi) | Form of Stock Option Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xvii) | Form of Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xviii) | Form of Revised Fiscal Year 2008 Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xix) | Form of Restricted Stock Award and Agreement (U.S. Employees Retention) is incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | ||||
(xx) | Third Amended and Restated Fiscal Year 2003 Stock Incentive Plan is incorporated herein by reference to Exhibit 10(a)(ix) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxi) | Third Amended and Restated Global Stock Purchase Plan is incorporated herein by reference to Exhibit 10(a)(xiv) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxii) | Time Sharing Agreement dated as of September 14, 2007, between H. J. Heinz Company and William R. Johnson is incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K dated September 14, 2007. | ||||
(xxiii) | H. J. Heinz Company Annual Incentive Plan (as amended and restated effective January 1, 2008, as amended June 12, 2012). | ||||
(xxiv) | Form of Stock Option Award and Agreement for U.K. Employees on International Assignment is incorporated herein by reference to Exhibit 10(a)(xvii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxv) | Form of Fiscal Year 2008 Restricted Stock Unit Award and Agreement (U.S. Employees—Retention) is incorporated herein by reference to Exhibit 10(a)(xxx) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(xxvi) | Form of Fiscal Year 2009 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | ||||
(xxvii) | Form of Fiscal Year 2010-11 Long-Term Performance Program Award Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xxxiv) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. | ||||
(xxviii) | Form of Fiscal Year 2010 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2009. | ||||
(xxix) | Form of Fiscal Year 2010 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(ii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2009. | ||||
(xxx) | Form of Fiscal Year 2010 Restricted Stock Unit Award and Agreement (U.S. Employees—Time Based Vesting) is incorporated herein by reference to Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2009. | ||||
(xxxi) | Form of Fiscal Year 2010-11 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to the Exhibit 10(a)(xxxv) to the Company’s Annual Report on Form 10-K for the fiscal year ended April 29, 2009. |
(xxxii) | Form of Fiscal Year 2011 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to the Exhibit 10(a)(i) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxiii) | Form of Fiscal Year 2011 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) is incorporated herein by reference to the Exhibit 10(a)(ii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxiv) | Form of Fiscal Year 2011 Stock Option Award Agreement for U.S. Employees is incorporated herein by reference to the Exhibit 10(a)(iii) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxv) | Form of Fiscal Year 2011 Stock Option Award and Agreement for U.K. Expatriates on International Assignment is incorporated herein by reference to the Exhibit 10(a)(iv) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended July 28, 2010. | ||||
(xxxvi) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xxxvii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xxxvii) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xxxviii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xxxviii) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (U.S. Employees — Time Based Vesting) is incorporated herein by reference to Exhibit 10(a)(xxxix) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xxxix) | Form of Fiscal Year 2012 Restricted Stock Unit Award and Agreement (U.S. Employees — Retention) is incorporated herein by reference to Exhibit 10(a)(xl) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xl) | Form of Fiscal Year 2012 Stock Option Award and Agreement for U.S. Employees is incorporated herein by reference to Exhibit 10(a)(xli) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xli) | Form of Fiscal Year 2012 Stock Option Award and Agreement for U.K. Expatriates on International Assignment is incorporated herein by reference to Exhibit 10(a)(xlii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xlii) | Form of Fiscal Year 2012-13 Long-Term Performance Program Award Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xliii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xliii) | Form of Fiscal Year 2012-13 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xliv) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xliv) | First Amendment to Third Amended and Restated Global Stock Purchase Plan—H.J. Heinz Company U.K. Sub-Plan is incorporated herein by reference to Exhibit 10(a)(xlv) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 2011. | ||||
(xlv) | Form of Fiscal Year 2013-14 Long-Term Performance Program Award Agreement (U.S. Employees). | ||||
(xlvi) | Form of Fiscal Year 2013-14 Long-Term Performance Program Award Agreement (Non-U.S. Employees). | ||||
12 | Computation of Ratios of Earnings to Fixed Charges. | ||||
21 | Subsidiaries of the Registrant. | ||||
23 | Consent of PricewaterhouseCoopers LLP. | ||||
24 | Powers of attorney of the Company’s directors. | ||||
31(a) | Rule 13a-14(a)/15d-14(a) Certification by William R. Johnson. | ||||
31(b) | Rule 13a-14(a)/15d-14(a) Certification by Arthur B. Winkleblack. | ||||
32(a) | Certification by the Chief Executive Officer Relating to the Annual Report Containing Financial Statements. | ||||
32(b) | Certification by the Chief Financial Officer Relating to the Annual Report Containing Financial Statements. | ||||
101.INS | XBRL | Instance Document | |||
101.SCH | XBRL | Schema Document | |||
101.CAL | XBRL | Calculation Linkbase Document | |||
101.LAB | XBRL | Labels Linkbase Document | |||
101.PRE | XBRL | Presentation Linkbase Document | |||
101.DEF | XBRL | Definition Linkbase Document |
Name | Amount (Effective May 1, 2012)(1) |
William R. Johnson | $1,300,000 |
Chairman, President, and Chief Executive Officer | |
Arthur B. Winkleblack | $675,000 |
Executive Vice President and Chief Financial Officer | |
David C. Moran | $685,000 |
Executive Vice President, President and Chief Executive Officer of Heinz Europe and Global Infant/Nutrition | |
C. Scott O'Hara | $680,000 |
Executive Vice President, President and Chief Executive Officer of Heinz North America | |
Michael D. Milone(2) | $625,000 |
Executive Vice President |
(1) | The above salaries were not changed for Fiscal Year 2013 and remain the same as reported in Exhibit 10(a)(xiii) to the Company's annual report on Form 10-K for Fiscal Year 2011. |
(2) | In March, 2012, Michael D. Milone announced his intention to retire from the Company in June 2012. |
1. | Award. The target value of the award to you under this Agreement is equal to $<< VALUE>> (the “Target Award Opportunity”). The maximum award opportunity for the Performance Period is equal to twice this amount (the “Maximum Award Opportunity”), subject to proration pursuant to Section 3 below. Your actual Award will be paid as a percentage of your Target Award Opportunity, as determined pursuant to Section 2 below. The “Performance Period” means the two consecutive fiscal year periods of Fiscal Year 2013 and Fiscal Year 2014. |
2. | Performance Goals. The Award will be determined based upon the level of success the Company achieves during the Performance Period relative to the performance goals established by the Management Development and Compensation Committee of the Company's Board of Directors (the “MDCC”) as set forth below: |
(a) | After-Tax Return on Invested Capital (ROIC) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Company's performance against the ROIC target metric established by the MDCC (the “ROIC Target”). For each fiscal year in the Performance Period, an ROIC value will be calculated, as adjusted to eliminate the after-tax effects of any charges that may be excluded when determining Performance Measures under the Plan (“ROIC Value”). Each ROIC Value will consist of after-tax operating profit as defined by the Company divided by average invested capital. Average invested capital is defined as the five quarter average of net debt, as defined by the Company, plus total shareholder equity as set forth on the financial statements of the Company for the five most recent fiscal quarters. At the end of the Performance Period, the ROIC Values for each fiscal year in the Performance Period will be averaged (the “ROIC Average”) and the ROIC Average will be compared to the ROIC Target. |
