þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended April 28, 2013 | |
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) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
• | the ability of the Company to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners, |
• | 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, and |
• | other factors described in "Risk Factors" below. |
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 | — | 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, 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, 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 | 6 | * Used under license |
• | $9.5 billion in senior secured term loans, with tranches of 6 and 7 year maturities and fluctuating interest rates based on, at the Company's election, base rate or LIBOR plus a spread on each of the tranches, with respective spreads ranging from 125-150 basis points for base rate loans with a 2% base rate floor and 225-250 basis points for LIBOR loans with a 1% LIBOR floor, and |
• | $2.0 billion senior secured revolving credit facility with a 5 year maturity and a fluctuating interest rate based on, at the Company's election, base rate or LIBOR, with respective spreads ranging from 50-100 basis points for base rate loans and 150-200 basis points for LIBOR loans, on which nothing is currently drawn. |
Item 1A. | Risk Factors. |
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 28, 2013 | April 29, 2012 | April 27, 2011 | April 28, 2010 | April 29, 2009 | |||||||||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | |||||||||||||||
Sales(1) | $ | 11,528,886 | $ | 11,507,572 | $ | 10,558,636 | $ | 10,323,968 | $ | 9,826,298 | |||||||||
Interest expense(1) | 283,607 | 293,009 | 272,660 | 293,574 | 336,509 | ||||||||||||||
Income from continuing operations attributable to H.J. Heinz Company common shareholders(1) | 1,087,615 | 974,374 | 1,029,067 | 945,389 | 954,297 | ||||||||||||||
Income from continuing operations per share attributable to H.J. Heinz Company common shareholders—diluted(1) | 3.37 | 3.01 | 3.18 | 2.96 | 2.99 | ||||||||||||||
Income from continuing operations per share attributable to H.J. Heinz Company common shareholders—basic(1) | 3.39 | 3.03 | 3.21 | 2.99 | 3.03 | ||||||||||||||
Short-term debt and current portion of long-term debt | 2,160,393 | 246,708 | 1,534,932 | 59,020 | 65,638 | ||||||||||||||
Long-term debt, exclusive of current portion(2) | 3,848,339 | 4,779,981 | 3,078,128 | 4,559,152 | 5,076,186 | ||||||||||||||
Total assets | 12,939,007 | 11,983,293 | 12,230,645 | 10,075,711 | 9,664,184 | ||||||||||||||
Cash dividends per common share | 2.06 | 1.92 | 1.80 | 1.68 | 1.66 |
(1) | Amounts exclude the operating results as well as any associated impairment charges and losses on sale related to the Company’s Shanghai LongFong Foods business in China and U.S. Foodservice frozen desserts business, which were divested in Fiscal 2013, as well as the private label frozen desserts business in the U.K. and the Kabobs and Appetizers And, Inc. businesses in the U.S., which were divested in Fiscal 2010, and all of which have been presented as discontinued operations. |
(2) | Long-term debt, exclusive of current portion, includes $122.5 million, $128.4 million, $150.5 million, $207.1 million, and $251.5 million of hedge accounting adjustments associated with interest rate swaps at April 28, 2013, April 29, 2012, April 27, 2011, April 28, 2010, and April 29, 2009, respectively. |
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 Fiscal 2013 results excluding special items are non-GAAP measures used for management reporting and incentive compensation purposes. See “Non-GAAP Measures” section below for the reconciliation of all Fiscal 2013 non-GAAP measures to the reported GAAP measures. |
(3) | All Fiscal 2012 results excluding charges for productivity initiatives are non-GAAP measures used for management reporting and incentive compensation purposes. See “Non-GAAP Measures” section below for the reconciliation of all Fiscal 2012 non-GAAP measures to the reported GAAP measures. |
(4) | 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 28, 2013 FY 2013 | April 29, 2012 FY 2012 | April 27, 2011 FY 2011 | |
(In millions) | |||
Sales | $47.7 | $141.5 | $148.0 |
Net after-tax losses | $(17.6) | $(51.2) | $(39.6) |
Tax benefit on losses | $0.6 | $1.4 | $2.6 |
Fiscal Year Ended | |||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Ketchup and Sauces | $ | 5,375,788 | $ | 5,232,607 | $ | 4,607,326 | |||||
Meals and Snacks | 4,240,808 | 4,337,995 | 4,134,836 | ||||||||
Infant/Nutrition | 1,189,015 | 1,232,248 | 1,175,438 | ||||||||
Other | 723,275 | 704,722 | 641,036 | ||||||||
Total | $ | 11,528,886 | $ | 11,507,572 | $ | 10,558,636 |
• | Proceeds from long-term debt were $205 million in the current year and $1.91 billion in the prior year. During the first quarter of Fiscal 2013, the Company entered into a new variable rate three year 15 billion Japanese yen denominated credit agreement. The proceeds were swapped to 188.5 million U.S. dollars and the interest rate was fixed at 2.22%. 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 current year proceeds from debt issuances were used to terminate a variable rate three year 15 billion Japanese yen denominated credit agreement that was due October 2012, and settle the associated swap, which had an immaterial impact to the Company's consolidated statement of income. Overall, payments on long-term debt were $224 million in the current year compared to $1.44 billion in the prior year. The prior year proceeds from debt issuances 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. |
• | Net proceeds on commercial paper and short-term debt were $1.09 billion this year compared to net payments of $43 million in the prior year. See below for further discussion of a short-term credit agreement entered into in April 2013. |
• | Cash payments for treasury stock purchases, net of cash from option exercises, used $26 million of cash in the current year compared to $119 million in the prior year. The Company repurchased 2.4 million shares of stock at a total cost of $139 million, in the current year and 3.9 million shares of stock at a total cost of $202 million in the prior year. Under the terms of the Merger Agreement, the Company suspended its share repurchase program from February 13, 2013 through the closing of the acquisition on June 7, 2013. |
• | Dividend payments totaled $666 million this year, compared to $619 million for the same period last year, reflecting an increase in the annualized dividend per common share to $2.06. Until the effective time of the merger, the Merger Agreement permitted the Company to continue to declare and pay regular quarterly cash dividends not to exceed $0.515 per share of common stock with record dates and payment dates that were substantially consistent with the Company's past practice. The Merger Agreement did not permit the Company to pay a prorated dividend for the quarter in which the merger was completed. |
• | During the first quarter of Fiscal 2013, the Company acquired an additional 15% interest in Coniexpress S.A. Industrias Alimenticias ("Coniexpress") for $80 million. Prior to the transaction, the Company owned 80% of this business. 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 a 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. |
• | $9.5 billion in senior secured term loans, with tranches of 6 and 7 year maturities and fluctuating interest rates based on, at the Company's election, base rate or LIBOR plus a spread on each of the tranches, with respective spreads ranging from 125-150 basis points for base rate loans with a 2% base rate floor and 225-250 basis points for LIBOR loans with a 1% LIBOR floor, and |
• | $2.0 billion senior secured revolving credit facility with a 5 year maturity and a fluctuating interest rate bsed on, at the Company's election, base rate or LIBOR, with respective spreads ranging from 50-100 basis points for base rate loans and 150-200 basis points for LIBOR loans, on which nothing is currently drawn. |
Fiscal Year | |||||||||||||||||||
2014 | 2015-2016 | 2017-2018 | 2019 Forward | Total | |||||||||||||||
(In thousands) | |||||||||||||||||||
Long Term Debt(1) | $ | 2,325,234 | $ | 555,607 | $ | 1,068,135 | $ | 5,338,616 | $ | 9,287,592 | |||||||||
Capital Lease Obligations | 14,820 | 12,103 | 20,580 | 10,321 | 57,824 | ||||||||||||||
Operating Leases | 242,638 | 135,220 | 102,549 | 196,162 | 676,569 | ||||||||||||||
Purchase Obligations | 1,074,725 | 511,331 | 160,616 | 232,893 | 1,979,565 | ||||||||||||||
Other Long Term Liabilities Recorded on the Balance Sheet | 167,421 | 305,928 | 211,915 | 274,713 | 959,977 | ||||||||||||||
Total | $ | 3,824,838 | $ | 1,520,189 | $ | 1,563,795 | $ | 6,052,705 | $ | 12,961,527 |
(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 28, 2013 | April 29, 2012 | April 28, 2013 | April 29, 2012 | ||||||||||
(In millions) | |||||||||||||
Purpose of Hedge: | |||||||||||||
Intercompany cash flows | $ | 402 | 1,090 | $ | (3 | ) | 13 | ||||||
Forecasted purchases of raw materials and finished goods and foreign currency denominated obligations | 422 | 578 | 21 | (5 | ) | ||||||||
Forecasted sales and foreign currency denominated assets | 49 | 245 | 11 | 9 | |||||||||
$ | 873 | 1,913 | $ | 29 | 17 |
April 28, 2013 | April 29, 2012 | ||||||
(Dollars in millions) | |||||||
Pay floating swaps—notional amount | $ | 160 | $ | 160 | |||
Net unrealized gains | $ | 33 | $ | 36 | |||
Weighted average maturity (years) | 7.2 | 8.2 | |||||
Weighted average receive rate | 5.87 | % | 6.09 | % | |||
Weighted average pay rate | 1.48 | % | 1.57 | % |
Fair Value Effect | |||
(In millions) | |||
Foreign currency contracts | $ | 32 | |
Interest rate swap contracts | $ | 3 | |
Cross-currency interest rate swaps | $ | 32 |
• | Transaction-related costs, including legal, accounting and other professional fees, recorded during the fourth quarter of Fiscal 2013 as a result of the Merger. See Note 21, “Subsequent Events” in Item 8- “Financial Statements and Supplementary Data” for further explanation. |
• | A charge primarily related to asset write-downs for the closure of a factory in South Africa. |
• | A currency translation loss recorded in our Venezuelan business due to a devaluation of its currency relative to the U.S. dollar during the fourth quarter of Fiscal 2013. See Note 20, "Venezuela- Foreign Currency" in Item 8—"Financial Statement and Supplementary Data" for further explanation. |
• | A charge for the Company's early settlement of the earn-out payment that was due in Fiscal 2014 related to the Fiscal 2011 acquisition of Foodstar. See Note 11, "Fair Value Measurements" in Item 8—"Financial Statement and Supplementary Data" for further explanation. |
Fiscal Year Ended | ||||||||||||||
April 28, 2013 | ||||||||||||||
(Continuing Operations) | Sales | Gross Profit | SG&A | Operating Income | Effective Tax Rate | Net Income attributable to H.J. Heinz Company | Diluted EPS | |||||||
(Amounts in thousands except per share amounts) | ||||||||||||||
Reported results | $11,528,886 | $4,195,470 | $2,533,819 | $1,661,651 | 18.0 | % | $1,087,615 | $3.37 | ||||||
Transaction-related costs | — | — | 44,814 | 44,814 | 38.1 | % | 27,752 | 0.09 | ||||||
Charge for South Africa factory closure | — | 3,543 | — | 3,543 | 28.0 | % | 2,550 | 0.01 | ||||||
Currency translation loss in Venezuela | — | — | — | — | 8.4 | % | 39,132 | 0.12 | ||||||
Charge for settlement of Foodstar earn-out | — | — | 12,081 | 12,081 | — | % | 12,081 | 0.04 | ||||||
Results excluding special items | $11,528,886 | $4,199,013 | $2,476,924 | $1,722,089 | 18.2 | % | $1,169,130 | $3.62 | ||||||
Fiscal Year Ended | ||||||||||||||
April 29, 2012 | ||||||||||||||
(Continuing Operations) | Sales | Gross Profit | SG&A | Operating Income | Effective Tax Rate | Net Income attributable to H.J. Heinz Company | Diluted EPS | |||||||
Reported results | $11,507,572 | $3,994,789 | $2,492,482 | $1,502,307 | 19.8 | % | $974,374 | $3.01 | ||||||
Charges for productivity initiatives | — | 129,938 | 75,480 | 205,418 | 29.9 | % | 143,974 | 0.45 | ||||||
Results excluding charges for productivity initiatives | $11,507,572 | $4,124,727 | $2,417,002 | $1,707,725 | 21.3 | % | $1,118,348 | $3.46 | ||||||
Organic Sales Growth | + | Foreign Exchange | + | Acquisitions/ Divestitures | = | Total Net Sales Change | ||||||
FY13 Total Company | 3.1 | % | (2.5 | )% | (0.3 | )% | 0.2 | % | ||||
FY12 Total Company | 3.6 | % | 1.8 | % | 3.6 | % | 9.0 | % | ||||
FY13 global ketchup | 4.6 | % | (1.8 | )% | — | % | 2.8 | % | ||||
FY12 global ketchup | 8.0 | % | 0.5 | % | 1.2 | % | 9.7 | % | ||||
FY13 Emerging Markets | 16.8 | % | (7.1 | )% | 4.5 | % | * | 14.3 | % | |||
FY12 Emerging Markets | 17.6 | % | (0.6 | )% | 26.0 | % | 43.1 | % | ||||
FY13 Top 15 brands | 3.6 | % | (2.8 | )% | — | % | 0.8 | % | ||||
FY12 Top 15 brands | 5.0 | % | 1.7 | % | 5.6 | % | 12.3 | % |
Total Company (in millions) | 2013 | 2012 | ||||
Cash provided by operating activities | $ | 1,390.0 | $ | 1,493.1 | ||
Capital expenditures | (399.1 | ) | (418.7 | ) | ||
Proceeds from disposals of property, plant and equipment | 19.0 | 9.8 | ||||
Operating Free Cash Flow | $ | 1,009.9 | $ | 1,084.2 | ||
Cash paid for special items/productivity initiatives | 45.0 | 121.9 | ||||
Operating Free Cash Flow excluding cash paid for special items/productivity initiatives | $ | 1,054.8 | $ | 1,206.1 |
Plan Assets at | Target Allocation at | |||||||||||
Asset Category | 2013 | 2012 | 2013 | 2012 | ||||||||
Equity securities | 62 | % | 61 | % | 58 | % | 59 | % | ||||
Debt securities | 29 | % | 31 | % | 33 | % | 32 | % | ||||
Real estate | 8 | % | 7 | % | 8 | % | 8 | % | ||||
Other | 1 | % | 1 | % | 1 | % | 1 | % | ||||
100 | % | 100 | % | 100 | % | 100 | % |
100 Basis Point | |||
Increase | Decrease | ||
Pension benefits | |||
Discount rate used in determining projected benefit obligation | $(405) | $509 | |
Discount rate used in determining net pension expense | $(27) | $30 | |
Long-term rate of return on assets used in determining net pension expense | $(31) | $31 | |
Other benefits | |||
Discount rate used in determining projected benefit obligation | $(22) | $25 | |
Discount rate used in determining net benefit expense | $(2) | $2 |
Stock Price Range | |||||||
High | Low | ||||||
2013 | |||||||
First | $ | 55.48 | $ | 52.29 | |||
Second | 58.56 | 54.37 | |||||
Third | 60.96 | 56.77 | |||||
Fourth | 72.70 | 59.20 | |||||
2012 | |||||||
First | $ | 55.00 | $ | 50.95 | |||
Second | 53.46 | 48.17 | |||||
Third | 54.82 | 49.75 | |||||
Fourth | 54.83 | 51.51 |
Fiscal Year Ended | |||||||
April 28, 2013 | April 29, 2012 | ||||||
First | $ | 0.515 | $ | 0.480 | |||
Second | 0.515 | 0.480 | |||||
Third | 0.515 | 0.480 | |||||
Fourth | 0.515 | 0.480 | |||||
Total | $ | 2.060 | $ | 1.920 |
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | ||||||||||||
H.J. Heinz Company | 100.00 | 75.19 | 104.94 | 122.04 | 131.34 | 185.28 | |||||||||||
S&P 500 | 100.00 | 64.74 | 90.14 | 104.63 | 110.69 | 127.65 | |||||||||||
S&P 500 Packaged Foods & Meats Index | 100.00 | 78.32 | 109.77 | 127.72 | 145.05 | 185.55 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 8. | Financial Statements and Supplementary Data. |
/s/ Bernardo Hees |
Chief Executive Officer |
/s/ Paulo Basilio |
Chief Financial Officer |
Fiscal Year Ended | |||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | |||||||||
(In thousands, except per share amounts) | |||||||||||
Sales | $ | 11,528,886 | $ | 11,507,572 | $ | 10,558,636 | |||||
Cost of products sold | 7,333,416 | 7,512,783 | 6,614,259 | ||||||||
Gross profit | 4,195,470 | 3,994,789 | 3,944,377 | ||||||||
Selling, general and administrative expenses | 2,533,819 | 2,492,482 | 2,256,739 | ||||||||
Operating income | 1,661,651 | 1,502,307 | 1,687,638 | ||||||||
Interest income | 27,795 | 34,547 | 22,548 | ||||||||
Interest expense | 283,607 | 293,009 | 272,660 | ||||||||
Other expense, net | (62,196 | ) | (7,756 | ) | (21,204 | ) | |||||
Income from continuing operations before income taxes | 1,343,643 | 1,236,089 | 1,416,322 | ||||||||
Provision for income taxes | 241,598 | 244,966 | 370,817 | ||||||||
Income from continuing operations | 1,102,045 | 991,123 | 1,045,505 | ||||||||
Loss from discontinued operations, net of tax | (74,712 | ) | (51,215 | ) | (39,557 | ) | |||||
Net income | 1,027,333 | 939,908 | 1,005,948 | ||||||||
Less: Net income attributable to the noncontrolling interest | 14,430 | 16,749 | 16,438 | ||||||||
Net income attributable to H. J. Heinz Company | $ | 1,012,903 | $ | 923,159 | $ | 989,510 | |||||
Income/(loss) per common share: | |||||||||||
Diluted | |||||||||||
Continuing operations attributable to H. J. Heinz Company common shareholders | $ | 3.37 | $ | 3.01 | $ | 3.18 | |||||
Discontinued operations attributable to H. J. Heinz Company common shareholders | (0.23 | ) | (0.16 | ) | (0.12 | ) | |||||
Net income attributable to H. J. Heinz Company common shareholders | $ | 3.14 | $ | 2.85 | $ | 3.06 | |||||
Average common shares outstanding—diluted | 323,172 | 323,321 | 323,042 | ||||||||
Basic | |||||||||||
Continuing operations attributable to H. J. Heinz Company common shareholders | $ | 3.39 | $ | 3.03 | $ | 3.21 | |||||
Discontinued operations attributable to H. J. Heinz Company common shareholders | (0.23 | ) | (0.16 | ) | (0.12 | ) | |||||
Net income attributable to H. J. Heinz Company common shareholders | $ | 3.16 | $ | 2.87 | $ | 3.09 | |||||
Average common shares outstanding—basic | 320,662 | 320,686 | 320,118 | ||||||||
Cash dividends per share | $ | 2.06 | $ | 1.92 | $ | 1.80 | |||||
Amounts attributable to H. J. Heinz Company common shareholders: | |||||||||||
Income from continuing operations, net of tax | $ | 1,087,615 | $ | 974,374 | $ | 1,029,067 | |||||
Loss from discontinued operations, net of tax | (74,712 | ) | (51,215 | ) | (39,557 | ) | |||||
Net income | $ | 1,012,903 | $ | 923,159 | $ | 989,510 |
Fiscal Year Ended | ||||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | ||||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | ||||||||||
(In thousands) | ||||||||||||
Net income | $ | 1,027,333 | $ | 939,908 | $ | 1,005,948 | ||||||
Other comprehensive income/(loss), net of tax: | ||||||||||||
Foreign currency translation adjustments | (228,980 | ) | (377,491 | ) | 567,876 | |||||||
Net pension and post-retirement benefit (losses)/gains | (189,302 | ) | (258,079 | ) | 77,298 | |||||||
Reclassification of net pension and post-retirement benefit losses to net income | 54,833 | 56,813 | 53,353 | |||||||||
Net deferred (losses)/gains on derivatives from periodic revaluations | (11,743 | ) | 30,377 | 9,395 | ||||||||
Net deferred losses/(gains) on derivatives reclassified to earnings | 29,608 | (13,811 | ) | (20,794 | ) | |||||||
Total comprehensive income | 681,749 | 377,717 | 1,693,076 | |||||||||
Comprehensive loss/(income) attributable to the noncontrolling interest | 1,344 | 734 | (21,373 | ) | ||||||||
Comprehensive income attributable to H.J. Heinz Company | $ | 683,093 | $ | 378,451 | $ | 1,671,703 |
April 28, 2013 | April 29, 2012 | ||||||
(In thousands) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,476,699 | $ | 1,330,441 | |||
Trade receivables (net of allowances: 2013—$7,957 and 2012—$10,680) | 872,864 | 815,600 | |||||
Other receivables (net of allowances: 2013—$360 and 2012—$607) | 200,988 | 177,910 | |||||
Inventories: | |||||||
Finished goods and work-in-process | 1,076,779 | 1,082,317 | |||||
Packaging material and ingredients | 255,918 | 247,034 | |||||
Total inventories | 1,332,697 | 1,329,351 | |||||
Prepaid expenses | 160,658 | 174,795 | |||||
Other current assets | 91,656 | 54,139 | |||||
Total current assets | 5,135,562 | 3,882,236 | |||||
Property, plant and equipment: | |||||||
Land | 78,800 | 81,185 | |||||
Buildings and leasehold improvements | 996,719 | 1,009,379 | |||||
Equipment, furniture and other | 4,283,570 | 4,175,997 | |||||
5,359,089 | 5,266,561 | ||||||
Less accumulated depreciation | 2,900,288 | 2,782,423 | |||||
Total property, plant and equipment, net | 2,458,801 | 2,484,138 | |||||
Other non-current assets: | |||||||
Goodwill | 3,079,250 | 3,185,527 | |||||
Trademarks, net | 1,037,283 | 1,090,892 | |||||
Other intangibles, net | 378,187 | 407,802 | |||||
Other non-current assets | 849,924 | 932,698 | |||||
Total other non-current assets | 5,344,644 | 5,616,919 | |||||
Total assets | $ | 12,939,007 | $ | 11,983,293 |
April 28, 2013 | April 29, 2012 | ||||||
(In thousands) | |||||||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 1,137,181 | $ | 46,460 | |||
Portion of long-term debt due within one year | 1,023,212 | 200,248 | |||||
Trade payables | 1,310,009 | 1,202,398 | |||||
Other payables | 182,828 | 146,414 | |||||
Accrued marketing | 313,930 | 303,132 | |||||
Other accrued liabilities | 705,482 | 647,769 | |||||
Income taxes | 114,230 | 101,540 | |||||
Total current liabilities | 4,786,872 | 2,647,961 | |||||
Long-term debt and other non-current liabilities: | |||||||
Long-term debt | 3,848,339 | 4,779,981 | |||||
Deferred income taxes | 678,565 | 817,928 | |||||
Non-pension post-retirement benefits | 240,319 | 231,452 | |||||
Other non-current liabilities | 506,562 | 581,390 | |||||
Total long-term debt and other non-current liabilities | 5,273,785 | 6,410,751 | |||||
Commitments and contingent liabilities (See Note 18) | |||||||
Redeemable noncontrolling interest | 29,529 | 113,759 | |||||
Equity: | |||||||
Capital stock: | |||||||
Third cumulative preferred, $1.70 first series, $10 par value | — | 61 | |||||
Common stock, 431,096 shares issued, $0.25 par value | 107,774 | 107,774 | |||||
107,774 | 107,835 | ||||||
Additional capital | 608,504 | 594,608 | |||||
Retained earnings | 7,907,033 | 7,567,278 | |||||
8,623,311 | 8,269,721 | ||||||
Less: | |||||||
Treasury shares, at cost (109,831 shares at April 28, 2013 and 110,870 shares at April 29, 2012) | 4,647,242 | 4,666,404 | |||||
Accumulated other comprehensive loss | 1,174,538 | 844,728 | |||||
Total H.J. Heinz Company shareholders’ equity | 2,801,531 | 2,758,589 | |||||
Noncontrolling interest | 47,290 | 52,233 | |||||
Total equity | 2,848,821 | 2,810,822 | |||||
Total liabilities and equity | $ | 12,939,007 | $ | 11,983,293 |
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||
PREFERRED STOCK | |||||||||||||||||||||
Balance at beginning of year | 6 | $ | 61 | 7 | $ | 69 | 7 | $ | 70 | ||||||||||||
Conversion of preferred into common stock | (6 | ) | (61 | ) | (1 | ) | (8 | ) | — | (1 | ) | ||||||||||
Balance at end of year | — | — | 6 | 61 | 7 | 69 | |||||||||||||||
Authorized shares- April 28, 2013 | — | ||||||||||||||||||||
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 28, 2013 | 600,000 | ||||||||||||||||||||
ADDITIONAL CAPITAL | |||||||||||||||||||||
Balance at beginning of year | 594,608 | 629,367 | 657,596 | ||||||||||||||||||
Conversion of preferred into common stock | (3,600 | ) | (539 | ) | (39 | ) | |||||||||||||||
