þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
|
For the fiscal year ended April 29, 2009 | ||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934 |
|
For the transition period from to |
PENNSYLVANIA | 25-0542520 | |
(State of
Incorporation)
|
(I.R.S. Employer Identification No.) | |
One PPG Place
|
15222 | |
Pittsburgh, Pennsylvania
|
(Zip Code) | |
(Address of principal executive
offices)
|
Title of each class
|
Name of each exchange on which registered
|
|
Common Stock, par value $.25 per share
|
The New York Stock Exchange | |
Third Cumulative Preferred Stock,
|
||
$1.70 First Series, par value $10 per share
|
The New York Stock Exchange |
Large accelerated
filer
þ
|
Accelerated filer o |
Non-accelerated
filer
o
(Do not check if a smaller reporting company) |
Smaller reporting company o |
2
6
Item 1.
Business.
Factories
Owned
Leased
Major Owned and Licensed Trademarks
22
3
Heinz, Classico, Quality Chef Foods, Jack Daniels*,
Catelli*, Wylers, Heinz Bell Orto, Bella Rossa, Chef
Francisco, Diannes,
Ore-Ida,
Tater Tots, Bagel Bites, Weight Watchers* Smart Ones, Boston
Market*, Poppers, T.G.I. Fridays*, Delimex, Truesoups,
Alden Merrell, Escalon, PPI, Todds, Appetizers And, Inc.,
Nancys, Lea & Perrins, Renees Gourmet, HP,
Diana, Bravo
23
Heinz, Orlando, Karvan Cevitam, Brinta, Roosvicee, Venz,
Weight Watchers*, Farleys, Farex, Sonnen Bassermann,
Plasmon, Nipiol, Dieterba, Bi-Aglut, Aproten, Pudliszki, Ross,
Honig, De Ruijter, Aunt Bessie*, Mums Own, Moya Semya,
Picador, Derevenskoye, Mechta Hoziajki, Lea & Perrins,
HP, Amoy*, Daddies, Squeezme!, Wyko, Benedicta
20
2
Heinz, Tom Piper, Watties, ABC, Chef, Craigs,
Bruno, Winna, Hellaby, Hamper, Farleys, Greenseas,
Gourmet, Nurture, LongFong,
Ore-Ida,
SinSin, Lea & Perrins, HP, Star-Kist, Classico, Weight
Watchers*, Cottees*, Roses*, Complan, Glucon D,
Nycil, Golden Circle, La Bonne Cuisine, Original Juice Co.,
The Good Taste Company
6
3
Heinz, Wellingtons, Today, Mamas, John West,
Farleys, Dieterba, HP, Lea & Perrins, Classico,
Banquete
71
8
* Used under license
3
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4
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Positions and Offices Held with the Company and
Age (as of
Principal Occupations or
August 12, 2009)
60
Chairman, President, and Chief Executive Officer since September
2000.
58
Executive Vice President and General Counsel since January 2007;
Senior Vice President and General Counsel from April 2005 to
January 2007; Acting General Counsel from January 2005 to April
2005; Vice PresidentLegal Affairs from September 1999 to
January 2005.
52
Senior Vice PresidentFinance and Corporate Controller
since August 2004; Vice President Finance from June 2001 to
August 2004.
52
Senior Vice PresidentHeinz Rest of World, Enterprise Risk
Management and Global Infant/Nutrition since June 2008; Senior
Vice PresidentHeinz Pacific, Rest of World and Enterprise
Risk Management from May 2006 to June 2008; Senior Vice
PresidentPresident Rest of World and Asia from May 2005 to
May 2006; Senior Vice PresidentPresident Rest of World
from December 2003 to May 2005.
51
Executive Vice President & Chief Executive Officer and
President of Heinz North America since May 2007; Executive Vice
President & Chief Executive Officer and President of Heinz
North America Consumer Products from November 2005 to May 2007;
Senior Vice PresidentPresident Heinz North America
Consumer Products from May 2005 to November 2005; President
North America Consumer Products from January 2003 to May 2005.
5
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Positions and Offices Held with the Company and
Age (as of
Principal Occupations or
August 12, 2009)
48
Executive Vice PresidentPresident and Chief Executive
Officer Heinz Europe since May 2006; Executive Vice
PresidentAsia Pacific/Rest of World from January 2006 to
May 2006; Senior Vice President EuropeThe Gillette Company
from October 2004 to January 2006; General Manager U.K. and
NLThe Gillette Company from June 2001 to October 2004.
50
Executive Vice PresidentHeinz Asia Pacific since June
2008; Senior Vice PresidentHeinz Asia from May 2006 to
June 2008; Deputy President Heinz Europe from December 2003 to
April 2006.
52
Executive Vice President and Chief Financial Officer since
January 2002.
*
Effective July 15, 2009, David Moran will assume the
position of Executive Vice President and President and Chief
Executive Officer of Heinz Europe, and Scott OHara will
assume the position of Executive Vice President and President
and Chief Executive Officer of Heinz North America.
Item 1A.
Risk
Factors
Table of Contents
7
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8
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9
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sales, earnings, and volume 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 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, which includes our
continued evaluation of potential acquisition opportunities,
including strategic acquisitions, joint ventures, divestitures
and other initiatives, including our ability to identify,
finance and complete these 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, economic or political
instability in those markets, particularly in Venezuela, and the
performance of business in hyperinflationary environments,
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,
the ability to implement new information systems and potential
disruptions due to failures in technology systems,
10
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with regard to dividends, dividends must be declared by the
Board of Directors and will be subject to certain legal
requirements being met at the time of declaration, as well as
our Boards view of our anticipated cash needs, and
other factors as described in Risk Factors above.
Item 1B.
Unresolved
Staff Comments
Item 2.
Properties.
Item 3.
Legal
Proceedings.
Item 4.
Submission
of Matters to a Vote of Security Holders.
11
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74
Item 5.
Market
for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities.
12
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Item 6.
Selected
Financial Data.
Fiscal Year Ended
April 29,
April 30,
May 2,
May 3,
April 27,
2009
2008
2007
2006
2005
(52 Weeks)
(52 Weeks)
(52 Weeks)
(53 Weeks)
(52 Weeks)
$
10,148,082
$
10,070,778
$
9,001,630
$
8,643,438
$
8,103,456
339,635
364,856
333,270
316,296
232,088
923,072
844,925
791,602
442,761
688,004
2.90
2.63
2.38
1.29
1.95
2.94
2.67
2.41
1.31
1.97
65,638
452,708
468,243
54,969
573,269
5,076,186
4,730,946
4,413,641
4,357,013
4,121,984
9,664,184
10,565,043
10,033,026
9,737,767
10,577,718
1.66
1.52
1.40
1.20
1.14
(1)
Amounts exclude the operating results related to the
Companys European seafood and
Tegel
®
poultry businesses which were divested in Fiscal 2006 and have
been presented as discontinued operations.
(2)
Long-term debt, exclusive of current portion, includes
$251.5 million, $198.3 million, $71.0 million,
($1.4) million, and $186.1 million of hedge accounting
adjustments associated with interest rate swaps at
April 29, 2009, April 30, 2008, May 2, 2007,
May 3, 2006, and April 27, 2005, respectively. H.J.
Heinz Finance Companys (HFC) mandatorily
redeemable preferred shares of $350 million in Fiscal 2009
and $325 million in Fiscals
2008-2005
are classified as long-term debt.
(3)
Fiscals 2009, 2008, and 2007 reflect the adoption of Statement
of Financial Accounting Standards (SFAS)
No. 158, Employers Accounting for Defined
Benefit Pension and Other Postretirement Plans- an amendment of
Financial Accounting Standards Board (FASB)
Statements No. 87, 88, 106 and 132(R).
13
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14
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Item 7.
Managements
Discussion and Analysis of Financial Condition and Results of
Operations.
Grow the Core Portfolio
Accelerate Growth in Emerging Markets
Strengthen and Leverage Global Scale
Make Talent an Advantage
Investing behind core brands and proven ideas to drive growth;
Shifting investments in marketing and research and development
toward delivering value to consumers;
Continuing its focus on emerging markets where economic growth
remains well above the global average;
Increasing emphasis on margins through productivity initiatives,
reductions in discretionary spending and tight management of
fixed costs; and
Increasing cash flow with a focus on reducing the cash
conversion cycle and tight management of capital spending.
15
Table of Contents
Fiscal Year Ended
April 29,
April 30,
May 2,
2009
2008
2007
(52 Weeks)
(52 Weeks)
(52 Weeks)
(Dollars in thousands)
$
4,251,583
$
4,081,864
$
3,682,102
4,361,878
4,521,697
4,026,168
1,105,313
1,089,544
929,075
429,308
377,673
364,285
$
10,148,082
$
10,070,778
$
9,001,630
16
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17
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18
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19
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20
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21
Table of Contents
22
Table of Contents
23
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24
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Fiscal Year
2015
2010
2011-2012
2013-2014
Forward
Total
(Amounts in thousands)
$
323,364
$
2,844,553
$
1,050,130
$
2,650,236
$
6,868,283
13,488
62,079
8,938
22,353
106,858
63,524
100,762
77,984
149,729
391,999
1,358,311
597,115
39,710
22,724
2,017,860
254,290
543,724
532,815
154,127
1,484,956
$
2,012,977
$
4,148,233
$
1,709,577
$
2,999,169
$
10,869,956
(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.
25
Table of Contents
Aggregate Notional Amount
Net Unrealized Gains
April 29, 2009
April 30, 2008
April 29, 2009
April 30, 2008
(Dollars in millions)
$
683
$
1,110
$
16
$
25
468
541
20
6
96
57
$
1,247
$
1,708
$
36
$
31
26
Table of Contents
April 29, 2009
April 30, 2008
(Dollars in millions)
$
1,516
$
1,642
$
151
$
95
4
4
6.31
%
6.36
%
3.67
%
6.15
%
Fair Value Effect
(Dollars in millions)
$
93
$
11
$
3
27
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28
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29
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30
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31
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100 Basis Point
Increase
Decrease
$
(245
)
$
287
$
(26
)
$
32
$
(25
)
$
25
$
(18
)
$
20
$
$
1
32
Table of Contents
Stock Price Range
High
Low
$
51.44
$
46.35
53.00
38.43
45.83
34.52
38.34
30.51
$
48.50
$
42.84
47.18
41.82
48.75
41.37
48.25
41.60
Item 7A.
Quantitative
and Qualitative Disclosures About Market Risk.
33
35
36
37
38
40
41
42
EX-4(D)
EX-10A(XV)
EX-10.A(XXX)
EX-10.A(XXXIV)
EX-10.A(XXXV)
EX-12
EX-21
EX-23
EX-24
EX-31(A)
EX-31(B)
EX-32(A)
EX-32(B)
34
Table of Contents
Chairman, President and
Chief Executive Officer
Executive Vice President and
Chief Financial Officer
35
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36
Table of Contents
Fiscal Year Ended
April 29, 2009
April 30, 2008
May 2, 2007
(52 Weeks)
(52 Weeks)
(52 Weeks)
(In thousands, except per share amounts)
$
10,148,082
$
10,070,778
$
9,001,630
6,564,447
6,390,086
5,608,730
3,583,635
3,680,692
3,392,900
2,089,983
2,111,725
1,946,185
1,493,652
1,568,967
1,446,715
64,150
41,519
41,869
339,635
364,856
333,270
78,033
(27,836
)
(30,915
)
1,296,200
1,217,794
1,124,399
373,128
372,869
332,797
923,072
844,925
791,602
(5,856
)
$
923,072
$
844,925
$
785,746
$
2.90
$
2.63
$
2.38
(0.02
)
$
2.90
$
2.63
$
2.36
318,063
321,717
332,468
$
2.94
$
2.67
$
2.41
(0.02
)
$
2.94
$
2.67
$
2.39
313,747
317,019
328,625
$
1.66
$
1.52
$
1.40
37
Table of Contents
April 29,
April 30,
2009
2008
(In thousands)
$
373,145
$
617,687
1,171,797
1,161,481
973,983
1,100,735
263,630
277,481
1,237,613
1,378,216
125,765
139,492
36,701
28,690
2,945,021
3,325,566
76,193
56,007
775,217
842,198
3,258,152
3,502,071
4,109,562
4,400,276
2,131,260
2,295,563
1,978,302
2,104,713
2,687,788
2,997,462
889,815
957,111
405,351
456,948
192,736
565,171
723,243
4,740,861
5,134,764
$
9,664,184
$
10,565,043
38
Table of Contents
April 29,
April 30,
2009
2008
(In thousands)
$
61,297
$
124,290
4,341
328,418
1,113,307
1,247,479
91,283
92,553
233,316
298,342
485,406
487,656
73,896
91,322
2,062,846
2,670,060
5,076,186
4,730,946
345,749
409,186
214,786
257,051
59,167
65,727
685,512
544,253
6,381,400
6,007,163
70
72
107,774
107,774
107,844
107,846
737,917
617,811
6,525,719
6,129,008
7,371,480
6,854,665
4,881,842
4,905,755
1,269,700
61,090
1,219,938
1,887,820
$
9,664,184
$
10,565,043
*
The preferred stock outstanding is
convertible at a rate of one share of preferred stock into
15 shares of common stock. The Company can redeem the stock
at $28.50 per share. As of April 29, 2009, there were
authorized, but unissued, 2,200 shares of third cumulative
preferred stock for which the series had not been designated.
