Income Per Common Share

12 Months Ended

Apr. 27, 2011


13.	Income Per Common Share

The following are reconciliations of income from continuing operations to income from continuing operations applicable to common stock and the number of common shares outstanding used to calculate basic EPS to those shares used to calculate diluted EPS:


	Fiscal Year Ended
	April 27,		April 28,		April 29,
	2011		2010		2009
	(52 Weeks)		(52 Weeks)		(52 Weeks)
	(Amounts in thousands)

Income from continuing operations attributable to H.J. Heinz Company	$	989,510	$	914,489	$	929,511
Allocation to participating securities		1,746		2,153		4,121
Preferred dividends		12		9		12

Income from continuing operations applicable to common stock	$	987,752	$	912,327	$	925,378

Average common shares outstanding-basic		320,118		315,948		313,747
Effect of dilutive securities:
Convertible preferred stock		105		105		106
Stock options, restricted stock and the global stock purchase plan		2,819		2,060		4,210

Average common shares outstanding-diluted		323,042		318,113		318,063

In Fiscal 2010, the Company adopted accounting guidance for determining whether instruments granted in share-based payment transactions are participating securities. This guidance states that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method.

Diluted earnings per share is based upon the average shares of common stock and dilutive common stock equivalents outstanding during the periods presented. Common stock equivalents arising from dilutive stock options, restricted common stock units, and the global stock purchase plan are computed using the treasury stock method.

Options to purchase an aggregate of 2.4 million, 4.4 million and 3.7 million shares of common stock as of April 27, 2011, April 28, 2010 and April 29, 2009 respectively, were not included in the computation of diluted earnings per share because inclusion of these options would be anti-dilutive. These options expire at various points in time through 2018.