Stock options exercised, net of shares tendered for payment | (7,204 | ) | (3) | (15,220 | ) | (3) | (26,482 | ) | (3) | ||||||||||||
Stock option expense | 10,088 | 10,864 | 9,447 | ||||||||||||||||||
Restricted stock unit activity | (5,837 | ) | 4,305 | (8,119 | ) | ||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | 18,956 | (34,483 | ) | (2,411 | ) | ||||||||||||||||
Other, net(2) | 1,493 | 314 | (625 | ) | |||||||||||||||||
Balance at end of year | 608,504 | 594,608 | 629,367 | ||||||||||||||||||
RETAINED EARNINGS | |||||||||||||||||||||
Balance at beginning of year | 7,567,278 | 7,264,678 | 6,856,033 | ||||||||||||||||||
Net income attributable to H.J. Heinz Company | 1,012,903 | 923,159 | 989,510 | ||||||||||||||||||
Cash dividends: | |||||||||||||||||||||
Preferred (per share $1.70 per share in 2013, 2012 and 2011) | (8 | ) | (9 | ) | (12 | ) | |||||||||||||||
Common (per share $2.06, $1.92, and $1.80 in 2013, 2012 and 2011, respectively) | (665,683 | ) | (619,095 | ) | (579,606 | ) | |||||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | (7,703 | ) | — | — | |||||||||||||||||
Other(4) | 246 | (1,455 | ) | (1,247 | ) | ||||||||||||||||
Balance at end of year | 7,907,033 | 7,567,278 | 7,264,678 | ||||||||||||||||||
TREASURY STOCK | |||||||||||||||||||||
Balance at beginning of year | (110,871 | ) | (4,666,404 | ) | (109,819 | ) | (4,593,362 | ) | (113,404 | ) | (4,750,547 | ) | |||||||||
Shares reacquired | (2,431 | ) | (139,069 | ) | (3,860 | ) | (201,904 | ) | (1,425 | ) | (70,003 | ) | |||||||||
Conversion of preferred into common stock | 79 | 3,661 | 12 | 547 | 1 | 40 | |||||||||||||||
Stock options exercised, net of shares tendered for payment | 2,802 | 127,084 | 2,298 | 105,144 | 4,495 | 203,196 | |||||||||||||||
Restricted stock unit activity | 443 | 20,618 | 303 | 14,087 | 296 | 13,756 | |||||||||||||||
Other, net(2) | 148 | 6,868 | 195 | 9,084 | 218 | 10,196 | |||||||||||||||
Balance at end of year | (109,830 | ) | $ | (4,647,242 | ) | (110,871 | ) | $ | (4,666,404 | ) | (109,819 | ) | $ | (4,593,362 | ) |
(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 $(236,411), pension and post-retirement benefits net prior service cost of $(10,077) and net losses of $(952,578), and deferred net losses on derivative financial instruments of $24,528. |
April 28, 2013 | April 29, 2012 | April 27, 2011 | ||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||
OTHER COMPREHENSIVE (LOSS)/INCOME | ||||||||||||||||||
Balance at beginning of year | $ | (844,728 | ) | $ | (299,564 | ) | $ | (979,581 | ) | |||||||||
Net pension and post-retirement benefit (losses)/gains | (189,294 | ) | (258,067 | ) | 77,355 | |||||||||||||
Reclassification of net pension and post-retirement benefit losses to net income | 54,833 | 56,813 | 53,353 | |||||||||||||||
Foreign currency translation adjustments | (197,126 | ) | (359,771 | ) | 563,060 | |||||||||||||
Net deferred (losses)/gains on derivatives from periodic valuations | (11,736 | ) | 30,405 | 9,790 | ||||||||||||||
Net deferred losses/(gains) on derivatives reclassified to earnings | 29,646 | (14,088 | ) | (21,365 | ) | |||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | (16,133 | ) | (456 | ) | (2,176 | ) | ||||||||||||
Balance at end of year | (1,174,538 | ) | (5) | (844,728 | ) | (299,564 | ) | |||||||||||
TOTAL H.J. HEINZ COMPANY SHAREHOLDERS’ EQUITY | 2,801,531 | 2,758,589 | 3,108,962 | |||||||||||||||
NONCONTROLLING INTEREST | ||||||||||||||||||
Balance at beginning of year | 52,233 | 73,504 | 57,151 | |||||||||||||||
Net income attributable to the noncontrolling interest | 12,925 | 15,884 | 16,438 | |||||||||||||||
Other comprehensive income/(loss), net of tax: | ||||||||||||||||||
Net pension and post-retirement benefit losses | (8 | ) | (12 | ) | (57 | ) | ||||||||||||
Foreign currency translation adjustments | (5,232 | ) | (5,945 | ) | 4,816 | |||||||||||||
Net deferred losses) on derivatives from periodic valuations | (7 | ) | (28 | ) | (395 | ) | ||||||||||||
Net deferred losses on derivatives reclassified to earnings | (38 | ) | 277 | 571 | ||||||||||||||
Purchase of subsidiary shares from noncontrolling interests(1) | — | (19,885 | ) | (1,750 | ) | |||||||||||||
Dividends paid to noncontrolling interest | (12,583 | ) | (11,562 | ) | (3,270 | ) | ||||||||||||
Balance at end of year | 47,290 | 52,233 | 73,504 | |||||||||||||||
TOTAL EQUITY | $ | 2,848,821 | $ | 2,810,822 | $ | 3,182,466 | ||||||||||||
Note: See Footnote explanations on Page 41. |
Fiscal Year Ended | |||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | |||||||||
Operating Activities | (In thousands) | ||||||||||
Net income | $ | 1,027,333 | $ | 939,908 | $ | 1,005,948 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 302,057 | 295,718 | 255,227 | ||||||||
Amortization | 46,853 | 47,075 | 43,433 | ||||||||
Deferred tax (benefit)/provision | (87,265 | ) | (94,816 | ) | 153,725 | ||||||
Net losses on divestitures | 19,532 | — | — | ||||||||
Impairment on assets held for sale | 36,000 | — | — | ||||||||
Pension contributions | (69,388 | ) | (23,469 | ) | (22,411 | ) | |||||
Asset write-downs from Fiscal 2012 productivity initiatives | — | 58,736 | — | ||||||||
Other items, net | 84,834 | 75,375 | 98,172 | ||||||||
Changes in current assets and liabilities, excluding effects of acquisitions and divestitures: | |||||||||||
Receivables (includes proceeds from securitization) | (166,239 | ) | 171,832 | (91,057 | ) | ||||||
Inventories | (49,468 | ) | 60,919 | (80,841 | ) | ||||||
Prepaid expenses and other current assets | 14,111 | (11,584 | ) | (1,682 | ) | ||||||
Accounts payable | 168,898 | (72,352 | ) | 233,339 | |||||||
Accrued liabilities | 71,846 | (20,008 | ) | (60,862 | ) | ||||||
Income taxes | (9,141 | ) | 65,783 | 50,652 | |||||||
Cash provided by operating activities | 1,389,963 | 1,493,117 | 1,583,643 | ||||||||
Investing activities: | |||||||||||
Capital expenditures | (399,098 | ) | (418,734 | ) | (335,646 | ) | |||||
Proceeds from disposals of property, plant and equipment | 18,986 | 9,817 | 13,158 | ||||||||
Acquisitions, net of cash acquired | — | (3,250 | ) | (618,302 | ) | ||||||
Proceeds from divestitures | 16,787 | 3,828 | 1,939 | ||||||||
Sale of short-term investments | — | 56,780 | — | ||||||||
Change in restricted cash | 3,994 | (39,052 | ) | (5,000 | ) | ||||||
Other items, net | (13,789 | ) | (11,394 | ) | (5,781 | ) | |||||
Cash used for by investing activities | (373,120 | ) | (402,005 | ) | (949,632 | ) | |||||
Financing activities: | |||||||||||
Payments on long-term debt | (224,079 | ) | (1,440,962 | ) | (45,766 | ) | |||||
Proceeds from long-term debt | 205,350 | 1,912,467 | 229,851 | ||||||||
Net proceeds/(payments) on commercial paper and short-term debt | 1,089,882 | (42,543 | ) | (193,200 | ) | ||||||
Dividends | (665,691 | ) | (619,104 | ) | (579,618 | ) | |||||
Purchases of treasury stock | (139,069 | ) | (201,904 | ) | (70,003 | ) | |||||
Exercise of stock options | 113,477 | 82,714 | 154,774 | ||||||||
Acquisition of subsidiary shares from noncontrolling interests | (80,132 | ) | (54,824 | ) | (6,338 | ) | |||||
Earn-out settlement | (44,547 | ) | — | — | |||||||
Other items, net | 1,736 | 1,321 | 27,791 | ||||||||
Cash provided by/(used for) financing activities | 256,927 | (362,835 | ) | (482,509 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (127,512 | ) | (122,147 | ) | 89,556 | ||||||
Net increase in cash and cash equivalents | 1,146,258 | 606,130 | 241,058 | ||||||||
Cash and cash equivalents at beginning of year | 1,330,441 | 724,311 | 483,253 | ||||||||
Cash and cash equivalents at end of year | $ | 2,476,699 | $ | 1,330,441 | $ | 724,311 |
1. | Significant Accounting Policies |
2. | Recently Issued Accounting Standards |
3. | Discontinued Operations |
Fiscal Year Ended | |||
April 28, 2013 FY 2013 | April 29, 2012 FY 2012 | April 27, 2011 FY 2011 | |
(In millions) | |||
Sales | $47.7 | $141.5 | $148.0 |
Net after-tax losses | $(17.6) | $(51.2) | $(39.6) |
Tax benefit on losses | $0.6 | $1.4 | $2.6 |
• | $50.9 million relating to asset write-downs and accelerated depreciation for the closure of six factories, including two in Europe, three in the U.S. and one in Asia/Pacific, |
• | $81.7 million for severance and employee benefit costs relating to the reduction of the global workforce by approximately 1,400 positions, and |
• | $72.9 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 | 65.7 | |||
U.S. Foodservice | 52.8 | |||
Rest of World | 4.4 | |||
Non-Operating | 0.6 | |||
Total productivity charges | $ | 205.4 |
(In millions) | ||||
Fiscal 2012 total company productivity charges | $ | 165.6 | ||
Cash payments | (111.0 | ) | ||
Reserve balance at April 29, 2012 | $ | 54.6 |
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 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 | |||||||||||||||||
Disposals | — | (527 | ) | — | (899 | ) | — | (1,426 | ) | ||||||||||||||
Impairment loss | — | — | (36,000 | ) | — | — | (36,000 | ) | |||||||||||||||
Goodwill allocated to discontinued operations | — | — | (4,952 | ) | — | — | (4,952 | ) | |||||||||||||||
Translation adjustments | (5,148 | ) | (39,300 | ) | 5,595 | — | (25,046 | ) | (63,899 | ) | |||||||||||||
Balance at April 28, 2013 | $ | 1,101,927 | $ | 1,105,461 | $ | 359,842 | $ | 256,775 | $ | 255,245 | $ | 3,079,250 |
April 28, 2013 | April 29, 2012 | ||||||||||||||||||||||
Gross | Accum Amort | Net | Gross | Accum Amort | Net | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Trademarks | $ | 282,350 | $ | (91,923 | ) | $ | 190,427 | $ | 282,937 | $ | (87,925 | ) | $ | 195,012 | |||||||||
Licenses | 208,186 | (169,666 | ) | 38,520 | 208,186 | (163,945 | ) | 44,241 | |||||||||||||||
Recipes/processes | 86,686 | (37,907 | ) | 48,779 | 89,207 | (35,811 | ) | 53,396 | |||||||||||||||
Customer-related assets | 209,428 | (77,310 | ) | 132,118 | 216,755 | (69,244 | ) | 147,511 | |||||||||||||||
Other | 50,606 | (26,202 | ) | 24,404 | 48,643 | (25,442 | ) | 23,201 | |||||||||||||||
$ | 837,256 | $ | (403,008 | ) | $ | 434,248 | $ | 845,728 | $ | (382,367 | ) | $ | 463,361 |
7. | Income Taxes |
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Current: | |||||||||||
U.S. federal | $ | 126,878 | $ | 112,064 | $ | 41,673 | |||||
State | 14,622 | 12,326 | 14,992 | ||||||||
Foreign | 187,363 | 216,076 | 161,355 | ||||||||
328,863 | 340,466 | 218,020 | |||||||||
Deferred: | |||||||||||
U.S. federal | (13,589 | ) | (16,884 | ) | 122,757 | ||||||
State | 894 | 4,124 | (4,402 | ) | |||||||
Foreign | (74,570 | ) | (82,740 | ) | 34,442 | ||||||
(87,265 | ) | (95,500 | ) | 152,797 | |||||||
Provision for income taxes | $ | 241,598 | $ | 244,966 | $ | 370,817 |
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Domestic | $ | 378,283 | $ | 315,741 | $ | 470,646 | |||||
Foreign | 965,360 | 920,348 | 945,676 | ||||||||
From continuing operations | $ | 1,343,643 | $ | 1,236,089 | $ | 1,416,322 |
2013 | 2012 | 2011 | ||||||
U.S. federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Tax on income of foreign subsidiaries | (7.7 | ) | (8.7 | ) | (5.6 | ) | ||
Changes in valuation allowances | 0.9 | 1.5 | (0.8 | ) | ||||
Earnings repatriation | 0.9 | 2.0 | 2.9 | |||||
Tax free interest | (4.7 | ) | (5.4 | ) | (4.1 | ) | ||
Effects of revaluation of tax basis of foreign assets | (6.2 | ) | (3.2 | ) | (1.6 | ) | ||
Audit settlements and changes in uncertain tax positions | (0.3 | ) | (2.0 | ) | — | |||
Other | 0.1 | 0.6 | 0.4 | |||||
Effective tax rate | 18.0 | % | 19.8 | % | 26.2 | % |
2013 | 2012 | ||||||
(In thousands) | |||||||
Depreciation/amortization | $ | 833,008 | $ | 910,987 | |||
Benefit plans | 41,354 | 59,647 | |||||
Deferred income | 97,482 | 96,472 | |||||
Financing costs | 117,161 | 117,670 | |||||
Other | 46,510 | 48,371 | |||||
Deferred tax liabilities | 1,135,515 | 1,233,147 | |||||
Operating loss carryforwards | (90,790 | ) | (141,358 | ) | |||
Benefit plans | (211,658 | ) | (195,697 | ) | |||
Depreciation/amortization | (158,194 | ) | (147,745 | ) | |||
Tax credit carryforwards | (111,431 | ) | (81,703 | ) | |||
Deferred income | (18,596 | ) | (20,286 | ) | |||
Other | (97,894 | ) | (96,502 | ) | |||
Deferred tax assets | (688,563 | ) | (683,291 | ) | |||
Valuation allowance | 46,069 | 90,553 | |||||
Net deferred tax liabilities | $ | 493,021 | $ | 640,409 |
2013 | 2012 | 2011 | |||||||||
(In millions) | |||||||||||
Balance at the beginning of the fiscal year | $ | 52.7 | $ | 70.7 | $ | 57.1 | |||||
Increases for tax positions of prior years | 1.9 | 5.2 | 13.5 | ||||||||
Decreases for tax positions of prior years | (8.6 | ) | (18.0 | ) | (26.0 | ) | |||||
Increases based on tax positions related to the current year | 13.9 | 3.7 | 10.8 | ||||||||
Increases due to business combinations | — | — | 26.9 | ||||||||
Decreases due to settlements with taxing authorities | (4.1 | ) | (2.2 | ) | (5.4 | ) | |||||
Decreases due to lapse of statute of limitations | (10.4 | ) | (6.7 | ) | (6.2 | ) | |||||
Balance at the end of the fiscal year | $ | 45.4 | $ | 52.7 | $ | 70.7 |
2013 | 2012 | ||||||
(In thousands) | |||||||
Japanese Yen Credit Agreement due October 2012 (variable rate) | — | 186,869 | |||||
Other U.S. Dollar Debt due May 2013 — November 2034 (0.94%—7.96%) | 25,688 | 43,164 | |||||
Other Non-U.S. Dollar Debt due May 2013 — May 2023 (3.50%—11.00%) | 56,293 | 64,060 | |||||
5.35% U.S. Dollar Notes due July 2013 | 499,993 | 499,958 | |||||
8.0% Heinz Finance Preferred Stock due July 2013 | 350,000 | 350,000 | |||||
Japanese Yen Credit Agreement due December 2013 (variable rate) | 163,182 | 199,327 | |||||
U.S. Dollar Private Placement Notes due May 2014 — May 2021 (2.11% - 4.23%) | 500,000 | 500,000 | |||||
Japanese Yen Credit Agreement due October 2015 (variable rate) | 152,983 | — | |||||
U.S. Dollar Private Placement Notes due July 2016 — July 2018 (2.86% - 3.55%) | 100,000 | 100,000 | |||||
2.00% U.S. Dollar Notes due September 2016 | 299,933 | 299,913 | |||||
1.50% U.S. Dollar Notes due March 2017 | 299,648 | 299,556 | |||||
U.S. Dollar Remarketable Securities due December 2020 | 119,000 | 119,000 | |||||
3.125% U.S. Dollar Notes due September 2021 | 395,772 | 395,268 | |||||
2.85% U.S. Dollar Notes due March 2022 | 299,565 | 299,516 | |||||
6.375% U.S. Dollar Debentures due July 2028 | 231,396 | 231,137 | |||||
6.25% British Pound Notes due February 2030 | 192,376 | 202,158 | |||||
6.75% U.S. Dollar Notes due March 2032 | 435,185 | 435,112 | |||||
7.125% U.S. Dollar Notes due August 2039 | 628,082 | 626,747 | |||||
4,749,096 | 4,851,785 | ||||||
Hedge Accounting Adjustments (See Note 13) | 122,455 | 128,444 | |||||
Less portion due within one year | (1,023,212 | ) | (200,248 | ) | |||
Total long-term debt | $ | 3,848,339 | $ | 4,779,981 | |||
Weighted-average interest rate on long-term debt, including the impact of applicable interest rate swaps | 4.07 | % | 4.28 | % |
9. | Supplemental Cash Flows Information |
2013 | 2012 | 2011 | |||||||||
(In thousands) | |||||||||||
Cash Paid During the Year For: | |||||||||||
Interest | $ | 285,324 | $ | 277,954 | $ | 268,131 | |||||
Income taxes | $ | 327,046 | $ | 265,547 | $ | 154,527 | |||||
Details of Acquisitions: | |||||||||||
Fair value of assets | $ | — | $ | — | $ | 1,057,870 | |||||
Liabilities(1) | — | (3,250 | ) | 274,294 | |||||||
Redeemable noncontrolling interest(2) | — | — | 124,669 | ||||||||
Cash paid | — | 3,250 | 658,907 | ||||||||
Less cash acquired | — | — | 40,605 | ||||||||
Net cash paid for acquisitions | $ | — | $ | 3,250 | $ | 618,302 |
(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 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(In millions) | |||||||||||
Pre-tax compensation cost | $ | 33.7 | $ | 36.5 | $ | 32.7 | |||||
Tax benefit | 10.8 | 12.0 | 10.4 | ||||||||
After-tax compensation cost | $ | 22.9 | $ | 24.5 | $ | 22.3 |
2003 Plan | ||
(In thousands) | ||
Number of shares authorized | 18,869 | |
Number of stock option shares granted | (11,533 | ) |
Number of stock option shares cancelled/forfeited and returned to the plan | 1,113 | |
Number of restricted stock units and restricted stock issued | (5,063 | ) |
Shares available for grant as stock options | 3,386 |
Fiscal Year Ended | ||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | ||||||
Dividend yield | 3.7 | % | 3.7 | % | 3.9 | % | ||
Expected volatility | 19.4 | % | 20.9 | % | 20.5 | % | ||
Expected term (years) | 7.0 | 5.0 | 5.5 | |||||
Risk-free interest rate | 1.0 | % | 1.0 | % | 1.7 | % |
Number of Options | Weighted Average Exercise Price (per share) | Aggregate Intrinsic Value | ||||||||
(In thousands, except per share data) | ||||||||||
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 granted | 1,540 | 55.72 | 85,828 | |||||||
Options exercised | (3,504 | ) | 42.35 | (148,376 | ) | |||||
Options cancelled/forfeited and returned to the plan | (110 | ) | 50.67 | (5,616 | ) | |||||
Options outstanding at April 28, 2013 | 6,534 | $ | 49.76 | $ | 325,126 | |||||
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 vested and exercisable at April 28, 2013 | 2,573 | $ | 48.01 | $ | 123,502 |
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) | ||||||||||||||||||
$31.95-$34.00 | 64 | 0.50 | $ | 33.86 | 64 | 0.50 | $ | 33.86 | ||||||||||
$34.01-$42.42 | 716 | 3.15 | 38.98 | 290 | 2.96 | 38.85 | ||||||||||||
$42.43-$55.72 | 5,754 | 5.45 | 51.28 | 2,219 | 3.40 | 49.61 | ||||||||||||
6,534 | 5.15 | $ | 49.76 | 2,573 | 3.28 | $ | 48.01 |
Number of Options | Weighted Average Grant Date Fair Value (per share) | |||||
(In thousands, except per share data) | ||||||
Unvested options at April 29, 2012 | 4,190 | $ | 5.43 | |||
Options granted | 1,540 | 5.79 | ||||
Options vested | (1,662 | ) | 5.39 | |||
Options forfeited | (107 | ) | $ | 5.61 | ||
Unvested options at April 28, 2013 | 3,961 | $ | 5.59 |
2003 Plan | ||
(In thousands) | ||
Number of shares authorized | 9,440 | |
Number of shares reserved for issuance | (6,842 | ) |
Number of shares returned to the plan | 1,779 | |
Shares available for grant | 4,377 |
Number of Units | Weighted Average Grant Date Fair Value (Per Share) | |||||
(In thousands, except per share data) | ||||||
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 | ||||
Units and stock granted | 464 | 55.88 | ||||
Units and stock vested | (567 | ) | 47.33 | |||
Units and stock cancelled/forfeited and returned to the plan | (53 | ) | 50.01 | |||
Unvested units and stock at April 28, 2013 | 1,114 | $ | 51.24 |
Fiscal Year Ended | |||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(In millions) | |||||||||||
Pre-tax compensation cost | $ | 17.3 | $ | 18.4 | $ | 21.5 | |||||
Tax benefit | 6.1 | 6.5 | 7.4 | ||||||||
After-tax compensation cost | $ | 11.2 | $ | 11.9 | $ | 14.1 |
11. | Fair Value Measurements |
April 28, 2013 | April 29, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivatives(a) | $ | — | $ | 68,892 | $ | — | $ | 68,892 | $ | — | $ | 90,221 | $ | — | $ | 90,221 | |||||||||||||||
Total assets at fair value | $ | — | $ | 68,892 | $ | — | $ | 68,892 | $ | — | $ | 90,221 | $ | — | $ | 90,221 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivatives(a) | $ | — | $ | 79,871 | $ | — | $ | 79,871 | $ | — | $ | 15,379 | $ | — | $ | 15,379 | |||||||||||||||
Earn-out(b) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 46,881 | $ | 46,881 | |||||||||||||||
Total liabilities at fair value | $ | — | $ | 79,871 | $ | — | $ | 79,871 | $ | — | $ | 15,379 | $ | 46,881 | $ | 62,260 |
(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 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. During the third quarter of Fiscal 2013, the Company renegotiated the terms of the earn-out agreement in order to give the Company additional flexibility in the future for growing its business in China, one of its largest and most important emerging markets. This renegotiation resulted in the settlement of the earn-out for a cash payment of $60.0 million (see Note 5 for additional information). |
12. | Pension and Other Postretirement Benefit Plans |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Change in Benefit Obligation: | |||||||||||||||
Benefit obligation at the beginning of the year | $ | 2,930,347 | $ | 2,765,316 | $ | 249,017 | $ | 234,431 | |||||||
Service cost | 31,580 | 33,719 | 6,486 | 5,967 | |||||||||||
Interest cost | 132,110 | 139,525 | 9,923 | 11,457 | |||||||||||
Participants’ contributions | 2,294 | 2,281 | 659 | 712 | |||||||||||
Amendments | (145 | ) | 3,396 | — | 735 | ||||||||||
Actuarial loss | 428,881 | 196,606 | 9,153 | 17,278 | |||||||||||
Settlement | (11,971 | ) | (1,854 | ) | — | — | |||||||||
Benefits paid | (157,672 | ) | (152,342 | ) | (15,760 | ) | (19,574 | ) | |||||||
Exchange/other | (83,858 | ) | (56,300 | ) | (2,161 | ) | (1,989 | ) | |||||||
Benefit obligation at the end of the year | $ | 3,271,566 | $ | 2,930,347 | $ | 257,317 | $ | 249,017 | |||||||
Change in Plan Assets: | |||||||||||||||
Fair value of plan assets at the beginning of the year | $ | 3,140,834 | $ | 3,261,881 | $ | — | $ | — | |||||||
Actual return on plan assets | 429,011 | 84,004 | — | — | |||||||||||
Settlement | (11,971 | ) | (1,854 | ) | — | — | |||||||||
Employer contribution | 69,388 | 23,469 | 15,101 | 18,862 | |||||||||||
Participants’ contributions | 2,294 | 2,281 | 659 | 712 | |||||||||||
Benefits paid | (157,672 | ) | (152,342 | ) | (15,760 | ) | (19,574 | ) | |||||||
Exchange/other | (92,741 | ) | (76,605 | ) | — | — | |||||||||
Fair value of plan assets at the end of the year | 3,379,143 | 3,140,834 | — | — | |||||||||||
Funded status | $ | 107,577 | $ | 210,487 | $ | (257,317 | ) | $ | (249,017 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Other non-current assets | $ | 287,467 | $ | 399,868 | $ | — | $ | — | |||||||
Other accrued liabilities | (32,271 | ) | (15,943 | ) | (16,998 | ) | (17,565 | ) | |||||||
Other non-current liabilities | (147,619 | ) | (173,438 | ) | (240,319 | ) | (231,452 | ) | |||||||
Net asset/(liabilities) recognized | $ | 107,577 | $ | 210,487 | $ | (257,317 | ) | $ | (249,017 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Components of defined benefit net periodic benefit cost: | |||||||||||||||||||||||
Service cost | $ | 31,580 | $ | 33,719 | $ | 32,329 | $ | 6,486 | $ | 5,967 | $ | 6,311 | |||||||||||
Interest cost | 132,110 | 139,525 | 142,133 | 9,923 | 11,457 | 12,712 | |||||||||||||||||
Expected return on assets | (250,660 | ) | (234,717 | ) | (229,258 | ) | — | — | — | ||||||||||||||
Amortization of: | |||||||||||||||||||||||
Prior service cost/(credit) | 2,495 | 1,995 | 2,455 | (6,178 | ) | (6,127 | ) | (5,155 | ) | ||||||||||||||
Net actuarial loss | 75,897 | 83,800 | 77,687 | 1,803 | 1,095 | 1,604 | |||||||||||||||||
Loss due to curtailment, settlement and special termination benefits | 4,524 | 1,120 | 2,039 | — | — | — | |||||||||||||||||
Net periodic benefit (income)/cost | (4,054 | ) | 25,442 | 27,385 | 12,034 | 12,392 | 15,472 | ||||||||||||||||
Defined contribution plans | 47,382 | 46,572 | 49,089 | — | — | — | |||||||||||||||||