39
Table of Contents
April 29, 2009
April 30, 2008
May 2, 2007
Shares
Dollars
Shares
Dollars
Shares
Dollars
(Amounts in thousands, expect per share amounts)
7
$
72
8
$
77
8
$
82
(2
)
(1
)
(5
)
(5
)
7
70
7
72
8
77
7
431,096
107,774
431,096
107,774
431,096
107,774
431,096
107,774
431,096
107,774
431,096
107,774
600,000
617,811
580,606
502,235
(95
)
(219
)
(191
)
98,736
(4)
20,920
(4)
79,735
(4)
9,405
8,919
11,987
(538
)
4,961
16,000
(32,773
)
(1,719
)
8,537
4,061
4,343
3,613
737,917
617,811
580,606
6,129,008
5,778,617
5,454,108
923,072
844,925
785,746
(12
)
(12
)
(13
)
(525,281
)
(485,234
)
(461,224
)
(9,288
)
(1,068
)
6,525,719
6,129,008
5,778,617
(119,628
)
(4,905,755
)
(109,317
)
(4,406,126
)
(100,339
)
(3,852,220
)
(3,650
)
(181,431
)
(13,054
)
(580,707
)
(16,651
)
(760,686
)
3
97
8
224
7
195
6,179
178,559
2,116
62,486
7,265
195,117
485
15,026
289
8,591
96
2,438
374
11,662
330
9,777
305
9,030
(116,237
)
(4,881,842
)
(119,628
)
(4,905,755
)
(109,317
)
(4,406,126
)
(32,773
)
32,773
(61,090
)
(219,265
)
(130,383
)
(301,347
)
(155,989
)
24,744
27,787
8,041
(944,439
)
281,090
293,673
33,204
16,273
(3,401
)
(20,772
)
(10,986
)
11,239
(1,208,610
)
158,175
309,552
(398,434
)
(1,269,700
)(5)
(61,090
)
(219,265
)
$
1,219,938
$
1,887,820
$
1,841,683
$
923,072
$
844,925
$
785,746
(1,208,610
)
158,175
309,552
$
(285,538
)
$
1,003,100
$
1,095,298
(1)
See Note No. 6 for further
details.
(2)
Includes activity of the Global
Stock Purchase Plan.
(3)
Includes adoption of the
measurement date provisions of SFAS No. 158 and unpaid
dividend equivalents on restricted stock units.
(4)
Includes income tax benefit
resulting from exercised stock options.
(5)
Comprised of unrealized translation
adjustment of $(415,211), pension and post-retirement benefits
net prior service cost of $(14,075) and net losses of
$(861,347), and deferred net gains on derivative financial
instruments of $20,933.
40
Table of Contents
Fiscal Year Ended
April 29,
April 30,
May 2,
2009
2008
2007
(52 Weeks)
(52 Weeks)
(52 Weeks)
(Dollars in thousands)
$
923,072
$
844,925
$
785,746
241,294
250,826
233,374
40,081
38,071
32,823
108,950
18,543
52,244
(6,445
)
(15,706
)
(1,391
)
(133,714
)
(58,061
)
(62,505
)
(70,140
)
80,404
73,571
(10,866
)
(55,832
)
10,987
50,731
(133,600
)
(82,534
)
996
5,748
14,208
(62,934
)
89,160
56,524
24,641
28,259
(4,489
)
61,216
95,566
(46,270
)
1,166,882
1,188,303
1,062,288
(292,121
)
(301,588
)
(244,562
)
5,407
8,531
60,661
(293,898
)
(151,604
)
(88,996
)
13,351
63,481
(4,144
)
(192,736
)
(93,153
)
(1,197
)
(79,894
)
(49,203
)
(761,194
)
(554,227
)
(326,244
)
(427,417
)
(368,214
)
(52,069
)
853,051
(483,666
)
483,730
384,055
(525,293
)
(485,246
)
(461,237
)
(181,431
)
(580,707
)
(760,686
)
264,898
78,596
259,816
103,522
(16,478
)
10,224
9,212
(516,336
)
(758,095
)
(620,909
)
33,511
(133,894
)
88,810
58,823
(244,542
)
(35,209
)
207,469
617,687
652,896
445,427
$
373,145
$
617,687
$
652,896
41
Table of Contents
1.
Significant
Accounting Policies
42
Table of Contents
43
Table of Contents
44
Table of Contents
2.
Recently
Issued Accounting Standards
45
Table of Contents
46
Table of Contents
3.
Discontinued
Operations
4.
Acquisitions
47
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5.
Goodwill
and Other Intangible Assets
North
American
Rest
Consumer
Asia/
U.S.
of
Products
Europe
Pacific
Foodservice
World
Total
(Thousands of dollars)
$
1,096,288
$
1,340,928
$
282,419
$
262,823
$
15,004
$
2,997,462
36,983
18,238
394
55,615
(868
)
(1,574
)
(2,442
)
(2,300
)
(2,300
)
(21,447
)
(286,045
)
(50,861
)
(2,194
)
(360,547
)
$
1,074,841
$
1,090,998
$
248,222
$
260,523
$
13,204
$
2,687,788
April 29, 2009
April 30, 2008
Gross
Accum Amort
Net
Gross
Accum Amort
Net
(Thousands of dollars)
$
272,710
$
(71,138
)
$
201,572
$
200,966
$
(69,104
)
$
131,862
208,186
(146,789
)
61,397
208,186
(141,070
)
67,116
72,988
(22,231
)
50,757
71,495
(19,306
)
52,189
179,657
(38,702
)
140,955
183,204
(31,418
)
151,786
68,128
(55,091
)
13,037
73,848
(59,639
)
14,209
$
801,669
$
(333,951
)
$
467,718
$
737,699
$
(320,537
)
$
417,162
48
Table of Contents
6.
Income
Taxes
2009
2008
2007
(Dollars in thousands)
$
72,336
$
80,638
$
89,020
1,699
15,323
9,878
190,143
258,365
181,655
264,178
354,326
280,553
74,554
14,975
104,113
8,383
2,381
5,444
26,013
1,187
(57,313
)
108,950
18,543
52,244
$
373,128
$
372,869
$
332,797
2009
2008
2007
(Dollars in thousands)
$
527,680
$
268,450
$
293,580
768,520
949,344
830,819
$
1,296,200
$
1,217,794
$
1,124,399
49
Table of Contents
2009
2008
2007
35.0
%
35.0
%
35.0
%
(3.2
)
(4.5
)
(5.4
)
0.7
0.7
1.0
0.4
3.3
9.6
(0.7
)
(0.1
)
(5.9
)
(2.1
)
(1.0
)
(0.8
)
(0.7
)
(2.4
)
(4.6
)
(0.6
)
(0.4
)
0.7
28.8
%
30.6
%
29.6
%
2009
2008
(Dollars in thousands)
$
643,538
$
689,112
1,854
33,719
84,939
30,145
90,640
56,160
820,971
809,136
(87,923
)
(40,852
)
(295,254
)
(248,808
)
(53,461
)
(69,909
)
(34,721
)
(12,998
)
(44,308
)
(39,942
)
(91,851
)
(96,618
)
(607,518
)
(509,127
)
59,072
52,008
$
272,525
$
352,017
50
Table of Contents
2009
2008
(Dollars in millions)
$
129.1
$
183.7
11.3
10.6
(59.5
)
(31.0
)
15.0
9.9
(0.8
)
(41.0
)
(8.5
)
(3.1
)
$
86.6
$
129.1
51
Table of Contents
7.
Debt
52
Table of Contents
2009
2008
(Dollars in thousands)
$
639,958
$
1,223,367
325,000
350,000
499,853
749,773
749,668
598,744
598,301
800,000
800,000
230,360
230,101
183,440
246,386
440,867
449,855
204,287
39,917
144,669
(2.997.99)%
55,609
56,136
(7.0012.00)%
36,244
37,360
4,829,052
4,860,843
251,475
198,521
(4,341
)
(328,418
)
$
5,076,186
$
4,730,946
5.31
%
5.90
%
53
Table of Contents
8.
Supplemental
Cash Flows Information
2009
2008
2007
(Dollars in thousands)
$
310,047
$
360,698
$
268,781
$
203,298
$
261,283
$
283,431
$
478,440
$
165,093
$
108,438
181,093
13,489
19,442
297,347
151,604
88,996
3,449
$
293,898
$
151,604
$
88,996
*
Includes obligations to sellers of $11.5 million and
$2.0 million in 2008 and 2007, respectively.
54
Table of Contents
9.
Employees
Stock Incentive Plans and Management Incentive Plans
55
Table of Contents
2003 Plan
(Amounts in
thousands)
18,869
(4,887
)
179
(3,755
)
10,406
Fiscal Year Ended
April 29,
April 30,
May 2,
2009
2008
2007
3.3
%
3.3
%
3.3
%
14.9
%
15.8
%
17.9
%
5.5
5.0
5.0
3.1
%
4.3
%
4.7
%
56
Table of Contents
Weighted
Average
Number of
Exercise Price
Aggregate
Options
(per share)
Intrinsic Value
(Amounts in thousands, except per share data)
31,515
$
39.33
$
1,239,426
895
41.92
37,515
(7,266
)
35.77
(259,860
)
(347
)
44.60
(15,481
)
24,797
40.39
1,001,600
1,352
45.54
61,579
(2,116
)
37.31
(78,960
)
(1,899
)
51.32
(97,461
)
22,134
40.06
886,758
1,551
50.91
78,978
(6,684
)
42.35
(283,064
)
(2,901
)
47.77
(138,601
)
14,100
$
38.59
$
544,071
21,309
$
40.88
$
871,095
19,249
$
39.77
$
765,552
10,933
$
36.18
$
395,558
Options Outstanding
Options Exercisable
Weighted-
Weighted-
Weighted-
Average
Average
Average
Remaining
Remaining
Remaining
Weighted-
Range of Exercise
Number
Life
Exercise Price
Number
Life
Average
Outstanding
(Years)
Per Share
Exercisable
(Years)
Exercise Price
(Options in thousands)
5,445
3.1
$
33.33
5,421
3.1
$
33.33
5,827
3.2
38.64
5,093
3.1
38.44
2,828
5.8
48.60
419
5.3
45.54
14,100
3.7
$
38.59
10,933
3.2
$
36.18
57
Table of Contents
Weighted
Average
Grant Date
Number of
Fair Value
Options
(per share)
(Amounts in thousands, except per share data)
2,885
$
7.07
1,551
5.75
(1,269
)
7.27
3,167
$
6.10
2003 Plan
(Amounts in thousands)
9,440
(4,649
)
894
5,685
58
Table of Contents
Weighted
Average
Grant Date
Fair Value
Number of Units
(Per Share)
(Amounts in thousands,
except per share data)
1,813
$
35.48
364
41.88
(131
)
36.12
(21
)
37.13
2,025
36.57
715
46.00
(579
)
35.94
(74
)
38.92
2,087
39.88
577
49.69
(910
)
37.91
(32
)
46.52
1,722
$
44.08
59
Table of Contents
10.