Performance | Percent of ROIC Target Achieved | Percent of Target Award Opportunity Earned (1) |
Above Maximum | >120% | 100% |
Maximum | 120% | 100% |
Target | 100% | 50% |
Threshold | 80% | 12.5% |
Below Threshold | <80% | —% |
(b) | Total Shareholder Return (TSR) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Company's two-year TSR growth rate (the “TSR Value”) compared to the two-year TSR growth rates of each of the companies in the TSR Peer Group other than the Company. The “TSR Peer Group” is comprised of the following companies: Campbell Soup Company, ConAgra Foods, Inc., Dean Foods Company, General Mills, Inc., H. J. Heinz Company, The Hershey Company, Hormel Foods Corporation, The J.M. Smucker Company, Kellogg Company, and McCormick & Company, Incorporated (each a “TSR Peer Company”). Each of the TSR Peer Companies' two-year TSR growth rates will be calculated by using the following values: |
(i) | Starting Value. The average of each TSR Peer Company's stock price for the 60 trading days prior to the first day of a Performance Period (the “Starting Value”); and |
(ii) | Ending Value. The average of each TSR Peer Company's stock price for the 60 trading days prior to and including the last day of a Performance Period plus all dividends paid over the Performance Period (the “Ending Value”). |
(iii) | TSR Value. Dividing the Ending Value by the Starting Value minus one and multiplied by 100 (the “TSR Value”). |
(iv) | TSR Ranking. Arraying the TSR Value of each TSR Peer Company, from highest TSR Value, which is given a ranking of 1, to lowest TSR Value (the “TSR Ranking”). |
Company's TSR Ranking | Percentage of Target Award Opportunity Earned (1) |
1 | 100% |
2 | 87.5% |
3 | 75% |
4 | 62.5% |
5 | 50% |
6 | 37.5% |
7 | 25% |
8 | 12.5% |
9-10 | —% |
3. | Payment of Performance Award. Unless the MDCC offered a deferral election satisfying the requirements of Code Section 409A with respect to your Award, and you made such a deferral election, your Award, if earned, will be paid as soon as administratively practicable after the last day of the Performance Period, (but in no event later than March 15th of the calendar year following the calendar year in which occurs the last day of the Performance Period), subject to Sections 4 and 5 below. |
(a) | If your employment with the Company began after the commencement of the Performance Period, the actual amount of your Target Award Opportunity will be pro-rated based upon the number of months that you were employed by the Company (in an eligible position) during the Performance Period, except that if your employment begins during the last six months of the Performance Period, no Target Award Opportunity for that Performance Period will be granted. |
(b) | The Award will be paid in cash, subject to the limits set forth in the Plan; provided, however, that in the event that you are an executive covered by the Company's Stock Ownership Guidelines (the “SOG”) and you have not yet attained the requisite level of stock ownership at the time payment would otherwise be made, 50% of your Award, after taxes, will be paid in the form of escrowed vested Restricted Stock. At the end of the fiscal year in which you meet the SOG, the restrictions will be lifted. At the time that the SOG are no longer applicable because you terminate employment, the restrictions on the escrowed vested Restricted Stock will be lifted. To the extent the entire award may not be paid in cash due to the limits set forth in the Plan, the remainder of the Award, after taxes, will be made in the form of Common Stock to the extent permitted by the Plan. |
4. | Termination of Employment. The termination of your employment with the Company will have the following effect on your Award: |
(a) | Qualified Termination of Employment During First Year of Performance Period. In the event that your employment with the Company ends during the first fiscal year of the Performance Period as a result of your death, Disability, or Retirement, your Award will be pro-rated automatically and paid (in accordance with Section 3 of this Agreement) at the end of the Performance Period as determined in accordance with Section 2, subject to the provisions of Section 5. In the event that your employment with the Company ends during the first fiscal |
(b) | Qualified Termination of Employment During Second Year of Performance Period. In the event that your employment with the Company ends during the second year of the Performance Period as the result of your death, Disability, or Retirement, you will receive your Award (in accordance with Section 3 of this Agreement), at the end of the Performance Period as determined in accordance with Section 2, subject to the provisions of Section 5. In the event that your employment with the Company ends during the second year of the Performance Period as a result of your Involuntary Termination without Cause, your Award will be forfeited automatically unless you execute a release of claims of the Company in the form requested by the Company, in which case you will receive your Award (in accordance with Section 3 of this Agreement) at the end of the Performance Period as determined in accordance with Section 2, subject to the provisions of Section 5. |
(c) | Other Termination. In the event your employment with the Company ends, at any time prior to the completion of the Performance Period, as the result of any reason other than as set forth in subsections (a) or (b) above, including without limitation any voluntary termination of employment, your Award will be forfeited automatically. |
(d) | Accelerated Payment Upon a Change in Control. In the event of a Change in Control (as defined in Treas. Reg. §1.409A-3(i)(5)) during the Performance Period, payment of this Performance Award will be accelerated immediately. The amount of the Performance Award will be prorated as of the date the Change in Control becomes effective, and shall be determined based upon verifiable Company performance as of such date. In the event of a change in control not defined in Treas. Reg. §1.409A-3(i)(5), there will be no accelerated payment of the Performance Award, but instead the rules of subsections (a) through (c) above shall control. |
5. | Non-Solicitation/Confidential Information. In partial consideration for the Award granted to you hereunder, you agree that you shall not, during the term of your employment by the Company and for 18 months after termination of your employment, regardless of the reason for the termination, either directly or indirectly, solicit, take away or attempt to solicit or take away any employee of the Company, either for your own purpose or for any other person or entity. You further agree that you shall not, during the term of your employment by the Company or at any time thereafter, use or disclose the Confidential Information (as defined below) except as directed by, and in furtherance of the business purposes of, the Company. You acknowledge (i) that the non-solicitation provision set forth in this Section 5 is essential for the proper protection of the business of the Company; (ii) that it is essential to the protection of the Company's goodwill and to the maintenance of the Company's competitive position that any Confidential Information be kept secret and not disclosed to others; and (iii) that the breach or threatened breach of this Section 5 will result in irreparable injury to the Company for which there is no adequate remedy at law because, among other things, it is not readily susceptible of proof as to the monetary damages that would result to the Company. You consent to the issuance of any restraining order or preliminary restraining order or injunction with respect to any conduct by you that is directly or indirectly a breach or a threatened breach of this Section 5. In addition, in the sole discretion of the Company, and in addition to all other rights and remedies |