Total cost | $ | 43,328 | $ | 72,014 | $ | 76,474 | $ | 12,034 | $ | 12,392 | $ | 15,472 |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Net actuarial loss | $ | 1,349,614 | $ | 1,174,199 | $ | 35,349 | $ | 28,000 | |||||||
Prior service cost/(credit) | 27,410 | 30,051 | (7,296 | ) | (13,474 | ) | |||||||||
Net amount recognized | $ | 1,377,024 | $ | 1,204,250 | $ | 28,053 | $ | 14,526 |
Pension Benefits | Other Retiree Benefits | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||||
Net actuarial loss | $ | 95,772 | $ | 77,238 | $ | 2,030 | $ | 1,803 | |||||||
Prior service cost/(credit) | 2,253 | 2,569 | (6,180 | ) | (6,174 | ) | |||||||||
Net amount recognized | $ | 98,025 | $ | 79,807 | $ | (4,150 | ) | $ | (4,371 | ) |
Pension Benefits | Other Retiree Benefits | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Discount rate | 4.0 | % | 4.8 | % | 3.4 | % | 4.1 | % | |||
Compensation increase rate | 3.5 | % | 3.4 | % | — | % | — | % |
Pension Benefits | Other Retiree Benefits | ||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||
Expected rate of return | 8.1 | % | 8.2 | % | 8.2 | % | — | % | — | % | — | % | |||||
Discount rate | 4.0 | % | 4.8 | % | 5.6 | % | 3.4 | % | 4.1 | % | 5.5 | % | |||||
Compensation increase rate | 3.5 | % | 3.4 | % | 4.0 | % | — | % | — | % | — | % |
1% Increase | 1% Decrease | ||||||
(In thousands) | |||||||
Effect on total service and interest cost components | $ | 1,551 | $ | 1,389 | |||
Effect on postretirement benefit obligations | $ | 18,881 | $ | 16,978 |
Target | ||||||||||||
Plan Assets at | Allocation at | |||||||||||
Asset Category | 2013 | 2012 | 2013 | 2012 | ||||||||
Equity securities | 62 | % | 61 | % | 58 | % | 59 | % | ||||
Debt securities | 29 | % | 31 | % | 33 | % | 32 | % | ||||
Real estate | 8 | % | 7 | % | 8 | % | 8 | % | ||||
Other | 1 | % | 1 | % | 1 | % | 1 | % | ||||
100 | % | 100 | % | 100 | % | 100 | % |
April 28, 2013 | ||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In thousands) | ||||||||||||||||
Equity Securities | $ | 882,081 | $ | — | $ | — | $ | 882,081 | ||||||||
Equity Securities (mutual and pooled funds) | 182,723 | 1,057,111 | — | 1,239,834 | ||||||||||||
Fixed Income Securities | 49,577 | 919,383 | 11,336 | 980,296 | ||||||||||||
Other Investments | — | — | 256,781 | 256,781 | ||||||||||||
Cash and Cash Equivalents | 6,787 | 13,364 | — | 20,151 | ||||||||||||
Total | $ | 1,121,168 | $ | 1,989,858 | $ | 268,117 | $ | 3,379,143 |
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 |
Fair Value April 29, 2012 | Acquisitions | Transfers Out | Dispositions | Realized Gain/(Loss) | Unrealized Gain/(Loss) | Fair Value April 28, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Fixed Income Securities | $ | 10,486 | $ | — | $ | — | $ | — | $ | — | $ | 850 | $ | 11,336 | |||||||||||||
Other Investments | 216,234 | 58,701 | (10,498 | ) | (3,605 | ) | (6,637 | ) | 2,586 | 256,781 | |||||||||||||||||
Total | $ | 226,720 | $ | 58,701 | $ | (10,498 | ) | $ | (3,605 | ) | $ | (6,637 | ) | $ | 3,436 | $ | 268,117 |
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 |
Pension Benefits | Other Retiree Benefits | ||||||
(In thousands) | |||||||
2014 | $ | 190,917 | $ | 17,143 | |||
2015 | $ | 172,992 | $ | 17,675 | |||
2016 | $ | 174,486 | $ | 18,325 | |||
2017 | $ | 175,665 | $ | 19,095 | |||
2018 | $ | 174,844 | $ | 19,655 | |||
Years 2019-2023 | $ | 893,504 | $ | 97,337 |
13. | Derivative Financial Instruments and Hedging Activities |
April 28, 2013 | April 29, 2012 | ||||||||||||||||||||||
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 | $ | 23,240 | $ | 4,226 | $ | — | $ | 17,318 | $ | 6,851 | $ | 18,222 | |||||||||||
Other non-current assets | 11,498 | 29,103 | — | 8,188 | 29,393 | 4,974 | |||||||||||||||||
34,738 | 33,329 | — | 25,506 | 36,244 | 23,196 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Other receivables, net | 825 | — | — | 5,041 | — | — | |||||||||||||||||
Other non-current assets | — | — | — | — | 234 | — | |||||||||||||||||
825 | — | — | 5,041 | 234 | — | ||||||||||||||||||
Total assets | $ | 35,563 | $ | 33,329 | $ | — | $ | 30,547 | $ | 36,478 | $ | 23,196 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Other payables | $ | 1,508 | $ | — | $ | 34,805 | $ | 10,653 | $ | — | $ | 2,760 | |||||||||||
Other non-current liabilities | 217 | — | 37,520 | 14 | — | — | |||||||||||||||||
1,725 | — | 72,325 | 10,667 | — | 2,760 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Other payables | 4,860 | — | — | 1,952 | — | — | |||||||||||||||||
Other non-current liabilities | — | 960 | — | — | — | — | |||||||||||||||||
4,860 | 960 | — | 1,952 | — | — | ||||||||||||||||||
Total liabilities | $ | 6,585 | $ | 960 | $ | 72,325 | $ | 12,619 | $ | — | $ | 2,760 |
Fiscal Year Ended | |||||||||||
April 28, 2013 | |||||||||||
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) | $ | 47,623 | $ | — | $ | (77,080 | ) | ||||
Net gains/(losses) reclassified from other comprehensive loss into earnings (effective portion): | |||||||||||
Sales | $ | 10,940 | $ | — | $ | — | |||||
Cost of products sold | (4,584 | ) | — | — | |||||||
Selling, general and administrative expenses | (102 | ) | — | — | |||||||
Other income/(expense), net | 13,924 | — | (70,135 | ) | |||||||
Interest income/(expense) | 29 | (236 | ) | (5,389 | ) | ||||||
20,207 | (236 | ) | (75,524 | ) | |||||||
Fair value hedges: | |||||||||||
Net losses recognized in other expense, net | — | (2,915 | ) | 70,135 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Net losses recognized in other expense, net | (7,976 | ) | — | — | |||||||
Net losses recognized in interest income | — | (1,193 | ) | — | |||||||
(7,976 | ) | (1,193 | ) | — | |||||||
Total amount recognized in statement of income | $ | 12,231 | $ | (4,344 | ) | $ | (5,389 | ) |
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 |
14. | Income Per Common Share |
Fiscal Year Ended | |||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Income from continuing operations attributable to H.J. Heinz Company | $ | 1,087,615 | $ | 974,374 | $ | 1,029,067 | |||||
Allocation to participating securities(a) | — | 1,991 | 1,816 | ||||||||
Preferred dividends | 8 | 9 | 12 | ||||||||
Income from continuing operations applicable to common stock | $ | 1,087,607 | $ | 972,374 | $ | 1,027,239 | |||||
Average common shares outstanding-basic | 320,662 | 320,686 | 320,118 | ||||||||
Effect of dilutive securities: | |||||||||||
Convertible preferred stock | 92 | 104 | 105 | ||||||||
Stock options, restricted stock and the global stock purchase plan | 2,418 | 2,531 | 2,819 | ||||||||
Average common shares outstanding-diluted | 323,172 | 323,321 | 323,042 |
15. | Other Comprehensive Income/(Loss) |
H. J. Heinz Company | Noncontrolling Interest | Total | |||||||||
(In thousands) | |||||||||||
April 28, 2013 | |||||||||||
Net income | $ | 1,012,903 | $ | 14,430 | $ | 1,027,333 | |||||
Other comprehensive income/loss, net of tax: | |||||||||||
Foreign currency translation adjustments | (213,259 | ) | (15,721 | ) | (228,980 | ) | |||||
Net pension and post-retirement benefit losses | (189,294 | ) | (8 | ) | (189,302 | ) | |||||
Reclassification of net pension and post-retirement benefit losses to net income | 54,833 | — | 54,833 | ||||||||
Net deferred losses on derivatives from periodic revaluations | (11,736 | ) | (7 | ) | (11,743 | ) | |||||
Net deferred losses on derivatives reclassified to earnings | 29,646 | (38 | ) | 29,608 | |||||||
Total comprehensive income/(loss) | $ | 683,093 | $ | (1,344 | ) | $ | 681,749 | ||||
April 29, 2012 | |||||||||||
Net income | $ | 923,159 | $ | 16,749 | $ | 939,908 | |||||
Other comprehensive income/loss, net of tax: | |||||||||||
Foreign currency translation adjustments | (359,771 | ) | (17,720 | ) | (377,491 | ) | |||||
Net pension and post-retirement benefit losses | (258,067 | ) | (12 | ) | (258,079 | ) | |||||
Reclassification of net pension and post-retirement benefit losses to net income | 56,813 | — | 56,813 | ||||||||
Net deferred gains/(losses) on derivatives from periodic revaluations | 30,405 | (28 | ) | 30,377 | |||||||
Net deferred (gains)/losses on derivatives reclassified to earnings | (14,088 | ) | 277 | (13,811 | ) | ||||||
Total comprehensive income/(loss) | $ | 378,451 | $ | (734 | ) | $ | 377,717 | ||||
April 27, 2011 | |||||||||||
Net income | $ | 989,510 | $ | 16,438 | $ | 1,005,948 | |||||
Other comprehensive income/loss, net of tax: | |||||||||||
Foreign currency translation adjustments | 563,060 | 4,816 | 567,876 | ||||||||
Net pension and post-retirement benefit gains/(losses) | 77,355 | (57 | ) | 77,298 | |||||||
Reclassification of net pension and post-retirement benefit losses to net income | 53,353 | — | 53,353 | ||||||||
Net deferred gains/(losses) on derivatives from periodic revaluations | 9,790 | (395 | ) | 9,395 | |||||||
Net deferred (gains)/losses on derivatives reclassified to earnings | (21,365 | ) | 571 | (20,794 | ) | ||||||
Total comprehensive income | $ | 1,671,703 | $ | 21,373 | $ | 1,693,076 |
H. J. Heinz Company | Noncontrolling Interest | Total | |||||||||
(In thousands) | |||||||||||
April 28, 2013 | |||||||||||
Foreign currency translation adjustments | $ | (115 | ) | $ | — | $ | (115 | ) | |||
Net pension and post-retirement benefit losses | $ | (75,526 | ) | $ | — | $ | (75,526 | ) | |||
Reclassification of net pension and post-retirement benefit losses to net income | $ | 23,694 | $ | — | $ | 23,694 | |||||
Net change in fair value of cash flow hedges | $ | 17,712 | $ | 2 | $ | 17,714 | |||||
Net hedging gains/losses reclassified into earnings | $ | 25,954 | $ | (13 | ) | $ | 25,941 | ||||
April 29, 2012 | |||||||||||
Foreign currency translation adjustments | $ | 180 | $ | — | $ | 180 | |||||
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 | |||||
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 | |||||||||||
Foreign currency translation adjustments | $ | (1,158 | ) | $ | — | $ | (1,158 | ) | |||
Net pension and post-retirement benefit gains | $ | (25,670 | ) | $ | 14 | $ | (25,656 | ) | |||
Reclassification of net pension and post-retirement benefit losses to net income | $ | 25,276 | $ | — | $ | 25,276 | |||||
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 | ) |
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 sells 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 and frozen soups. |
• | 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 28, 2013 | April 29, 2012 | April 27, 2011 | April 28, 2013 | April 29, 2012 | April 27, 2011 | ||||||||||||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Net External Sales | Operating Income (Loss) | ||||||||||||||||||||||
North American Consumer Products | $ | 3,195,099 | $ | 3,241,533 | $ | 3,265,857 | $ | 790,939 | $ | 812,056 | $ | 832,719 | |||||||||||
Europe | 3,314,523 | 3,441,282 | 3,236,800 | 593,044 | 608,829 | 581,148 | |||||||||||||||||
Asia/Pacific | 2,533,334 | 2,500,411 | 2,247,193 | 265,879 | 234,671 | 253,524 | |||||||||||||||||
U.S. Foodservice | 1,370,779 | 1,345,768 | 1,339,100 | 186,155 | 169,843 | 183,425 | |||||||||||||||||
Rest of World | 1,115,151 | 978,578 | 469,686 | 112,660 | 105,080 | 53,371 | |||||||||||||||||
Non-Operating(a) | — | — | — | (226,588 | ) | (222,754 | ) | (216,549 | ) | ||||||||||||||
Fiscal 2013 special items(b) | — | — | — | (60,438 | ) | — | — | ||||||||||||||||
Productivity initiatives(c) | — | — | — | — | (205,418 | ) | — | ||||||||||||||||
Consolidated Totals | $ | 11,528,886 | $ | 11,507,572 | $ | 10,558,636 | $ | 1,661,651 | $ | 1,502,307 | $ | 1,687,638 | |||||||||||
Depreciation and Amortization Expenses | Capital Expenditures(d) | ||||||||||||||||||||||
Total North America | $ | 126,859 | $ | 131,023 | $ | 121,480 | $ | 107,207 | $ | 103,958 | $ | 101,001 | |||||||||||
Europe | 98,806 | 98,384 | 91,222 | 96,112 | 113,420 | 97,964 | |||||||||||||||||
Asia/Pacific | 62,233 | 59,796 | 49,802 | 91,361 | 99,912 | 71,419 | |||||||||||||||||
Rest of World | 22,836 | 19,290 | 6,324 | 48,747 | 38,539 | 12,829 | |||||||||||||||||
Non-Operating(a) | 35,898 | 28,428 | 23,971 | 55,671 | 62,905 | 52,433 | |||||||||||||||||
Consolidated Totals | $ | 346,632 | $ | 336,921 | $ | 292,799 | $ | 399,098 | $ | 418,734 | $ | 335,646 | |||||||||||
Identifiable Assets | |||||||||||||||||||||||
Total North America | $ | 3,289,900 | $ | 3,394,387 | $ | 3,633,276 | |||||||||||||||||
Europe | 5,129,880 | 4,158,349 | 4,398,944 | ||||||||||||||||||||
Asia/Pacific | 2,670,376 | 2,544,332 | 2,424,739 | ||||||||||||||||||||
Rest of World | 1,123,407 | 1,145,696 | 1,149,802 | ||||||||||||||||||||
Non-Operating(e) | 725,444 | 740,529 | 623,884 | ||||||||||||||||||||
Consolidated Totals | $ | 12,939,007 | $ | 11,983,293 | $ | 12,230,645 |
(a) | Includes corporate overhead, intercompany eliminations and charges not directly attributable to operating segments. |
(b) | See Note 17 for further details on Fiscal 2013 special items. |
(c) | See Note 4 for further details on Fiscal 2012 productivity initiatives. |
(d) | Excludes property, plant and equipment obtained through acquisitions. |
(e) | Includes identifiable assets not directly attributable to operating segments. |
Fiscal Year Ended | |||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | |||||||||
(In thousands) | |||||||||||
Ketchup and Sauces | $ | 5,375,788 | $ | 5,232,607 | $ | 4,607,326 | |||||
Meals and Snacks | 4,240,808 | 4,337,995 | 4,134,836 | ||||||||
Infant/Nutrition | 1,189,015 | 1,232,248 | 1,175,438 | ||||||||
Other | 723,275 | 704,722 | 641,036 | ||||||||
Total | $ | 11,528,886 | $ | 11,507,572 | $ | 10,558,636 |
Fiscal Year Ended | |||||||||||||||||||||||
Net External Sales | Long-Lived Assets | ||||||||||||||||||||||
April 28, 2013 | April 29, 2012 | April 27, 2011 | |||||||||||||||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | April 28, 2013 | April 29, 2012 | April 27, 2011 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
United States | $ | 3,857,247 | $ | 3,885,057 | $ | 3,916,988 | $ | 2,383,136 | $ | 2,419,518 | $ | 2,425,446 | |||||||||||
United Kingdom | 1,597,755 | 1,611,177 | 1,506,607 | 1,133,086 | 1,207,918 | 1,245,047 | |||||||||||||||||
Other | 6,073,884 | 6,011,338 | 5,135,041 | 3,437,299 | 3,540,923 | 3,731,815 | |||||||||||||||||
Total | $ | 11,528,886 | $ | 11,507,572 | $ | 10,558,636 | $ | 6,953,521 | $ | 7,168,359 | $ | 7,402,308 |
17. | Quarterly Results |
2013 | |||||||||||||||||||
First (13 Weeks) | Second (13 Weeks) | Third (13 Weeks) | Fourth (13 Weeks) | Total (52 Weeks) | |||||||||||||||
(Unaudited) (In thousands, except per share amounts) | |||||||||||||||||||
Sales | $ | 2,783,451 | $ | 2,821,533 | $ | 2,933,331 | $ | 2,990,571 | $ | 11,528,886 | |||||||||
Gross profit | 1,001,944 | 1,013,016 | 1,106,515 | 1,073,995 | 4,195,470 | ||||||||||||||
Income from continuing operations attributable to H.J. Heinz Company common shareholders, net of tax | 286,177 | 294,705 | 308,214 | 198,519 | 1,087,615 | ||||||||||||||
Net income attributable to H.J. Heinz Company | 258,027 | 289,444 | 269,546 | 195,886 | 1,012,903 | ||||||||||||||
Per Share Amounts: | |||||||||||||||||||
Net income from continuing operations—diluted | $ | 0.89 | $ | 0.91 | $ | 0.95 | $ | 0.61 | $ | 3.37 | |||||||||
Net income from continuing operations—basic | 0.89 | 0.92 | 0.96 | 0.62 | 3.39 | ||||||||||||||
Cash dividends | 0.515 | 0.515 | 0.515 | 0.515 | 2.06 |
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 | $ | 2,817,706 | $ | 2,803,271 | $ | 2,874,927 | $ | 3,011,668 | $ | 11,507,572 | |||||||||
Gross profit | 983,620 | 966,890 | 1,033,598 | 1,010,681 | 3,994,789 | ||||||||||||||
Income from continuing operations attributable to H.J. Heinz Company common shareholders, net of tax | 234,493 | 244,934 | 288,283 | 206,664 | 974,374 | ||||||||||||||
Net income attributable to H.J. Heinz Company | 226,114 | 237,009 | 284,694 | 175,342 | 923,159 | ||||||||||||||
Per Share Amounts: | |||||||||||||||||||
Net income from continuing operations—diluted | $ | 0.72 | $ | 0.76 | $ | 0.89 | $ | 0.64 | $ | 3.01 | |||||||||
Net income from continuing operations—basic | 0.73 | 0.76 | 0.90 | 0.65 | 3.03 | ||||||||||||||
Cash dividends | 0.48 | 0.48 | 0.48 | 0.48 | 1.92 |
2012 | |||||||||||
Pre-tax charges | After-tax charges | EPS impact | |||||||||
(Unaudited) (In millions, except per share amounts) | |||||||||||
First Quarter | $ | 40.2 | $ | 28.1 | $ | 0.09 | |||||
Second Quarter | 37.3 | 25.6 | 0.08 | ||||||||
Third Quarter | 33.7 | 22.6 | 0.07 | ||||||||
Fourth Quarter | 94.3 | 67.7 | 0.21 | ||||||||
Total | $ | 205.4 | $ | 144.0 | $ | 0.45 | |||||
(Totals may not add due to rounding) |
18. | Commitments and Contingencies |
19. | Advertising Costs |
20. | Venezuela- Foreign Currency and Inflation |
• | $9.5 billion in senior secured term loans, with tranches of 6 and 7 year maturities and fluctuating interest rates based on, at the Company's election, base rate or LIBOR plus a spread on each of the tranches, with respective spreads ranging from 125-150 basis points for base rate loans with a 2% base rate floor and 225-250 basis points for LIBOR loans with a 1% LIBOR floor, |
• | $2.0 billion senior secured revolving credit facility with a 5 year maturity and a fluctuating interest rate based on, at the Company's election, base rate or LIBOR, with respective spreads ranging from 50-100 basis points for base rate loans and 150-200 basis points for LIBOR loans, on which nothing is currently drawn, and |
• | $3.1 billion of 4.25% secured second lien notes with a 7.5 year maturity which are required to be exchanged within one year of consummation of the Merger Agreement for registered notes. |
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. |
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 28, 2013 and April 29, 2012 | |||||
Consolidated Statements of Income for the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011 | |||||
Consolidated Statements of Comprehensive Income for the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011 | |||||
Consolidated Statements of Equity for the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011 | |||||
Consolidated Statements of Cash Flows for the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011 | |||||
Notes to Consolidated Financial Statements | |||||
Report of Independent Registered Public Accounting Firm of PricewaterhouseCoopers LLP dated June 14, 2013, on the Company’s consolidated financial statements and financial statement schedule filed as a part hereof for the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011 | |||||
(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 28, 2013, April 29, 2012 and April 27, 2011 | |||||
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. | ||||
2(a) | Agreement and Plan of Merger, dated as of February 13, 2013, by and among H.J. Heinz Company, H.J. Heinz Holding Corporation (formerly known as Hawk Acquisition Holding Corporation) and Hawk Acquisition Sub, Inc. is incorporated herein by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated February 15, 2013. | ||||
2(b) | Amendment to Agreement and Plan of Merger, dated as of March 4, 2013, by and among H. J. Heinz Company, H.J. Heinz Holding Corporation (formerly known as Hawk Acquisition Holding Corporation) and Hawk Acquisition Sub, Inc. is incorporated herein by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated March 6, 2013. | ||||
3(i) | Amended and Restated Articles of Incorporation of H. J. Heinz Company dated June 7, 2013, are incorporated herein by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
3(ii) | The Company's By-Laws, as amended effective June 7, 2013, are incorporated herein by reference to Exhibit 3.2 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
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. | ||||
(d) | First Supplemental Indenture, dated as of March 21, 2013, to the Indenture, dated as of July 6, 2001, by and among H. J. Heinz Finance Company, H. J. Heinz Company and The Bank of New York Mellon is incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K dated March 21, 2013. | ||||
(e) | Credit Agreement, dated as of June 7, 2013, by and among H. J. Heinz Company, Hawk Acquisition Sub, Inc., Hawk Acquisition Intermediate Corporation II, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, the other agents party thereto, and the lenders party thereto from time to time, is incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(f) | Security Agreement, dated as of June 7, 2013, by and among H. J. Heinz Company, Hawk Acquisition Intermediate Corporation II, Hawk Acquisition Sub, Inc., the subsidiary guarantors from time to time party thereto, and JPMorgan Chase Bank, N.A., as collateral agent, is incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(g) | Indenture dated as of April 1, 2013, by and among Hawk Acquisition Sub, Inc., as Issuer to be merged with and into H.J. Heinz Company, the Guarantors party thereto and Wells Fargo Bank, National Association, as Trustee and Collateral Agent, is incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(h) | Supplemental Indenture dated as of June 7, 2013, by and among H.J. Heinz Company, the parties signatories thereto as Guarantors and Wells Fargo Bank, National Association as Trustee and Collateral Agent, is incorporated by reference to Exhibit 4.2 of the Company's current Report on Form 8-K dated June 13, 2013. | ||||
(i) | Form of 4.25% Second Lien Senior Secured Notes due 2020, is incorporated by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(j) | Purchase Agreement, dated March 22, 2013, by and among Hawk Acquisition Sub, Inc., Hawk Acquisition Intermediate Corporation II and the several initial purchasers named in the schedule thereto, is incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(k) | Joinder Agreement, dated June 7, 2013, by and among H.J. Heinz Company and certain of its wholly owned subsidiaries, is incorporated by reference to Exhibit 10.5 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(l) | Second Lien Security Agreement, dated as of June 7, 2013, by and among Hawk Acquisition Intermediate Corporation II, and certain of its subsidiaries, collectively, as the Initial Grantors, and Wells Fargo Bank, National Association, as Collateral Agent, is incorporated by reference to Exhibit 10.6 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(m) | Second Lien Intellectual Property Security Agreement, dated June 7, 2013 by the persons listed on the signature pages thereof (collectively, the “Grantors”) in favor of Wells Fargo Bank, National Association, as collateral agent for the Secured Parties, is incorporated by reference to Exhibit 10.7 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||||
(n) | Registration Rights Agreement, dated as of April 1, 2013 by and among Hawk Acquisition Sub, Inc., Hawk Acquisition Intermediate Corporation II, as a guarantor and Wells Fargo Securities, LLC for itself and on behalf of J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and the other Initial Purchasers, is incorporated by reference to Exhibit 10.8 of the Company's Current Report on Form 8-K dated June 13, 2013. |