Retirement
Plans
60
Table of Contents
2009
2008
(Dollars in thousands)
$
2,843,175
$
2,794,722
33,321
39,832
143,601
152,073
7,961
13,090
376
14,907
(133,203
)
(89,838
)
(19,248
)
(8,710
)
(149,063
)
(149,048
)
14,145
(502,253
)
67,437
$
2,230,102
$
2,843,175
$
2,793,123
$
2,888,780
(411,560
)
(79,759
)
(19,248
)
(8,710
)
136,032
59,799
7,961
13,090
15,856
(149,063
)
(149,048
)
(489,689
)
60,261
1,874,702
2,793,123
$
(355,400
)
$
(50,052
)
$
37,324
$
191,079
(22,521
)
(19,826
)
(370,203
)
(221,305
)
$
(355,400
)
$
(50,052
)
$
1,079,453
$
802,738
15,673
25,572
$
1,095,126
$
828,310
$
51,183
$
36,512
2,013
3,567
$
53,196
$
40,079
61
Table of Contents
2009
2008
6.5
%
6.1
%
4.3
%
5.2
%
2009
2008
2007
(Dollars in thousands)
$
33,261
$
39,832
$
42,886
143,552
152,073
135,984
(207,727
)
(227,373
)
(198,470
)
3,184
(1,403
)
(3,465
)
33,264
44,121
52,302
695
2,335
6,229
7,250
31,572
36,404
34,027
34,940
42,633
41,277
66,512
2009
2008
2007
8.2
%
8.2
%
8.2
%
6.1
%
5.5
%
5.3
%
4.5
%
5.0
%
4.0
%
62
Table of Contents
Plan Assets at
Target
2009
2008
Allocation
58
%
65
%
63
%
37
%
32
%
35
%
1
%
1
%
1
%
4
%
2
%
1
%
100
%
100
%
100
%
$
165,784
$
156,215
$
152,971
$
152,197
$
152,066
$
785,469
11.
Postretirement
Benefits Other Than Pensions and Other Post Employment
Benefits
63
Table of Contents
2009
2008
(Dollars in thousands)
$
276,598
$
273,161
6,501
6,451
15,357
15,626
833
973
1,001
(37,836
)
(5,523
)
(18,596
)
(20,386
)
455
(9,137
)
5,295
234,175
276,598
$
(234,175
)
$
(276,598
)
$
(19,389
)
$
(19,547
)
(214,786
)
(257,051
)
$
(234,175
)
$
(276,598
)
$
8,592
$
50,329
(4,598
)
(8,242
)
$
3,994
$
42,087
$
540
$
3,693
(3,822
)
(3,783
)
$
(3,282
)
$
(90
)
64
Table of Contents
2009
2008
2007
(Dollars in thousands)
$
6,502
$
6,451
$
6,253
15,357
15,626
15,893
(3,812
)
(4,770
)
(6,098
)
3,681
4,579
5,465
$
21,728
$
21,886
$
21,513
1% Increase
1% Decrease
(Dollars in thousands)
$
1,874
$
1,674
$
16,318
$
14,772
$
19,389
$
20,137
$
20,971
$
21,302
$
21,796
$
113,262
12.
Fair
Value Measurements
65
Table of Contents
Level 1
Level 2
Level 3
Total
(Thousands of dollars)
$
$
219,845
$
$
219,845
$
$
219,845
$
$
219,845
$
$
12,847
$
$
12,847
$
$
12,847
$
$
12,847
(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. The
Companys total rate of return swap is valued based on
observable market swap rates and the Companys credit
spread, and is classified within Level 2 of the fair value
hierarchy.
13.
Derivative
Financial Instruments and Hedging Activities
66
Table of Contents
April 29, 2009
Foreign Exchange
Interest Rate
Contracts
Contracts
(Dollars in thousands)
$
28,406
$
64,502
8,659
86,434
37,065
150,936
11,644
20,200
11,644
20,200
$
48,709
$
171,136
$
12,198
$
598
12,796
51
51
$
12,847
$
67
Table of Contents
Fiscal Year Ended
April 29, 2009
Foreign Exchange
Interest Rate
Contracts
Contracts
(Dollars in thousands)
$
42,617
$
$
(6,809
)
$
45,836
1,896
(15,777
)
1,112
26,258
57,976
65,135
(110
)
20,200
65,135
20,090
$
91,393
$
78,066
68
Table of Contents
69
Table of Contents
70
Table of Contents
14.
Income
Per Common Share
Fiscal Year Ended
April 29,
April 30,
May 2,
2009
2008
2007
(52 Weeks)
(52 Weeks)
(52 Weeks)
(Amounts in thousands)
$
923,072
$
844,925
$
791,602
12
12
13
$
923,060
$
844,913
$
791,589
313,747
317,019
328,625
106
109
123
4,210
4,589
3,720
318,063
321,717
332,468
15.
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
Companys operations in Europe, including Eastern Europe
and Russia, and sells products in all of the Companys
categories.
Asia/Pacific
This segment includes the
Companys operations in New Zealand, Australia, India,
Japan, China, South Korea, Indonesia, and Singapore. This
segments operations include products in all of the
Companys categories.
71
Table of Contents
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, desserts and appetizers.
Rest of World
This segment includes the
Companys operations in Africa, Latin America, and the
Middle East that sell products in all of the Companys
categories.
Fiscal Year Ended
April 29,
April 30,
May 2,
April 29,
April 30,
May 2,
2009
2008
2007
2009
2008
2007
(52 Weeks)
(52 Weeks)
(52 Weeks)
(52 Weeks)
(52 Weeks)
(52 Weeks)
(Dollars in thousands)
Net External Sales
Operating Income (Loss)
$
3,135,994
$
3,011,513
$
2,739,527
$
724,763
$
678,388
$
625,675
3,410,735
3,532,326
3,076,770
561,260
636,866
566,362
1,627,443
1,599,860
1,319,231
182,472
194,900
150,177
1,505,953
1,559,370
1,556,339
129,209
169,581
216,115
467,957
367,709
309,763
52,348
45,437
39,484
(156,400
)
(156,205
)
(151,098
)
$
10,148,082
$
10,070,778
$
9,001,630
$
1,493,652
$
1,568,967
$
1,446,715
Depreciation and Amortization Expenses
Capital Expenditures(b)
$
125,562
$
122,200
$
112,031
$
87,912
$
121,937
$
97,954
105,846
115,578
108,479
91,898
119,425
99,939
35,969
35,410
29,390
39,263
36,404
36,903
5,728
5,690
5,010
15,574
10,064
7,586
8,270
10,019
11,287
57,474
13,758
2,180
$
281,375
$
288,897
$
266,197
$
292,121
$
301,588
$
244,562
Identifiable Assets
$
3,691,868
$
3,795,272
$
3,752,033
3,602,753
4,731,760
4,166,174
1,505,895
1,433,467
1,213,867
292,266
235,625
189,543
571,402
368,919
711,409
$
9,664,184
$
10,565,043
$
10,033,026
72
Table of Contents
(a)
Includes corporate overhead, intercompany eliminations and
charges not directly attributable to operating segments.
(b)
Excludes property, plant and equipment obtained through
acquisitions.
(c)
Includes identifiable assets not directly attributable to
operating segments.
Fiscal Year Ended
April 29,
April 30,
May 2,
2009
2008
2007
(52 Weeks)
(52 Weeks)
(52 Weeks)
(Dollars in thousands)
$
4,251,583
$
4,081,864
$
3,682,102
4,361,878
4,521,697
4,026,168
1,105,313
1,089,544
929,075
429,308
377,673
364,285
$
10,148,082
$
10,070,778
$
9,001,630
Fiscal Year Ended
Net External Sales
Long-Lived Assets
April 29,
April 30,
May 2,
2009
2008
2007
April 29,
April 30,
May 2,
(52 Weeks)
(52 Weeks)
(52 Weeks)
2009
2008
2007
(Dollars in thousands)
$
4,074,032
$
3,971,296
$
3,809,786
$
2,040,904
$
2,393,732
$
2,377,900
1,616,084
1,844,014
1,643,268
1,166,085
1,582,088
1,588,218
4,457,966
4,255,468
3,548,576
2,754,267
2,540,414
2,171,907
$
10,148,082
$
10,070,778
$
9,001,630
$
5,961,256
$
6,516,234
$
6,138,025
16.
Quarterly
Results
2009
First
Second
Third
Fourth
Total
(13 Weeks)
(13 Weeks)
(13 Weeks)
(13 Weeks)
(52 Weeks)
(Unaudited)
(Dollars in thousands, except per share amounts)
$
2,583,208
$
2,612,541
$
2,414,576
$
2,537,757
$
10,148,082
934,136
920,715
854,472
874,312
3,583,635
228,964
276,710
242,263
175,135
923,072
$
0.72
$
0.87
$
0.76
$
0.55
$
2.90
0.73
0.88
0.77
0.56
2.94
0.415
0.415
0.415
0.415
1.66
73
Table of Contents
2008
First
Second
Third
Fourth
Total
(13 Weeks)
(13 Weeks)
(13 Weeks)
(13 Weeks)
(52 Weeks)
(Unaudited)
(Dollars in thousands, except per share amounts)
$
2,248,285
$
2,523,379
$
2,610,863
$
2,688,251
$
10,070,778
838,400
931,802
935,416
975,074
3,680,692
205,294
227,037
218,532
194,062
844,925
$
0.63
$
0.71
$
0.68
$
0.61
$
2.63
0.64
0.72
0.69
0.62
2.67
0.38
0.38
0.38
0.38
1.52
17.
Commitments
and Contingencies
18.
Advertising
Costs
Table of Contents
Item 9.
Changes
in and Disagreements with Accountants on Accounting and
Financial Disclosure.
Item 9A.
Controls
and Procedures.
Item 9B.
Other
Information.
75
Table of Contents
Item 10.
Directors,
Executive Officers and Corporate Governance.
Item 11.
Executive
Compensation.
Item 12.
Security
Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters.
(a)
(b)
(c)
Number of securities
remaining available
for future issuance
Number of securities to
Weighted-average
under equity
be issued upon exercise
exercise price of
compensation Plans
of outstanding options,
outstanding options,
(excluding securities
warrants and rights
warrants and rights
reflected in column (a))
16,357,017
$
38.98
10,434,471
24,642
N/A
(3)
N/A
(1)(4)
16,381,659
$
38.98
10,434,471
76
Table of Contents
(1)
The H. J. Heinz Company Restricted Stock Recognition Plan for
Salaried Employees (the Restricted Stock Plan) was
designed to provide recognition and reward in the form of awards
of restricted stock to employees who have a history of
outstanding accomplishment and who, because of their experience
and skills, are expected to continue to contribute significantly
to the success of the Company. Eligible employees were those
full-time salaried employees not participating in the
shareholder-approved H. J. Heinz Company Incentive Compensation
Plan in effect as of May 1, 2002, and who have not been
awarded an option to purchase Company Common Stock. The Company
has ceased issuing shares from this Restricted Stock Plan, and
all restrictions on previously issued shares have been lifted.
All awards of this type are now made under the Fiscal Year 2003
Stock Incentive Plan.
(2)
The Executive Deferred Compensation Plan, as amended and
restated effective January 1, 2005 and the Deferred
Compensation Plan for Non-Employee Directors as amended and
restated effective January 1, 2005, permit full-time
salaried personnel based in the U.S. who have been identified as
key employees and non-employee directors, to defer all or part
of his or her cash compensation into either a cash account that
accrues interest, or into a Heinz stock account. The election to
defer is irrevocable. The Management Development &
Compensation Committee of the Board of Directors administers the
Plan. All amounts are payable at the times and in the amounts
elected by the executives at the time of the deferral. The
deferral period shall be at least one year and shall be no
greater than the date of retirement or other termination,
whichever is earlier. Amounts deferred into cash accounts are
payable in cash, and all amounts deferred into the Heinz stock
account are payable in Heinz Common Stock. Compensation deferred
into the Heinz stock account appreciates or depreciates
according to the fair market value of Heinz Common Stock.
