Download Annual Report PDF - Heinz

H. J. Heinz Company and Subsidiaries
Non-GAAP Performance Ratios
The Company reports its financial results in accordance with accounting principles generally
accepted in the United States of America (“GAAP”).However, management believes that certain non-
GAAP performance measures and ratios, used in managing the business, may provide users of this
financial information with additional meaningful comparisons between current results and results
in prior periods. Non-GAAP financial measures should be viewed in addition to, and not as an
alternative for, the Company’s reported results prepared in accordance with GAAP. The following
provides the calculation of the non-GAAP performance ratios discussed in the Company’s Fiscal 2011
Annual Report.
Constant Currency
Constant currency results presented in this Annual Report represent the reported amount
adjusted for translation (the effect of changes in average foreign exchange rates between the period
presented and prior year weighted average rates) and the impact of current year foreign currency
translation hedges. The constant currency increase in sales in Fiscal 2011 versus Fiscal 2010
represents the 2.0% increase in reported sales excluding the 0.5% unfavorable impact from foreign
currency translation.
Results Excluding Special Items
The following reconciles Fiscal 2006 reported diluted earnings per share to diluted earnings per
share excluding special items:
Earnings per share from continuing operations attributable to H.J. Heinz
Company-Reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.25
Separation, downsizing and integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.28
Net loss on disposals & impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.14
Asset impairment charges for cost and equity investments . . . . . . . . . . . . . . . . . . . . . . . . 0.31
American jobs creation act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.07
Earnings per share from continuing operations attributable to H.J. Heinz Company
excluding special items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.06
2006
Organic Sales Growth
Organic sales growth is a non-GAAP measure that excludes the impact of foreign currency
exchange rates and acquisitions/divestitures.
2006 2007 2008 Q109 Q209 Q309 Q409 2009 Q110 Q210 Q310 Q410 2010
Total Heinz (Continuing Operations):
Volume . . . . . . . . . . . . . . . . . . . . . . . 3.9% 0.8% 3.9% 5.4% (0.9)% (6.2)% (1.9)% (1.1)% (3.9)% (3.8)% 1.2% 1.6% (1.3)%
Price . . . . . . . . . . . . . . . . . . . . . . . . . (0.1)% 2.2% 3.5% 5.3% 7.2% 8.1% 7.6% 7.1% 6.0% 4.6% 1.8% 1.0% 3.4%
Acquisition . . . . . . . . . . . . . . . . . . . . . 5.0% 1.3% 0.7% 0.7% 1.2% 2.5% 3.4% 2.0% 3.1% 3.1% 2.9% 0.3% 2.3%
Divestiture . . . . . . . . . . . . . . . . . . . . . (1.2)% (3.1)% (0.8)% 0.0% (0.2)% (0.1)% (0.2)% (0.1)% (0.2)% 0.0% 0.0% 0.0% (0.1)%
Exchange . . . . . . . . . . . . . . . . . . . . . . (1.4)% 2.8% 5.2% 4.1% (3.2)% (11.3)% (13.9)% (6.6)% (9.0)% (1.0)% 6.9% 5.5% 0.5%
Total Change in Net Sales . . . . . . . . . . 6.1% 3.9% 12.3% 15.5% 4.0% (7.1)% (5.0)% 1.3% (4.0)% 2.9% 12.7% 8.3% 4.8%
Total Organic Growth. . . . . . . . . . . . . 3.8% 3.0% 7.4% 10.7% 6.3% 1.9% 5.7% 6.0% 2.1% 0.8% 3.0% 2.6% 2.1%
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