Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - HEINZ H J CO | a6191815ex99_1.htm |
| 8-K - H.J. HEINZ COMPANY 8-K - HEINZ H J CO | a6191815.htm |
Exhibit 99.2
| H.J. Heinz Company | ||||||||||||||||||||||||||||||||||||||||
| Income Statement | ||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||
| (In Millions, Except per Share Amounts) | 2006 | 2007 | 2008 | Q109 | Q209 | Q309 | Q409 | 2009 | Q110 | Q210 | Q310 | |||||||||||||||||||||||||||||
| Category Sales: | ||||||||||||||||||||||||||||||||||||||||
| Ketchup and Sauces | $ | 3,530.3 | $ | 3,682.1 | $ | 4,081.9 | $ | 1,098.6 | $ | 1,077.1 | $ | 1,000.4 | $ | 1,075.5 | $ | 4,251.6 | $ | 1,068.8 | $ | 1,110.1 | $ | 1,087.2 | ||||||||||||||||||
| Meals and Snacks | 3,703.3 | 3,824.7 | 4,336.5 | 1,017.9 | 1,134.7 | 1,036.3 | 1,036.3 | 4,225.1 | 924.2 | 1,105.2 | 1,176.5 | |||||||||||||||||||||||||||||
| Infant/Nutrition | 863.9 | 929.1 | 1,089.5 | 309.5 | 268.0 | 252.8 | 275.1 | 1,105.3 | 292.0 | 291.6 | 280.5 | |||||||||||||||||||||||||||||
| Other | 372.4 | 364.3 | 377.7 | 117.0 | 93.2 | 90.2 | 128.9 | 429.3 | 156.7 | 139.9 | 137.6 | |||||||||||||||||||||||||||||
| Total Sales | 8,470.0 | 8,800.1 | 9,885.6 | 2,542.9 | 2,572.9 | 2,379.7 | 2,515.8 | 10,011.3 | 2,441.7 | 2,646.8 | 2,681.7 | |||||||||||||||||||||||||||||
| Cost of products sold | 5,418.6 | 5,452.8 | 6,233.4 | 1,613.8 | 1,659.3 | 1,529.0 | 1,640.0 | 6,442.1 | 1,569.4 | 1,693.5 | 1,676.4 | |||||||||||||||||||||||||||||
| Gross Profit | 3,051.4 | 3,347.2 | 3,652.1 | 929.1 | 913.7 | 850.7 | 875.7 | 3,569.3 | 872.3 | 953.3 | 1,005.3 | |||||||||||||||||||||||||||||
| Gross Margin | 36.0 | % | 38.0 | % | 36.9 | % | 36.5 | % | 35.5 | % | 35.7 | % | 34.8 | % | 35.7 | % | 35.7 | % | 36.0 | % | 37.5 | % | ||||||||||||||||||
| Selling, general and adminstrative expenses | 1,958.3 | 1,919.0 | 2,081.8 | 535.3 | 527.5 | 467.3 | 536.8 | 2,066.8 | 503.2 | 544.9 | 568.8 | |||||||||||||||||||||||||||||
| Operating Income | 1,093.1 | 1,428.2 | 1,570.3 | 393.9 | 386.2 | 383.4 | 339.0 | 1,502.4 | 369.1 | 408.4 | 436.5 | |||||||||||||||||||||||||||||
| Net Interest Expense | 283.1 | 291.2 | 323.3 | 63.2 | 73.1 | 70.2 | 69.0 | 275.5 | 54.3 | 64.1 | 67.8 | |||||||||||||||||||||||||||||
| Asset impairment charges for cost and equity investments | 111.0 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
| Other (Expense)/Income, net | (20.3 | ) | (16.7 | ) | (16.3 | ) | (2.7 | ) | 82.3 | 17.5 | (4.2 | ) | 92.9 | (5.4 | ) | (9.6 | ) | (2.4 | ) | |||||||||||||||||||||
| Income from Continuing Operations before income taxes | 678.7 | 1,120.4 | 1,230.8 | 328.0 | 395.4 | 330.7 | 265.8 | 1,319.9 | 309.3 | 334.7 | 366.3 | |||||||||||||||||||||||||||||
| Provision for income taxes | 243.5 | 326.0 | 372.6 | 92.5 | 112.7 | 85.7 | 84.6 | 375.5 | 88.1 | 85.7 | 99.5 | |||||||||||||||||||||||||||||
| Income from continuing operations | 435.2 | 794.4 | 858.2 | 235.5 | 282.7 | 245.1 | 181.2 | 944.4 | 221.3 | 249.0 | 266.7 | |||||||||||||||||||||||||||||