(3)
The grants made under the Restricted Stock Plan, the Executive
Deferred Compensation Plan and the Deferred Compensation Plan
for Non-Employee Directors are restricted or reserved shares of
Common Stock, and therefore there is no exercise price.
(4)
The maximum number of shares of Common Stock that the Chief
Executive Officer was authorized to grant under the Restricted
Stock Plan was established annually by the Executive Committee
of the Board of Directors; provided, however, that such number
of shares did not exceed in any plan year 1% of all then
outstanding shares of Common Stock.
Item 13.
Certain
Relationships and Related Transactions, and Director
Independence.
Item 14.
Principal
Accountant Fees and Services.
77
Table of Contents
Item 15. | Exhibits and Financial Statement Schedules. |
78
(c) | 364-Day Credit Agreement dated April 29, 2009 among H. J. Heinz Company, H. J. Heinz Finance Company, the Banks listed on the signature pages thereto and JPMorgan Chase Bank, N.A. as Administrative Agent is hereby incorporated by reference to Exhibit 10.2 of the Companys Current Report on Form 8-K dated April 29, 2009. | |||||||
(d) | Indenture among H. J. Heinz Company and Union Bank of California, N.A. dated as of July 15, 2008. | |||||||
10(a) | Management contracts and compensatory plans: | |||||||
(i) | 1986 Deferred Compensation Program for H. J. Heinz Company and affiliated companies, as amended and restated in its entirety effective January 1, 2005, is incorporated herein by reference to Exhibit 10(a)(xi) to the Companys Annual Report on Form 10-Q for the period ended July 30, 2008. | |||||||
(ii) | H. J. Heinz Company 1990 Stock Option Plan, as amended and restated effective August 13, 2008, is incorporated herein by reference to Exhibit 10(a)(v) to the Companys Quarterly Report on Form 10-Q for the period ended July 30, 2008. | |||||||
(iii) | H. J. Heinz Company 1994 Stock Option Plan, as amended and restated effective August 13, 2008, is incorporated herein by reference to Exhibit 10(a)(vi) to the Companys Quarterly Report on Form 10-Q for the period ended July 30, 2008. | |||||||
(iv) | 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 Companys Quarterly Report on Form 10-Q for the period ended October 29, 2008. | |||||||
(v) | H. J. Heinz Company Executive Deferred Compensation Plan, as amended and restated effective January 1, 2005, is incorporated by reference to Exhibit 10(a)(xii) of the Companys Quarterly Report on Form 10-Q for the period ended July 30, 2008. | |||||||
(vi) | H. J. Heinz Company Stock Compensation Plan for Non-Employee Directors is incorporated herein by reference to Appendix A to the Companys Proxy Statement dated August 3, 1995. | |||||||
(vii) | 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 Companys Quarterly Report on Form 10-Q for the period ended July 30, 2008. | |||||||
(viii) | H. J. Heinz Company Deferred Compensation Plan for Directors is incorporated herein by reference to Exhibit 10(a)(xiii) to the Companys Annual Report on Form 10-K for the fiscal year ended April 29, 1998. | |||||||
(ix) | 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 Companys Quarterly Report on Form 10-Q for the period ended July 30, 2008. | |||||||
(x) | H. J. Heinz Company Executive Estate Life Insurance Program is incorporated herein by reference to Exhibit 10(a)(xv) to the Companys Annual Report on Form 10-K for the fiscal year ended May 1, 2002. | |||||||
(xi) | 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 Companys Quarterly Report on Form 10-Q for the period ending July 30, 2008. |
79
(xii) | 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 Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xiii) | Form of Stock Option Award and Agreement for U.S. Employees is incorporated herein by reference to Exhibit 10(a) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended January 26, 2005. | |||||||
(xiv) | Form of Stock Option Award and Agreement for U.S. Employees Based in the U.K. on International Assignment is incorporated herein by reference to Exhibit 10(a) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended January 26, 2005. | |||||||
(xv) | Named Executive Officer Compensation | |||||||
(xvi) | Form of Fiscal Year 2006 Restricted Stock Unit Award and Agreement for U.S. Employees is incorporated herein by reference to the Companys Annual Report on Form 10-K for the fiscal year ended April 27, 2005. | |||||||
(xvii) | Form of Fiscal Year 2006 Restricted Stock Unit Award and Agreement for non-U.S. Based Employees is incorporated herein by reference to the Companys Annual Report on Form 10-K for the fiscal year ended April 27, 2005. | |||||||
(xviii) | Form of Revised Severance Protection Agreement is incorporated herein by reference to Exhibit 10(a)(i) to the Companys Quarterly Report on Form 10-Q for the period ended October 29, 2008. | |||||||
(xix) | Form of Fiscal Year 2007 Restricted Stock Unit Award and Agreement is incorporated herein by reference to the Companys Quarterly Report on Form 10-Q for the quarterly period ended November 1, 2006. | |||||||
(xx) | Form of Fiscal Year 2008 Stock Option Award and Agreement (U.S. Employees) is hereby incorporated by reference to the Companys Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | |||||||
(xxi) | Form of Stock Option Award and Agreement is hereby incorporated by reference to the Companys Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | |||||||
(xxii) | Form of Restricted Stock Unit Award and Agreement is hereby incorporated by reference to the Companys Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | |||||||
(xxiii) | Form of Revised Fiscal Year 2008 Restricted Stock Unit Award and Agreement is hereby incorporated by reference to the Companys Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | |||||||
(xxiv) | Form of Restricted Stock Award and Agreement (U.S. Employees Retention) is hereby incorporated by reference to the Companys Quarterly Report on Form 10-Q for the quarterly period ended August 1, 2007. | |||||||
(xxv) | Third Amended and Restated Fiscal Year 2003 Stock Incentive Plan is hereby incorporated herein by reference to Exhibit 10(a)(ix) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. |
80
(xxvi) | Third Amended and Restated Global Stock Purchase Plan is hereby incorporated herein by reference to Exhibit 10(a)(xiv) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xxvii) | Time Sharing Agreement dated as of September 14, 2007, between H. J. Heinz Company and William R. Johnson incorporated herein by reference to Exhibit 10.1 of the Companys Form 8-K dated September 14, 2007. | |||||||
(xxviii) | H. J. Heinz Company Annual Incentive Plan, as amended and restated effective January 1, 2008, is hereby incorporated herein by reference to Exhibit 10(a)(xv) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xxix) | Form of Stock Option Award and Agreement for U.K. Employees on International Assignment incorporated herein by reference to Exhibit 10(a)(xvii) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xxx) | Form of Fiscal Year 2008 Restricted Stock Unit Award and Agreement (U.S. EmployeesRetention). | |||||||
(xxxi) | 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 Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xxxii) | Form of Fiscal Year 2009 Long-Term Performance Program Award Agreement (U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(iii) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xxxiii) | Form of Fiscal Year 2009 Long-Term Performance Program Award Agreement (Non-U.S. Employees) is incorporated herein by reference to Exhibit 10(a)(iv) to the Companys Quarterly Report on Form 10-Q for the quarterly period ended July 30, 2008. | |||||||
(xxxiv) | Form of Fiscal Year 2010-11 Long-Term Performance Program Award Agreement (U.S. Employees) | |||||||
(xxxv) | Form of Fiscal Year 2010-11 Long-Term Performance Program Award Agreement (Non-U.S. Employees) | |||||||
12. | Computation of Ratios of Earnings to Fixed Charges. | |||||||
21. | Subsidiaries of the Registrant. | |||||||
23. | Consent of PricewaterhouseCoopers LLP. | |||||||
24. | Powers-of-attorney of the Companys directors. | |||||||
31(a) | Rule 13a-14(a)/15d-14(a) Certification by William R. Johnson. | |||||||
31(b) | Rule 13a-14(a)/15d-14(a) Certification by Arthur B. Winkleblack. | |||||||
32(a) | Certification by the Chief Executive Officer Relating to the Annual Report Containing Financial Statements. | |||||||
32(b) | Certification by the Chief Financial Officer Relating to the Annual Report Containing Financial Statements. |
81
(Registrant)
By:
Chairman, President and
Chief Executive Officer
(Principal Executive Officer)
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
Senior Vice President-Finance and
Corporate Controller
(Principal Accounting Officer)
William R. Johnson
Charles E. Bunch
Leonard S. Coleman, Jr.
John G. Drosdick
Edith E. Holiday
Candace Kendle
Dean R. OHare
Nelson Peltz
Dennis H. Reilley
Lynn C. Swann
Thomas J. Usher
Michael F. Weinstein
Director }
Director }
Director }
Director }
Director }
Director }
Director }
Director }
Director }
Director }
Director }
Director }
By:
Attorney-in-Fact
82
Table of Contents
Fiscal Years Ended April 29, 2009, April 30, 2008 and
May 2, 2007
(Thousands of Dollars)
Balance at
Charged to
Balance at
beginning
costs and
end of
of period
expenses
Deductions
Exchange
period
$
15,687
$
3,967
$
6,585
$
(1,674
)
$
11,395
$
14,706
$
2,918
$
3,684
$
1,747
$
15,687
$
16,988
$
4,041
$
7,387
$
1,064
$
14,706
Description of Exhibit
Exhibits required to be filed by Item 601 of
Regulation S-K
are listed below. Documents not designated as being incorporated
herein by reference are filed herewith. The paragraph numbers
correspond to the exhibit numbers designated in Item 601 of
Regulation S-K.
3(i)
Third Amended and Restated Articles of Incorporation of H.J.
Heinz Company dated August 21, 2008, are incorporated
herein by reference to Exhibit 3(i) of the Companys
Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
3(ii)
The Companys By-Laws, as amended effective
January 21, 2009, are incorporated herein by reference to
Exhibit 3.2 of the Companys Current Report on
Form 8-K
filed on January 21, 2009.
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)
The Indenture among the Company, H. J. Heinz Finance Company,
and Bank One, National Association dated as of July 6, 2001
relating to the H. J. Heinz Finance Companys $750,000,000
6.625% Guaranteed Notes due 2011, $700,000,000 6.00% Guaranteed
Notes due 2012 and $550,000,000 6.75% Guaranteed Notes due 2032
is incorporated herein by reference to Exhibit 4 of the
Companys Annual Report on
Form 10-K
for the fiscal year ended May 1, 2002.
(b)
Three-Year Credit Agreement dated April 29, 2009 among H.
J. Heinz Company, H.J. Heinz Finance Company, the Banks listed
on the signature pages thereto and JPMorgan Chase Bank, N.A. as
Administrative Agent is hereby incorporated by reference to
Exhibit 10.1 of the Companys Current Report on
Form 8-K
dated April 29, 2009.
(c)
364-Day
Credit Agreement dated April 29, 2009 among H. J. Heinz
Company, H. J. Heinz Finance Company, the Banks listed on the
signature pages thereto and JPMorgan Chase Bank, N.A. as
Administrative Agent is hereby incorporated by reference to
Exhibit 10.2 of the Companys Current Report on
Form 8-K
dated April 29, 2009.
(d)
Indenture among H.J. Heinz Company and Union Bank of California,
N.A. dated as of July 15, 2008.
10(a)
Management contracts and compensatory plans:
(i)
1986 Deferred Compensation Program for H. J. Heinz Company and
affiliated companies, as amended and restated in its entirety
effective January 1, 2005, is incorporated herein by
reference to Exhibit 10(a)(xi) to the Companys Annual
Report on
Form 10-Q
for the period ended July 30, 2008.
(ii)
H. J. Heinz Company 1990 Stock Option Plan, as amended and
restated effective August 13, 2008, is incorporated herein
by reference to Exhibit 10(a)(v) to the Companys
Quarterly Report on
Form 10-Q
for the period ended July 30, 2008.