6. | Impact on Benefits. The Award, if earned, will not be included as compensation under any of the Company's retirement and other benefit plans, including but not limited to the H. J. Heinz Company Supplemental Executive Retirement Plan, the H. J. Heinz Company Employees Retirement and Savings Excess Plan and/or any other plan of the Company. |
7. | Tax Withholding. When your Award is paid, the Company will withhold the amount of money payable for the federal, state, local, and/or foreign income and/or employment taxes required to be collected or withheld with respect to the payment. |
8. | Non-Transferability. Your Award may not be sold, transferred, pledged, assigned or otherwise encumbered except by will or the laws of descent and distribution. |
9. | Employment At-Will. You acknowledge and agree that nothing in this Agreement or the Plan shall confer upon you any right with respect to future awards or continuation of your employment, nor shall it constitute an employment agreement or interfere in any way with your right or the right of the Company to terminate your employment at any time, with or without cause, and with or without notice. |
10. | Collection and Use of Personal Data. You consent to the collection, use, and processing of personal data (including name, home address and telephone number, identification number) by the Company or a third party engaged by the Company for the purpose of implementing, administering, and managing the Plan and any other stock option or stock or long-term incentive plans of the Company (collectively, the “Plans”). You further consent to the release of personal data to such a third party administrator, which, at the option of the Company, may be designated as the exclusive broker in connection with the Plans. You hereby waive any data privacy rights with respect to such data to the extent that receipt, possession, use, retention, or transfer of the data is authorized hereunder. |
11. | Future Awards. The Plan is discretionary in nature and the Company may modify, cancel or terminate it at any time without prior notice in accordance with the terms of the Plan. While Performance Awards or other awards may be granted under the Plan on one or more occasions or even on a regular schedule, each grant is a one-time event, is not an entitlement to an award of cash or stock in the future, and does not create any contractual or other right to receive an award or other compensation or benefits in the future. |
12. | Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its choice of law provisions. |
13. | Code Section 409A. Unless a deferral election satisfying the requirements of Code Section 409A is offered with respect to the Award, it is intended that this Award shall not constitute a “deferral of compensation” within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A of the Code. The Plan and this Award Agreement are to be interpreted in a manner consistent with this intention. Absent a deferral election satisfying the requirements of Section 409A of the Code and notwithstanding any other provision in the Plan, a new award may not be issued if such award would be subject to Section 409A of the Code at the time of grant, and the existing Award may not be modified in a manner that would cause such Award to become subject to Section 409A of the Code at the time of such modification. |
1. | Award. The target value of the award to you under this Agreement is equal to << VALUE>> <<Currency>> (the “Target Award Opportunity”). The maximum award opportunity for the Performance Period is equal to twice this amount (the “Maximum Award Opportunity”), subject to proration pursuant to Section 3 below. Your actual Award will be paid as a percentage of your Target Award Opportunity, as determined pursuant to Section 2 below. The “Performance Period” means the two consecutive fiscal year periods of Fiscal Year 2013 and Fiscal Year 2014. |
2. | Performance Goals. The Award will be determined based upon the level of success the Company achieves during the Performance Period relative to the performance goals established by the Management Development and Compensation Committee of the Company's Board of Directors (the “MDCC”) as set forth below: |
(a) | After-Tax Return on Invested Capital (ROIC) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Company's performance against the ROIC target metric established by the MDCC (the “ROIC Target”). For each fiscal year in the Performance Period, an ROIC value will be calculated, as adjusted to eliminate the after-tax effects of any charges that may be excluded when determining Performance Measures under the Plan (“ROIC Value”). Each ROIC Value will consist of after-tax operating profit as defined by the Company divided by average invested capital. Average invested capital is defined as the five quarter average of net debt, as defined by the Company, plus total shareholder equity as set forth on the financial statements of the Company for the five most recent fiscal quarters. At the end of the Performance Period, the ROIC Values for each fiscal year in the Performance Period will be averaged (the “ROIC Average”) and the ROIC Average will be compared to the ROIC Target. |
Performance | Percent of ROIC Target Achieved | Percent of Target Award Opportunity Earned (1) |
Above Maximum | >120% | 100% |
Maximum | 120% | 100% |
Target | 100% | 50% |
Threshold | 80% | 12.5% |
Below Threshold | <80% | —% |
(b) | Total Shareholder Return (TSR) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Company's two-year TSR growth rate (the “TSR Value”) compared to the two-year TSR growth rates of each of the companies in the TSR Peer Group other than the Company. The “TSR Peer Group” is comprised of the following companies: Campbell Soup Company, ConAgra Foods, Inc., Dean Foods Company, General Mills, Inc., H. J. Heinz Company, The Hershey Company, Hormel Foods Corporation, The J.M. Smucker Company, Kellogg Company, and McCormick & Company, Incorporated (each a “TSR Peer Company”). Each of the TSR Peer Companies' two-year TSR growth rates will be calculated by using the following values: |
(i) | Starting Value. The average of each TSR Peer Company's stock price for the 60 trading days prior to the first day of a Performance Period (the “Starting Value”); and |
(ii) | Ending Value. The average of each TSR Peer Company's stock price for the 60 trading days prior to and including the last day of a Performance Period plus all dividends paid over the Performance Period (the “Ending Value”). |
(iii) | TSR Value. Dividing the Ending Value by the Starting Value minus one and multiplied by 100 (the “TSR Value”). |
(iv) | TSR Ranking. Arraying the TSR Value of each TSR Peer Company, from highest TSR Value, which is given a ranking of 1, to lowest TSR Value (the “TSR Ranking”). |
Company's TSR Ranking | Percentage of Target Award Opportunity Earned (1) |
1 | 100% |
2 | 87.5% |
3 | 75% |
4 | 62.5% |
5 | 50% |
6 | 37.5% |
7 | 25% |
8 | 12.5% |
9-10 | —% |
3. | Payment of Performance Award. Unless the MDCC offered a deferral election satisfying the requirements of Code Section 409A with respect to your Award, and you made such a deferral election, your Award, if earned, will be paid as soon as administratively practicable after the last day of the Performance Period, (but in no event later than March 15th of the calendar year following the calendar year in which occurs the last day of the Performance Period), subject to Sections 4 and 5 below. |
(a) | If your employment with the Company began after the commencement of the Performance Period, the actual amount of your Target Award Opportunity will be pro-rated based upon the number of months that you were employed by the Company (in an eligible position) during the Performance Period, except that if your employment begins during the last six months of the Performance Period, no Target Award Opportunity for that Performance Period will be granted. |