(o) | Registration Rights Agreement Joinder dated as of June 7, 2013, by and among H.J. Heinz Company and each of the subsidiaries listed on Schedule 1 thereto, and Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as Representatives of the several Initial Purchasers listed in Schedule 1 thereto, is incorporated by reference to Exhibit 10.9 of the Company's Current Reporton Form 8-K dated June 13, 2013. | ||||
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) is incorporated herein by reference to Exhibit 10(a)(xxiii) of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 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) is incorporated herein by reference to Exhibit 10(a)(xlv) of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2012. | ||||
(xlvi) | Form of Fiscal Year 2013-14 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xlvi) of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2012. | ||||
(xlvii) | Separation Agreement and Release, dated as of July 24, 2012, between H. J. Heinz Company and C. Scott O'Hara is incorporated herein by reference to Exhibit 10(a)(i) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||||
(xlviii) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees) (for awards under the Third Amended and Restated H.J. Heinz Company Fiscal Year 2003 Stock Incentive Plan (the “2003 Plan”)) is incorporated herein by reference to Exhibit 10(a)(ii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||||
(xlix) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(iii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. |
(l) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Time Based Vesting) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(iv) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||||
(li) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Retention) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(v) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||||
(lii) | Form of Fiscal Year 2013 Stock Option Award and Agreement (U.S. Employees) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(vi) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||||
(liii) | Form of Fiscal Year 2013 Stock Option Award and Agreement (Non-U.S. Employees) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(vii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||||
(liv) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees) (for awards under the H.J. Heinz Company Fiscal Year 2013 Stock Incentive Plan (the “2013 Plan”)) is incorporated herein by reference to Exhibit 10(a)(i) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||||
(lv) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(ii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||||
(lvi) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Time Based Vesting) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(iii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||||
(lvii) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Retention) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(iv) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||||
(lviii) | Form of Fiscal Year 2013 Stock Option Award and Agreement (U.S. Employees) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(v) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||||
(lix) | Form of Fiscal Year 2013 Stock Option Award and Agreement (Non-U.S. Employees) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(vi) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||||
(lx) | Form of Amendment to Long-Term Performance Program Award Agreement (Fiscal Years 2012-2013). | ||||
(lxi) | Form of Amendment to Long-Term Performance Program Award Agreement (Fiscal Years 2013-2014). | ||||
(lxii) | Form of Long-Term Incentive Program Award and Agreement (Fiscal Year 2014). | ||||
(lxiii) | Form of Long-Term Performance Program Award Agreement (Fiscal Years 2014-2015). | ||||
(lxiv) | Amendment No. 1, effective May 31, 2013, to the H. J. Heinz Company Supplemental Executive Retirement Plan, as amended and restated effective November 12, 2008. | ||||
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 Bernardo Hees. | ||||
31(b) | Rule 13a-14(a)/15d-14(a) Certification by Paulo Basilio. | ||||
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, subject to payment in advance of the cost of reproducing the exhibits requested. |
H. J. HEINZ COMPANY | ||
(Registrant) | ||
By: | /s/ Paulo Basilio | |
Paulo Basilio | ||
Chief Financial Officer |
Signature | Title | Date | |
/s/ Bernardo Hees | Chief Executive Officer | July 9, 2013 | |
Bernardo Hees | (Principal Executive Officer) | ||
/s/ Paulo Basilio | Chief Financial Officer | July 9, 2013 | |
Paulo Basilio | (Principal Financial Officer) | ||
/s/ John Mastalerz Jr. | Corporate Controller | July 9, 2013 | |
John Mastalerz Jr. | (Principal Accounting Officer) | ||
* | Director | July 9, 2013 | |
Gregory Abel | |||
* | Director | July 9, 2013 | |
Alexandre Behring | |||
* | Director | July 9, 2013 | |
Tracy Britt | |||
* | Director | July 9, 2013 | |
Warren Buffett | |||
* | Director | July 9, 2013 | |
Jorge Paulo Lemann | |||
* | Director | July 9, 2013 | |
Marcel Herrmann Telles | |||
* /s/ Paulo Basilio | July 9, 2013 | ||
Paulo Basilio Attorney-in-Fact |
Description | Balance at beginning of period | Charged to costs and expenses | Deductions | Exchange | Balance at end of period | |||||||||||||||
Fiscal year ended April 28, 2013: | ||||||||||||||||||||
Reserves deducted in the balance sheet from the assets to which they apply: | ||||||||||||||||||||
Trade receivables | $ | 10,680 | $ | 1,937 | $ | 4,484 | $ | (176 | ) | $ | 7,957 | |||||||||
Other receivables | $ | 607 | $ | (183 | ) | $ | 64 | $ | — | $ | 360 | |||||||||
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 |
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. | |||
2(a) | Agreement and Plan of Merger, dated as of February 13, 2013, by and among H.J. Heinz Company, H.J. Heinz Holding Corporation (formerly known as Hawk Acquisition Holding Corporation) and Hawk Acquisition Sub, Inc. is incorporated herein by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated February 15, 2013. | ||
2(b) | Amendment to Agreement and Plan of Merger, dated as of March 4, 2013, by and among H. J. Heinz Company, H.J. Heinz Holding Corporation (formerly known as Hawk Acquisition Holding Corporation) and Hawk Acquisition Sub, Inc. is incorporated herein by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated March 6, 2013. | ||
3(i) | Amended and Restated Articles of Incorporation of H. J. Heinz Company dated June 7, 2013, are incorporated herein by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
3(ii) | The Company's By-Laws, as amended effective June 7, 2013, are incorporated herein by reference to Exhibit 3.2 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
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. | ||
(d) | First Supplemental Indenture, dated as of March 21, 2013, to the Indenture, dated as of July 6, 2001, by and among H. J. Heinz Finance Company, H. J. Heinz Company and The Bank of New York Mellon is incorporated herein by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K dated March 21, 2013. | ||
(e) | Credit Agreement, dated as of June 7, 2013, by and among H. J. Heinz Company, Hawk Acquisition Sub, Inc., Hawk Acquisition Intermediate Corporation II, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, the other agents party thereto, and the lenders party thereto from time to time, is incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(f) | Security Agreement, dated as of June 7, 2013, by and among H. J. Heinz Company, Hawk Acquisition Intermediate Corporation II, Hawk Acquisition Sub, Inc., the subsidiary guarantors from time to time party thereto, and JPMorgan Chase Bank, N.A., as collateral agent, is incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(g) | Indenture dated as of April 1, 2013, by and among Hawk Acquisition Sub, Inc., as Issuer to be merged with and into H.J. Heinz Company, the Guarantors party thereto and Wells Fargo Bank, National Association, as Trustee and Collateral Agent, is incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(h) | Supplemental Indenture dated as of June 7, 2013, by and among H.J. Heinz Company, the parties signatories thereto as Guarantors and Wells Fargo Bank, National Association as Trustee and Collateral Agent, is incorporated by reference to Exhibit 4.2 of the Company's current Report on Form 8-K dated June 13, 2013. | ||
(i) | Form of 4.25% Second Lien Senior Secured Notes due 2020, is incorporated by reference to Exhibit 4.3 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(j) | Purchase Agreement, dated March 22, 2013, by and among Hawk Acquisition Sub, Inc., Hawk Acquisition Intermediate Corporation II and the several initial purchasers named in the schedule thereto, is incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K dated June 13, 2013. |
(k) | Joinder Agreement, dated June 7, 2013, by and among H.J. Heinz Company and certain of its wholly owned subsidiaries, is incorporated by reference to Exhibit 10.5 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(l) | Second Lien Security Agreement, dated as of June 7, 2013, by and among Hawk Acquisition Intermediate Corporation II, and certain of its subsidiaries, collectively, as the Initial Grantors, and Wells Fargo Bank, National Association, as Collateral Agent, is incorporated by reference to Exhibit 10.6 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(m) | Second Lien Intellectual Property Security Agreement, dated June 7, 2013 by the persons listed on the signature pages thereof (collectively, the “Grantors”) in favor of Wells Fargo Bank, National Association, as collateral agent for the Secured Parties, is incorporated by reference to Exhibit 10.7 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(n) | Registration Rights Agreement, dated as of April 1, 2013 by and among Hawk Acquisition Sub, Inc., Hawk Acquisition Intermediate Corporation II, as a guarantor and Wells Fargo Securities, LLC for itself and on behalf of J.P. Morgan Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc. and the other Initial Purchasers, is incorporated by reference to Exhibit 10.8 of the Company's Current Report on Form 8-K dated June 13, 2013. | ||
(o) | Joinder to Registration Rights Agreement dated as of June 7, 2013, by and among H.J. Heinz Company and each of the subsidiaries listed on Schedule 1 thereto, and Wells Fargo Securities, LLC and J.P. Morgan Securities LLC, as Representatives of the several Initial Purchasers listed in Schedule 1 thereto, is incorporated by reference to Exhibit 10.9 of the Company's Current Reporton Form 8-K dated June 13, 2013. | ||
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) is incorporated herein by reference to Exhibit 10(a)(xxiii) of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 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) is incorporated herein by reference to Exhibit 10(a)(xlv) of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2012. | ||
(xlvi) | Form of Fiscal Year 2013-14 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(xlvi) of the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 2012. | ||
(xlvii) | Separation Agreement and Release, dated as of July 24, 2012, between H. J. Heinz Company and C. Scott O'Hara is incorporated herein by reference to Exhibit 10(a)(i) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(xlviii) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees) (for awards under the Third Amended and Restated H.J. Heinz Company Fiscal Year 2003 Stock Incentive Plan (the “2003 Plan”)) is incorporated herein by reference to Exhibit 10(a)(ii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(xlix) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(iii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(l) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Time Based Vesting) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(iv) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(li) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Retention) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(v) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(lii) | Form of Fiscal Year 2013 Stock Option Award and Agreement (U.S. Employees) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(vi) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(liii) | Form of Fiscal Year 2013 Stock Option Award and Agreement (Non-U.S. Employees) (for awards under the 2003 Plan) is incorporated herein by reference to Exhibit 10(a)(vii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended July 29, 2012. | ||
(liv) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees) (for awards under the H.J. Heinz Company Fiscal Year 2013 Stock Incentive Plan (the “2013 Plan”)) is incorporated herein by reference to Exhibit 10(a)(i) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||
(lv) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (Non-U.S. Employees) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(ii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. |
(lvi) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Time Based Vesting) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(iii) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||
(lvii) | Form of Fiscal Year 2013 Restricted Stock Unit Award and Agreement (U.S. Employees - Retention) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(iv) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||
(lviii) | Form of Fiscal Year 2013 Stock Option Award and Agreement (U.S. Employees) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(v) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||
(lix) | Form of Fiscal Year 2013 Stock Option Award and Agreement (Non-U.S. Employees) (for awards under the 2013 Plan) is incorporated herein by reference to Exhibit 10(a)(vi) of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 28, 2012. | ||
(lx) | Form of Amendment to Long-Term Performance Program Award Agreement (Fiscal Years 2012-2013). | ||
(lxi) | Form of Amendment to Long-Term Performance Program Award Agreement (Fiscal Years 2013-2014). | ||
(lxii) | Form of Long-Term Incentive Program Award and Agreement (Fiscal Year 2014). | ||
(lxiii) | Form of Long-Term Performance Program Award Agreement (Fiscal Years 2014-2015). | ||
(lxiv) | Amendment No. 1, effective May 31, 2013, to the H. J. Heinz Company Supplemental Executive Retirement Plan. | ||
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 Bernardo Hees. | ||
31(b) | Rule 13a-14(a)/15d-14(a) Certification by Paulo Basilio. | ||
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, 2013)(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 North America and Global Infant/Nutrition | |
Christopher J. Warmoth | $620,000 |
Executive Vice President, Heinz Asia Pacific | |
David C. Woodward | $600,000 |
Executive Vice President, President and Chief Executive Officer of Heinz Europe | |
Michael D. Milone(2) | N/A |
Retired Executive Vice President, Rest of World, Global ERM & Global Infant/Nutrition |
(1) | The above salaries were not changed for Fiscal Year 2013. |
(2) | Mr. Milone retired from the Company in June 2012. |
1. | Award. The Award Agreement is hereby amended to provide that the Company's performance against the ROIC Target metric and the TSR Value metric is deemed to be such that 100% of the Target Award Opportunity is earned for the Performance Period. |
(a) | Defined Terms. Unless otherwise defined herein, all capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Award Agreement. |
(b) | No Other Modification. Except as amended herein, all other terms and conditions of the Award Agreement shall remain in full force and effect. |
(c) | Governing Law. This Amendment shall be governed by the laws of the Commonwealth of Pennsylvania. |
1. | Award. The Award Agreement is hereby amended to provide that the Company's performance against the ROIC Target metric and the TSR Value metric is deemed to be such that 100% of the Target Award Opportunity is earned for the Performance Period, subject to pro-ration and payment in accordance with Section 4(d) of the Award Agreement. |
(a) | Defined Terms. Unless otherwise defined herein, all capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Award Agreement. |
(b) | No Other Modification. Except as amended herein, all other terms and conditions of the Award Agreement shall remain in full force and effect. |
c) | Governing Law. This Amendment shall be governed by the laws of the Commonwealth of Pennsylvania. |
1. | Award. |
(a) | The target value of the Award to you under this Agreement is equal to $______ (the “Target Award Opportunity”), based on a 36-month Award Period and subject to acceleration and proration pursuant to Section 3 below. The “Award Period” begins on May 1, 2013 and ends on the earlier of (a) the date of the closing of the acquisition between the Company and a subsidiary of Hawk Acquisition Holding Corporation (the “Closing Date”) and (b) May 1, 2016. |
(b) | In light of the impending acquisition, this Award replaces certain awards of Restricted Stock Units (“RSUs”) and stock options that you might have otherwise received in Fiscal Year 2014, in the following proportions: |
2. | Vesting. The Award will vest 100% on May 1, 2016, subject to acceleration in accordance with Section 3(a) below. |
3. | Acceleration, Proration, and Payment of Award. |
(a) | If the Award Period ends on the Closing Date, your Award will be accelerated and prorated and paid as soon as administratively possible following the Closing Date, subject to Sections 4, 5, 6 and 7 below. If the Award Period does not end on the Closing Date, the Award will be subject to the vesting requirement set forth in Section 2 above and will be paid as soon as administratively possible following vesting. |
(b) | Your Award will be prorated based upon the number of full and partial months of the Award Period completed. For example and for illustration purposes only, if the Closing Date occurred on July 10, 2013, your Award would equal: |
(c) | The Award will be paid in cash, subject to the limits set forth in the Plan. |
4. | Termination of Employment. In the event that your employment with the Company terminates for any reason prior to the completion of the Award Period, your entire Award will be forfeited. |
5. | Termination of the LTIP. If the LTIP is terminated prior to the completion of the Award Period, provided that you are an employee of the Company on the date of such termination, your Award will be prorated, pursuant to Section 2(b) above, based on the number of full and partial months of the Award Period completed prior to such termination, and will be paid in cash as soon as administratively possible following such termination. |
6. | Non-Solicitation. You agree that you shall not, during the term of your employment by the Company and for eighteen (18) months after the date of the termination of your employment with the Company, 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 Confidential Information (as defined in Section 7 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 6 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 6 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 6. Any breach by you of the provisions of this Section 6 will, at the option of the Company (in its sole discretion) and in addition to all other rights and remedies available to the Company at law, in equity or under this Agreement, result in the forfeiture of all of your rights in any portion of the Award that remains unvested as of the date of such breach. |
7. | Non-Competition/Confidential Information. As used in this Section 7, the following terms shall have the respective indicated meanings: |
8. | Impact on Benefits. The RSU Replacement Amount will be included as eligible compensation for the year of the grant pursuant to the H.J. Heinz Company Supplemental Executive Retirement Plan (as amended and restated effective September 1, 2007) and the H.J. Heinz Company Employees Retirement and Savings Excess Plan (as amended and restated effective January 1, 2005), regardless of whether or not the Award subsequently vests. The Award will not be included as eligible compensation pursuant to any other plan of the Company except as expressly set forth in such plan(s). |
9. | 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. |
10. | Non-Transferability. Your Award may not be sold, transferred, pledged, assigned, or otherwise encumbered except by will or the laws of descent and distribution. |
11. | 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 Company to terminate your employment at any time, with or without cause, and with or without notice. |
12. | Collection and Use of Personal Data. You consent to the collection, use, and processing of personal data (including name, home address and telephone number, and 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 incentive plans of the Company (collectively, the “Plans”). You further consent to the release of personal data (a) 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, or (b) to any Subsidiary of the Company, wherever located. 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. |
13. | 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 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. |
14. | 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. |
15. | Internal Revenue Code Section 409A. 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 |
1. | Award. The target value of the Award to you under this Agreement is equal to $______ (the “Target Award Opportunity”), based on a 24-month Award Period and subject to proration pursuant to Section 2 below. The “Award Period” begins on May 1, 2013 and ends on the earlier of (a) the date of the closing of the acquisition between the Company and a subsidiary of Hawk Acquisition Holding Corporation (the “Closing Date”) and (b) May 3, 2015. |
2. | Proration and Payment of Award. |
(a) | Your Award will be prorated based upon the number of full and partial months of the Award Period. For example and for illustration purposes only, if the Closing Date occurred on July 10, 2013, your Award payout would equal: |
(b) | If your employment with the Company began after the commencement of the Award Period, your Target Award Opportunity set forth in Section 1 above has been prorated based upon the number of full and partial months that you are anticipated to be employed by the Company in an eligible position during the Award Period. The payment of your Award will be prorated as set forth in subsection (a) above. |
(c) | Your Award will be paid in cash as soon as administratively possible following the end of the Award Period, subject to Sections 3, 4 and 5 below. |