| Income/(loss) from discontinued operations, net of tax | 216.2 | 5.6 | (1.7 | ) | (1.2 | ) | (0.2 | ) | (1.3 | ) | (3.8 | ) | (6.4 | ) | (2.2 | ) | (11.6 | ) | (35.6 | ) | ||||||||||||||||||||
| Net Income | 651.3 | 800.0 | 856.5 | 234.3 | 282.5 | 243.8 | 177.4 | 938.0 | 219.1 | 237.3 | 231.1 | |||||||||||||||||||||||||||||
| Less: Net income attributable to the noncontrolling interest | (5.7 | ) | (14.3 | ) | (11.6 | ) | (5.3 | ) | (5.7 | ) | (1.5 | ) | (2.3 | ) | (14.9 | ) | (6.5 | ) | (5.9 | ) | (2.6 | ) | ||||||||||||||||||
| Net income attributable to H.J. Heinz Company | $ | 645.6 | $ | 785.7 | $ | 844.9 | $ | 229.0 | $ | 276.7 | $ | 242.3 | $ | 175.1 | $ | 923.1 | $ | 212.6 | $ | 231.4 | $ | 228.5 | ||||||||||||||||||
| Income/(loss) per common share - Diluted | ||||||||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 1.25 | $ | 2.34 | $ | 2.62 | $ | 0.72 | $ | 0.87 | $ | 0.76 | $ | 0.56 | $ | 2.91 | $ | 0.68 | $ | 0.76 | $ | 0.83 | ||||||||||||||||||
| Discontinued operations | 0.63 | 0.02 | (0.01 | ) | - | - | - | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.11 | ) | |||||||||||||||||||||||
| Net Income | $ | 1.88 | $ | 2.36 | $ | 2.61 | $ | 0.72 | $ | 0.87 | $ | 0.76 | $ | 0.55 | $ | 2.89 | $ | 0.67 | $ | 0.73 | $ | 0.72 | ||||||||||||||||||
| Average common shares outstanding - diluted | 342.1 | 332.5 | 321.7 | 316.8 | 318.4 | 318.7 | 318.3 | 318.1 | 317.2 | 317.4 | 318.0 | |||||||||||||||||||||||||||||
| Income/(loss) per common share - Basic | ||||||||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 1.26 | $ | 2.37 | $ | 2.65 | $ | 0.73 | $ | 0.88 | $ | 0.77 | $ | 0.57 | $ | 2.95 | $ | 0.68 | $ | 0.77 | $ | 0.83 | ||||||||||||||||||
| Discontinued operations | 0.64 | 0.02 | (0.01 | ) | - | - | - | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.04 | ) | (0.11 | ) | |||||||||||||||||||||||
| Net Income | $ | 1.90 | $ | 2.39 | $ | 2.65 | $ | 0.73 | $ | 0.88 | $ | 0.77 | $ | 0.55 | $ | 2.93 | $ | 0.67 | $ | 0.73 | $ | 0.72 | ||||||||||||||||||
| Average common shares outstanding - basic | 339.1 | 328.6 | 317.0 | 312.0 | 313.7 | 314.5 | 314.8 | 313.7 | 315.1 | 315.5 | 316.0 | |||||||||||||||||||||||||||||
| Fiscal year 2006 contains special items. Please refer to published financial statements for further information. | ||||||||||||||||||||||||||||||||||||||||
| Amounts have been restated for the disposals of the private label frozen desserts business in the U.K. as well as the Kabobs and Appetizers And, Inc. businesses in the U.S., which were all reported in discontinued operations in Fiscal 2010. | ||||||||||||||||||||||||||||||||||||||||
| (Totals may not add due to rounding) | ||||||||||||||||||||||||||||||||||||||||
| H. J. Heinz Company | ||||||||||||||||||||||||||||||||||||||