(iii)
H. J. Heinz Company 1994 Stock Option Plan, as amended and
restated effective August 13, 2008, is incorporated herein
by reference to Exhibit 10(a)(vi) to the Companys
Quarterly Report on
Form 10-Q
for the period ended July 30, 2008.
(iv)
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 Companys Quarterly Report on
Form 10-Q
for the period ended October 29, 2008.
Table of Contents
Description of Exhibit
(v)
H. J. Heinz Company Executive Deferred Compensation Plan, as
amended and restated effective January 1, 2005, is
incorporated by reference to Exhibit 10(a)(xii) of the
Companys Quarterly Report on
Form 10-Q
for the period ended July 30, 2008.
(vi)
H. J. Heinz Company Stock Compensation Plan for Non-Employee
Directors is incorporated herein by reference to Appendix A
to the Companys Proxy Statement dated August 3, 1995.
(vii)
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 Companys
Quarterly Report on
Form 10-Q
for the period ended July 30, 2008.
(viii)
H. J. Heinz Company Deferred Compensation Plan for Directors is
incorporated herein by reference to Exhibit 10(a)(xiii) to
the Companys Annual Report on
Form 10-K
for the fiscal year ended April 29, 1998.
(ix)
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 Companys
Quarterly Report on
Form 10-Q
for the period ended July 30, 2008.
(x)
H. J. Heinz Company Executive Estate Life Insurance Program is
incorporated herein by reference to Exhibit 10(a)(xv) to
the Companys Annual Report on
Form 10-K
for the fiscal year ended May 1, 2002.
(xi)
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 Companys Quarterly Report on
Form 10-Q
for the period ending July 30, 2008.
(xii)
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 Companys Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xiii)
Form of Stock Option Award and Agreement for U.S. Employees
is incorporated herein by reference to Exhibit 10(a) to the
Companys Quarterly Report on
Form 10-Q
for the quarterly period ended January 26, 2005.
(xiv)
Form of Stock Option Award and Agreement for U.S. Employees
Based in the U.K. on International Assignment is incorporated
herein by reference to Exhibit 10(a) to the Companys
Quarterly Report on
Form 10-Q
for the quarterly period ended January 26, 2005.
(xv)
Named Executive Officer Compensation.
(xvi)
Form of Fiscal Year 2006 Restricted Stock Unit Award and
Agreement for U.S. Employees is incorporated herein by
reference to the Companys Annual Report on
Form 10-K
for the fiscal year ended April 27, 2005.
(xvii)
Form of Fiscal Year 2006 Restricted Stock Unit Award and
Agreement for
non-U.S. Based
Employees is incorporated herein by reference to the
Companys Annual Report on
Form 10-K
for the fiscal year ended April 27, 2005.
(xviii)
Form of Revised Severance Protection Agreement is incorporated
herein by reference to Exhibit 10(a)(i) to the
Companys Quarterly Report on
Form 10-Q
for the period ended October 29, 2008.
(xix)
Form of Fiscal Year 2007 Restricted Stock Unit Award and
Agreement is incorporated herein by reference to the
Companys Quarterly Report on
Form 10-Q
for the quarterly period ended November 1, 2006.
(xx)
Form of Fiscal Year 2008 Stock Option Award and Agreement
(U.S. Employees) is hereby incorporated by reference to the
Companys Quarterly Report on
Form 10-Q
for the quarterly period ended August 1, 2007.
Table of Contents
Description of Exhibit
(xxi)
Form of Stock Option Award and Agreement is hereby incorporated
by reference to the Companys Quarterly Report on Form
10-Q
for the
quarterly period ended August 1, 2007.
(xxii)
Form of Restricted Stock Unit Award and Agreement is hereby
incorporated by reference to the Companys Quarterly Report
on Form
10-Q
for the quarterly period ended August 1, 2007.
(xxiii)
Form of Revised Fiscal Year 2008 Restricted Stock Unit Award and
Agreement is hereby incorporated by reference to the
Companys Quarterly Report on
Form 10-Q
for the quarterly period ended August 1, 2007.
(xxiv)
Form of Restricted Stock Award and Agreement
(U.S. Employees Retention) is hereby incorporated by
reference to the Companys Quarterly Report on
Form 10-Q
for the quarterly period ended August 1, 2007.
(xxv)
Third Amended and Restated Fiscal Year 2003 Stock Incentive Plan
is hereby incorporated herein by reference to
Exhibit 10(a)(ix) to the Companys Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxvi)
Third Amended and Restated Global Stock Purchase Plan is hereby
incorporated herein by reference to Exhibit 10(a)(xiv) to
the Companys Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxvii)
Time Sharing Agreement dated as of September 14, 2007,
between H. J. Heinz Company and William R. Johnson incorporated
herein by reference to Exhibit 10.1 of the Companys
Form 8-K
dated September 14, 2007.
(xxviii)
H. J. Heinz Company Annual Incentive Plan, as amended and
restated effective January 1, 2008, is hereby incorporated
herein by reference to Exhibit 10(a)(xv) to the
Companys Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxix)
Form of Stock Option Award and Agreement for U.K. Employees on
International Assignment incorporated herein by reference to
Exhibit 10(a)(xvii) to the Companys Quarterly Report
on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxx)
Form of Fiscal Year 2008 Restricted Stock Unit Award and
Agreement (U.S. EmployeesRetention).
(xxxi)
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 Companys
Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxxii)
Form of Fiscal Year 2009 Long-Term Performance Program Award
Agreement (U.S. Employees) is incorporated herein by
reference to Exhibit 10(a)(iii) to the Companys
Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxxiii)
Form of Fiscal Year 2009 Long-Term Performance Program Award
Agreement
(Non-U.S. Employees)
is incorporated herein by reference to Exhibit 10(a)(iv) to
the Companys Quarterly Report on
Form 10-Q
for the quarterly period ended July 30, 2008.
(xxxiv)
Form of Fiscal Year
2010-11
Long-Term Performance Program Award Agreement
(U.S. Employees)
Table of Contents
Description of Exhibit
(xxxv)
Form of Fiscal Year
2010-11
Long-Term Performance Program Award Agreement
(Non-U.S. Employees)
12.
Computation of Ratios of Earnings to Fixed Charges.
21.
Subsidiaries of the Registrant.
23.
Consent of PricewaterhouseCoopers LLP.
24.
Powers-of-attorney of the Companys directors.
31(a)
Rule 13a-14(a)/15d-14(a)
Certification by William R. Johnson.
31(b)
Rule 13a-14(a)/15d-14(a)
Certification by Arthur B. Winkleblack.
32(a)
Certification by the Chief Executive Officer Relating to the
Annual Report Containing Financial Statements.
32(b)
Certification by the Chief Financial Officer Relating to the
Annual Report Containing Financial Statements.
Page | ||||
|
||||
ARTICLE 1
|
||||
Definitions and Other Provisions of General Application
|
||||
Section 1.01
. Definitions
|
1 | |||
Section 1.02
. Compliance Certificates and Opinions
|
9 | |||
Section 1.03
. Form of Documents Delivered to Trustee
|
9 | |||
Section 1.04
. Acts of Holders
|
10 | |||
Section 1.05
. Notices, Etc., to Trustee and Company
|
12 | |||
Section 1.06
. Notice to Holders; Waiver
|
13 | |||
Section 1.07
. Language of Notices, Etc
|
13 | |||
Section 1.08
. Conflict With Trust Indenture Act
|
13 | |||
Section 1.09
. Effect of Headings and Table of Contents
|
14 | |||
Section 1.10
. Successors and Assigns
|
14 | |||
Section 1.11
. Separability Clause
|
14 | |||
Section 1.12
. Benefits of Indenture
|
14 | |||
Section 1.13
. Governing Law
|
14 | |||
Section 1.14
. Legal Holidays
|
14 | |||
Section 1.15
. Computations
|
14 | |||
|
||||
ARTICLE 2
|
||||
Security Forms
|
||||
|
||||
Section 2.01
. Forms Generally
|
15 | |||
Section 2.02.
Form of Trustees Certificate of Authentication
|
16 | |||
Section 2.03.
Form of Legend for Global Securities
|
16 | |||
|
||||
ARTICLE 3
|
||||
The Securities
|
||||
|
||||
Section 3.01
. Amount Unlimited; Issuable in Series
|
17 | |||
Section 3.02
. Denominations
|
19 | |||
Section 3.03
. Execution, Authentication, Delivery and Dating
|
19 | |||
Section 3.04
. Temporary Securities
|
21 | |||
Section 3.05
. Registration, Registration of Transfer and Exchange
|
22 | |||
Section 3.06
. Mutilated, Destroyed, Lost and Stolen Securities
|
24 | |||
Section 3.07
. Payment of Interest; Interest Rights Preserved
|
25 | |||
Section 3.08
. Persons Deemed Owners
|
26 | |||
Section 3.09
. Cancellation
|
26 | |||
Section 3.10
. Computation of Interest
|
27 | |||
Section 3.11
. CUSIP Numbers
|
27 |
i
Page | ||||
|
||||
ARTICLE 4
|
||||
Satisfaction and Discharge
|
||||
|
||||
Section 4.01
. Satisfaction and Discharge of Indenture
|
27 | |||
Section 4.02
. Application of Trust Money
|
28 | |||
Section 4.03
. Discharge and Defeasance of Securities of Any Series
|
29 | |||
Section 4.04.
Reinstatement
|
31 | |||
|
||||
ARTICLE 5
|
||||
Remedies
|
||||
|
||||
Section 5.01
. Events of Default
|
31 | |||
Section 5.02
. Acceleration of Maturity; Rescission and Annulment
|
32 | |||
Section 5.03
. Collection of Indebtedness and Suits for Enforcement by Trustee
|
33 | |||
Section 5.04
. Trustee May Enforce Claims
|
34 | |||
Section 5.05
. Trustee May Enforce Claims Without Possession of Securities
|
35 | |||
Section 5.06
. Application of Money Collected
|
35 | |||
Section 5.07
. Limitation on Suits
|
35 | |||
Section 5.08
. Unconditional Rights of Holders to Receive Principal, Premium and Interest
|
36 | |||
Section 5.09
. Restoration of Rights and Remedies
|
36 | |||
Section 5.10
. Rights and Remedies Cumulative
|
37 | |||
Section 5.11
. Delay or Omission Not Waiver
|
37 | |||
Section 5.12
. Control by Holders
|
37 | |||
Section 5.13
. Waiver of Past Defaults
|
37 | |||
Section 5.14
. Undertaking for Costs
|
38 | |||
Section 5.15
. Waiver of Stay or Extension Laws
|
38 | |||
|
||||
ARTICLE 6
|
||||
The Trustee
|
||||
|
||||
Section 6.01
. Certain Duties and Responsibilities
|
38 | |||
Section 6.02
. Notice of Defaults
|
40 | |||
Section 6.03
. Certain Rights of Trustee
|
40 | |||
Section 6.04
. Not Responsible for Recitals or Issuance of Securities
|
42 | |||
Section 6.05
. May Hold Securities
|
42 | |||
Section 6.06
. Money Held in Trust
|
42 | |||
Section 6.07
. Compensation and Reimbursement
|
42 | |||
Section 6.08
. Disqualification; Conflicting Interests
|
43 | |||
Section 6.09
. Corporate Trustee Required; Eligibility
|
43 | |||
Section 6.10
. Resignation and Removal; Appointment of a Successor
|
43 | |||
Section 6.11
. Acceptance of Appointment by Successor
|
4 5 | |||
Section 6.12
. Merger, Conversion, Consolidation or Succession to Business
|
46 | |||
Section 6.13
. Preferential Collection of Claims Against Company
|
47 | |||
Section 6.14
. Appointment of Authenticating Agent
|
47 |
ii
Page | ||||
ARTICLE 7
|
||||
Holders Lists and Reports by Trustee and Company
|
||||
|
||||
Section 7.01
. Company to Furnish Trustee Names and Addresses of Holders of Securities
|
48 | |||
Section 7.02.