3. | Termination of Employment. In the event that your employment with the Company terminates for any reason prior to the completion of the Award Period, your entire Award will be forfeited. |
4. | Termination of the Plan. If the Plan is terminated prior to the completion of the Award Period, provided that you are an employee of the Company on the date of such termination, your Award will be prorated, |
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 available to the Company at law, in equity, or under this Agreement, any breach by you of the provisions of this Section 5 will result in the forfeiture of any unpaid portion of your Award to which you would otherwise be entitled pursuant to this Agreement. |
6. | Impact on Benefits. The Award 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 |
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 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. 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 28, 2013 | April 29, 2012 | April 27, 2011 | April 28, 2010 | April 29, 2009 | ||||||||||||||||
(52 Weeks) | (52 1/2 Weeks) | (52 Weeks) | (52 Weeks) | (52 Weeks) | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense* | $ | 286,742 | $ | 296,785 | $ | 276,744 | $ | 306,708 | $ | 344,629 | ||||||||||
Capitalized interest | 1,365 | 480 | 1,897 | 2,716 | — | |||||||||||||||
Interest component of rental expense | 42,715 | 45,530 | 32,170 | 33,711 | 31,916 | |||||||||||||||
Total fixed charges | $ | 330,822 | $ | 342,795 | $ | 310,811 | $ | 343,135 | $ | 376,545 | ||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income or loss from equity investees and income taxes | $ | 1,343,643 | $ | 1,236,089 | $ | 1,416,322 | $ | 1,315,779 | $ | 1,341,772 | ||||||||||
Add: Interest expense* | 286,742 | 296,785 | 276,744 | 306,708 | 344,629 | |||||||||||||||
Add: Interest component of rental expense | 42,715 | 45,530 | 32,170 | 33,711 | 31,916 | |||||||||||||||
Add: Amortization of capitalized interest | 755 | 783 | 754 | 367 | 633 | |||||||||||||||
Earnings as adjusted | $ | 1,673,855 | $ | 1,579,187 | $ | 1,725,990 | $ | 1,656,565 | $ | 1,718,950 | ||||||||||
Ratio of earnings to fixed charges | 5.06 | 4.61 | 5.55 | 4.83 | 4.57 |
* | 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 |
Heinz Foreign Investment Company | Idaho |
Heinz Investments Ltd. | Cyprus |
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 |
Heinz Management LLC | Delaware |
H.J. Heinz Supply Chain Europe B.V. | Netherlands |
Country Ford Development Limited | Hong Kong |
Heinz Asean Pte. Ltd. | Singapore |
Highview Atlantic Finance Company | Cayman Island |
Signature | Title |
/s/ Gregory Abel | Director |
Gregory Abel | |
/s/ Alexandre Behring | Director |
Alexandre Behring | |
/s/ Tracy Britt | Director |
Tracy Britt | |
/s/ Warren Buffett | Director |
Warren Buffett | |
/s/ Jorge Paulo Lemann | Director |
Jorge Paulo Lemann | |
/s/ Marcel Herrmann Telles | Director |
Marcel Herrmann Telles | |
/s/ Bernardo Hees | Chief Executive Officer |
Bernardo Hees | (Principal Executive Officer) |
/s/ Paulo Basilio | Chief Financial Officer |
Paulo Basilio | (Principal Financial Officer) |
/s/ John Mastalerz Jr. | Corporate Controller |
John Mastalerz Jr. | (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 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) 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/ Bernardo Hees | |
Name: | Bernardo Hees | |
Title: | 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 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) 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/ Paulo Basilio | |
Name: | Paulo Basilio | |
Title: | Chief Financial Officer |
1. | The Company’s annual report on Form 10-K for the fiscal year ended April 28, 2013 (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/ Bernardo Hees | |
Name: | Bernardo Hees | |
Title: | Chief Executive Officer |
1. | The Company’s annual report on Form 10-K for the fiscal year ended April 28, 2013 (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/ Paulo Basilio | |
Name: | Paulo Basilio | |
Title: | Chief Financial Officer |
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Quarterly Results 1 (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2013
|
Jan. 27, 2013
|
Oct. 28, 2012
|
Jul. 29, 2012
|
Apr. 29, 2012
|
Jan. 25, 2012
|
Oct. 26, 2011
|
Jul. 27, 2011
|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 2,990,571 | $ 2,933,331 | $ 2,821,533 | $ 2,783,451 | $ 3,011,668 | $ 2,874,927 | $ 2,803,271 | $ 2,817,706 | $ 11,528,886 | $ 11,507,572 | $ 10,558,636 |
Gross profit | 1,073,995 | 1,106,515 | 1,013,016 | 1,001,944 | 1,010,681 | 1,033,598 | 966,890 | 983,620 | 4,195,470 | 3,994,789 | 3,944,377 |
Income (Loss) from Continuing Operations Attributable to Parent | 198,519 | 308,214 | 294,705 | 286,177 | 206,664 | 288,283 | 244,934 | 234,493 | 1,087,615 | 974,374 | 1,029,067 |
Net income attributable to H. J. Heinz Company | $ 195,886 | $ 269,546 | $ 289,444 | $ 258,027 | $ 175,342 | $ 284,694 | $ 237,009 | $ 226,114 | $ 1,012,903 | $ 923,159 | $ 989,510 |
Net income from continuing operations- diluted | $ 0.61 | $ 0.95 | $ 0.91 | $ 0.89 | $ 0.64 | $ 0.89 | $ 0.76 | $ 0.72 | $ 3.37 | $ 3.01 | $ 3.18 |
Net income from continuing operations- basic | $ 0.62 | $ 0.96 | $ 0.92 | $ 0.89 | $ 0.65 | $ 0.90 | $ 0.76 | $ 0.73 | $ 3.39 | $ 3.03 | $ 3.21 |
Cash dividends | $ 0.515 | $ 0.515 | $ 0.515 | $ 0.515 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 2.06 | $ 1.92 | $ 1.80 |
Pension and Other Postretirement Benefit Plans 6 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2013
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Apr. 29, 2012
|
Apr. 28, 2013
Fair Value, Inputs, Level 1 [Member]
|
Apr. 29, 2012
Fair Value, Inputs, Level 1 [Member]
|
Apr. 28, 2013
Fair Value, Inputs, Level 2 [Member]
|
Apr. 29, 2012
Fair Value, Inputs, Level 2 [Member]
|
Apr. 28, 2013
Fair Value, Inputs, Level 3 [Member]
|
Apr. 29, 2012
Fair Value, Inputs, Level 3 [Member]
|
Apr. 27, 2011
Fair Value, Inputs, Level 3 [Member]
|
Apr. 28, 2013
Equity Securities [Member]
|
Apr. 29, 2012
Equity Securities [Member]
|
Apr. 28, 2013
Equity Securities [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 29, 2012
Equity Securities [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 28, 2013
Equity Securities [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 29, 2012
Equity Securities [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 28, 2013
Equity Securities [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 29, 2012
Equity Securities [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 28, 2013
Equity Funds [Member]
|
Apr. 29, 2012
Equity Funds [Member]
|
Apr. 28, 2013
Equity Funds [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 29, 2012
Equity Funds [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 28, 2013
Equity Funds [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 29, 2012
Equity Funds [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 28, 2013
Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 29, 2012
Equity Funds [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 28, 2013
Fixed Income Funds [Member]
|
Apr. 29, 2012
Fixed Income Funds [Member]
|
Apr. 28, 2013
Fixed Income Funds [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 29, 2012
Fixed Income Funds [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 28, 2013
Fixed Income Funds [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 29, 2012
Fixed Income Funds [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 28, 2013
Fixed Income Funds [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 29, 2012
Fixed Income Funds [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 27, 2011
Fixed Income Funds [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 28, 2013
Other Investments [Member]
|
Apr. 29, 2012
Other Investments [Member]
|
Apr. 28, 2013
Other Investments [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 29, 2012
Other Investments [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 28, 2013
Other Investments [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 29, 2012
Other Investments [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 28, 2013
Other Investments [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 29, 2012
Other Investments [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 27, 2011
Other Investments [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 28, 2013
Cash and Cash Equivalents [Member]
|
Apr. 29, 2012
Cash and Cash Equivalents [Member]
|
Apr. 28, 2013
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 29, 2012
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 1 [Member]
|
Apr. 28, 2013
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 29, 2012
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 2 [Member]
|
Apr. 28, 2013
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 29, 2012
Cash and Cash Equivalents [Member]
Fair Value, Inputs, Level 3 [Member]
|
Apr. 28, 2013
Debt Securities [Member]
|
Apr. 29, 2012
Debt Securities [Member]
|
Apr. 28, 2013
Real Estate [Member]
|
Apr. 29, 2012
Real Estate [Member]
|
Apr. 28, 2013
Other Assets [Member]
|
Apr. 29, 2012
Other Assets [Member]
|
Apr. 28, 2013
Maximum [Member]
Common Stock [Member]
|
Apr. 29, 2012
Maximum [Member]
Common Stock [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 100.00% | 100.00% | 62.00% | 61.00% | 29.00% | 31.00% | 8.00% | 7.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, target allocation | 100.00% | 100.00% | 58.00% | 59.00% | 33.00% | 32.00% | 8.00% | 8.00% | 1.00% | 1.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ 3,379,143 | $ 3,140,834 | $ 1,121,168 | $ 1,056,416 | $ 1,989,858 | $ 1,857,698 | $ 268,117 | $ 226,720 | $ 140,744 | $ 882,081 | $ 822,184 | $ 882,081 | $ 822,184 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,239,834 | $ 1,091,610 | $ 182,723 | $ 147,865 | $ 1,057,111 | $ 943,745 | $ 0 | $ 0 | $ 980,296 | $ 981,496 | $ 49,577 | $ 76,032 | $ 919,383 | $ 894,978 | $ 11,336 | $ 10,486 | $ 9,649 | $ 256,781 | $ 216,234 | $ 0 | $ 0 | $ 0 | $ 0 | $ 256,781 | $ 216,234 | $ 131,095 | $ 20,151 | $ 29,310 | $ 6,787 | $ 10,335 | $ 13,364 | $ 18,975 | $ 0 | $ 0 |
Pension and Other Postretirement Benefit Plans 8 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 28, 2013
|
---|---|
Pension Plans, Defined Benefit [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
2014 | $ 190,917 |
2015 | 172,992 |
2016 | 174,486 |
2017 | 175,665 |
2018 | 174,844 |
Years 2019-2023 | 893,504 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | |
2014 | 17,143 |
2015 | 17,675 |
2016 | 18,325 |
2017 | 19,095 |
2018 | 19,655 |
Years 2019-2023 | $ 97,337 |
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
|
Allowance for Trade Receivables [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Reserves, Balance at beginning of period | $ 10,680 | $ 10,909 | $ 10,196 |
Charged to costs and expenses | 1,937 | 4,220 | 1,997 |
Deductions | 4,484 | 3,807 | 2,053 |
Exchange | (176) | (642) | 769 |
Valuation Reserves, Balance at end of period | 7,957 | 10,680 | 10,909 |
Allowance For Other Receivables [Member]
|
|||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Reserves, Balance at beginning of period | 607 | 503 | 268 |
Charged to costs and expenses | (183) | 108 | 203 |
Deductions | 64 | 8 | 0 |
Exchange | 0 | 4 | 32 |
Valuation Reserves, Balance at end of period | $ 360 | $ 607 | $ 503 |
Supplemental Cash Flows Information
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
|
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flows Information | Supplemental Cash Flows Information
_______________________________________
In addition, the Company acted as servicer for approximately $184.3 million and $205.6 million of trade receivables which were sold to unrelated third parties without recourse as of April 28, 2013 and April 29, 2012, respectively. These trade receivables are short-term in nature. The proceeds from these sales are also recognized on the statements of cash flows as a component of operating activities. The Company has not recorded any servicing assets or liabilities as of April 28, 2013 or April 29, 2012 for the arrangements discussed above because the fair value of these servicing agreements as well as the fees earned were not material to the financial statements. |
Goodwill and Other Intangible Assets 2 (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
|
Finite Lived Intangible Assets [Line Items] | |||
Gross | $ 837,256,000 | $ 845,728,000 | |
Accumulated Amortization | (403,008,000) | (382,367,000) | |
Net | 434,248,000 | 463,361,000 | |
Amortization expense for trademarks and other intangible assets | 30,900,000 | 31,800,000 | 29,000,000 |
Future amortization expense for finite-lived intangible assets | 31,000,000 | ||
Intangible assets not subject to amortization | 981,300,000 | 1,035,300,000 | |
Indefinite lived intangibles allocated to discontinued operations | 14,600,000 | ||
Trademarks [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 282,350,000 | 282,937,000 | |
Accumulated Amortization | (91,923,000) | (87,925,000) | |
Net | 190,427,000 | 195,012,000 | |
Intangible assets not subject to amortization | 846,900,000 | 895,900,000 | |
Licenses [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 208,186,000 | 208,186,000 | |
Accumulated Amortization | (169,666,000) | (163,945,000) | |
Net | 38,520,000 | 44,241,000 | |
Intangible assets not subject to amortization | 19,400,000 | 20,100,000 | |
Recipes/processes [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 86,686,000 | 89,207,000 | |
Accumulated Amortization | (37,907,000) | (35,811,000) | |
Net | 48,779,000 | 53,396,000 | |
Intangible assets not subject to amortization | 115,000,000 | 119,300,000 | |
Customer-related assets [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 209,428,000 | 216,755,000 | |
Accumulated Amortization | (77,310,000) | (69,244,000) | |
Net | 132,118,000 | 147,511,000 | |
Other [Member]
|
|||
Finite Lived Intangible Assets [Line Items] | |||
Gross | 50,606,000 | 48,643,000 | |
Accumulated Amortization | (26,202,000) | (25,442,000) | |
Net | $ 24,404,000 | $ 23,201,000 |
Recently Issued Accounting Standards
|
12 Months Ended |
---|---|
Apr. 28, 2013
|
|
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2013, the FASB issued an amendment to the comprehensive income standard to improve the transparency of reporting reclassifications out of accumulated other comprehensive income/loss. Other comprehensive income/loss includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income/loss into net income. The amendments do not change the current requirements for reporting net income or other comprehensive income/loss in financial statements. The new amendments will require the Company to present the effects on income statement line items of certain significant amounts reclassified out of accumulated other comprehensive income/loss, and cross-reference to other disclosures currently required under U.S. generally accepted accounting principles for certain other reclassification items. The Company will adopt this revised standard in the first quarter of Fiscal 2014. The adoption of this revised standard will not impact our results of operations or financial position. In July 2012, the FASB issued an amendment to the indefinite-lived intangibles impairment standard. This revised standard is intended to reduce the cost and complexity of testing indefinite-lived intangible assets other than goodwill for impairment by providing entities with the option to first assess qualitatively whether it is more likely than not that an indefinite-lived intangible asset is impaired. An entity is not required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative impairment test unless the entity determines that it is more likely than not that the asset is impaired. An entity can choose to perform the qualitative assessment on none, some, or all of its indefinite-lived intangible assets. Moreover, an entity can by-pass the qualitative assessment and perform the quantitative impairment test for any indefinite-lived intangible asset in any period. The Company early adopted this amendment in the fourth quarter of Fiscal 2013 for use in the Fiscal 2013 annual impairment testing. The adoption of this revised standard did not impact our results of operations or financial position. In December 2011, the FASB issued an amendment on disclosures about offsetting assets and liabilities. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. The Company is required to adopt this amendment on the first day of Fiscal 2014, and this adoption will only impact the notes to the financial statements and not the financial results. The Company did not expect a significant impact to its disclosure requirements from this amendment. In September 2011, the FASB issued an amendment to the disclosure requirements for multiemployer pension plans. This amendment requires an employer who participates in multiemployer pension plans to provide additional quantitative and qualitative disclosures to help financial statement users better understand the plans in which an employer participates, the level of the employer's participation in the plans, and the financial health of significant plans. The disclosures also will enable users of financial information to obtain additional information outside of the financial statements. The amendment does not change the current recognition and measurement guidance for an employer's participation in a multiemployer plan. The Company adopted this amendment in the fourth quarter of Fiscal 2012 and applied the provisions of this amendment retrospectively. The adoption of this amendment did not impact the notes to the consolidated financial statements or the financial results. In September 2011, the FASB issued an amendment to the goodwill impairment standard. This amendment is intended to reduce the cost and complexity of the annual impairment test by providing entities with the option of performing a qualitative assessment to determine whether further impairment testing is necessary. An entity can choose to perform the qualitative assessment on none, some, or all of its reporting units. Moreover, an entity can bypass the qualitative assessment for any reporting unit in any period and proceed directly to step one of the impairment test, and then perform a qualitative assessment in any subsequent period. The Company adopted this amendment in Fiscal 2012. This amendment does not impact our results of operations or financial position. In June 2011, the FASB issued an amendment on the presentation of comprehensive income. This amendment is intended to improve comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. This amendment eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. Under this amendment, an entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate, but consecutive, statements. The statement(s) would need to be presented with equal prominence as the other primary financial statements. While the options for presenting other comprehensive income change under this amendment, many items will not change. Those items remaining the same include the items that constitute net income and other comprehensive income; when an item of other comprehensive income must be reclassified to net income; and the earnings-per-share computation. The Company adopted this amendment retrospectively on the first day of Fiscal 2013 by presenting other comprehensive income and its components as a separate financial statement. This adoption only impacted the presentation of the Company's financial statements, not the financial results. In May 2011, the FASB issued an amendment to revise the wording used to describe the requirements for measuring fair value and for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend for the amendments to result in a change in the application of the current requirements. Some of the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements, such as specifying that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements such as specifying that, in the absence of a Level 1 input (refer to Note 11 for additional information), a reporting entity should apply premiums or discounts when market participants would do so when pricing the asset or liability. The Company adopted this amendment on the first day of the fourth quarter of Fiscal 2012 and this adoption did not have an impact on the Company's financial statements. In December 2010, the FASB issued an amendment to the disclosure requirements for Business Combinations. This amendment clarifies that if a public entity is required to disclose pro forma information for business combinations, the entity should disclose such pro forma information as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. This amendment also expands the supplemental pro forma disclosures for business combinations to include a description of the nature and amount of material nonrecurring pro forma adjustments directly attributable to the business combination included in reported pro forma revenue and earnings. The Company adopted this amendment on the first day of Fiscal 2012 and will apply such amendment for any business combinations that are material on an individual or aggregate basis if and when they occur. In December 2010, the FASB issued an amendment to the accounting requirements for Goodwill and Other Intangibles. This amendment modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist. The Company adopted this amendment on the first day of Fiscal 2012. This adoption did not have an impact on the Company’s financial statements. |
Segment Information
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company’s segments are primarily organized by geographical area. The composition of segments and measure of segment profitability are consistent with that used by the Company’s management. Descriptions of the Company’s reportable segments are as follows:
The Company’s management evaluates performance based on several factors including net sales, operating income, and the use of capital resources. Inter-segment revenues, items below the operating income line of the consolidated statements of income, the Fiscal 2013 special items, including transaction-related costs associated with the proposed merger (see Note 21), a charge for the closure of a factory in South Africa and a charge for the settlement of the Foodstar earn-out (see Note 11), and costs associated with the Fiscal 2012 corporation-wide productivity initiatives (see Note 4) are not presented by segment, since they are not reflected in the measure of segment profitability reviewed by the Company’s management. The following table presents information about the Company’s reportable segments:
The Company’s revenues are generated via the sale of products in the following categories:
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.