| Continuing Operations, Excluding Special Items | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (In Millions, Except per Share Amounts) | 2006 | 2007 | 2008 | Q109 | Q209 | Q309 | Q409 | 2009 | Q110 | Q210 | Q310 | |||||||||||||||||||||||||||
|
Reported results from continuing operations |
||||||||||||||||||||||||||||||||||||||
| Net Sales | $ | 8,470.0 | $ | 8,800.1 | $ | 9,885.6 | $ | 2,542.9 | $ | 2,572.9 | $ | 2,379.7 | $ | 2,515.8 | $ | 10,011.3 | $ | 2,441.7 | $ | 2,646.8 | $ | 2,681.7 | ||||||||||||||||
| Gross Profit | $ | 3,051.4 | $ | 3,347.2 | $ | 3,652.1 | $ | 929.1 | $ | 913.7 | $ | 850.7 | $ | 875.7 | $ | 3,569.3 | $ | 872.3 | $ | 953.3 | $ | 1,005.3 | ||||||||||||||||
| Separation, downsizing and integration | 17.0 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Net loss on disposals & impairments | 74.1 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Gross Profit excluding special items | $ | 3,142.6 | $ | 3,347.2 | $ | 3,652.1 | $ | 929.1 | $ | 913.7 | $ | 850.7 | $ | 875.7 | $ | 3,569.3 | $ | 872.3 | $ | 953.3 | $ | 1,005.3 | ||||||||||||||||
| Operating Income | $ | 1,093.1 | $ | 1,428.2 | $ | 1,570.3 | $ | 393.9 | $ | 386.2 | $ | 383.4 | $ | 339.0 | $ | 1,502.4 | $ | 369.1 | $ | 408.4 | $ | 436.5 | ||||||||||||||||
| Separation, downsizing and integration | 146.3 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Net loss on disposals & impairments | 89.7 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Operating Income excluding special items | $ | 1,329.1 | $ | 1,428.2 | $ | 1,570.3 | $ | 393.9 | $ | 386.2 | $ | 383.4 | $ | 339.0 | $ | 1,502.4 | $ | 369.1 | $ | 408.4 | $ | 436.5 | ||||||||||||||||
| Income from continuing operations attributable to H.J. Heinz Company | $ | 429.4 | $ | 780.1 | $ | 846.6 | $ | 230.1 | $ | 276.9 | $ | 243.5 | $ | 178.9 | $ | 929.5 | $ | 214.7 | $ | 243.1 | $ | 264.1 | ||||||||||||||||
| Separation, downsizing and integration | 96.4 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Net loss on disposals & impairments | 48.3 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| Asset impairment charges for cost and equity investments | 105.6 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
| American jobs creation act | 24.4 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
|
Income from continuing operations attributable to H.J. Heinz Company |
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|
excluding special items |
$ | 704.1 | $ | 780.1 | $ | 846.6 | $ | 230.1 | $ | 276.9 | $ | 243.5 | $ | 178.9 | $ | 929.5 | $ | 214.7 | $ | 243.1 | $ | 264.1 | ||||||||||||||||
| Earnings per share from continuing operations attributable to H.J. Heinz Company | $ | 1.25 | $ | 2.34 | $ | 2.62 | $ | 0.72 | $ | 0.87 | $ | 0.76 | $ | 0.56 | $ | 2.91 | $ | 0.68 | $ | 0.76 | $ | 0.83 | ||||||||||||||||
| Separation, downsizing and integration | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||
| Net loss on disposals & impairments | 0.14 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||