Preservation of Information; Communications to Holders
|
49 | |||
Section 7.03
. Reports by the Trustee
|
49 | |||
Section 7.04
. Reports by Company
|
50 | |||
|
||||
ARTICLE 8
|
||||
Consolidation, Merger, Conveyance, Transfer or Lease
|
||||
|
||||
Section 8.01
. Company May Consolidate, Etc., Only on Certain Terms
|
51 | |||
Section 8.02
. Successor Substituted
|
51 | |||
|
||||
ARTICLE 9
|
||||
Supplemental Indentures
|
||||
|
||||
Section 9.01
. Supplemental Indentures Without Consent of Holders
|
52 | |||
Section 9.02
. Supplemental Indentures With Consent of Holders
|
53 | |||
Section 9.03
. Execution of Supplemental Indentures
|
54 | |||
Section 9.04
. Effect of Supplemental Indentures
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54 | |||
Section 9.05
. Conformity With Trust Indenture Act
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54 | |||
Section 9.06
. Reference in Securities to Supplemental Indentures
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55 | |||
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ARTICLE 10
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Covenants
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|
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Section 10.01
. Payment of Principal, Premium and Interest
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55 | |||
Section 10.02
. Maintenance of Office or Agency
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55 | |||
Section 10.03
. Money for Security Payments to Be Held in Trust
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56 | |||
Section 10.04
. Restrictions on Secured Debt
|
57 | |||
Section 10.05
. Statement as to Compliance
|
59 | |||
Section 10.06
. Corporate Existence
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59 | |||
Section 10.07
. Waiver of Certain Covenants
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59 | |||
Section 10.08
. Additional Amounts
|
59 | |||
|
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ARTICLE 11
|
||||
Redemption of Securities
|
||||
|
||||
Section 11.01
. Applicability of This Article
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60 | |||
Section 11.02
. Election to Redeem; Notice to Trustee
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60 | |||
Section 11.03
. Selection by Trustee of Securities to Be Redeemed
|
61 | |||
Section 11.04
. Notice of Redemption
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61 | |||
Section 11.05
. Deposit of Redemption Price
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62 | |||
Section 11.06
. Securities Payable on Redemption Date
|
62 | |||
Section 11.07
. Securities Redeemed in Part
|
63 |
iii
Page | ||||
|
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ARTICLE 12
|
||||
Sinking Funds
|
||||
|
||||
Section 12.01
. Applicability of Article
|
63 | |||
Section 12.02
. Satisfaction of Sinking Fund Payments With Securities
|
63 | |||
Section 12.03
. Redemption of Securities for Sinking Fund
|
64 | |||
|
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ARTICLE 13
|
||||
Meetings of the Holders of Securities
|
||||
|
||||
Section 13.01
. Purposes for Which Meetings May Be Called
|
64 | |||
Section 13.02
. Call, Notice and Place of Meetings
|
64 | |||
Section 13.03
. Persons Entitled to Vote at Meetings
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65 | |||
Section 13.04
. Quorum; Action
|
65 | |||
Section 13.05
. Determination of Voting Rights; Conduct and Adjournment of
Meeting
|
66 | |||
Section 13.06
. Counting Votes and Recording Action of Meetings
|
67 | |||
|
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Exhibit A. Form of Security
|
iv
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Union Bank of California, N.A.,
as Trustee |
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By: | ||||
Authorized Officer | ||||
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Union Bank of California, N.A.,
as Trustee |
||||
By: | ||||
As Authenticating Agent | ||||
By: | ||||
Authorized Signatory | ||||
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H.J. HEINZ COMPANY
|
||||
By: | /s/ Leonard A. Cullo, Jr. | |||
Name: | Leonard A. Cullo, Jr. | |||
Title: | Vice President-Treasurer | |||
UNION BANK OF CALIFORNIA, N.A., as
Trustee |
||||
By: | /s/ Eva Aryeetey | |||
Name: | Eva Aryeetey | |||
Title: | Vice President | |||
68
No. [ ] | [U.S. $] [ ] |
1 | To be completed and supplemented to reflect the terms of any series of Securities. |
H.J. HEINZ COMPANY
|
||||
By: | ||||
A-2
Redemption | Redemption | |||||
Year | Price | Year | Price | |||
|
||||||
|
A-3
Redemption Price for | ||||
Redemption Price for | Redemption-Otherwise Than | |||
Redemption-Through Operation of | Through Operation of the | |||
Year | the Sinking Fund | Sinking-Fund | ||
|
A-4
A-5
A-6
A-7
Name | Amount | |||
William R. Johnson
|
$ | 1,250,000 | ||
Chairman, President, and Chief Executive Officer
|
||||
|
||||
David C. Moran
|
$ | 651,000 | ||
Executive Vice President President & Chief Executive
Officer of Heinz North America
|
||||
|
||||
C. Scott OHara
|
$ | 621,000 | ||
Executive Vice President and President and Chief Executive
Officer of Heinz Europe
|
||||
|
||||
Arthur B. Winkleblack
|
$ | 625,000 | ||
Executive Vice President and Chief Financial Officer
|
||||
|
||||
Michael D. Milone
|
$ | 585,000 | ||
Senior Vice President Rest of World & Global Enterprise Risk
Management
|
1. | RSU Award . You have been awarded a total of RSUs. | |
2. | RSU Account . RSUs entitle you to receive a corresponding number of shares of H. J. Heinz Company Common Stock (Common Stock) in the future, subject to the conditions and restrictions set forth in this Agreement, including, without limitation, the vesting conditions set forth in Paragraph 3 below. Your RSUs will be credited to a separate account established and maintained by the Company on your behalf or by a third party engaged by the Company for the purpose of implementing, administering and managing the Plan. Until the Distribution Date (as defined herein), your RSUs are treated as unvested deferred compensation amounts, the value of which is subject to change based on increases or decreases in the market price of the Common Stock. Because the RSUs are not actual shares of Common Stock, you cannot exercise voting rights on them until the Distribution Date. | |
3. | Vesting . You will become vested in the RSUs credited to your account according to the following schedule: . | |
4. | Termination of Employment . The termination of your employment with the Company will have the following effect on your RSUs: |
(a) | Retirement, Disability or Involuntary Termination without Cause. If the termination of your employment with the Company is the result of Retirement, Disability, or Involuntary Termination without Cause, any RSUs granted hereunder that remain unvested as of your Date of Termination shall be forfeit upon termination of employment. | ||
(b) | Death. In the event that you should die while you are continuing to perform services for the Company or following Retirement, any RSUs that remain unvested as of the date of your death shall be forfeit upon the date of death. |
(c) | Other Termination . If your employment with the Company terminates for any reason other than as set forth in subparagraphs (a), (b) and (c) above, including without limitation any voluntary termination of employment or an involuntary termination for Cause, no further vesting will occur and you will immediately forfeit all of your rights in any RSUs that remain unvested as of your Date of Termination. |
5. | Non-Solicitation/Confidential Information . In partial consideration for the RSUs granted to you hereunder, you agree that you shall not, during the term of your employment by the Company and for 12 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 other 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 that the breach or threatened breach of this Paragraph 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 threatened breach of this Paragraph 5. Any breach by you of the provisions of this Paragraph 5 will, at the option of the Company and in addition to all other rights and remedies available to the Company at law, in equity or under this Agreement, result in the immediate forfeiture of all of your rights in any RSUs that remain unvested as of the date of such breach. | |
Confidential Information as used herein shall mean technical or business information not readily available to the public or generally known in the trade, including but not limited to inventions; ideas; improvements; discoveries; developments; formulations; ingredients; recipes; specifications; designs; standards; financial data; sales, marketing and distribution plans, techniques and strategies; customer and supplier information; equipment; mechanisms; manufacturing plans; processing and packaging techniques; trade secrets and other confidential information, knowledge, data and know-how of the Company, whether or not they originated with you, or information which the Company received from third parties under an obligation of confidentiality. | ||
6. | Dividends . An amount equal to the dividends payable on the shares of Common Stock represented by your unvested RSUs will be paid directly to you as soon as practicable following the date on which a dividend is declared by the Company. These payments will be calculated based upon the number of RSUs credited to your account as of the record date. These payments will be reported as income to the applicable taxing authorities, and federal, state, local and/or foreign income and/or any employment taxes will be withheld from such payments as and to the extent required by applicable law. |
7. | Distribution . All RSU distributions will be made in the form of actual shares of Common Stock and will be distributed to you on one of the following dates (each, a Distribution Date): |
(a) | Default Distribution Date. Shares of Common Stock representing your RSUs will be distributed to you on the date the RSUs vest, or if such date is not a business day, on the next business day, unless you have already made an election to defer receipt to a later date[, as provided in subparagraph (b) below]. | ||
(b) | [ Deferred Distribution Date . You may elect to defer distribution of your RSUs to a date subsequent to the Default Distribution Date by providing a written election form to the Company in accordance with the provisions of Internal Revenue Code section 409A.] | ||
(c) | Section 16 Reporting Person Exception. If you are a reporting person under Section 16 of the Securities Act of 1934, the Distribution Date will automatically be deferred to the close of business on the day following the last day of your employment with the Company. | ||
(d) | Specified Employee . If you are a specified employee as defined in Internal Revenue Code section 409A(a)(2)(B)(i) on your deferred distribution date, your distribution will be automatically deferred until the date that is six (6) months after your separation from service, regardless of your deferred distribution election. | ||
Subject to paragraph 7(d), certificates representing the distributed shares of Common Stock will be delivered to the firm maintaining your account as soon as practicable after a Distribution Date occurs. Notwithstanding the foregoing, and subject to paragraph 7(d), all vested RSUs will be immediately distributed to you at the close of business on the day following the last day of your employment with the Company, or as soon as practicable thereafter, if you terminate employment with the Company for any reason and deferred RSUs that vest after the date of your termination will be immediately distributed to you as they vest, despite any deferral election. Notwithstanding the foregoing, RSU distributions will be made at a date other than as described above to the extent necessary to comply with the requirements of Internal Revenue Code section 409A. |
8. | Impact on Benefits . Your RSU Award will not be included as compensation for the year of the grant for purposes of the H.J. Heinz Company Supplemental Executive Retirement Plan and the H.J. Heinz Company Employees Retirement and Savings Excess Plan, regardless of whether or not the RSUs subsequently vest. | |
9. | Tax Withholding . On the Distribution Date, the Company will withhold a number of shares of Common Stock that is equal, based on the Fair Market Value of the Common Stock on the Distribution Date, to the amount of the federal, state, local, and/or foreign |
income and/or employment taxes required to be collected or withheld with respect to the distribution, or make arrangements satisfactory to the Company for the collection thereof. | ||
10. | Non-Transferability . Your RSUs may not be sold, transferred, pledged, assigned or otherwise encumbered except by will or the laws of descent and distribution. You may designate a beneficiary(ies) in the event that you die before a Distribution Date occurs, who shall succeed to all your rights and obligations under this Agreement and the Plan. If you do not designate a beneficiary, your RSUs will pass to the person or persons entitled to receive them under your will. If you shall have failed to make a testamentary disposition of your RSUs in your will or shall have died intestate, your RSUs will pass to the legal representative or representatives of your estate. | |
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, identification number and number of RSUs held) 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 (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. | |
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 RSUs or other awards may be granted under the Plan on one or more occasions or even on a regular schedule, each grant is a one time event, is not an entitlement to an award of RSUs in the future, and does not create any contractual or other right to receive an award of RSUs, compensation or benefits in lieu of RSUs or any other compensation or benefits in the future. | |
