ANYTIMEkANYPLACEkANYWHERE - Heinz

The deferred tax (assets) and deferred tax liabilities recorded on the balance sheets as of
May 3, 2000 and April 28, 1999 are as follows:
(Dollars in thousands) 2000 1999
Depreciation/amortization $ 416,453 $ 429,101
Benefit plans 48,180 70,006
Other 63,626 57,925
528,259 557,032
Provision for estimated expenses (105,375) (148,519)
Operating loss carryforwards (37,813) (37,104)
Benefit plans (115,007) (122,007)
Tax credit carryforwards (44,911) (10,573)
Other (131,086) (98,674)
(434,192) (416,877)
Valuation allowance 75,109 40,811
Net deferred tax liabilities $ 169,176 $ 180,966
At the end of Fiscal 2000, net operating loss carryforwards totaled $81.1 million. Of that
amount, $20.5 million expire through 2010; the other $60.6 million do not expire. Foreign
tax credit carryforwards total $44.9 million and expire through 2005.
The company’s consolidated U.S. income tax returns have been audited by the Internal
Revenue Service for all years through 1994.
Undistributed earnings of foreign subsidiaries considered to be reinvested permanently
amounted to $2.25 billion at May 3, 2000.
The Fiscal 2000 net change in the valuation allowance for deferred tax assets was an
increase of $34.3 million, due principally to additional deferred tax asset related to foreign
tax credit carryforward.
During the first quarter of Fiscal 2000, the company reorganized certain of its foreign
operations, and, as a result, expects to pay approximately $320 million in foreign income
taxes through Fiscal 2005. Because the company increased tax basis in amortizable assets
at the same time, cash flow related to the reorganization is expected to be neutral over
the payment period.
6. DEBT Short-term debt consisted of bank and other borrowings of $151.2 million and $290.8 million as
of May 3, 2000 and April 28, 1999, respectively. Total short-term debt had a weighted-average
interest rate during Fiscal 2000 of 6.2% and at year-end of 6.5%. The weighted-average interest
rate on short-term debt during Fiscal 1999 was 6.3% and at year-end was 5.3%.
The company maintains a $2.30 billion credit agreement that supports its domestic
commercial paper program. The credit agreement expires in September 2001. In addition, the
company had $760.3 million of foreign lines of credit available at year-end.
As of May 3, 2000 and April 28, 1999, the company had $2.08 billion and $1.41 billion,
respectively, of domestic commercial paper outstanding. Due to the long-term nature
of the credit agreement, all of the outstanding domestic commercial paper has been classified
as long-term debt as of May 3, 2000 and April 28, 1999. Aggregate domestic commercial paper
(59)