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Employees' Stock Incentive Plans and Management Incentive Plans 5 (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified |
12 Months Ended | ||
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Apr. 28, 2013
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Apr. 29, 2012
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Apr. 27, 2011
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Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested options at April 29, 2012 | 4,190 | ||
Options granted, Number of Options | 1,540 | 1,649 | 1,733 |
Options vested, number of options | (1,662) | ||
Options forfeited, number of options | (107) | ||
Unvested options at April 28, 2013 | 3,961 | 4,190 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Unvested options, Weighted Grant Date Fair Value, Beginning Balance | $ 5.43 | ||
Options granted, Weighted Grant Date Fair Value, Beginning Balance | $ 5.79 | ||
Options vested, Weighted Grant Date Fair Value | $ 5.39 | ||
Options forfeited, Weighted Average Grant Date Fair Value | $ 5.61 | ||
Unvested options, Weighted Grant Date Fair Value, Ending Balance | $ 5.59 | $ 5.43 | |
Unrecognized compensation costs | $ 4.6 | $ 6.4 | |
Weighted average period of recognition for unrecognized compensation costs | 1 year 6 months |
Income Taxes 3 (Details)
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12 Months Ended | ||
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Apr. 28, 2013
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Apr. 29, 2012
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Apr. 27, 2011
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Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Tax on income of foreign subsidiaries | (7.70%) | (8.70%) | (5.60%) |
Changes in valuation allowances | 0.90% | 1.50% | (0.80%) |
Earnings repatriation | 0.90% | 2.00% | 2.90% |
Tax free interest | (4.70%) | (5.40%) | (4.10%) |
Effects of revaluation of tax basis of foreign assets | (6.20%) | (3.20%) | (1.60%) |
Effective Income Tax Rate Reconciliation, Tax Settlements | (0.30%) | (2.00%) | 0.00% |
Other | 0.10% | 0.60% | 0.40% |
Effective tax rate | 18.00% | 19.80% | 26.20% |
Employees' Stock Incentive Plans and Management Incentive Plans
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employees' Stock Incentive Plans and Management Incentive Plans |
As of April 28, 2013, the Company had outstanding stock option awards, restricted stock units and restricted stock awards issued pursuant to various shareholder-approved plans and a shareholder-authorized employee stock purchase plan. The compensation cost related to these plans primarily recognized in SG&A and the related tax benefit are as follows:
During Fiscals 2013 and 2012, the Company's plan from which it issued equity-based awards was the Fiscal Year 2003 Stock Incentive Plan (the “2003 Plan”), which was approved by shareholders on September 12, 2002. During Fiscal 2011, the Company issued equity-based awards from the 2003 Plan and the 2000 Stock Option Plan (the “2000 Plan”). The 2000 Plan was approved by Shareholders on September 12, 2000 and expired on September 12, 2010. Pursuant to the 2003 Plan, the Management Development & Compensation Committee ("MD&CC") was authorized to grant a maximum of 9.4 million shares for issuance as restricted stock units or restricted stock. Any available shares may have been issued as stock options. The maximum number of shares that may have been granted under this plan was 18.9 million shares. Shares issued under these plans were sourced from available treasury shares. The 2003 Plan was originally scheduled to continue to be used until there were no more outstanding shares to award. Effective August 28, 2012, the MD&CC approved the 2013 Plan with a term of ten years. The MD&CC was authorized to grant a maximum of 10 million shares for issuance as restricted stock units, restricted stock, or stock options. On June 7, 2013, subsequent to the Fiscal 2013 year end and in connection with the Merger, all outstanding stock option awards, restricted stock units (except for certain retention RSUs which continue on their original terms) and restricted stock awards issued pursuant to various shareholder-approved plans and a shareholder-authorized employee stock purchase plan were automatically canceled and converted into the right to receive certain cash consideration. In the Merger, (i) each outstanding share of Company common stock (other than shares owned by the Company, Parent, Merger Sub or any other direct or indirect wholly owned subsidiary of Parent, and in each case not held on behalf of third parties) was cancelled and automatically converted into the right to receive $72.50 in cash, without interest and less applicable withholding taxes thereon (the “Merger Consideration”), (ii) each outstanding stock option, whether vested or unvested, was cancelled and automatically converted into the right to receive, with respect to each share subject to the option, the Merger Consideration less the exercise price per share, (iii) each outstanding Company phantom unit, whether vested or unvested, was cancelled and automatically converted into the right to receive the Merger Consideration, and (iv) each outstanding Company restricted stock unit (other than retention restricted stock units, which will remain subject to the vesting schedule pursuant to the existing terms of the applicable award agreements and that the general timing of payment would be in accordance with such terms), whether vested or unvested, was cancelled and automatically converted into the right to receive, with respect to each share subject to the restricted stock unit, the Merger Consideration plus any accrued and unpaid dividend equivalents, except that payment in respect of Company restricted stock units that have been deferred will be made in accordance with the terms of the award and the applicable deferral election made by the holder. There are currently no outstanding stock option awards, restricted stock units and restricted stock awards, other than the retention RSUs described above. Stock Options: Stock options generally vest over a period of four years after the date of grant. Awards granted prior to Fiscal 2006 generally had a maximum term of ten years. Awards granted between Fiscal 2006 and Fiscal 2012 have a maximum term of seven years. Beginning in Fiscal 2013, awards have a maximum term of ten years. In accordance with their respective plans, stock option awards are forfeited if a holder voluntarily terminates employment prior to the vesting date. The Company estimates forfeitures based on an analysis of historical trends updated as discrete new information becomes available and will be re-evaluated on an annual basis. Compensation cost in any period is at least equal to the grant-date fair value of the vested portion of an award on that date. The Company presents all benefits of tax deductions resulting from the exercise of stock-based compensation as operating cash flows in the consolidated statements of cash flows, except the benefit of tax deductions in excess of the compensation cost recognized for those options (“excess tax benefits”) which are classified as financing cash flows. For the fiscal year ended April 28, 2013, $8.1 million of cash tax benefits was reported as an operating cash inflow and $10.3 million of excess tax benefits as a financing cash inflow. For the fiscal year ended April 29, 2012, $7.5 million of cash tax benefits was reported as an operating cash inflow and $7.6 million of excess tax benefits as a financing cash inflow. For the fiscal year ended April 27, 2011, $12.4 million of cash tax benefits was reported as an operating cash inflow and $8.6 million of excess tax benefits as a financing cash inflow. A summary of the Company’s 2003 Plan at April 28, 2013 is as follows:
During Fiscal 2013, the Company granted 1,540,340 option awards to employees sourced from the 2003 Plan. The weighted average fair value per share of the options granted during the fiscal years ended April 28, 2013, April 29, 2012, and April 27, 2011 as computed using the Black-Scholes pricing model was $5.79, $5.80, and $5.36, respectively. The weighted average assumptions used to estimate these fair values are as follows:
The dividend yield assumption is based on the current fiscal year dividend payouts. The expected volatility of the Company’s common stock at the date of grant is estimated based on a historic daily volatility rate over a period equal to the average life of an option. The weighted average expected life of options is based on consideration of historical exercise patterns adjusted for changes in the contractual term and exercise periods of current awards. The risk-free interest rate is based on the U.S. Treasury (constant maturity) rate in effect at the date of grant for periods corresponding with the expected term of the options. A summary of the Company’s stock option activity and related information is as follows:
The following summarizes information about shares under option in the respective exercise price ranges at April 28, 2013:
The Company received proceeds of $113.5 million, $82.7 million, and $154.8 million from the exercise of stock options during the fiscal years ended April 28, 2013, April 29, 2012 and April 27, 2011, respectively. The tax benefit recognized as a result of stock option exercises was $18.3 million, $15.1 million and $21.0 million for the fiscal years ended April 28, 2013, April 29, 2012, and April 27, 2011, respectively. A summary of the status of the Company’s unvested stock options is as follows:
Unrecognized compensation cost related to unvested option awards under the 2000 and 2003 Plans totaled $4.6 million and $6.4 million as of April 28, 2013 and April 29, 2012, respectively. This cost is expected to be recognized over a weighted-average period of 1.5 years. Restricted Stock Units and Restricted Shares: The 2003 Plan authorizes up to 9.4 million shares for issuance as restricted stock units (“RSUs”) or restricted stock with vesting periods from the first to the fifth anniversary of the grant date as set forth in the award agreements. Upon vesting, the RSUs are converted into shares of the Company’s stock on a one-for-one basis and issued to employees, subject to any deferral elections made by a recipient or required by the plan. Restricted stock is reserved in the recipients’ name at the grant date and issued upon vesting. The Company is entitled to an income tax deduction in an amount equal to the taxable income reported by the holder upon vesting of the award. RSUs generally vest over a period of one to four years after the date of grant. Total compensation expense relating to RSUs and restricted stock was $23.6 million, $25.7 million and $23.2 million for the fiscal years ended April 28, 2013, April 29, 2012, and April 27, 2011, respectively. Unrecognized compensation cost in connection with RSU and restricted stock grants totaled $24.9 million, $27.6 million, and $29.4 million at April 28, 2013, April 29, 2012, and April 27, 2011, respectively. The cost is expected to be recognized over a weighted-average period of 1.7 years. A summary of the Company’s RSU and restricted stock awards at April 28, 2013 is as follows:
A summary of the activity of unvested RSU and restricted stock awards and related information is as follows:
Upon share option exercise or vesting of restricted stock and RSUs, the Company uses available treasury shares and maintains a repurchase program that anticipates exercises and vesting of awards so that shares are available for issuance. The Company records forfeitures of restricted stock as treasury share repurchases. Global Stock Purchase Plan: The Company had a shareholder-approved employee global stock purchase plan (the “GSPP”) that permitted substantially all employees to purchase shares of the Company’s common stock at a discounted price through payroll deductions at the end of two six-month offering periods. The offering periods were February 16 to August 15 and August 16 to February 15. The purchase price of the option was equal to 95% of the fair market value of the Company’s common stock on the last day of the offering period. The number of shares available for issuance under the GSPP was a total of five million shares. During the two offering periods from February 16, 2012 to February 15, 2013, employees purchased 121,460 shares under the plan. During the two offering periods from February 16, 2011 to February 15, 2012, employees purchased 165,635 shares under the plan. As a result of the Merger Agreement, the Company's GSPP was terminated immediately following the scheduled purchases on the February 15, 2013 purchase date for the purchase period August 16, 2012 to February 15, 2013. Annual Incentive Bonus: The Company’s management incentive plans cover officers and other key employees. Participants may elect to be paid on a current or deferred basis. The aggregate amount of all awards may not exceed certain limits in any year. Compensation under the management incentive plans was approximately $32 million, $34 million, and $45 million in Fiscals 2013, 2012 and 2011, respectively. Long-Term Performance Program: In Fiscal 2013, the Company granted performance awards as permitted in the 2003 Plan, subject to the achievement of certain performance goals. These performance awards are tied to the Company’s relative Total Shareholder Return (“Relative TSR”) Ranking within the defined Long-term Performance Program (“LTPP”) peer group and the 2-year average after-tax Return on Invested Capital (“ROIC”) metrics. The Relative TSR metric is based on the two-year cumulative return to shareholders from the change in stock price and dividends paid between the starting and ending dates. The starting value was based on the average of each LTPP peer group company stock price for the 60 trading days prior to and including April 29, 2012. The ending value will be based on the average stock price for the 60 trading days prior to and including the close of the Fiscal 2014 year end, plus dividends paid over the 2 year performance period. The Company also granted performance awards in Fiscal 2012 under the 2012-2013 LTPP and in Fiscal 2011 under the 2011-2012 LTPP. The compensation cost related to LTPP awards primarily recognized in SG&A and the related tax benefit are as follows:
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Quarterly Results 2 (Details)
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3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2013
USD ($)
|
Jan. 27, 2013
USD ($)
|
Oct. 28, 2012
USD ($)
|
Jul. 29, 2012
USD ($)
|
Apr. 29, 2012
USD ($)
|
Jan. 25, 2012
USD ($)
|
Oct. 26, 2011
USD ($)
|
Jul. 27, 2011
USD ($)
|
Apr. 28, 2013
USD ($)
|
Apr. 29, 2012
USD ($)
|
Apr. 27, 2011
USD ($)
|
Feb. 13, 2013
VEF
|
Feb. 12, 2013
VEF
|
Apr. 28, 2013
VENEZUELA
USD ($)
|
|
Net income from continuing operations- diluted | $ 0.61 | $ 0.95 | $ 0.91 | $ 0.89 | $ 0.64 | $ 0.89 | $ 0.76 | $ 0.72 | $ 3.37 | $ 3.01 | $ 3.18 | |||
Net income from continuing operations- basic | $ 0.62 | $ 0.96 | $ 0.92 | $ 0.89 | $ 0.65 | $ 0.90 | $ 0.76 | $ 0.73 | $ 3.39 | $ 3.03 | $ 3.21 | |||
Business combination contingent consideration arrangements, settlement charge | $ 12,100,000 | |||||||||||||
Foreign Currency Transaction Gain (Loss), Realized | (42,700,000) | |||||||||||||
Foreign Currency Transaction Gain (Loss), Realized, Net of Tax | (39,100,000) | |||||||||||||
Foreign Currency Transaction Gain (Loss), Realized, Per Share | $ (0.12) | |||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | 198,519,000 | 308,214,000 | 294,705,000 | 286,177,000 | 206,664,000 | 288,283,000 | 244,934,000 | 234,493,000 | 1,087,615,000 | 974,374,000 | 1,029,067,000 | |||
Business Combination, Acquisition Related Costs | 44,800,000 | |||||||||||||
Business Combination, Acquisition Related Costs, Net of Tax | 27,800,000 | |||||||||||||
Business combination related costs per share | $ 0.09 | |||||||||||||
Business Exit Costs | 3,500,000 | |||||||||||||
Factory closure related charges, net of tax | 2,600,000 | |||||||||||||
Business exit costs per share | $ 0.01 | |||||||||||||
Foreign Currency Exchange Rate, Remeasurement | 6.30 | 4.30 | ||||||||||||
business combination contingent consideration settlement charge per share | $ 0.04 | |||||||||||||
Pre-tax charges | 94,300,000 | 33,700,000 | 37,300,000 | 40,200,000 | 205,400,000 | |||||||||
After-tax changes | $ 67,700,000 | $ 22,600,000 | $ 25,600,000 | $ 28,100,000 | $ 144,000,000 | |||||||||
EPS impact | $ 0.21 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.45 |
Fiscal 2012 Productivity Initiatives 1 (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 29, 2012
|
Jan. 25, 2012
|
Oct. 26, 2011
|
Jul. 27, 2011
|
Apr. 29, 2012
|
Apr. 29, 2012
Productivity Initatives [Member]
|
Apr. 29, 2012
North American Consumer Products [Member]
Productivity Initatives [Member]
|
Apr. 29, 2012
Europe [Member]
Productivity Initatives [Member]
|
Apr. 29, 2012
Asia Pacific [Member]
Productivity Initatives [Member]
|
Apr. 29, 2012
U.S. Foodservice [Member]
Productivity Initatives [Member]
|
Apr. 29, 2012
Rest of World [Member]
Productivity Initatives [Member]
|
Apr. 28, 2013
Non-Operating [Member]
|
Apr. 29, 2012
Non-Operating [Member]
|
Apr. 27, 2011
Non-Operating [Member]
|
Apr. 29, 2012
Non-Operating [Member]
Productivity Initatives [Member]
|
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Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||
Pre-tax charges | $ 94,300 | $ 33,700 | $ 37,300 | $ 40,200 | $ 205,400 | $ 205,400 | $ 25,600 | $ 56,400 | $ 65,700 | $ 52,800 | $ 4,400 | $ 0 | [1] | $ 205,418 | [1] | $ 0 | [1] | $ 600 | ||
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Derivative Financial Instruments and Hedging Activities 1 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 28, 2013
|
Apr. 29, 2012
|
---|---|---|
Foreign Exchange Contract [Member]
|
||
Assets: | ||
Total assets | $ 35,563 | $ 30,547 |
Liabilities: | ||
Total liabilities | 6,585 | 12,619 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 34,738 | 25,506 |
Liabilities: | ||
Total liabilities | 1,725 | 10,667 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 23,240 | 17,318 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 11,498 | 8,188 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 1,508 | 10,653 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 217 | 14 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 825 | 5,041 |
Liabilities: | ||
Total liabilities | 4,860 | 1,952 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 825 | 5,041 |
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 | 4,860 | 1,952 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member]
|
||
Assets: | ||
Total assets | 33,329 | 36,478 |
Liabilities: | ||
Total liabilities | 960 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 33,329 | 36,244 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 4,226 | 6,851 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 29,103 | 29,393 |
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 | 0 | 234 |
Liabilities: | ||
Total liabilities | 960 | 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 | 0 | 234 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 960 | 0 |
Cross Currency Interest Rate Contract [Member]
|
||
Assets: | ||
Total assets | 0 | 23,196 |
Liabilities: | ||
Total liabilities | 72,325 | 2,760 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 0 | 23,196 |
Liabilities: | ||
Total liabilities | 72,325 | 2,760 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Receivables, Net [Member]
|
||
Assets: | ||
Total assets | 0 | 18,222 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Assets [Member]
|
||
Assets: | ||
Total assets | 0 | 4,974 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Payables [Member]
|
||
Liabilities: | ||
Total liabilities | 34,805 | 2,760 |
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | 37,520 | 0 |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
|
||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 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 |
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Current Liabilities [Member]
|
||
Liabilities: | ||
Total liabilities | $ 0 | $ 0 |
Income Taxes 4 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 28, 2013
|
Apr. 29, 2012
|
---|---|---|
Income Tax Disclosure [Abstract] | ||
Depreciation/amortization | $ 833,008 | $ 910,987 |
Benefit plans | 41,354 | 59,647 |
Deferred income | 97,482 | 96,472 |
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs | 117,161 | 117,670 |
Other | 46,510 | 48,371 |
Deferred tax liabilities | 1,135,515 | 1,233,147 |
Operating loss carryforwards | (90,790) | (141,358) |
Benefit plans | (211,658) | (195,697) |
Depreciation/amortization | (158,194) | (147,745) |
Tax credit carryforwards | (111,431) | (81,703) |
Deferred income | (18,596) | (20,286) |
Other | (97,894) | (96,502) |
Deferred tax assets | (688,563) | (683,291) |
Valuation allowance | 46,069 | 90,553 |
Net deferred tax liabilities | $ 493,021 | $ 640,409 |
Employees' Stock Incentive Plans and Management Incentive Plans (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of the Company’s 2003 Plan at April 28, 2013 is as follows:
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Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions | The weighted average assumptions used to estimate these fair values are as follows:
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Stock option activity and related information | A summary of the Company’s stock option activity and related information is as follows:
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Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following summarizes information about shares under option in the respective exercise price ranges at April 28, 2013:
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Unvested Stock Options | A summary of the status of the Company’s unvested stock options is as follows:
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Restricted Stock Awards | A summary of the Company’s RSU and restricted stock awards at April 28, 2013 is as follows:
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Activity Of Unvested Restricted Stock Unit And Restricted Stock Awards | A summary of the activity of unvested RSU and restricted stock awards and related information is as follows:
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Long-term Performance Program [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation cost recognized in SG&A | . The compensation cost related to LTPP awards primarily recognized in SG&A and the related tax benefit are as follows:
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Stock Option and Restricted Stock Plans [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation cost recognized in SG&A | The compensation cost related to these plans primarily recognized in SG&A and the related tax benefit are as follows:
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Advertising Costs
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12 Months Ended |
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Apr. 28, 2013
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Advertising Costs [Abstract] | |
Advertising Costs | Advertising Costs Advertising expenses (including production and communication costs) for fiscal years 2013, 2012 and 2011 were $465.0 million, $440.5 million and $368.6 million, respectively. For fiscal years 2013, 2012 and 2011, $151.1 million, $151.5 million and $119.0 million, respectively, were recorded as a reduction of revenue and $313.8 million, $289.1 million and $249.6 million, respectively, were recorded as a component of SG&A. |
Commitments and Contingencies
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12 Months Ended |
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Apr. 28, 2013
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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 individually and in the aggregate 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 $145.4 million in 2013, $155.2 million in 2012 and $112.4 million in 2011. Future lease payments for non-cancellable operating leases as of April 28, 2013 totaled $526.2 million (2014-$92.0 million, 2015-$71.6 million, 2016-$63.7 million, 2017-$52.7 million, 2018-$50.0 million and thereafter-$196.2 million). As of April 28, 2013, 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 $150 million at the termination of these leases. On June 3, 2013, the Company paid $88.7 million to buy-out one of these leases and recorded them within Property, plant and equipment on the balance sheet as of that date. No significant credit guarantees existed between the Company and third parties as of April 28, 2013. 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 their 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. In the first quarter of Fiscal 2013, the minority partner exercised their put option for 15% of their initial 20% equity interest, retaining 5%. An adjustment was made to retained earnings to record the carrying value at the maximum redemption value immediately prior to this transaction. As this exercise did not result in a change in control of Coniexpress, it was accounted for as an equity transaction. In addition, the amount of cumulative translation adjustment previously allocated to the redeemable noncontrolling interest was adjusted to reflect the change in ownership. The carrying amount of the redeemable noncontrolling interest approximates its maximum redemption value of the remaining 5% equity interest. Any subsequent change in maximum redemption value would be adjusted through retained earnings. We do not currently believe the exercise of the put option would materially impact our results of operations or financial condition. |
Significant Accounting Policies (Details) (USD $)
In Billions, except Per Share data, unless otherwise specified |
2 Months Ended | 11 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
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Apr. 29, 2012
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Mar. 13, 2012
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Apr. 28, 2013
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Apr. 28, 2013
Building [Member]
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Apr. 28, 2013
Machinery and Equipment [Member]
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Apr. 28, 2013
Leasehold Improvements [Member]
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Apr. 28, 2013
Minimum [Member]
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Apr. 28, 2013
Minimum [Member]
Software [Member]
|
Apr. 28, 2013
Maximum [Member]
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Apr. 28, 2013
Maximum [Member]
Software [Member]
|
Jun. 08, 2013
Subsequent Event [Member]
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Property, Plant and Equipment [Line Items] | |||||||||||
Business Acquisition per share price 2 | $ 72.50 | ||||||||||
Business acquisition transaction value | $ 28.75 | ||||||||||
Weeks in Fiscal Year | 52 1/2 week | P52WK | P52WK | P53WK | |||||||
Cumulative inflation rate in an economy for applying Highly inflationary accounting | three-year period meets or exceeds 100 percent | ||||||||||
Highly Inflationary Accounting, Cumulative Inflation Rate In Economy, Period | 3 years | ||||||||||
Highly Inflationary Accounting, Cumulative Inflation Rate In Economy, Rate | 100.00% | ||||||||||
Estimated useful lives for computer software, miniumum, in years | 40 years | 15 years | 15 years | 3 years | 7 years | ||||||
Original Maturities Of Cash Equivalents Defined As Highly Liquid Investments | 90 days |
Goodwill and Other Intangible Assets (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill for the fiscal year ended April 28, 2013, by reportable segment, are as follows:
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Finite-Lived Trademarks and other intangible assets | Trademarks and other intangible assets at April 28, 2013 and April 29, 2012, subject to amortization expense, are as follows:
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Pension and Other Postretirement Benefit Plans (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Benefit Obligation and Plan Assets | The following table sets forth the changes in benefit obligation, plan assets and funded status of the Company’s principal defined benefit plans and other postretirement benefit plans at April 28, 2013 and April 29, 2012.