(b) | The Award will be paid in cash, subject to the limits set forth in the Plan; provided, however, that in the event that you are an executive covered by the Company's Stock Ownership Guidelines (the “SOG”) and you have not yet attained the requisite level of stock ownership at the time payment would otherwise be made, 50% of your Award, after taxes, will be paid in the form of escrowed vested Restricted Stock. At the end of the fiscal year in which you meet the SOG, the restrictions will be lifted. At the time that the SOG are no longer applicable because you terminate employment, the restrictions on the escrowed vested Restricted Stock will be lifted. Nevertheless, the Company reserves the right to pay your award entirely in cash in light of local law or administrative issues. To the extent the entire award may not be paid in cash due to the limits set forth in the Plan, the remainder of the Award, after taxes, will be made in Common Stock to the extent permitted by the Plan. |
4. | Termination of Employment. The termination of your employment with the Company will have the following effect on your Award: |
(a) | Qualified Termination of Employment During First Year of Performance Period. In the event that your employment with the Company ends during the first fiscal year of the Performance Period as a result of your death, Disability, or Retirement, your Award will be pro-rated automatically and paid (in accordance with Section 3 of this Agreement) at the end of the Performance Period as determined in accordance with Section 2, subject to the provisions of |
(b) | Qualified Termination of Employment During Second Year of Performance Period. In the event that your employment with the Company ends during the second year of the Performance Period as the result of your death, Disability, or Retirement, you will receive your Award (in accordance with Section 3 of this Agreement), at the end of the Performance Period as determined in accordance with Section 2, subject to the provisions of Section 5. In the event that your employment with the Company ends during the second year of the Performance Period as a result of your Involuntary Termination without Cause, your Award will be forfeited automatically unless you execute a release of claims of the Company in the form requested by the Company, in which case you will receive your Award (in accordance with Section 3 of this Agreement) at the end of the Performance Period as determined in accordance with Section 2, subject to the provisions of Section 5. |
(c) | Other Termination. In the event your employment with the Company ends, at any time prior to the completion of the Performance Period, as the result of any reason other than as set forth in subsections (a) or (b) above, including without limitation any voluntary termination of employment, your Award will be forfeited automatically. |
(d) | Accelerated Payment Upon a Change in Control. In the event of a Change in Control (as defined in Treas. Reg. §1.409A-3(i)(5)) during the Performance Period, payment of this Performance Award will be accelerated immediately. The amount of the Performance Award will be prorated as of the date the Change in Control becomes effective, and shall be determined based upon verifiable Company performance as of such date. In the event of a change in control not defined in Treas. Reg. §1.409A-3(i)(5), there will be no accelerated payment of the Performance Award, but instead the rules of subsections (a) through (c) above shall control. |
5. | Non-Solicitation/Confidential Information.1 In partial consideration for the Award granted to you hereunder, you agree that you shall not, during the term of your employment by the Company and for 18 months after termination of your employment, regardless of the reason for the termination, either directly or indirectly, solicit, take away or attempt to solicit or take away any employee of the Company, either for your own purpose or for any other person or entity. You further agree that you shall not, during the term of your employment by the Company or at any time thereafter, use or disclose the Confidential Information (as defined below) except as directed by, and in furtherance of the business purposes of, the Company. You acknowledge (i) that the non-solicitation provision set forth in this Section 5 is essential for the proper protection of the business of the Company; (ii) that it is essential to the protection of the Company's goodwill and to the maintenance of the Company's competitive position that any Confidential Information be kept secret and not disclosed to others; and (iii) that the breach or threatened breach of this Section 5 will result in irreparable injury to |
6. | Impact on Benefits. The Award, if earned, will not be included as compensation under any of the Company's retirement and other benefit plans, including but not limited to the H. J. Heinz Company Supplemental Executive Retirement Plan, the H. J. Heinz Company Employees Retirement and Savings Excess Plan and/or any other plan of the Company. |
7. | Tax Withholding.2 Regardless of any action the Company or your employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account, or other tax-related withholding (collectively, “Tax-Related Items”), you acknowledge and agree that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or the Employer (i) make no representations nor undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this Award, including the grant of the Award and subsequent delivery of the cash payment and/or (ii) do not commit to structure the terms or any aspect of this Award to reduce or eliminate your liability for Tax-Related Items. You shall pay the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of your participation in the Plan or your receipt of Awards that cannot be satisfied by the means described below. Further, if you are subject to tax in more than one jurisdiction, you acknowledge that the Company and/or Employer (or former Employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. The Company may refuse to deliver the Award payment if you fail to comply with your obligations in connection with the Tax-Related Items. |
8. | Non-Transferability. Your Award may not be sold, transferred, pledged, assigned, or otherwise encumbered except by will or the laws of descent and distribution. |
9. | No Contract of Employment. You acknowledge and agree that nothing in this Agreement or the Plan shall confer upon you any right with respect to future awards or continuation of your employment, nor shall it constitute an employment agreement or an assurance of employment through the Performance Period. |
10. | Acknowledgement and Waiver. You acknowledge and agree that: |
(a) | the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended, or terminated by the Company at any time unless otherwise provided in the Plan or this Agreement; |
(b) | the grant of Awards is voluntary and occasional and does not create any contractual or other right to receive future grants of Awards, or benefits in lieu of Awards, even if Awards have been granted repeatedly in the past; |
(c) | all decisions with respect to future grants, if any, will be at the sole discretion of the Company; |
(d) | your participation in the Plan shall not create a right to further employment with Employer and shall not interfere with the ability of Employer to terminate your employment relationship and it is expressly agreed and understood that employment is terminable at the will of either party, to the extent permitted by law; |
(e) | you are participating voluntarily in the Plan; |
(f) | Awards and resulting benefits are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or the Employer, and are outside the scope of your employment contract, if any; |
(g) | Awards and resulting benefits are not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments to the extent permitted by law; |
(h) | in the event that you are not an employee of the Company, this Award will not be interpreted to form an employment contract or relationship with the Company, and furthermore, this Award will not be interpreted to form an employment contract with the Employer or any Subsidiary of the Company; and |
(i) | in consideration of this Award, no claim or entitlement to compensation or damages shall arise from termination of this grant or diminution in value of this Award resulting from termination of your employment by the Company or the Employer (for any reason whatsoever) and you irrevocably release the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting the terms of this Agreement, you shall be deemed irrevocably to have waived any entitlement to pursue such claim. |