14. | Compliance with Stock Ownership Guidelines . All RSUs granted to you under this Agreement shall be counted as shares of Common Stock that are owned by you for purposes of satisfying the minimum share requirements under the Companys Stock Ownership Guidelines (SOG). Notwithstanding the foregoing, you acknowledge and agree that, with the exception of the number of shares of Common Stock withheld to satisfy income tax withholding requirements pursuant to Paragraph 9 above, the shares of Common Stock represented by the RSUs granted to you hereunder cannot be sold or otherwise transferred, even after the Distribution Date, unless and until you have met SOGs minimum share ownership requirements. The Management Development & |
Compensation Committee will not approve additional RSU awards to you unless you are in compliance with the terms of this Paragraph 14 and the SOG requirements. | ||
15. | 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. |
H. J. HEINZ COMPANY
|
||||
By: | ||||
William R. Johnson | ||||
Chairman of the Board, President and Chief Executive Officer | ||||
Accepted: |
|
|
Date: |
|
1. | Award . The target value of the award to you under this Agreement is equal to $<< VALUE>> (the Target Award Opportunity). The maximum award opportunity for the Performance Period is equal to twice this amount (the Maximum Award Opportunity), subject to prorating pursuant to Paragraph 3 below. Your actual award will be paid as a percentage of your Target Award Opportunity, as determined pursuant to Paragraph 2 below (the Award). The Performance Period means the two consecutive fiscal year periods of Fiscal Year 2010 and Fiscal Year 2011 (April 30, 2009 through April 27, 2011). | |
2. | Performance Goals . The Award will be determined based upon the level of success the Company achieves during the Performance Period relative to the performance goals established by the Management Development and Compensation Committee of the Companys Board of Directors (MD&CC) as set forth below: |
(a) | AfterTax Return on Invested Capital (ROIC) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Companys performance against the ROIC target metric established by the MD&CC (ROIC Target). For each fiscal year in the Performance Period, a ROIC value will be calculated, as adjusted to eliminate the after-tax effects of any charges that may be excluded when determining Performance Measures under the Plan (ROIC Value). Each ROIC Value will consist of after-tax operating profit as defined by the Company divided by average invested capital. Average invested capital is defined as the five quarter average of net debt, as defined by the Company, plus total shareholder equity as set forth on the financial statements of the Company for the five most recent fiscal quarters. At the end of the Performance Period, the ROIC Values for each fiscal year in the Performance Period |
2
will be averaged (the ROIC Average) and the ROIC Average will be compared to the ROIC Target. | |||
The payout percentage for the ROIC metric for the Performance Period is as follows: |
Percent of ROIC Target | Percent of Target Award | |||||||
Performance | Achieved | Opportunity Earned (1) | ||||||
Above Maximum
|
>120 | % | 100 | % | ||||
Maximum
|
120 | % | 100 | % | ||||
Target
|
100 | % | 50 | % | ||||
Threshold
|
80 | % | 12.5 | % | ||||
Below Threshold
|
<80 | % | 0 | % |
Note : (1) Represents one-half of the Target Award Opportunity |
(b) | Total Shareholder Return (TSR) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Companys two-year TSR growth rate (the TSR Value) compared to the two-year TSR growth rates of each of the companies in the TSR Peer Group other than the Company. The following companies comprise the TSR Peer Group: Archer Daniels Midland, Campbell Soup Company, ConAgra Foods Inc., Dean Foods Company, General Mills, Inc., H.J. Heinz Company, The Hershey Company, Kellogg Company, Kraft Foods Inc., McCormick & Company, Incorporated, Sara Lee Corporation, and Tyson Foods, Inc. (each a TSR Peer Company). Each of the TSR Peer Companies two-year TSR growth rates will be calculated by using the following values: |
(i) | Starting Value. The average of each TSR Peer Companys stock price for the 60 trading days prior to the first day of a Performance Period (the Starting Value); and | ||
(ii) | Ending Value. The average of each TSR Peer Companys stock price for the 60 trading days prior to and including the last day of a Performance Period plus all dividends paid over the Performance Period (the Ending Value). | ||
(iii) | TSR Value. Dividing the Ending Value by the Starting Value minus one and multiplied by 100 (the TSR Value). | ||
(iv) | TSR Percentile Ranking. Arraying all of the TSR Peer Companies, including the Company, from lowest TSR Value, which is given a ranking of 1, to highest TSR Value, then dividing the Companys |
3
ranking by the total number of TSR Peer Companies (the TSR Percentile Ranking). | |||
The Companys TSR Percentile Ranking will determine the percentage of the Target Award Opportunity earned as follows: |
Percentage of Target Award | ||||
Companys TSR Percentile Ranking | Opportunity Earned (1) | |||
90% - 100%
|
100.0 | % | ||
80% - 89.99%
|
87.5 | % | ||
70% - 79.99%
|
75.0 | % | ||
60% - 69.99%
|
62.5 | % | ||
50% - 59.99%
|
50.0 | % | ||
40% - 49.99%
|
37.5 | % | ||
30% - 39.99%
|
25.0 | % | ||
20% - 29.99%
|
12.5 | % | ||
Less than 20%
|
0.0 | % |
(1) | Represents one-half of the Target Award Opportunity. |
3. | Payment of Performance Award . Unless the MD&CC offered a deferral election satisfying the requirements of Code Section 409A with respect to your Award, and you made such a deferral election, your Award, if earned, will be paid as soon as administratively practicable after the last day of the Performance Period, (but in no event later than March 15 th of the calendar year following the calendar year in which occurs the last day of the Performance Period), subject to Paragraphs 4 and 5 below. |
(a) | If your employment with the Company began after the commencement of the Performance Period, the actual amount of your Target Award Opportunity will be pro-rated based upon the number of months that you were employed by the Company (in an eligible position) during the Performance Period, except that if your employment begins during the last six months of the Performance Period, no Target Award Opportunity for that Performance Period will be granted. | ||
(b) | The Award will be paid in cash, subject to the limits set forth in the Plan; provided, however , that in the event that you are an executive covered by the Companys Stock Ownership Guidelines and you have not yet attained the requisite level of stock ownership at the time payment would otherwise be made, 50% of your Award, after taxes, will be paid in the form of escrowed, vested Restricted Stock. At the end of the fiscal year in which you meet the Companys Stock Ownership Guidelines, the restrictions will be lifted. At the time that the Stock Ownership Guidelines are no longer applicable because you terminate employment, the escrowed Restricted Stock will be distributed in Heinz Common Stock, subject, however, to the provisions of Section 13 and the six-month delay provisions of Internal Revenue Code Section 409A(a)(2)(B), if applicable. To the |
4
extent the entire award may not be paid in cash due to the limits set forth in the Plan, the remainder of the Award, after taxes, will be made in the form of Common Stock to the extent permitted by the Plan. |
4. | Termination of Employment . The termination of your employment with the Company will have the following effect on your Award: |
(a) | Qualified Termination of Employment During First Year of Performance Period . In the event that your employment with the Company ends during the first fiscal year of the Performance Period as a result of your Death, Disability, Retirement, or Involuntary Termination without Cause, your Award will automatically be pro-rated and paid (in accordance with Paragraph 3 above) at the end of the Performance Period as determined in accordance with Paragraph 2 above. | ||
(b) | Qualified Termination of Employment During Second Year of Performance Period. In the event that your employment with the Company ends during the second year of the Performance Period as the result of your Death, Disability, Retirement, or Involuntary Termination without Cause, you will receive your Award (in accordance with Paragraph 3 above) at the end of the Performance Period as determined in accordance with Paragraph 2 above. | ||
(c) | Other Termination . In the event your employment with the Company ends as the result of any reason other than as set forth in subparagraph 4(a) or (b) above, including without limitation any voluntary termination of employment or an Involuntary Termination for Cause, your Award will automatically be forfeited. | ||
(d) | Accelerated Payment Upon a Change in Control . In the event of a Change in Control (as defined in Treas. Reg. §1.409A-3(i)(5)) during the Performance Period, payment of this Performance Award will be immediately accelerated. The amount of the Performance Award will be prorated as of the date the Change in Control becomes effective, and shall be determined based upon verifiable Company performance as of such date. In the event of a change in control not defined in Treas. Reg. §1.409A-3(i)(5), there will be no accelerated payment of the Performance Award, but instead the rules of subparagraphs (a) through (c) above shall control. |
5. | Non-Solicitation/Confidential Information . In partial consideration for the Award granted to you hereunder, you agree that you shall not, during the term of your employment by the Company and for 12 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 other 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 that the breach |
5
or threatened breach of this Paragraph 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 threatened breach of this Paragraph 5. | ||
Confidential Information as used herein shall mean technical or business information not readily available to the public or generally known in the trade, including but not limited to inventions; ideas; improvements; discoveries; developments; formulations; ingredients; recipes; specifications; designs; standards; financial data; sales, marketing and distribution plans, techniques and strategies; customer and supplier information; equipment; mechanisms; manufacturing plans; processing and packaging techniques; trade secrets and other confidential information, knowledge, data and know-how of the Company, whether or not such information originated with you, or represents information which the Company received from third parties under an obligation of confidentiality. | ||
6. | Impact on Benefits . The Award, if earned, will not be included as compensation under any of the Companys retirement and other benefit plans, including but not limited to the H.J. Heinz Company Supplemental Executive Retirement Plan, the H.J. Heinz Company Employees Retirement and Savings Excess Plan and/or any other plan of the Company. | |
7. | Tax Withholding . When your Award is paid, the Company will withhold the amount of money payable for the federal, state, local, and/or foreign income and/or employment taxes required to be collected or withheld with respect to the payment. | |
8. | Non-Transferability . Your Award may not be sold, transferred, pledged, assigned or otherwise encumbered except by will or the laws of descent and distribution. | |
9. | Employment At-Will . You acknowledge and agree that nothing in this Agreement or the Plan shall confer upon you any right with respect to future awards or continuation of your employment, nor shall it constitute an employment agreement or interfere in any way with your right or the right of the Company to terminate your employment at any time, with or without cause, and with or without notice. | |
10. | Collection and Use of Personal Data . You consent to the collection, use, and processing of personal data (including name, home address and telephone number, identification number) by the Company or a third party engaged by the Company for the purpose of implementing, administering and managing the Plan and any other stock option or stock or long-term incentive plans of the Company (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. |
6
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 or other awards may be granted under the Plan on one or more occasions or even on a regular schedule, each grant is a one time event, is not an entitlement to an award of cash or stock in the future, and does not create any contractual or other right to receive an Award or other compensation or benefits in the future. | |
12. | Governing Law . This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its choice of law provisions. | |
13. | Code Section 409A . Unless a deferral election satisfying the requirements of Code Section 409A is offered with respect to the Award, it is intended that this Award shall not constitute a deferral of compensation within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A of the Code. The Plan, and this Award Agreement, are to be interpreted in a manner consistent with this intention. Absent a deferral election satisfying the requirements of section 409A of the Code and notwithstanding any other provision in the Plan, a new award may not be issued if such award would be subject to Section 409A of the Code at the time of grant, and the existing Award may not be modified in a manner that would cause such Award to become subject to Section 409A of the Code at the time of such modification. |
H. J. HEINZ COMPANY
|
||||
By: | ||||
Accepted: |
|
|
Date: |
|
1. | Award . The target value of the award to you under this Agreement is equal to << VALUE>> (the Target Award Opportunity). The maximum award opportunity for the Performance Period is equal to twice this amount (the Maximum Award Opportunity), subject to prorating pursuant to Paragraph 3 below. Your actual award will be paid as a percentage of your Target Award Opportunity, as determined pursuant to Paragraph 2 below (the Award). The Performance Period means the two consecutive fiscal year periods of Fiscal Year 2010 and Fiscal Year 2011 (April 30, 2010 through April 27, 2011). | |