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Benefit obligation recognized in consolidated balance sheet | Amounts recognized in the consolidated balance sheets consist of the following:
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Components of net periodic benefit cost | Total pension cost of the Company’s principal pension plans and postretirement plans consisted of the following:
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Accumulated other comprehensive loss before tax | Amounts recognized in accumulated other comprehensive loss, before tax, consist of the following:
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Accumulated other comprehensive loss income expected to be recognized as components of net periodic benefit costs credits | Amounts in accumulated other comprehensive loss (income) expected to be recognized as components of net periodic benefit cost/(credit) in the following fiscal year are as follows:
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Weighted average rates used for determining the projected benefit obligations | The weighted-average rates used for the fiscal years ended April 28, 2013 and April 29, 2012 in determining the projected benefit obligations for defined benefit pension plans and the accumulated postretirement benefit obligation for other postretirement plans were as follows:
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Weighted average rates used for determining the defined benefit plans | The weighted-average rates used for the fiscal years ended April 28, 2013, April 29, 2012, and April 27, 2011 in determining the defined benefit plans’ net pension costs and net postretirement benefit costs were as follows:
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One percentage point change | A one-percentage-point change in assumed health care cost trend rates would have the following effects:
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Weighted average asset allocation | The Company’s defined benefit pension plans’ weighted average actual and target asset allocation at April 28, 2013 and April 29, 2012 were as follows:
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Direct Cash Holdings And Institutional Short Term Investment Vehicles |
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Changes in fair value of Pension plan level 3 assets | Changes in the fair value of the Plan’s Level 3 assets are summarized as follows:
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Benefit payment expected in future years | Benefit payments expected in future years are as follows:
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Fiscal 2012 Productivity Initiatives 2 (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended |
---|---|
Apr. 29, 2012
|
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Restructuring Costs by Reportable Segment [Line Items] | |
Cash payments | $ (111.0) |
Reserve balance at April 29, 2012 | 54.6 |
Productivity Initatives [Member]
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Restructuring Costs by Reportable Segment [Line Items] | |
Fiscal 2012 total company productivity charges | $ 165.6 |
Significant Accounting Policies (Policies)
|
12 Months Ended |
---|---|
Apr. 28, 2013
|
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Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year: The Company operates on a 52-week or 53-week fiscal year end. On March 14, 2012, the Board of Directors of the Company authorized a change in the Company's fiscal year end from the Wednesday nearest April 30 to the Sunday nearest April 30. The change in the fiscal year end resulted in Fiscal 2012 changing from a 53 week year to a 52 1/2 week year and was intended to better align the Company's financial reporting period with its business partners and production schedules. This change did not have a material impact on the Company's financial statements. Certain foreign subsidiaries have closing dates earlier than the Sunday nearest April 30 to facilitate timely reporting. Fiscal years for the financial statements included herein ended April 28, 2013, April 29, 2012, and April 27, 2011. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company, all wholly-owned and majority-owned subsidiaries, and any variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions are eliminated. Certain prior year amounts have been reclassified to conform with the Fiscal 2013 presentation. |
Use Of Estimates | Use of Estimates: The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Translation of Foreign Currencies | Translation of Foreign Currencies: For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated at the exchange rate in effect at each year end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of other comprehensive income/(loss) within shareholders’ equity. Gains and losses from foreign currency transactions are included in net income for the period. |
Highly Inflationary Accounting | Highly Inflationary Accounting: The Company applies highly inflationary accounting if the cumulative inflation rate in an economy for a three-year period meets or exceeds 100 percent. Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into the Company’s reporting currency (U.S. dollars) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the balance sheet, until such time as the economy is no longer considered highly inflationary. See Note 20 for additional information. |
Cash Equivalents | Cash Equivalents: Cash equivalents are defined as highly liquid investments with original maturities of 90 days or less. |
Inventories | Inventories: Inventories are stated at the lower of cost or market. Cost is determined principally under the average cost method. |
Property, Plant and Equipment | Property, Plant and Equipment: Land, buildings and equipment are recorded at cost. For financial reporting purposes, depreciation is provided on the straight-line method over the estimated useful lives of the assets, which generally have the following ranges: buildings—40 years or less, machinery and equipment—15 years or less, computer software—3 to 7 years, and leasehold improvements—over the life of the lease, not to exceed 15 years. Accelerated depreciation methods are generally used for income tax purposes. Expenditures for new facilities and improvements that substantially extend the capacity or useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When property is retired or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in income. The Company reviews property, plant and equipment, whenever circumstances change such that the recorded value of an asset may not be recoverable. Factors that may affect recoverability include changes in planned use of the asset and the closing of facilities. The Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist and are largely independent. When the carrying value of the asset exceeds the future undiscounted cash flows, an impairment is indicated and the asset is written down to its fair value. |
Goodwill and Intangibles | Goodwill and Intangibles: Intangible assets with finite useful lives are amortized on a straight-line basis over the estimated periods benefited, and are reviewed when appropriate for possible impairment, similar to property, plant and equipment. Goodwill and intangible assets with indefinite useful lives are not amortized. The carrying values of goodwill and other intangible assets with indefinite useful lives are tested at least annually for impairment, or when circumstances indicate that a possible impairment may exist. Indefinite-lived intangible assets are tested annually during the fourth quarter of each fiscal year, while the annual impairment tests of goodwill are performed during the third quarter of each fiscal year. All goodwill is assigned to reporting units, which are primarily one level below our operating segments. The Company performs its impairment tests of goodwill at the reporting unit level. The Company tests goodwill for impairment by either performing a qualitative evaluation or a two-step quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, including goodwill. Factors considered as part of the qualitative assessment include entity-specific industry, market and general economic conditions. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a two-step quantitative test. This quantitative test involves estimating a reporting units fair value. Indefinite-lived intangible assets are tested for impairment by either performing a qualitative evaluation or a quantitative calculation of fair value and comparison to carrying amount. The qualitative evaluation is an assessment of factors including, but not limited to, changes in management, overall financial performance, and other entity-specific events. The objective of the qualitative evaluation is to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. The Company can choose to perform the qualitative assessment on none, some, or all of its indefinite-lived intangible assets. The Company's estimates of fair value when testing quantitatively for impairment of both goodwill and intangible assets with indefinite lives is based on a discounted cash flow model, using a market participant approach, that requires significant judgment and requires assumptions about future volume trends, revenue and expense growth rates, terminal growth rates, discount rates, tax rates, working capital changes and macroeconomic factors. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when title, ownership and risk of loss pass to the customer. This primarily occurs upon delivery of the product to the customer. For the most part, customers do not have the right to return products unless damaged or defective. Revenue is recorded, net of sales incentives, and includes shipping and handling charges billed to customers. Shipping and handling costs are primarily classified as part of selling, general and administrative expenses. |
Marketing Costs | Marketing Costs: The Company promotes its products with advertising, consumer incentives and trade promotions. Such programs include, but are not limited to, discounts, coupons, rebates, in-store display incentives and volume-based incentives. Advertising costs are expensed as incurred. Consumer incentive and trade promotion activities are recorded as a reduction of revenue or as a component of cost of products sold based on amounts estimated as being due to customers and consumers at the end of a period, based principally on historical utilization and redemption rates. Advertising costs are recognized as an expense within selling, general and administrative expenses if the Company determines that it will receive an identifiable, separable benefit in return for the consideration paid and it can reasonably estimate the fair value of the benefit identified. Accruals for trade promotions are initially recorded at the time of sale of product to the customer based on an estimate of the expected levels of performance of the trade promotion, which is dependent upon factors such as historical trends with similar promotions, expectations regarding customer participation, and sales and payment trends with similar previously offered programs. The Company performs monthly evaluations of its outstanding trade promotions, making adjustments where appropriate to reflect changes in estimates. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorization process for deductions taken by a customer from amounts otherwise due to the Company. Coupon redemption costs are accrued in the period in which the coupons are offered. The initial estimates made for each coupon offering are based upon historical redemption experience rates for similar products or coupon amounts. The Company performs monthly evaluations of outstanding coupon accruals that compare actual redemption rates to the original estimates. For interim reporting purposes, advertising, consumer incentive and product placement expenses are charged to operations as a percentage of volume, based on estimated volume and related expense for the full year. |
Income Taxes | Income Taxes: Deferred income taxes result primarily from temporary differences between financial and tax reporting. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. When assessing the need for valuation allowances, the Company considers future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the realizability of deferred tax assets in future years, the Company would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company has not provided for possible U.S. taxes on the undistributed earnings of foreign subsidiaries that are considered to be reinvested indefinitely. Calculation of the unrecognized deferred tax liability for temporary differences related to these earnings is not practicable. |
Stock-Based Employee Compensation Plans | Stock-Based Employee Compensation Plans: The Company recognizes the cost of all stock-based awards to employees, including grants of employee stock options, on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The vesting approach used does not affect the overall amount of compensation expense recognized, but could accelerate the recognition of expense. The Company follows its previous vesting approach for the remaining portion of those outstanding awards that were unvested and granted prior to May 4, 2006, and accordingly, will recognize expense from the grant date to the earlier of the actual date of retirement or the vesting date. Judgment is required in estimating the amount of stock-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these estimates, stock-based compensation expense could be materially impacted. Compensation cost related to all stock-based awards is determined using the grant date fair value. Determining the fair value of employee stock options at the grant date requires judgment in estimating the expected term that the stock options will be outstanding prior to exercise as well as the volatility and dividends over the expected term. Compensation cost for restricted stock units is determined based on the fair value of the Company’s stock at the grant date. The Company applies the modified-prospective transition method for stock options granted on or prior to, but not vested as of, May 3, 2006. Compensation cost related to these stock options is determined using the grant date fair value originally estimated and disclosed in a pro-forma manner in prior period financial statements in accordance with the original provisions of the Financial Accounting Standards Board’s (“FASB’s”) guidance for stock compensation. Stock-based compensation expense is primarily recognized as a component of selling, general and administrative expenses in the Consolidated Statements of Income. |
Financial Instruments | Financial Instruments: The Company’s financial instruments consist primarily of cash and cash equivalents, receivables, accounts payable, short-term and long-term debt, swaps, forward contracts, and option contracts. The carrying values for the Company’s financial instruments approximate fair value, except as disclosed in Note 11. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. The Company uses derivative financial instruments for the purpose of hedging foreign currency, debt and interest rate exposures, which exist as part of ongoing business operations. The Company carries derivative instruments on the balance sheet at fair value, determined using observable market data. Derivatives with scheduled maturities of less than one year are included in other receivables or other payables, based on the instrument’s fair value. Derivatives with scheduled maturities beyond one year are classified between current and long-term based on the timing of anticipated future cash flows. The current portion of these instruments is included in other receivables or other payables and the long-term portion is presented as a component of other non-current assets or other non-current liabilities, based on the instrument’s fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. Gains and losses on fair value hedges are recognized in current period earnings in the same line item as the underlying hedged item. The effective portion of gains and losses on cash flow hedges are deferred as a component of accumulated other comprehensive loss and are recognized in earnings at the time the hedged item affects earnings, in the same line item as the underlying hedged item. Hedge ineffectiveness related to cash flow hedges is reported in current period earnings within other income and expense. The income statement classification of gains and losses related to derivative contracts that do not qualify for hedge accounting is determined based on the underlying intent of the contracts. Cash flows related to the settlement of derivative instruments designated as net investment hedges of foreign operations are classified in the consolidated statements of cash flows within investing activities. Cash flows related to the termination of derivative instruments designated as fair value hedges of fixed rate debt obligations are classified in the consolidated statements of cash flows within financing activities. All other cash flows related to derivative instruments are generally classified in the consolidated statements of cash flows within operating activities. |
Employees' Stock Incentive Plans and Management Incentive Plans 2 (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock option shares granted | (1,540,000) | (1,649,000) | (1,733,000) |
Number of stock option shares cancelled/forfeited and returned to the plan | 110,000 | 11,000 | 73,000 |
Weighted average fair value per share of the options granted | $ 5.79 | ||
Fiscal Year 2003 Stock Incentive Plan [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 18,869,000 | 18,900,000 | |
Number of stock option shares granted | (11,533,000) | ||
Number of stock option shares cancelled/forfeited and returned to the plan | 1,113,000 | ||
Number of restricted stock units and restricted stock issued | (5,063,000) | ||
Shares available for grant as stock options | 3,386,000 | ||
Options, grants in period | 1,540,340 | ||
Weighted average fair value per share of the options granted | $ 5.79 | $ 5.80 | $ 5.36 |
Pension and Other Postretirement Benefit Plans 2 (Details) (USD $)
In Thousands, unless otherwise specified |
Apr. 28, 2013
|
Apr. 29, 2012
|
---|---|---|
Pension Plans, Defined Benefit [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | $ 287,467 | $ 399,868 |
Other accrued liabilities | (32,271) | (15,943) |
Other non-current liabilities | (147,619) | (173,438) |
Net asset/(liabilities) recognized | 107,577 | 210,487 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Other non-current assets | 0 | 0 |
Other accrued liabilities | (16,998) | (17,565) |
Other non-current liabilities | (240,319) | (231,452) |
Net asset/(liabilities) recognized | $ (257,317) | $ (249,017) |
Employees' Stock Incentive Plans and Management Incentive Plans 1 (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 7 years | 5 years | 5 years 6 months |
Excess tax benefits reported as operating cash inflow | $ 8.1 | $ 7.5 | $ 12.4 |
Excess tax benefits reported as financing cash inflow | 10.3 | 7.6 | 8.6 |
Stock Option Awards Granted Fiscal 2004 Through 2006 [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Expected term (years) | 10 years | ||
Stock Option Awards Granted Fiscal 2006 Through Current [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Expected term (years) | 7 years | ||
Stock Option and Restricted Stock Plans [Member] | Selling, General and Administrative Expenses [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 33.7 | 36.5 | 32.7 |
Tax benefit from compensation cost related to Employees' Stock Incentive Plans and Management Incentive Plans | 10.8 | 12.0 | 10.4 |
Allocated Share-based Compensation Expense, Net of Tax | $ 22.9 | $ 24.5 | $ 22.3 |
Restricted Stock [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 9,440 | 9,400 | |
Fiscal Year 2003 Stock Incentive Plan [Member]
|
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 18,869 | 18,900 |
Other Comprehensive Income/(Loss) (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) | The following table summarizes the allocation of total other comprehensive income/(loss) between H. J. Heinz Company and the noncontrolling interest:
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Tax Expenses Benefits Associated With Components Of Other Comprehensive Income | The tax (expense)/benefit associated with each component of other comprehensive income/(loss) are as follows:
|
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 | 12 Months Ended | 0 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Feb. 15, 2012
|
Apr. 27, 2011
|
Feb. 15, 2011
|
Apr. 29, 2012
|
Apr. 28, 2013
Selling, General and Administrative Expenses [Member]
Long-term Performance Program [Member]
|
Apr. 29, 2012
Selling, General and Administrative Expenses [Member]
Long-term Performance Program [Member]
|
Apr. 27, 2011
Selling, General and Administrative Expenses [Member]
Long-term Performance Program [Member]
|
Jun. 08, 2013
Subsequent Event [Member]
|
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||||
Business Acquisition per share price 2 | $ 72.50 | |||||||||
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 | 121,460 | 165,635 | |||||||
Other Labor-related Expenses | $ 32 | $ 34 | $ 45 | |||||||
Performance Period In Years For Dividends Paid | 2 years | |||||||||
Number Of Trading Days For L T T P Peer Group Company Stock Price | 60 days | |||||||||
Compensation cost recognized in SG&A | ||||||||||
Pre-tax compensation cost | 17.3 | 18.4 | 21.5 | |||||||
Tax benefit | 6.1 | 6.5 | 7.4 | |||||||
After-tax compensation cost | $ 11.2 | $ 11.9 | $ 14.1 |
Quarterly Results
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results | Quarterly Results
During Fiscal 2013, the Company's results included the following special items: •As a result of the proposed merger, the Company incurred $44.8 million pre-tax in SG&A ($27.8 million after-tax or $0.09 per share) of transaction-related costs, including legal, accounting and other professional fees, during the fourth quarter of Fiscal 2013. See Note 21 for further explanation. •Also during the fourth quarter of Fiscal 2013, the Company closed a factory in South Africa resulting in a $3.5 million pre-tax charge in costs of products sold ($2.6 million after-tax or $0.01 per share) primarily related to asset write-downs. •On February 8, 2013, the Venezuelan government announced the devaluation of its currency relative to the U.S. dollar, changing the official exchange rate from 4.30 to 6.30, resulting in a $42.7 million pre-tax ($39.1 million after-tax or $0.12 per share) currency translation loss in other expense, net, during the fourth quarter of Fiscal 2013. See Note 20 for further explanation. •During the third quarter of Fiscal 2013, the Company renegotiated the terms of the Foodstar Holdings Pte earn-out that was due in Fiscal 2014 resulting in a $12.1 million pre-tax and after-tax charge ($0.04 per share) in SG&A. See Note 11 for further explanation. During Fiscal 2012 the Company invested in productivity initiatives designed to increase manufacturing effectiveness and efficiency as well as accelerate overall productivity on a global scale (see Note 4). The pre-tax and after-tax charges as well as the EPS impact of these productivity initiatives on the Company's Fiscal 2012 quarterly results are as follows:
|
Consolidated Statements of Equity (USD $)
In Thousands, unless otherwise specified |
Total
|
Parent [Member]
|
Preferred Stock [Member]
|
Common Stock [Member]
|
Additional Paid-in Capital [Member]
|
Retained Earnings [Member]
|
Treasury Stock [Member]
|
Other Comprehensive Income (Loss) [Member]
|
Noncontrolling Interest [Member]
|
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at beginning of year at Apr. 28, 2010 | $ 70 | $ 107,774 | $ 657,596 | $ 6,856,033 | $ (4,750,547) | $ (979,581) | $ 57,151 | |||||||||||||||||
Balance at beginning of year, shares at Apr. 28, 2010 | 7 | 431,096 | (113,404) | |||||||||||||||||||||
Conversion of preferred into common stock, shares | 0 | 1 | ||||||||||||||||||||||
Conversion of preferred into common stock | (1) | (39) | 40 | |||||||||||||||||||||
Stock options exercised, net of shares tendered for payment, shares | 4,495 | |||||||||||||||||||||||
Stock options exercised, net of shares tendered for payment | (26,482) | [1] | 203,196 | |||||||||||||||||||||
Stock option expense | 9,447 | |||||||||||||||||||||||
Restricted stock unit activity, shares | 296 | |||||||||||||||||||||||
Restricted stock unit activity | (8,119) | 13,756 | ||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests | (2,411) | [2] | 0 | (2,176) | [2] | (1,750) | [2] | |||||||||||||||||
Other, net | (625) | [3] | (1,247) | [4] | 10,196 | [3] | ||||||||||||||||||
Other, net, shares | [3] | 218 | ||||||||||||||||||||||
Net income attributable to H. J. Heinz Company | 989,510 | 989,510 | ||||||||||||||||||||||
Cash dividends: | ||||||||||||||||||||||||
Preferred (per share $1.70 per share in 2013, 2012 and 2011) | (12) | |||||||||||||||||||||||
Common (per share $1.92, $1.80, and $1.68 in 2013, 2012 and 2011, respectively) | (579,606) | |||||||||||||||||||||||
Shares reaquired, shares | (1,425) | |||||||||||||||||||||||
Shares reacquired | (70,003) | |||||||||||||||||||||||
Net income attributable to the noncontrolling interest | 16,438 | 16,438 | ||||||||||||||||||||||
Net pension and post-retirement benefit (losses)/gains | 77,298 | 77,355 | 77,355 | (57) | ||||||||||||||||||||
Reclassification of net pension and postretirement benefit (gains)/losses to net income | 53,353 | 53,353 | 53,353 | |||||||||||||||||||||
Foreign currency translation adjustments | 567,876 | 563,060 | 563,060 | 4,816 | ||||||||||||||||||||
Net deferred gains/(losses) on derivatives from periodic revaluations | 9,395 | 9,790 | 9,790 | (395) | ||||||||||||||||||||
Net deferred losses/(gains) on derivatives reclassified to earnings | (20,794) | (21,365) | (21,365) | 571 | ||||||||||||||||||||
Dividends paid to noncontrolling interest | (3,270) | |||||||||||||||||||||||
Balance at end of year at Apr. 27, 2011 | 3,182,466 | 3,108,962 | 69 | 107,774 | 629,367 | 7,264,678 | (4,593,362) | (299,564) | 73,504 | |||||||||||||||
Balance at end of year, shares at Apr. 27, 2011 | 7 | 431,096 | (109,819) | |||||||||||||||||||||
Conversion of preferred into common stock, shares | (1) | 12 | ||||||||||||||||||||||
Conversion of preferred into common stock | (8) | (539) | 547 | |||||||||||||||||||||
Stock options exercised, net of shares tendered for payment, shares | 2,298 | |||||||||||||||||||||||
Stock options exercised, net of shares tendered for payment | (15,220) | [1] | 105,144 | |||||||||||||||||||||
Stock option expense | 10,864 | |||||||||||||||||||||||
Restricted stock unit activity, shares | 303 | |||||||||||||||||||||||
Restricted stock unit activity | 4,305 | 14,087 | ||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests | (34,483) | [2] | 0 | (456) | [2] | (19,885) | [2] | |||||||||||||||||
Other, net | 314 | [3] | (1,455) | [4] | 9,084 | [3] | ||||||||||||||||||
Other, net, shares | [3] | 195 | ||||||||||||||||||||||
Net income attributable to H. J. Heinz Company | 923,159 | 923,159 | ||||||||||||||||||||||
Cash dividends: | ||||||||||||||||||||||||
Preferred (per share $1.70 per share in 2013, 2012 and 2011) | (9) | |||||||||||||||||||||||
Common (per share $1.92, $1.80, and $1.68 in 2013, 2012 and 2011, respectively) | (619,095) | |||||||||||||||||||||||
Shares reaquired, shares | (3,860) | |||||||||||||||||||||||
Shares reacquired | (201,904) | |||||||||||||||||||||||
Net income attributable to the noncontrolling interest | 16,749 | 15,884 | ||||||||||||||||||||||
Net pension and post-retirement benefit (losses)/gains | (258,079) | (258,067) | (258,067) | (12) | ||||||||||||||||||||
Reclassification of net pension and postretirement benefit (gains)/losses to net income | 56,813 | 56,813 | 56,813 | |||||||||||||||||||||
Foreign currency translation adjustments | (377,491) | (359,771) | (359,771) | (5,945) | ||||||||||||||||||||
Net deferred gains/(losses) on derivatives from periodic revaluations | 30,377 | 30,405 | 30,405 | (28) | ||||||||||||||||||||
Net deferred losses/(gains) on derivatives reclassified to earnings | (13,811) | (14,088) | (14,088) | 277 | ||||||||||||||||||||
Dividends paid to noncontrolling interest | (11,562) | |||||||||||||||||||||||
Balance at end of year at Apr. 29, 2012 | 2,810,822 | 2,758,589 | 61 | 107,774 | 594,608 | 7,567,278 | (4,666,404) | (844,728) | 52,233 | |||||||||||||||
Balance at end of year, shares at Apr. 29, 2012 | 6 | 431,096 | (110,871) | |||||||||||||||||||||
Conversion of preferred into common stock, shares | (6) | 79 | ||||||||||||||||||||||
Conversion of preferred into common stock | (61) | (3,600) | 3,661 | |||||||||||||||||||||
Authorized shares - April 28, 2013 | 0 | |||||||||||||||||||||||
Authorized shares - April 28, 2013 | 600,000 | |||||||||||||||||||||||
Stock options exercised, net of shares tendered for payment, shares | 2,802 | |||||||||||||||||||||||
Stock options exercised, net of shares tendered for payment | (7,204) | [1] | 127,084 | |||||||||||||||||||||
Stock option expense | 10,088 | |||||||||||||||||||||||
Restricted stock unit activity, shares | 443 | |||||||||||||||||||||||
Restricted stock unit activity | (5,837) | 20,618 | ||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interests | 18,956 | [2] | (7,703) | (16,133) | [2] | 0 | [2] | |||||||||||||||||
Other, net | 1,493 | [3] | 246 | [4] | 6,868 | [3] | ||||||||||||||||||
Other, net, shares | [3] | 148 | ||||||||||||||||||||||
Net income attributable to H. J. Heinz Company | 1,012,903 | 1,012,903 | ||||||||||||||||||||||
Cash dividends: | ||||||||||||||||||||||||
Preferred (per share $1.70 per share in 2013, 2012 and 2011) | (8) | |||||||||||||||||||||||
Common (per share $1.92, $1.80, and $1.68 in 2013, 2012 and 2011, respectively) | (665,683) | |||||||||||||||||||||||
Shares reaquired, shares | (2,431) | |||||||||||||||||||||||
Shares reacquired | (139,069) | |||||||||||||||||||||||
Net income attributable to the noncontrolling interest | 14,430 | 12,925 | ||||||||||||||||||||||
Net pension and post-retirement benefit (losses)/gains | (189,302) | (189,294) | (189,294) | (8) | ||||||||||||||||||||
Reclassification of net pension and postretirement benefit (gains)/losses to net income | 54,833 | 54,833 | 54,833 | |||||||||||||||||||||
Foreign currency translation adjustments | (228,980) | (213,259) | (197,126) | (5,232) | ||||||||||||||||||||
Net deferred gains/(losses) on derivatives from periodic revaluations | (11,743) | (11,736) | (11,736) | (7) | ||||||||||||||||||||
Net deferred losses/(gains) on derivatives reclassified to earnings | 29,608 | 29,646 | 29,646 | (38) | ||||||||||||||||||||
Dividends paid to noncontrolling interest | (12,583) | |||||||||||||||||||||||