11. | Data Protection.3 You hereby explicitly and unambiguously consent to the collection, use, and transfer, in electronic or other form, of your personal data as described in this Agreement by and among, as applicable, the Employer and the Company for the exclusive purpose of implementing, administering, and managing your participation in the Plan. You understand that the Company and the Employer hold certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the company, details of all options or any other entitlement to shares awarded, canceled, purchased, exercised, vested, unvested, or outstanding in your favor for the purpose of implementing, managing and administering the Plan (“Data”). You understand that the Data may be transferred to any third parties assisting in the implementation, administration, and management of the Plan, that these recipients may be located in your country or elsewhere, including outside the European Economic Area, and that the recipient country may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting the Total Rewards Department of the Company. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering, and managing your participation in the Plan, including any requisite transfer of such Data, as may be required to a broker or other third party with whom you may elect to deposit shares, if any, acquired under the Plan. You understand that the Data will be held only as long as is necessary to implement, administer, and manage participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of the Data, require any necessary amendments to the Data, or refuse or withdraw the consents herein, in any case without cost, by contacting the Total Rewards Department of the Company in writing. You understand that refusing or withdrawing consent may affect your ability to participate in the Plan. For more information on the consequences of refusing to consent or withdrawing consent, you understand that you may contact the Plan administrator at the Company. |
12. | Future Awards. The Plan is discretionary in nature and the Company may modify, cancel, or terminate it at any time without prior notice in accordance with the terms of the Plan. While Performance Awards or other awards may be granted under the Plan on one or more occasions or even on a regular schedule, each grant is a one-time event, is not an entitlement to an award of cash or stock in the future, and does not create any contractual or other right to receive an award or other compensation or benefits in the future. |
13. | Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its choice of law provisions. |
14. | Code Section 409A. Unless a deferral election satisfying the requirements of Code Section 409A is offered with respect to the Award, it is intended that this Award shall not constitute a “deferral of compensation” within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A of the Code. The Plan and this Award Agreement are to be interpreted in a manner consistent with this intention. Absent a deferral election satisfying the requirements of Section 409A of the Code and notwithstanding any other provision in the Plan, a new award may not be issued if such award would be subject to Section 409A of the Code at the time of grant, and the existing Award may not be modified in a manner that would cause such Award to become subject to Section 409A of the Code at the time of such modification. |
Fiscal Years Ended | ||||||||||||||||||||
April 29, 2012 | April 27, 2011 | April 28, 2010 | April 29, 2009 | April 30, 2008 | ||||||||||||||||
(52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense* | $ | 297,880 | $ | 279,482 | $ | 308,846 | $ | 347,756 | $ | 372,002 | ||||||||||
Capitalized interest | 480 | 1,897 | 2,716 | — | — | |||||||||||||||
Interest component of rental expense | 46,617 | 33,056 | 34,506 | 32,655 | 30,691 | |||||||||||||||
Total fixed charges | $ | 344,977 | $ | 314,435 | $ | 346,068 | $ | 380,411 | $ | 402,693 | ||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income or loss from equity investees and income taxes | $ | 1,183,443 | $ | 1,374,169 | $ | 1,290,454 | $ | 1,319,883 | $ | 1,230,763 | ||||||||||
Add: Interest expense* | 297,880 | 279,482 | 308,846 | 347,756 | 372,002 | |||||||||||||||
Add: Interest component of rental expense | 46,617 | 33,056 | 34,506 | 32,655 | 30,691 | |||||||||||||||
Add: Amortization of capitalized interest | 783 | 754 | 367 | 633 | 1,408 | |||||||||||||||
Earnings as adjusted | $ | 1,528,723 | $ | 1,687,461 | $ | 1,634,173 | $ | 1,700,927 | $ | 1,634,864 | ||||||||||
Ratio of earnings to fixed charges | 4.43 | 5.37 | 4.72 | 4.47 | 4.06 |
* | Interest expense includes amortization of debt expense and any discount or premium relating to indebtedness. |
Subsidiary | State or Country |
Heinz Italia S.p.A. | Italy |
Heinz Wattie's Limited | New Zealand |
H. J. Heinz B.V. | Netherlands |
H. J. Heinz Company Australia Limited | Australia |
H. J. Heinz Company of Canada Ltd. | Canada |
H. J. Heinz Company, L.P. | Delaware |
H. J. Heinz Company Limited | United Kingdom |
H. J. Heinz Finance Company | Delaware |
ProMark Brands | Idaho |
Heinz Investments Ltd. | Cyprus |
H. J. Heinz France S.A.S. | France |
Alimentos Heinz, C.A. | Venezuela |
P.T. Heinz ABC Indonesia | Indonesia |
Heinz India Private Limited | India |
Sharpsburg Holdings Limited | Gibraltar |
Heinz European Holding B.V. | Netherlands |
Heinz Brazil S.A. | Brazil |
H.J. Heinz Investment Cooperatief U.A. | Netherlands |
Foodstar Holdings Pte Ltd. | Singapore |
H.J. Heinz Ireland Holdings | Ireland |
Heinz Management LLC | Delaware |
H.J. Heinz Supply Chain Europe B.V. | Netherlands |
Country Ford Development Limited | Hong Kong |
Heinz Asean Pte. Ltd. | Singapore |
Signature | Title |
/s/ William R. Johnson | Chairman of the Board of Directors, President and |
William R. Johnson | Chief Executive Officer (Principal Executive Officer) |
/s/ Charles E. Bunch | Director |
Charles E. Bunch | |
/s/ Leonard S. Coleman, Jr. | Director |
Leonard S. Coleman, Jr. | |
/s/ John G. Drosdick | Director |
John G. Drosdick | |
/s/ Edith E. Holiday | Director |
Edith E. Holiday | |
/s/ Candace Kendle | Director |
Candace Kendle | |
/s/ Dean R. O'Hare | Director |
Dean R. O'Hare | |
/s/ Nelson Peltz | Director |
Nelson Peltz | |
/s/ Dennis H. Reilley | Director |
Dennis H. Reilley | |
/s/ Lynn C. Swann | Director |
Lynn C. Swann | |
/s/ Thomas J. Usher | Director |
Thomas J. Usher | |
/s/ Michael F. Weinstein | Director |
Michael F. Weinstein | |
/s/ Arthur B. Winkleblack | Executive Vice President and Chief Financial Officer |
Arthur B. Winkleblack | |
/s/ Edward J. McMenamin | Senior Vice President-Finance |
Edward J. McMenamin | (Principal Accounting Officer) |
1. | I have reviewed this annual report on Form 10-K of H. J. Heinz Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons fulfilling the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ William R. Johnson | |
Name: | William R. Johnson | |
Title: | Chairman, President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of H. J. Heinz Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons fulfilling the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ Arthur B. Winkleblack | |
Name: | Arthur B. Winkleblack | |
Title: | Executive Vice President and Chief Financial Officer |
1. | The Company’s annual report on Form 10-K for the fiscal year ended April 29, 2012 (the “Form 10-K”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ William R. Johnson | |
Name: | William R. Johnson | |
Title: | Chairman, President and Chief Executive Officer |
1. | The Company’s annual report on Form 10-K for the fiscal year ended April 29, 2012 (the “Form 10-K”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Arthur B. Winkleblack | |
Name: | Arthur B. Winkleblack | |
Title: | Executive Vice President and Chief Financial Officer |
Derivative Financial Instruments and Hedging Activities (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 29, 2012