2. | Performance Goals . The Award will be determined based upon the level of success the Company achieves during the Performance Period relative to the performance goals established by the Management Development and Compensation Committee of the Companys Board of Directors (MD&CC) as set forth below: |
(a) | AfterTax Return on Invested Capital (ROIC) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Companys performance against the ROIC target metric established by the MD&CC (ROIC Target). For each fiscal year in the Performance Period, a ROIC value will be calculated, as adjusted to eliminate the after-tax effects of any charges that may be excluded when determining Performance Measures under the Plan (ROIC Value). Each ROIC Value will consist of after-tax operating profit as defined by the Company divided by average invested capital. Average invested capital is defined as the five quarter average of net debt, as defined by the Company, plus total shareholder equity as set forth on the financial statements of the Company for the five most recent fiscal quarters. At the end of the Performance Period, the ROIC Values for each fiscal year in the Performance Period |
2
will be averaged (the ROIC Average) and the ROIC Average will be compared to the ROIC Target. |
The payout percentage for the ROIC metric for the Performance Period is as follows: |
Percent of ROIC Target | Percent of Target Award | |||||||
Performance | Achieved | Opportunity Earned (1) | ||||||
Above Maximum
|
>120 | % | 100 | % | ||||
Maximum
|
120 | % | 100 | % | ||||
Target
|
100 | % | 50 | % | ||||
Threshold
|
80 | % | 12.5 | % | ||||
Below Threshold
|
<80 | % | 0 | % |
Note : (1) | Represents one half of the Target Award Opportunity |
(b) | Total Shareholder Return (TSR) Metric. Fifty percent (50%) of your Target Award Opportunity will be determined by the Companys two-year TSR growth rate (the TSR Value) compared to the two-year TSR growth rates of each of the companies in the TSR Peer Group other than the Company. The following companies comprise the TSR Peer Group: Archer Daniels Midland, Campbell Soup Company, ConAgra Foods Inc., Dean Foods Company, General Mills, Inc., H.J. Heinz Company, The Hershey Company, Kellogg Company, Kraft Foods Inc., McCormick & Company, Incorporated, Sara Lee Corporation, and Tyson Foods, Inc. (each a TSR Peer Company). Each of the TSR Peer Companies two-year TSR growth rates will be calculated by using the following values: |
(i) | Starting Value. The average of each TSR Peer Companys stock price for the 60 trading days prior to the first day of a Performance Period (the Starting Value); and | ||
(ii) | Ending Value. The average of each TSR Peer Companys stock price for the 60 trading days prior to and including the last day of a Performance Period plus all dividends paid over the Performance Period (the Ending Value). | ||
(iii) | TSR Value. Dividing the Ending Value by the Starting Value minus one and multiplied by 100 (the TSR Value). | ||
(iv) | TSR Percentile Ranking. Arraying all of the TSR Peer Companies, including the Company, from lowest TSR Value, which is given a ranking of 1, to highest TSR Value, then dividing the Companys |
3
ranking by the total number of TSR Peer Companies (the TSR Percentile Ranking). |
The Companys TSR Percentile Ranking will determine the percentage of the Target Award Opportunity earned as follows: |
Percentage of Target Award | ||||
Companys TSR Percentile Ranking | Opportunity Earned (1) | |||
90% - 100%
|
100.0 | % | ||
80% - 89.99%
|
87.5 | % | ||
70% - 79.99%
|
75.0 | % | ||
60% - 69.99%
|
62.5 | % | ||
50% - 59.99%
|
50.0 | % | ||
40% - 49.99%
|
37.5 | % | ||
30% - 39.99%
|
25.0 | % | ||
20% - 29.99%
|
12.5 | % | ||
Less than 20%
|
0.0 | % |
(1) | Represents one-half of the Target Award Opportunity. |
3. | Payment of Performance Award . Unless the MD&CC offered a deferral election satisfying the requirements of Code Section 409A with respect to your Award, and you made such a deferral election, your Award, if earned, will be paid as soon as administratively practicable after the last day of the Performance Period, (but in no event later than March 15 th of the calendar year following the calendar year in which occurs the last day of the Performance Period), subject to Paragraphs 4 and 5 below. |
(a) | If your employment with the Company began after the commencement of the Performance Period, the actual amount of your Target Award Opportunity will be pro-rated based upon the number of months that you were employed by the Company (in an eligible position) during the Performance Period, except that if your employment begins during the last six months of the Performance Period, no Target Award Opportunity for that Performance Period will be granted. | ||
(b) | The Award will be paid in cash, subject to the limits set forth in the Plan; provided, however , that in the event that you are an executive covered by the Companys Stock Ownership Guidelines and you have not yet attained the requisite level of stock ownership at the time payment would otherwise be made, 50% of your Award, after taxes, will be paid in the form of escrowed, vested Restricted Stock. At the end of the fiscal year in which you meet the Companys Stock Ownership Guidelines, the restrictions will be lifted. At the time that the Stock Ownership Guidelines are no longer applicable because you terminate employment, the escrowed Restricted Stock will be distributed in Heinz common stock, subject, however, to the provisions of Section 13 and the six-month delay provisions of Internal Revenue Code Section 409A(a)(2)(B), if applicable. To the |
4
extent the entire award may not be paid in cash due to the limits set forth in the Plan, the remainder of the Award, after taxes, will be made in Restricted Stock to the extent permitted by the Plan. |
4. | Termination of Employment . The termination of your employment with the Company will have the following effect on your Award: |
(a) | Qualified Termination of Employment During First Year of Performance Period . In the event that your employment with the Company ends during the first fiscal year of the Performance Period as a result of your Death, Disability, Retirement, or Involuntary Termination without Cause, your Award will automatically be pro-rated and paid (in accordance with Paragraph 3 above) at the end of the Performance Period as determined in accordance with Paragraph 2 above. | ||
(b) | Qualified Termination of Employment During Second Year of Performance Period. In the event that your employment with the Company ends during the second year of the Performance Period as the result of your Death, Disability, Retirement, or Involuntary Termination without Cause, you will receive your Award (in accordance with Paragraph 3 above) at the end of the Performance Period as determined in accordance with Paragraph 2 above. | ||
(c) | Other Termination . In the event your employment with the Company ends as the result of any reason other than as set forth in subparagraph 4(a) or (b) above, including without limitation any voluntary termination of employment or an Involuntary Termination for Cause, your Award will automatically be forfeited. | ||
(d) | Accelerated Payment Upon a Change in Control . In the event of a Change in Control (as defined in Treas. Reg. §1.409A-3(i)(5)) during the Performance Period, payment of this Performance Award will be immediately accelerated. The amount of the Performance Award will be prorated as of the date the Change in Control becomes effective, and shall be determined based upon verifiable Company performance as of such date. In the event of a change in control not defined in Treas. Reg. §1.409A-3(i)(5), there will be no accelerated payment of the Performance Award, but instead the rules of subparagraphs (a) through (c) above shall control. |
5. | Non-Solicitation/Confidential Information . In partial consideration for the Award granted to you hereunder, you agree that you shall not, during the term of your employment by the Company and for 12 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 other 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 that the breach |
5
or threatened breach of this Paragraph 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 threatened breach of this Paragraph 5. |
Confidential Information as used herein shall mean technical or business information not readily available to the public or generally known in the trade, including but not limited to inventions; ideas; improvements; discoveries; developments; formulations; ingredients; recipes; specifications; designs; standards; financial data; sales, marketing and distribution plans, techniques and strategies; customer and supplier information; equipment; mechanisms; manufacturing plans; processing and packaging techniques; trade secrets and other confidential information, knowledge, data and know-how of the Company, whether or not such information originated with you, or represents information which the Company received from third parties under an obligation of confidentiality. | ||
6. | Impact on Benefits. The Award, if earned, will not be included as compensation under any of the Companys 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. | No Contract of Employment. You acknowledge and agree that nothing in this Agreement or the Plan shall confer upon you any right with respect to future awards or continuation of your employment, nor shall it constitute an employment agreement or an assurance of employment through the Performance Period. | |
10. | 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 (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. |
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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 or other awards may be granted under the Plan on one or more occasions or even on a regular schedule, each grant is a one time event, is not an entitlement to an award of cash or stock in the future, and does not create any contractual or other right to receive an Award or other compensation or benefits in the future. | |
12. | Governing Law . This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its choice of law provisions. | |
13. | Code Section 409A . Unless a deferral election satisfying the requirements of Code Section 409A is offered with respect to the Award, it is intended that this Award shall not constitute a deferral of compensation within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A of the Code. The Plan, and this Award Agreement, are to be interpreted in a manner consistent with this intention. Absent a deferral election satisfying the requirements of section 409A of the Code and notwithstanding any other provision in the Plan, a new award may not be issued if such award would be subject to Section 409A of the Code at the time of grant, and the existing Award may not be modified in a manner that would cause such Award to become subject to Section 409A of the Code at the time of such modification. |
H. J. HEINZ COMPANY
|
||||
By: | ||||
Accepted:
|
||||
Date:
|
Fiscal Years Ended | ||||||||||||||||||||
April 29,
|
April 30,
|
May 2,
|
May 3,
|
April 27,
|
||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(52 weeks) | (52 weeks) | (52 weeks) | (53 weeks) | (52 weeks) | ||||||||||||||||
Fixed Charges:
|
||||||||||||||||||||
Interest expense(a)
|
$ | 347,756 | $ | 372,050 | $ | 340,432 | $ | 323,269 | $ | 238,069 | ||||||||||
Capitalized interest
|
| | | | | |||||||||||||||
Interest component of rental expense
|
32,984 | 30,949 | 30,287 | 30,184 | 29,074 | |||||||||||||||
Total fixed charges
|
$ | 380,740 | $ | 402,999 | $ | 370,719 | $ | 353,453 | $ | 267,143 | ||||||||||
Earnings:
|
||||||||||||||||||||
Income from continuing operations before adjustments for
minority interests in consolidated subsidiaries, income or loss
from equity investees, and income taxes
|
$ | 1,311,452 | $ | 1,229,624 | $ | 1,138,938 | $ | 701,938 | $ | 999,425 | ||||||||||
Add: Interest expense(a)
|
347,756 | 372,050 | 340,432 | 323,269 | 238,069 | |||||||||||||||
Add: Interest component of rental expense
|
32,984 | 30,949 | 30,287 | 30,184 | 29,074 | |||||||||||||||
Add: Amortization of capitalized interest
|
633 | 1,408 | 2,793 | 1,818 | 2,012 | |||||||||||||||
Earnings as adjusted
|
$ | 1,692,825 | $ | 1,634,031 | $ | 1,512,450 | $ | 1,057,209 | $ | 1,268,580 | ||||||||||
Ratio of earnings to fixed charges
|
4.45 | 4.05 | 4.08 | 2.99 | 4.75 | |||||||||||||||
(a) | 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 Watties 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 Frozen and Chilled Foods Limited
|
United Kingdom | |
H. J. Heinz Finance Company
|
Delaware | |
ProMark Brands
|
Delaware | |
Heinz Investments Ltd.
|
Cyprus | |
H. J. Heinz France S.A.S.
|
France | |
Alimentos Heinz, C.A.
|
Venezuela | |
P.T. Heinz ABC Indonesia
|
Indonesia | |
Shanghai Guofu LongFong Foods Co., Ltd.
|
Peoples Republic
of China |
Signature
|
Title
|
|
/s/
William
R. Johnson
William
R. Johnson
|
Chairman of the Board of Directors, President and Chief Executive Officer (Principal Executive Officer) | |
/s/
Charles
E. Bunch
|
Director | |
/s/
Leonard
S. Coleman, Jr.
|
Director | |
/s/
John
G. Drosdick
|
Director | |
/s/
Edith
E. Holiday
|
Director | |
/s/
Candace
Kendle
|
Director | |
/s/
Dean
R. OHare
|
Director | |
/s/
Nelson
Peltz
|
Director | |
/s/
Dennis
H. Reilley
|
Director | |
/s/
Lynn
C. Swann
|
Director | |
/s/
Thomas
J. Usher
|
Director |
Signature
|
Title
|
|
/s/
Michael
F. Weinstein
|
Director | |
/s/
Arthur
B. Winkleblack
|
Executive Vice President and Chief Financial Officer | |
/s/
Edward
J. McMenamin
|
Senior Vice PresidentFinance & Corporate Controller (Principal Accounting Officer) |
By: |
/s/
William
R. Johnson
|
Title: | Chairman, President and |
By: |
/s/
Arthur B. Winkleblack
|
Title: | Executive Vice President and |
By: |
/s/
William
R. Johnson
|
Title: | Chairman, President and |
By: |
/s/
Arthur
B. Winkleblack
|
Title: | Executive Vice President and |