Balance at end of year at Apr. 28, 2013 | 2,848,821 | 2,801,531 | 0 | 107,774 | 608,504 | 7,907,033 | (4,647,242) | (1,174,538) | [5] | 47,290 | ||||||||||||||
Balance at end of year, shares at Apr. 28, 2013 | 0 | 431,096 | (109,830) | |||||||||||||||||||||
Balance at beginning of year at Jan. 27, 2013 | ||||||||||||||||||||||||
Authorized shares - April 28, 2013 | 600,000 | |||||||||||||||||||||||
Net income attributable to H. J. Heinz Company | 195,886 | |||||||||||||||||||||||
Balance at end of year at Apr. 28, 2013 | $ 2,848,821 | $ 107,774 | ||||||||||||||||||||||
Balance at end of year, shares at Apr. 28, 2013 | 431,096 | |||||||||||||||||||||||
|
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
||||||
Operating Activities: | ||||||||
Net income | $ 1,027,333 | $ 939,908 | $ 1,005,948 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation | 302,057 | 295,718 | 255,227 | |||||
Amortization | 46,853 | 47,075 | 43,433 | |||||
Deferred tax (benefit)/provision | (87,265) | (94,816) | 153,725 | |||||
Net losses on divestitures | 19,532 | 0 | 0 | |||||
Impairment on assets held for sale | 36,000 | 0 | 0 | |||||
Pension contributions | (69,388) | (23,469) | (22,411) | |||||
Asset write-downs from Fiscal 2012 productivity initiatives | 0 | 58,736 | 0 | |||||
Other items, net | 84,834 | 75,375 | 98,172 | |||||
Changes in current assets and liabilities, excluding effects of acquisitions and divestitures: | ||||||||
Receivables (includes proceeds from securitization) | (166,239) | 171,832 | (91,057) | |||||
Inventories | (49,468) | 60,919 | (80,841) | |||||
Prepaid expenses and other current assets | 14,111 | (11,584) | (1,682) | |||||
Accounts payable | 168,898 | (72,352) | 233,339 | |||||
Accrued liabilities | 71,846 | (20,008) | (60,862) | |||||
Income taxes | (9,141) | 65,783 | 50,652 | |||||
Cash provided by operating activities | 1,389,963 | 1,493,117 | 1,583,643 | |||||
Investing Activities: | ||||||||
Capital expenditures | (399,098) | [1] | (418,734) | [1] | (335,646) | [1] | ||
Proceeds from disposals of property, plant and equipment | 18,986 | 9,817 | 13,158 | |||||
Acquisitions, net of cash acquired | 0 | (3,250) | (618,302) | |||||
Proceeds from divestitures | 16,787 | 3,828 | 1,939 | |||||
Sale of short-term investments | 0 | 56,780 | 0 | |||||
Change in restricted cash | 3,994 | (39,052) | (5,000) | |||||
Other items, net | (13,789) | (11,394) | (5,781) | |||||
Cash used for investing activities | (373,120) | (402,005) | (949,632) | |||||
Financing Activities: | ||||||||
Payments on long-term debt | (224,079) | (1,440,962) | (45,766) | |||||
Proceeds from long-term debt | 205,350 | 1,912,467 | 229,851 | |||||
Net proceds/(payments) on commercial paper and short-term debt | 1,089,882 | (42,543) | (193,200) | |||||
Dividends | (665,691) | (619,104) | (579,618) | |||||
Purchase of treasury stock | (139,069) | (201,904) | (70,003) | |||||
Exercise of stock options | 113,477 | 82,714 | 154,774 | |||||
Acquisition of subsidiary shares from noncontrolling interests | (80,132) | (54,824) | (6,338) | |||||
Earn-out settlement | (44,547) | 0 | 0 | |||||
Other items, net | 1,736 | 1,321 | 27,791 | |||||
Cash provided by/(used for) financing activities | 256,927 | (362,835) | (482,509) | |||||
Effect of exchange rate changes on cash and cash equivalents | (127,512) | (122,147) | 89,556 | |||||
Net increase in cash and cash equivalents | 1,146,258 | 606,130 | 241,058 | |||||
Cash and cash equivalents at beginning of year | 1,330,441 | 724,311 | 483,253 | |||||
Cash and cash equivalents at end of year | $ 2,476,699 | $ 1,330,441 | $ 724,311 | |||||
|
Discontinued Operations
|
12 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2013
|
|||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations In the third quarter of Fiscal 2013, the Company's Board of Directors approved management's plan to sell Shanghai LongFong Foods ("LongFong"), a maker of frozen products in China which was previously reported in the Asia/Pacific segment. During the fourth quarter of Fiscal 2013, the Company secured an agreement with a buyer and expects the sale to close during the first quarter of Fiscal 2014. As a result, LongFong's net assets were classified as held for sale and the Company adjusted the carrying value to estimated fair value, recording a $36.0 million pre-tax and after-tax non-cash goodwill impairment charge to discontinued operations during the third quarter of Fiscal 2013. The net assets held for sale related to LongFong as of April 28, 2013 are reported in Other current assets, Other non-current assets, Other accrued liabilities and Other non-current liabilities on the consolidated balance sheet as of April 28, 2013 as they are not material for separate balance sheet presentation. During the first quarter of Fiscal 2013, the Company completed the sale of its U.S. Foodservice frozen desserts business, resulting in a $32.7 million pre-tax ($21.1 million after-tax) loss which has been recorded in discontinued operations. The operating results related to these businesses have been included in discontinued operations in the Company's consolidated statements of income for all periods presented. The following table presents summarized operating results for these discontinued operations:
|
Pension and Other Postretirement Benefit Plans 3 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Apr. 28, 2013
|
Apr. 29, 2012
|
Apr. 27, 2011
|
|
Pension Plans, Defined Benefit [Member]
|
|||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 31,580 | $ 33,719 | $ 32,329 |
Interest cost | 132,110 | 139,525 | 142,133 |
Expected return on assets | (250,660) | (234,717) | (229,258) |
Prior service cost/(credit) | 2,495 | 1,995 | 2,455 |
Net actuarial loss | 75,897 | 83,800 | 77,687 |
Loss due to curtailment, settlement and special termination benefits | 4,524 | 1,120 | 2,039 |
Net periodic benefit (income)/cost | (4,054) | 25,442 | 27,385 |
Defined contribution plans | 47,382 | 46,572 | 49,089 |
Total cost | 43,328 | 72,014 | 76,474 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
|||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6,486 | 5,967 | 6,311 |
Interest cost | 9,923 | 11,457 | 12,712 |
Expected return on assets | 0 | 0 | 0 |
Prior service cost/(credit) | (6,178) | (6,127) | (5,155) |
Net actuarial loss | 1,803 | 1,095 | 1,604 |
Loss due to curtailment, settlement and special termination benefits | 0 | 0 | 0 |
Net periodic benefit (income)/cost | 12,034 | 12,392 | 15,472 |
Defined contribution plans | 0 | 0 | 0 |
Total cost | $ 12,034 | $ 12,392 | $ 15,472 |
Significant Accounting Policies
|
12 Months Ended |
---|---|
Apr. 28, 2013
|
|
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Merger Agreement with Berkshire Hathaway and 3G Capital: On June 7, 2013, the Company was acquired by H.J. Heinz Holding Corporation (formerly known as Hawk Acquisition Holding Corporation) (“Parent”), a Delaware corporation controlled by 3G Special Situations Fund III, L.P. and Berkshire Hathaway, (together the “Sponsors”), pursuant to the Agreement and Plan of Merger, dated February 13, 2013 ("Merger Agreement"), as amended by the Amendment, by and among the Company, Parent and Hawk Acquisition Sub, Inc. ("Merger Subsidiary"), in a transaction hereinafter referred to as the “Merger.” As a result of the Merger, all issued and outstanding shares of our common stock outstanding immediately prior to the effective time of the Merger was converted into the right to receive $72.50 in cash, without interest and less applicable withholding taxes thereon, and the Company continued as the surviving corporation in the Merger, becoming an indirect wholly owned subsidiary of Parent. The total aggregate value of the acquisition consideration was approximately $28.75 billion, including the assumption of the Company's outstanding debt. See Note 21, “Subsequent Events” in Item 8 – “Financial Statements and Supplementary Data” for additional information. Fiscal Year: The Company operates on a 52-week or 53-week fiscal year end. On March 14, 2012, the Board of Directors of the Company authorized a change in the Company's fiscal year end from the Wednesday nearest April 30 to the Sunday nearest April 30. The change in the fiscal year end resulted in Fiscal 2012 changing from a 53 week year to a 52 1/2 week year and was intended to better align the Company's financial reporting period with its business partners and production schedules. This change did not have a material impact on the Company's financial statements. Certain foreign subsidiaries have closing dates earlier than the Sunday nearest April 30 to facilitate timely reporting. Fiscal years for the financial statements included herein ended April 28, 2013, April 29, 2012, and April 27, 2011. Principles of Consolidation: The consolidated financial statements include the accounts of the Company, all wholly-owned and majority-owned subsidiaries, and any variable interest entities for which we are the primary beneficiary. All intercompany accounts and transactions are eliminated. Certain prior year amounts have been reclassified to conform with the Fiscal 2013 presentation. Use of Estimates: The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Translation of Foreign Currencies: For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated at the exchange rate in effect at each year end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included as a component of other comprehensive income/(loss) within shareholders’ equity. Gains and losses from foreign currency transactions are included in net income for the period. Highly Inflationary Accounting: The Company applies highly inflationary accounting if the cumulative inflation rate in an economy for a three-year period meets or exceeds 100 percent. Under highly inflationary accounting, the financial statements of a subsidiary are remeasured into the Company’s reporting currency (U.S. dollars) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the balance sheet, until such time as the economy is no longer considered highly inflationary. See Note 20 for additional information. Cash Equivalents: Cash equivalents are defined as highly liquid investments with original maturities of 90 days or less. Inventories: Inventories are stated at the lower of cost or market. Cost is determined principally under the average cost method. Property, Plant and Equipment: Land, buildings and equipment are recorded at cost. For financial reporting purposes, depreciation is provided on the straight-line method over the estimated useful lives of the assets, which generally have the following ranges: buildings—40 years or less, machinery and equipment—15 years or less, computer software—3 to 7 years, and leasehold improvements—over the life of the lease, not to exceed 15 years. Accelerated depreciation methods are generally used for income tax purposes. Expenditures for new facilities and improvements that substantially extend the capacity or useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When property is retired or otherwise disposed, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in income. The Company reviews property, plant and equipment, whenever circumstances change such that the recorded value of an asset may not be recoverable. Factors that may affect recoverability include changes in planned use of the asset and the closing of facilities. The Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level for which identifiable cash flows exist and are largely independent. When the carrying value of the asset exceeds the future undiscounted cash flows, an impairment is indicated and the asset is written down to its fair value. Goodwill and Intangibles: Intangible assets with finite useful lives are amortized on a straight-line basis over the estimated periods benefited, and are reviewed when appropriate for possible impairment, similar to property, plant and equipment. Goodwill and intangible assets with indefinite useful lives are not amortized. The carrying values of goodwill and other intangible assets with indefinite useful lives are tested at least annually for impairment, or when circumstances indicate that a possible impairment may exist. Indefinite-lived intangible assets are tested annually during the fourth quarter of each fiscal year, while the annual impairment tests of goodwill are performed during the third quarter of each fiscal year. All goodwill is assigned to reporting units, which are primarily one level below our operating segments. The Company performs its impairment tests of goodwill at the reporting unit level. The Company tests goodwill for impairment by either performing a qualitative evaluation or a two-step quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair values of a reporting unit is less than its carrying amount, including goodwill. Factors considered as part of the qualitative assessment include entity-specific industry, market and general economic conditions. The Company may elect to bypass this qualitative assessment for some or all of its reporting units and perform a two-step quantitative test. This quantitative test involves estimating a reporting units fair value. Indefinite-lived intangible assets are tested for impairment by either performing a qualitative evaluation or a quantitative calculation of fair value and comparison to carrying amount. The qualitative evaluation is an assessment of factors including, but not limited to, changes in management, overall financial performance, and other entity-specific events. The objective of the qualitative evaluation is to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. The Company can choose to perform the qualitative assessment on none, some, or all of its indefinite-lived intangible assets. The Company's estimates of fair value when testing quantitatively for impairment of both goodwill and intangible assets with indefinite lives is based on a discounted cash flow model, using a market participant approach, that requires significant judgment and requires assumptions about future volume trends, revenue and expense growth rates, terminal growth rates, discount rates, tax rates, working capital changes and macroeconomic factors. Revenue Recognition: The Company recognizes revenue when title, ownership and risk of loss pass to the customer. This primarily occurs upon delivery of the product to the customer. For the most part, customers do not have the right to return products unless damaged or defective. Revenue is recorded, net of sales incentives, and includes shipping and handling charges billed to customers. Shipping and handling costs are primarily classified as part of selling, general and administrative expenses. Marketing Costs: The Company promotes its products with advertising, consumer incentives and trade promotions. Such programs include, but are not limited to, discounts, coupons, rebates, in-store display incentives and volume-based incentives. Advertising costs are expensed as incurred. Consumer incentive and trade promotion activities are recorded as a reduction of revenue or as a component of cost of products sold based on amounts estimated as being due to customers and consumers at the end of a period, based principally on historical utilization and redemption rates. Advertising costs are recognized as an expense within selling, general and administrative expenses if the Company determines that it will receive an identifiable, separable benefit in return for the consideration paid and it can reasonably estimate the fair value of the benefit identified. Accruals for trade promotions are initially recorded at the time of sale of product to the customer based on an estimate of the expected levels of performance of the trade promotion, which is dependent upon factors such as historical trends with similar promotions, expectations regarding customer participation, and sales and payment trends with similar previously offered programs. The Company performs monthly evaluations of its outstanding trade promotions, making adjustments where appropriate to reflect changes in estimates. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorization process for deductions taken by a customer from amounts otherwise due to the Company. Coupon redemption costs are accrued in the period in which the coupons are offered. The initial estimates made for each coupon offering are based upon historical redemption experience rates for similar products or coupon amounts. The Company performs monthly evaluations of outstanding coupon accruals that compare actual redemption rates to the original estimates. For interim reporting purposes, advertising, consumer incentive and product placement expenses are charged to operations as a percentage of volume, based on estimated volume and related expense for the full year. Income Taxes: Deferred income taxes result primarily from temporary differences between financial and tax reporting. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. When assessing the need for valuation allowances, the Company considers future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the realizability of deferred tax assets in future years, the Company would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company has not provided for possible U.S. taxes on the undistributed earnings of foreign subsidiaries that are considered to be reinvested indefinitely. Calculation of the unrecognized deferred tax liability for temporary differences related to these earnings is not practicable. Stock-Based Employee Compensation Plans: The Company recognizes the cost of all stock-based awards to employees, including grants of employee stock options, on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The vesting approach used does not affect the overall amount of compensation expense recognized, but could accelerate the recognition of expense. The Company follows its previous vesting approach for the remaining portion of those outstanding awards that were unvested and granted prior to May 4, 2006, and accordingly, will recognize expense from the grant date to the earlier of the actual date of retirement or the vesting date. Judgment is required in estimating the amount of stock-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these estimates, stock-based compensation expense could be materially impacted. Compensation cost related to all stock-based awards is determined using the grant date fair value. Determining the fair value of employee stock options at the grant date requires judgment in estimating the expected term that the stock options will be outstanding prior to exercise as well as the volatility and dividends over the expected term. Compensation cost for restricted stock units is determined based on the fair value of the Company’s stock at the grant date. The Company applies the modified-prospective transition method for stock options granted on or prior to, but not vested as of, May 3, 2006. Compensation cost related to these stock options is determined using the grant date fair value originally estimated and disclosed in a pro-forma manner in prior period financial statements in accordance with the original provisions of the Financial Accounting Standards Board’s (“FASB’s”) guidance for stock compensation. Stock-based compensation expense is primarily recognized as a component of selling, general and administrative expenses in the Consolidated Statements of Income. Financial Instruments: The Company’s financial instruments consist primarily of cash and cash equivalents, receivables, accounts payable, short-term and long-term debt, swaps, forward contracts, and option contracts. The carrying values for the Company’s financial instruments approximate fair value, except as disclosed in Note 11. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. The Company uses derivative financial instruments for the purpose of hedging foreign currency, debt and interest rate exposures, which exist as part of ongoing business operations. The Company carries derivative instruments on the balance sheet at fair value, determined using observable market data. Derivatives with scheduled maturities of less than one year are included in other receivables or other payables, based on the instrument’s fair value. Derivatives with scheduled maturities beyond one year are classified between current and long-term based on the timing of anticipated future cash flows. The current portion of these instruments is included in other receivables or other payables and the long-term portion is presented as a component of other non-current assets or other non-current liabilities, based on the instrument’s fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. Gains and losses on fair value hedges are recognized in current period earnings in the same line item as the underlying hedged item. The effective portion of gains and losses on cash flow hedges are deferred as a component of accumulated other comprehensive loss and are recognized in earnings at the time the hedged item affects earnings, in the same line item as the underlying hedged item. Hedge ineffectiveness related to cash flow hedges is reported in current period earnings within other income and expense. The income statement classification of gains and losses related to derivative contracts that do not qualify for hedge accounting is determined based on the underlying intent of the contracts. Cash flows related to the settlement of derivative instruments designated as net investment hedges of foreign operations are classified in the consolidated statements of cash flows within investing activities. Cash flows related to the termination of derivative instruments designated as fair value hedges of fixed rate debt obligations are classified in the consolidated statements of cash flows within financing activities. All other cash flows related to derivative instruments are generally classified in the consolidated statements of cash flows within operating activities. |
Derivative Financial Instruments and Hedging Activities (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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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 28, 2013 and April 29, 2012:
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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 28, 2013:
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:
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Venezuela - Foreign Currency and Inflation
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12 Months Ended |
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Apr. 28, 2013
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Foreign Currency [Abstract] | |
Venezuela - Foreign Currency and Inflation | Venezuela- Foreign Currency and Inflation The Company applies highly inflationary accounting to its business in Venezuela. Under highly inflationary accounting, the financial statements of our Venezuelan subsidiary are remeasured into the Company's reporting currency (U.S. dollars) and exchange gains and losses from the remeasurement of monetary assets and liabilities are reflected in current earnings, rather than accumulated other comprehensive loss on the balance sheet, until such time as the economy is no longer considered highly inflationary. The impact of applying highly inflationary accounting for Venezuela on our consolidated financial statements is dependent upon movements in the official exchange rate between the Venezuelan bolivar fuerte and the U.S. dollar and the amount of net monetary assets and liabilities included in our subsidiary's balance sheet. On February 8, 2013, the Venezuelan government announced the devaluation of its currency relative to the U.S. dollar, changing the official exchange rate from 4.30 to 6.30. As a result, the Company recorded a $42.7 million pre-tax currency translation loss, which was reflected within other expense, net, on the consolidated statement of income during the fourth quarter of Fiscal 2013 ($39.1 million after-tax loss). The monetary net asset position of our Venezuelan subsidiary was also reduced as a result of the devaluation to $98.8 million at April 28, 2013. |
Discontinued Operations (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following table presents summarized operating results for these discontinued operations:
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Pension and Other Postretirement Benefit Plans 1 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
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Apr. 28, 2013
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Apr. 29, 2012
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Apr. 27, 2011
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Change in Plan Assets: | |||
Fair value of plan assets at the beginning of the year | $ 3,140,834 | ||
Employer contribution | 69,400 | ||
Fair value of plan assets at the end of the year | 3,379,143 | ||
Pension Plans, Defined Benefit [Member]
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Change in Benefit Obligation: | |||
Benefit obligation at the beginning of the year | 2,930,347 | 2,765,316 | |
Service cost | 31,580 | 33,719 | 32,329 |
Interest cost | 132,110 | 139,525 | 142,133 |
Participants’ contributions | 2,294 | 2,281 | |
Amendments | (145) | 3,396 | |
Actuarial loss | 428,881 | 196,606 | |
Settlement | (11,971) | (1,854) | |
Benefits paid | (157,672) | (152,342) | |
Exchange/other | (83,858) | (56,300) | |
Benefit obligation at the end of the year | 3,271,566 | 2,930,347 | 2,765,316 |
Change in Plan Assets: | |||
Fair value of plan assets at the beginning of the year | 3,140,834 | 3,261,881 | |
Actual return on plan assets | 429,011 | 84,004 | |
Settlement | (11,971) | (1,854) | |
Employer contribution | 69,388 | 23,469 | |
Participants’ contributions | 2,294 | 2,281 | |
Benefits paid | (157,672) | (152,342) | |
Exchange/other | (92,741) | (76,605) | |
Fair value of plan assets at the end of the year | 3,379,143 | 3,140,834 | 3,261,881 |
Funded status | 107,577 | 210,487 | |
Other Postretirement Benefit Plans, Defined Benefit [Member]
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Change in Benefit Obligation: | |||
Benefit obligation at the beginning of the year | 249,017 | 234,431 | |
Service cost | 6,486 | 5,967 | 6,311 |
Interest cost | 9,923 | 11,457 | 12,712 |
Participants’ contributions | 659 | 712 | |
Amendments | 0 | 735 | |
Actuarial loss | 9,153 | 17,278 | |
Settlement | 0 | 0 | |
Benefits paid | (15,760) | (19,574) | |
Exchange/other | (2,161) | (1,989) | |
Benefit obligation at the end of the year | 257,317 | 249,017 | 234,431 |
Change in Plan Assets: | |||
Fair value of plan assets at the beginning of the year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Settlement | 0 | 0 | |
Employer contribution | 15,101 | 18,862 | |
Participants’ contributions | 659 | 712 | |
Benefits paid | (15,760) | (19,574) | |
Exchange/other | 0 | 0 | |
Fair value of plan assets at the end of the year | 0 | 0 | 0 |
Funded status | $ (257,317) | $ (249,017) |
Supplemental Cash Flows Information (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 28, 2013
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flows Information |
_______________________________________
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Fair Value Measurements (Details) (USD $)
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12 Months Ended | ||||||||
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Apr. 28, 2013
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Apr. 29, 2012
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Apr. 27, 2011
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Liabilities: | |||||||||
Business aquisition contingent consideration cash payment | $ 60,000,000 | ||||||||
Impairment on assets held for sale | 36,000,000 | 0 | 0 | ||||||
Fair Value, Measurements, Recurring [Member]
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Assets: | |||||||||
Derivatives | 68,892,000 | [1] | 90,221,000 | [1] | |||||
Total assets at fair value | 68,892,000 | 90,221,000 | |||||||
Liabilities: | |||||||||
Derivatives | 79,871,000 | [1] | 15,379,000 | [1] | |||||
Earn-out | 0 | [2] | 46,881,000 | [2] | |||||
Total liabilities at fair value | 79,871,000 | 62,260,000 | |||||||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
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Assets: | |||||||||
Derivatives | 0 | [1] | 0 | [1] | |||||
Total assets at fair value | 0 | 0 | |||||||
Liabilities: | |||||||||
Derivatives | 0 | [1] | 0 | [1] | |||||
Earn-out | 0 | [2] | 0 | [2] | |||||
Total liabilities at fair value | 0 | 0 | |||||||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
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Assets: | |||||||||
Derivatives | 68,892,000 | [1] | 90,221,000 | [1] | |||||
Total assets at fair value | 68,892,000 | 90,221,000 | |||||||
Liabilities: | |||||||||
Derivatives | 79,871,000 | [1] | 15,379,000 | [1] | |||||
Earn-out | 0 | [2] | 0 | [2] | |||||
Total liabilities at fair value | 79,871,000 | 15,379,000 | |||||||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
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Assets: | |||||||||
Derivatives | 0 | [1] | 0 | [1] | |||||
Total assets at fair value | 0 | 0 | |||||||
Liabilities: | |||||||||
Derivatives | 0 | [1] | 0 | [1] | |||||
Earn-out | 0 | [2] | 46,881,000 | [2] | |||||
Total liabilities at fair value | 0 | 46,881,000 | |||||||
Productivity Initatives [Member]
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Liabilities: | |||||||||
Asset impairment charges | 50,900,000 | ||||||||
Productivity Initatives [Member] | Facility Closing [Member]
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Liabilities: | |||||||||
Number of factories | 6 | ||||||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member]
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Liabilities: | |||||||||
Long-term Debt, Fair Value | 5,350,000,000 | 5,700,000,000 | |||||||
Carrying (Reported) Amount, Fair Value Disclosure [Member]
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Liabilities: | |||||||||
Long-term Debt, Fair Value | 4,870,000,000 | 4,980,000,000 | |||||||
Asia/Pacific [Member]
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Liabilities: | |||||||||
Impairment on assets held for sale | $ 36,000,000 | ||||||||
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Income Taxes 2 (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
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Apr. 28, 2013
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Apr. 29, 2012
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Apr. 27, 2011
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Income Tax Disclosure [Abstract] | |||
Domestic | $ 378,283 | $ 315,741 | $ 470,646 |
Foreign | 965,360 | 920,348 | 945,676 |
Loss from continuing operations before income tax | $ 1,343,643 | $ 1,236,089 | $ 1,416,322 |