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values and corresponding balance sheet captions of the Company's derivative instruments | The following table presents the fair values and corresponding balance sheet captions of the Company’s derivative instruments as of April 29, 2012 and April 27, 2011:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of derivative instruments on the statement of income | The following table presents the pre-tax effect of derivative instruments on the statement of income for the fiscal year ended April 29, 2012:
The following table presents the pre-tax effect of derivative instruments on the statement of income for the fiscal year ended April 27, 2011:
The following table presents the pre-tax effect of derivative instruments on the statement of income for the fiscal year ended April 28, 2010:
|
Income Taxes 4 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 29, 2012
|
Apr. 27, 2011
|
---|---|---|
Income Tax Disclosure [Abstract] | ||
Depreciation/amortization | $ 910,987 | $ 916,716 |
Benefit plans | 59,647 | 93,916 |
Deferred income | 96,472 | 126,917 |
Financing costs | 117,670 | 118,118 |
Other | 48,371 | 48,839 |
Deferred tax liabilities | 1,233,147 | 1,304,506 |
Operating loss carryforwards | (141,358) | (120,261) |
Benefit plans | (195,697) | (168,001) |
Depreciation/amortization | (147,745) | (86,044) |
Tax credit carryforwards | (81,703) | (46,452) |
Deferred income | (20,286) | (24,235) |
Other | (96,502) | (105,327) |
Deferred tax assets | (683,291) | (550,320) |
Valuation allowance | 90,553 | 64,386 |
Net deferred tax liabilities | $ 640,409 | $ 818,572 |
Acquisitions (Details) (USD $)
|
12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
Apr. 01, 2011
Coniexpress S.A. Industrias Alimenticias [Member]
|
Apr. 01, 2011
Coniexpress S.A. Industrias Alimenticias [Member]
Customer-related assets [Member]
Y
|
Apr. 27, 2011
Foodstar Holding Pte [Member]
Y
|
Apr. 29, 2012
Foodstar Holding Pte [Member]
|
Nov. 02, 2010
Foodstar Holding Pte [Member]
|
Jan. 27, 2010
Arthur's Fresh Company [Member]
|
Apr. 25, 2012
P.T. Heinz ABC Indonesia [Member]
|
Jul. 27, 2011
P.T. Heinz ABC Indonesia [Member]
|
Apr. 27, 2011
Heinz UFE Ltd [Member]
|
Apr. 28, 2010
Heinz UFE Ltd [Member]
|
Apr. 28, 2010
Cairo Food Industries [Member]
|
Apr. 29, 2009
Cairo Food Industries [Member]
|
Apr. 01, 2011
Call Option [Member]
Coniexpress S.A. Industrias Alimenticias [Member]
|
Apr. 01, 2011
Noncontrolling Interest [Member]
Put Option [Member]
Coniexpress S.A. Industrias Alimenticias [Member]
|
Apr. 01, 2011
Trademarks [Member]
Coniexpress S.A. Industrias Alimenticias [Member]
|
Apr. 01, 2011
Rest of World [Member]
Coniexpress S.A. Industrias Alimenticias [Member]
|
|
Business Acquisition [Line Items] | |||||||||||||||||||
Noncontrolling Interest, Ownerhsip interest by Parent | 80.00% | 65.00% | 79.00% | 51.00% | |||||||||||||||
Cash paid for acquisition | $ 493,500,000 | $ 165,400,000 | $ 11,000,000 | ||||||||||||||||
Acquisition including acquired cash | 10,600,000 | 30,000,000 | |||||||||||||||||
Acquisition including short-term investment | 60,100,000 | ||||||||||||||||||
Pre-tax cost incurred related to acquisition | 11,300,000 | ||||||||||||||||||
Acquisition of remaining interest in subsidiary | 21.00% | 49.00% | 20.00% | 20.00% | |||||||||||||||
Preliminary allocations of the purchase price resulted in goodwill | 77,300,000 | 301,600,000 | |||||||||||||||||
Business acquisition purchase price allocation intangible assets total excluding goodwill | 161,900,000 | 70,700,000 | |||||||||||||||||
Assets related to trademarks and recipes which are not subject to amortization | 42,400,000 | 142,000,000 | |||||||||||||||||
Business acquisition purchase price allocation intangible assets which are subject to amortization | 19,900,000 | 28,300,000 | |||||||||||||||||
Business acquisition purchase price allocation intangible assets which are subject to amortization, useful life | 15 | 31 | |||||||||||||||||
Estimate of the acquisition date fair value | 44,500,000 | 44,500,000 | 44,500,000 | ||||||||||||||||
Noncontrolling Interest, Decrease from Purchase of Interests | 10.00% | ||||||||||||||||||
Acquisition of subsidiary shares from noncontrolling interests | $ (54,824,000) | $ (6,338,000) | $ (62,064,000) | $ (54,800,000) | $ (6,300,000) | $ (62,100,000) |
Pension and Other Postretirement Benefit Plans 2 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 29, 2012
|
Apr. 27, 2011
|
---|---|---|
Pension Plans, Defined Benefit [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 399,868 | $ 644,598 |
Other accrued liabilities | (15,943) | (31,589) |
Other non-current liabilities | (173,438) | (116,444) |
Net asset/(liabilities) recognized | 210,487 | 496,565 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | 0 | 0 |
Other accrued liabilities | (17,565) | (18,259) |
Other non-current liabilities | (231,452) | (216,172) |
Net asset/(liabilities) recognized | $ (249,017) | $ (234,431) |
Income Taxes 5 (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
|
Income Tax Disclosure [Abstract] | |||
Balance at the beginning of the fiscal year | $ 70.7 | $ 57.1 | $ 86.6 |
Increases for tax positions of prior years | 5.2 | 13.5 | 3.7 |
Decreases for tax positions of prior years | (18.0) | (26.0) | (35.4) |
Increases based on tax positions related to the current year | 3.7 | 10.8 | 10.4 |
Increases due to business combinations | 0 | 26.9 | 0 |
Decreases due to settlements with taxing authorities | (2.2) | (5.4) | (0.8) |
Decreases due to lapse of statute of limitations | (6.7) | (6.2) | (7.4) |
Balance at the end of the fiscal year | $ 52.7 | $ 70.7 | $ 57.1 |
Derivative Financial Instruments and Hedging Activities 1 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 29, 2012
|
Apr. 27, 2011
|
---|---|---|
Foreign Exchange Contract [Member]
|
||
Assets: | ||
Total assets | $ 30,547 | $ 45,381 |
Liabilities: | ||
Total liabilities | 12,619 | 36,882 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 25,506 | 36,052 |
Liabilities: | ||
Total liabilities | 10,667 | 35,858 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 17,318 | 28,139 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 8,188 | 7,913 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 10,653 | 27,804 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 14 | 8,054 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 5,041 | 9,329 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 5,041 | 9,329 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 0 | 0 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 1,952 | 1,024 |
Interest Rate Contract [Member]
|
||
Assets: | ||
Total assets | 36,478 | 55,426 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 36,244 | 55,426 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 6,851 | 38,703 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 29,393 | 16,723 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 234 | 0 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 0 | 0 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 234 | 0 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 0 | 0 |
Cross Currency Interest Rate Contract [Member]
|
||
Assets: | ||
Total assets | 23,196 | 14,898 |
Liabilities: | ||
Total liabilities | 2,760 | 6,125 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 23,196 | 14,898 |
Liabilities: | ||
Total liabilities | 2,760 | 6,125 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 18,222 | 0 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 4,974 | 14,898 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 2,760 | 6,125 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 0 | 0 |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | $ 0 | $ 0 |
Productivity Initiatives 2 (Details) (USD $)
|
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 29, 2012
|
Jan. 25, 2012
|
Oct. 26, 2011
|
Jul. 27, 2011
|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | $ 112,700,000 | $ 33,800,000 | $ 37,300,000 | $ 40,500,000 | $ 224,317,000 | [1] | $ 0 | [1] | $ 37,665,000 | [1] | ||
Cash payments | (111,000,000) | |||||||||||
Reserve balance at April 29, 2012 | 54,600,000 | 54,600,000 | ||||||||||
Productivity Initatives [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | 224,300,000 | |||||||||||
