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Sensitivity of Assumptions If we assumed a 100 basis point change in the following rates, the Company’s Fiscal 2011 projected benefit obligation and expense would increase (decrease) by the following amounts (in millions): 100 Basis Point Increase Decrease Pension benefits Discount rate used in determining projected benefit obligation . . . . . . $(359) $387 Discount rate used in determining net pension expense . . . . . . . . . . . . $ (28) $ 33 Long-term rate of return on assets used in determining net pension expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (28) $ 28 Other benefits Discount rate used in determining projected benefit obligation . . . . . . $ (20) $ 21 Discount rate used in determining net benefit expense . . . . . . . . . . . . . $ (1) $ 1 Income Taxes—The Company computes its annual tax rate based on the statutory tax rates and tax planning opportunities available to it in the various jurisdictions in which it earns income. Significant judgment is required in determining the Company’s annual tax rate and in evaluating uncertainty in its tax positions. The Company recognizes a benefit for tax positions that it believes will more likely than not be sustained upon examination. The amount of benefit recognized is the largest amount of benefit that the Company believes has more than a 50% probability of being realized upon settlement. The Company regularly monitors its tax positions and adjusts the amount of recognized tax benefit based on its evaluation of information that has become available since the end of its last financial reporting period. The annual tax rate includes the impact of these changes in recognized tax benefits. When adjusting the amount of recognized tax benefits the Company does not consider information that has become available after the balance sheet date, but does disclose the effects of new information whenever those effects would be material to the Company’s financial statements. The difference between the amount of benefit taken or expected to be taken in a tax return and the amount of benefit recognized for financial reporting represents unrecognized tax benefits. These unrecognized tax benefits are presented in the balance sheet principally within other non-current liabilities. The Company records valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. When assessing the need for valuation allowances, the Company considers future taxable income and ongoing prudent and feasible tax planning strategies. Should a change in circumstances lead to a change in judgment about the realizability of deferred tax assets in future years, the Company would adjust related valuation allowances in the period that the change in circumstances occurs, along with a corresponding increase or charge to income. The Company has a significant amount of undistributed earnings of foreign subsidiaries that are considered to be indefinitely reinvested or which may be remitted tax free in certain situations. Our intent is to continue to reinvest these earnings to support our priorities for growth in international markets and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations. If we decided at a later date to repatriate these funds to the U.S., the Company would be required to provide taxes on these amounts based on the applicable U.S. tax rates net of foreign taxes already paid. The Company has not determined the deferred tax liability associated with these undistributed earnings, as such determination is not practicable. The Company believes it is not practicable to calculate the deferred tax liability associated with these undistributed earnings as there is a significant amount of uncertainty with respect to the tax impact resulting from the significant judgment required to analyze the amount of foreign tax credits attributable to the earnings, the potential timing of any distributions, as well as the local withholding tax and other indirect tax consequences that may arise due to the potential distribution of these earnings. 35
Input Costs In general, the effects of cost inflation may be experienced by the Company in future periods. During Fiscals 2010 and 2011, the Company experienced wide-spread inflationary increases in commodity input costs, which is expected to continue in Fiscal 2012. Price increases and continued productivity improvements have and are expected to continue to help offset these cost increases. Stock Market Information H. J. <strong>Heinz</strong> Company common stock is traded principally on The New York Stock Exchange under the symbol HNZ. The number of shareholders of record of the Company’s common stock as of May 31, 2011 approximated 34,400. The closing price of the common stock on The New York Stock Exchange composite listing on April 27, 2011 was $51.23. Stock price information for common stock by quarter follows: Stock Price Range High Low 2011 First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $47.48 $40.00 Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.95 44.35 Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.77 47.51 Fourth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.38 46.99 2010 First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38.85 $34.03 Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.60 37.30 Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.75 39.69 Fourth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.84 42.67 Item 7A. Quantitative and Qualitative Disclosures About Market Risk. This information is set forth in this report in Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 27 through 29. 36
Page 2 and 3: Financial Highlights* EPS (1) CAGR
Page 4 and 5: Emerging Markets % of Company Sales
Page 6 and 7: technology. The PlantBottle packagi
Page 8 and 9: [THIS PAGE INTENTIONALLY LEFT BLANK
Page 10 and 11: The Company also owns or leases off
Page 12 and 13: Name Age (as of August 30, 2011) Po
Page 14 and 15: Disruption of our supply chain coul
Page 16 and 17: The Company could incur more debt,
Page 18 and 19: obligation to publicly update or re
Page 20 and 21: Item 6. Selected Financial Data. Th
Page 22 and 23: In order to continue to drive susta
Page 24 and 25: Selling, general and administrative
Page 26 and 27: The volume reflects ongoing weaknes
Page 28 and 29: educed S&D, partially offset by inc
Page 30 and 31: $85 million for the fiscal year end
Page 32 and 33: At April 27, 2011, the Company had
Page 34 and 35: As of April 27, 2011, the Company w
Page 36 and 37: interest rate contracts and cross-c
Page 38 and 39: In December 2010, the FASB issued a
Page 40 and 41: Most of these assumptions vary sign
Page 44 and 45: Item 8. Financial Statements and Su
Page 46 and 47: Report of Independent Registered Pu
Page 48 and 49: H. J. Heinz Company and Subsidiarie
Page 54 and 55: Inventories: Inventories are stated
Page 92 and 93:
(e) H. J. Heinz Company and Subsidi
Page 94 and 95:
H. J. Heinz Company and Subsidiarie
Page 96 and 97:
Item 9. Changes in and Disagreement
Page 98 and 99:
(1) The Executive Deferred Compensa
Page 100 and 101:
(c) Indenture among H. J. Heinz Com
Page 102 and 103:
(xxvii) Form of Fiscal Year 2009 Re
Page 104 and 105:
SIGNATURES Pursuant to the requirem
Page 106 and 107:
Exhibit 31(b) I, Arthur B. Winklebl
Page 108 and 109:
Exhibit 32(b) Certification by the
Page 110 and 111:
PERFORMANCE GRAPH The following gra
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H. J. Heinz Company and Subsidiarie
Page 114 and 115:
CORPORATE DATA Heinz: H. J. Heinz C
Page 116:
H.J. Heinz Company P.O. Box 57 Pitt
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