Fiscal 2012 productivity charges | 165,600,000 | |||||||||||
Productivity Initatives [Member] | North American Consumer Products [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | 25,600,000 | |||||||||||
Productivity Initatives [Member] | Europe [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | 56,400,000 | |||||||||||
Productivity Initatives [Member] | Asia Pacific [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | 84,500,000 | |||||||||||
Productivity Initatives [Member] | U.S. Foodservice [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | 52,800,000 | |||||||||||
Productivity Initatives [Member] | Rest of World [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | 4,400,000 | |||||||||||
Productivity Initatives [Member] | Non-Operating [Member]
|
||||||||||||
Restructuring Costs by Reportable Segment [Line Items] | ||||||||||||
Productivity charges | $ 700,000 | |||||||||||
|
Income Taxes (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 29, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense Benefit Continuing Operations | The following table summarizes the provision/(benefit) for U.S. federal, state and foreign taxes on income from continuing operations.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income From Continuing Operations Before Income Taxes | The components of income from continuing operations before income taxes consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U S Federal Statuatory Tax Rate Reconciliation To Effective Tax Rate | The differences between the U.S. federal statutory tax rate and the Company’s consolidated effective tax rate on continuing operations are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Tax Assets And Liabilities | The following table and note summarize deferred tax (assets) and deferred tax liabilities as of April 29, 2012 and April 27, 2011.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
|
Allowance for Trade Receivables [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Reserves, Balance at beginning of period | $ 10,909 | $ 10,196 | $ 10,233 |
Charged to costs and expenses | 4,220 | 1,997 | 2,158 |
Deductions | 3,807 | 2,053 | 2,575 |
Exchange | (642) | 769 | 380 |
Valuation Reserves, Balance at end of period | 10,680 | 10,909 | 10,196 |
Allowance For Other Receivables [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Reserves, Balance at beginning of period | 503 | 268 | 1,162 |
Charged to costs and expenses | 108 | 203 | (367) |
Deductions | 8 | 0 | 602 |
Exchange | 4 | 32 | 75 |
Valuation Reserves, Balance at end of period | $ 607 | $ 503 | $ 268 |
Debt and Financing Arrangements 1 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 29, 2012
Long-term Commercial Paper [Member]
|
Apr. 27, 2011
Long-term Commercial Paper [Member]
|
Apr. 29, 2012
6.625% U.S. Dollar Notes due July 2011 [Member]
|
Apr. 27, 2011
6.625% U.S. Dollar Notes due July 2011 [Member]
|
Apr. 29, 2012
6.00% U.S. Dollar Notes due March 2012 [Member]
|
Apr. 27, 2011
6.00% U.S. Dollar Notes due March 2012 [Member]
|
Apr. 29, 2012
Other U.S. Dollar due May 2012 — November 2034 (1.08—7.89)% [Member]
|
Apr. 27, 2011
Other U.S. Dollar due May 2012 — November 2034 (1.08—7.89)% [Member]
|
Apr. 29, 2012
Other Non-U.S. Dollar due May 2012 — May 2023 (3.50—11.25)% [Member]
|
Apr. 27, 2011
Other Non-U.S. Dollar due May 2012 — May 2023 (3.50—11.25)% [Member]
|
Apr. 29, 2012
Japanese Yen Credit Agreement due October 2012 [Member]
|
Apr. 27, 2011
Japanese Yen Credit Agreement due October 2012 [Member]
|
Apr. 29, 2012
5.35% U.S. Dollar Notes due July 2013 [Member]
|
Apr. 27, 2011
5.35% U.S. Dollar Notes due July 2013 [Member]
|
Apr. 29, 2012
8.0% Heinz Finance Preferred Stock due July 2013 [Member]
|
Apr. 27, 2011
8.0% Heinz Finance Preferred Stock due July 2013 [Member]
|
Apr. 29, 2012
Japanese Yen Credit Agreement due December 2013 [Member]
|
Apr. 27, 2011
Japanese Yen Credit Agreement due December 2013 [Member]
|
Apr. 29, 2012
U.S. Dollar Private Placement Notes due May 2014 — May 2021 [Member]
|
Apr. 27, 2011
U.S. Dollar Private Placement Notes due May 2014 — May 2021 [Member]
|
Apr. 29, 2012
US Dollar Private Placement Notes Due July 2016 To July 2018 [Member]
|
Apr. 27, 2011
US Dollar Private Placement Notes Due July 2016 To July 2018 [Member]
|
Apr. 29, 2012
2.00% U.S. Dollar Notes due September 2016 [Member]
|
Oct. 26, 2011
2.00% U.S. Dollar Notes due September 2016 [Member]
|
Apr. 27, 2011
2.00% U.S. Dollar Notes due September 2016 [Member]
|
Apr. 29, 2012
1.50% U.S. Dollar Notes due March 2017 [Member]
|
Apr. 27, 2011
1.50% U.S. Dollar Notes due March 2017 [Member]
|
Apr. 29, 2012
U.S. Dollar Remarketable Securities due December 2020 [Member]
|
Jan. 25, 2012
U.S. Dollar Remarketable Securities due December 2020 [Member]
|
Apr. 27, 2011
U.S. Dollar Remarketable Securities due December 2020 [Member]
|
Oct. 28, 2009
U.S. Dollar Remarketable Securities due December 2020 [Member]
|
Apr. 29, 2012
3.125% U.S. Dollar Notes due September 2021 [Member]
|
Oct. 26, 2011
3.125% U.S. Dollar Notes due September 2021 [Member]
|
Apr. 27, 2011
3.125% U.S. Dollar Notes due September 2021 [Member]
|
Apr. 29, 2012
2.85% U.S. Dollar Notes Due March 2022 [Member]
|
Apr. 27, 2011
2.85% U.S. Dollar Notes Due March 2022 [Member]
|
Apr. 29, 2012
6.375% U.S. Dollar Debentures due July 2028 [Member]
|
Apr. 27, 2011
6.375% U.S. Dollar Debentures due July 2028 [Member]
|
Apr. 29, 2012
6.25% British Pound Notes due February 2030 [Member]
|
Apr. 27, 2011
6.25% British Pound Notes due February 2030 [Member]
|
Apr. 29, 2012
6.75% U.S. Dollar Notes due March 2032 [Member]
|
Apr. 27, 2011
6.75% U.S. Dollar Notes due March 2032 [Member]
|
Apr. 29, 2012
7.125% U.S. Dollar Notes due August 2039 [Member]
|
Apr. 27, 2011
7.125% U.S. Dollar Notes due August 2039 [Member]
|
Oct. 28, 2009
7.125% U.S. Dollar Notes due August 2039 [Member]
|
Apr. 29, 2012
Minimum [Member]
Other U.S. Dollar due May 2012 — November 2034 (1.08—7.89)% [Member]
|
Apr. 29, 2012
Minimum [Member]
Other Non-U.S. Dollar due May 2012 — May 2023 (3.50—11.25)% [Member]
|
Apr. 29, 2012
Minimum [Member]
U.S. Dollar Private Placement Notes due May 2014 — May 2021 [Member]
|
Apr. 29, 2012
Minimum [Member]
US Dollar Private Placement Notes Due July 2016 To July 2018 [Member]
|
Apr. 29, 2012
Maximum [Member]
Other U.S. Dollar due May 2012 — November 2034 (1.08—7.89)% [Member]
|
Apr. 29, 2012
Maximum [Member]
Other Non-U.S. Dollar due May 2012 — May 2023 (3.50—11.25)% [Member]
|
Apr. 29, 2012
Maximum [Member]
U.S. Dollar Private Placement Notes due May 2014 — May 2021 [Member]
|
Apr. 29, 2012
Maximum [Member]
US Dollar Private Placement Notes Due July 2016 To July 2018 [Member]
|
|
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | $ 4,851,785 | $ 4,374,717 | $ 0 | $ 0 | $ 0 | $ 749,982 | $ 0 | $ 599,631 | $ 43,164 | $ 112,829 | $ 64,060 | $ 67,964 | $ 186,869 | $ 182,571 | $ 499,958 | $ 499,923 | $ 350,000 | $ 350,000 | $ 199,327 | $ 194,742 | $ 500,000 | $ 0 | $ 100,000 | $ 0 | $ 299,913 | $ 0 | $ 299,556 | $ 0 | $ 119,000 | $ 119,000 | $ 395,268 | $ 0 | $ 299,516 | $ 0 | $ 231,137 | $ 230,878 | $ 202,158 | $ 206,590 | $ 435,112 | $ 435,038 | $ 626,747 | $ 625,569 | |||||||||||||
Interest rate on notes issued | 6.625% | 6.00% | 5.35% | 2.00% | 2.00% | 1.50% | 6.049% | 15.59% | 3.125% | 3.125% | 2.85% | 6.375% | 6.25% | 6.75% | 7.125% | 7.125% | 1.08% | 3.50% | 2.11% | 2.86% | 7.89% | 11.25% | 4.23% | 3.55% | |||||||||||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 8.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge Accounting Adjustments | 128,444 | 150,543 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less portion due within one year | (200,248) | (1,447,132) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ 4,779,981 | $ 3,078,128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average interest rate on long-term debt, including the impact of applicable interest rate swaps | 4.28% | 4.23% |
Pension and Other Postretirement Benefit Plans 8 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 29, 2012
|
---|---|
Pension Plans, Defined Benefit [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
2013 | $ 171,479 |
2014 | 186,555 |
2015 | 171,446 |
2016 | 174,053 |
2017 | 174,488 |
Years 2018-2022 | 891,680 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
2013 | 17,565 |
2014 | 18,265 |
2015 | 18,706 |
2016 | 19,240 |
2017 | 19,831 |
Years 2018-2022 | $ 99,799 |
Income Per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
|
Earnings Per Share Reconciliation | |||
Income from continuing operations attributable to H.J. Heinz Company | $ 923,159 | $ 989,510 | $ 914,489 |
Allocation to participating securities | 1,939 | 1,746 | 2,153 |
Preferred dividends | 9 | 12 | 9 |
Income from continuing operations applicable to common stock - basic | 921,211 | 987,752 | 912,327 |
Income from continuing operations applicable to common stock - diluted | $ 921,211 | $ 987,752 | $ 912,327 |
Average common shares outstanding-basic | 320,686,000 | 320,118,000 | 315,948,000 |
Effect of dilutive securities: | |||
Convertible preferred stock | 104,000 | 105,000 | 105,000 |
Stock options, restricted stock and the global stock purchase plan | 2,531,000 | 2,819,000 | 2,060,000 |
Average common shares outstanding-diluted | 323,321,000 | 323,042,000 | 318,113,000 |
Anti-dilutive stock options | 800,000 | 2,400,000 | 4,400,000 |
Advertising Costs (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
|
Advertising Costs [Abstract] | |||
Advertising expenses including production and communication costs | $ 442.0 | $ 369.6 | $ 375.8 |
Advertising expense reduction of revenue | 151.5 | 119.0 | 108.9 |
Advertising expense selling general and adminstrative expense | $ 290.5 | $ 250.6 | $ 266.9 |
Commitments and Contingencies
|
12 Months Ended |
---|---|
Apr. 29, 2012
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters: Certain suits and claims have been filed against the Company and have not been finally adjudicated. In the opinion of management, based upon the information that it presently possesses, the final conclusion and determination of these suits and claims would not be expected to have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Lease Commitments: Operating lease rentals for warehouse, production and office facilities and equipment amounted to approximately $158.4 million in 2012, $115.1 million in 2011 and $119.1 million in 2010. Future lease payments for non-cancellable operating leases as of April 29, 2012 totaled $492.5 million (2013-$96.4 million, 2014-$75.1 million, 2015-$62.2 million, 2016-$44.5 million, 2017-$41.5 million and thereafter-$172.9 million). As of April 29, 2012, the Company was a party to two operating leases for buildings and equipment, one of which also includes land, under which the Company has guaranteed supplemental payment obligations of approximately $134 million at the termination of these leases. The Company believes, based on current facts and circumstances, that any payment pursuant to these guarantees is remote. No significant credit guarantees existed between the Company and third parties as of April 29, 2012. Redeemable Noncontrolling Interest: The minority partner in Coniexpress has the right, at any time, to exercise a put option to require the Company to purchase his 20% equity interest at a redemption value determinable from a specified formula based on a multiple of EBITDA (subject to a fixed minimum linked to the original acquisition date value). The Company also has a call right on this noncontrolling interest exercisable at any time and subject to the same redemption price. The put and call options cannot be separated from the noncontrolling interest and the combination of a noncontrolling interest and the redemption feature require classification of the minority partner’s interest as a redeemable noncontrolling interest in the consolidated balance sheet. The carrying amount of the redeemable noncontrolling interest approximates its maximum redemption value. Any subsequent change in maximum redemption value would be adjusted through retained earnings. The reduction in carrying value from April 27, 2011 to April 29, 2012 was primarily due to the impact the weakening of the Brazilian Real had on translation into U.S. dollars. We do not currently believe the exercise of the put option would materially impact our results of operations or financial condition. |
Goodwill and Other Intangible Assets 2 (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
|
Finite Lived Intangible Assets [Line Items] | |||
Gross | $ 845,728,000 | $ 898,977,000 | |
Accumulated Amortization | (382,367,000) | (385,947,000) | |
Net | 463,361,000 | 513,030,000 | |
Amortization expense for trademarks and other intangible assets | 31,800,000 | 29,000,000 | 28,200,000 |
Future amortization expense for finite-lived intangible assets | 30,000,000 | ||
Intangible assets not subject to amortization | 1,035,300,000 | 1,085,700,000 | |
Trademarks [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 282,937,000 | 297,020,000 | |
Accumulated Amortization | (87,925,000) | (83,343,000) | |
Net | 195,012,000 | 213,677,000 | |
Intangible assets not subject to amortization | 895,900,000 | 942,500,000 | |
Licenses [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 208,186,000 | 208,186,000 | |
Accumulated Amortization | (163,945,000) | (158,228,000) | |
Net | 44,241,000 | 49,958,000 | |
Intangible assets not subject to amortization | 20,100,000 | 20,700,000 | |
Recipes/processes [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 89,207,000 | 90,553,000 | |
Accumulated Amortization | (35,811,000) | (31,988,000) | |
Net | 53,396,000 | 58,565,000 | |
Intangible assets not subject to amortization | 119,300,000 | 122,500,000 | |
Customer-related assets [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 216,755,000 | 224,173,000 | |
Accumulated Amortization | (69,244,000) | (57,555,000) | |
Net | 147,511,000 | 166,618,000 | |
Other [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 48,643,000 | 79,045,000 | |
Accumulated Amortization | (25,442,000) | (54,833,000) | |
Net | $ 23,201,000 | $ 24,212,000 |
Segment Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 29, 2012
|
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | The following table presents information about the Company’s reportable segments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services | The Company’s revenues are generated via the sale of products in the following categories:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The Company has significant sales and long-lived assets in the following geographic areas. Sales are based on the location in which the sale originated. Long-lived assets include property, plant and equipment, goodwill, trademarks and other intangibles, net of related depreciation and amortization.
|
Fair Value Measurements (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 29, 2012
|
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value assets and liabilities measured on recurring basis | As of April 29, 2012 and April 27, 2011, the fair values of the Company’s assets and liabilities measured on a recurring basis are categorized as follows:
|
Income Taxes 2 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 29, 2012
|
Apr. 27, 2011
|
Apr. 28, 2010
|
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ 312,197 | $ 463,142 | $ 499,059 |
Foreign | 871,246 | 911,027 | 791,395 |
Income from continuing operations before income taxes | $ 1,183,443 | $ 1,374,169 | $ 1,290,454 |
Employees' Stock Incentive Plans and Management Incentive Plans 7 (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | 38 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 25, 2012
|
Apr. 29, 2012
|
Feb. 15, 2012
|
Apr. 27, 2011
|
Feb. 15, 2011
|
Apr. 28, 2010
|
Apr. 29, 2012
|
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 95.00% | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 5,000,000 | 165,635 | 185,716 | ||||
Other Labor-related Expenses | $ 34 | $ 45 | $ 49 | ||||
Number Of Trading Days For L T T P Peer Group Company Stock Price | 60 days | ||||||
Performance Period In Years For Dividends Paid | 2 years | ||||||
Selling, General and Administrative Expenses [Member] | Long-term Performance Program [Member]
|
|||||||
Compensation cost recognized in SG&A | |||||||
Pre-tax compensation cost | 18.4 | 21.5 | 20.7 | ||||
Tax benefit | 6.5 | 7.4 | 7.0 | ||||
After-tax compensation cost | $ 11.9 | $ 14.1 | $ 13.7 |
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