| Asset impairment charges for cost and equity investments | 0.31 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||
| American jobs creation act | 0.07 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||
| Earnings per share from continuing operations attributable to H.J. Heinz Company excluding special items | $ | 2.06 | $ | 2.34 | $ | 2.62 | $ | 0.72 | $ | 0.87 | $ | 0.76 | $ | 0.56 | $ | 2.91 | $ | 0.68 | $ | 0.76 | $ | 0.83 | ||||||||||||||||
| Segment Operating Income/(Loss), excluding special items: | ||||||||||||||||||||||||||||||||||||||
| North American Consumer Products | $ | 590.0 | $ | 625.7 | $ | 678.4 | $ | 168.1 | $ | 191.5 | $ | 191.4 | $ | 173.7 | $ | 724.8 | $ | 184.2 | $ | 200.9 | $ | 207.0 | ||||||||||||||||
| Europe | 517.6 | 563.3 | 646.3 | 158.6 | 137.7 | 136.0 | 138.8 | 571.1 | 128.3 | 135.7 | 156.1 | |||||||||||||||||||||||||||
| Asia / Pacific | 126.6 | 150.2 | 194.9 | 66.5 | 50.7 | 31.5 | 33.8 | 182.5 | 53.3 | 53.0 | 47.6 | |||||||||||||||||||||||||||
| U.S. Foodservice | 201.0 | 202.5 | 163.0 | 24.9 | 36.0 | 35.5 | 32.9 | 129.4 | 31.8 | 42.5 | 42.4 | |||||||||||||||||||||||||||
| Rest of World | 31.6 | 39.5 | 45.4 | 12.7 | 14.9 | 11.8 | 13.0 | 52.3 | 18.1 | 20.9 | 16.8 | |||||||||||||||||||||||||||
| Other: | ||||||||||||||||||||||||||||||||||||||
| Non-operating | (137.7 | ) | (152.9 | ) | (157.8 | ) | (37.0 | ) | (44.6 | ) | (22.8 | ) | (53.3 | ) | (157.6 | ) | (30.9 | ) | (44.5 | ) | (33.4 | ) | ||||||||||||||||
| Streamling costs (a) | - | - | - | - | - | - | - | - | (15.7 | ) | - | - | ||||||||||||||||||||||||||
| Total Operating Income | $ | 1,329.1 | $ | 1,428.2 | $ | 1,570.3 | $ | 393.9 | $ | 386.2 | $ | 383.4 | $ | 339.0 | $ | 1,502.4 | $ | 369.1 | $ | 408.4 | $ | 436.5 | ||||||||||||||||
| (a) First Quarter ended July 29, 2009- Includes costs associated with targeted workforce reductions and asset write-offs that were part of a corporation-wide initiative to improve productivity. | ||||||||||||||||||||||||||||||||||||||
| Fiscal year 2006 contains special items. Please refer to published financial statements for further information. | ||||||||||||||||||||||||||||||||||||||
| Amounts have been restated for the disposals of the private label frozen desserts business in the U.K. as well as the Kabobs and Appetizers And, Inc. businesses in the U.S., which were all reported in discontinued operations in Fiscal 2010. | ||||||||||||||||||||||||||||||||||||||
| (Totals may not add due to rounding) | ||||||||||||||||||||||||||||||||||||||
| H. J. Heinz Company | ||||||||||||||||||||||||||||||||||||||
| Sales Variance Analysis | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2006** | 2007** | 2008 | Q109 | Q209 | Q309 | Q409 | 2009 | Q110 | Q210 | Q310 | |||||||||||||||||||||||||||
|
Net external sales: |
||||||||||||||||||||||||||||||||||||||
| North American Consumer Products | $ | 2,554.1 | $ | 2,739.5 | $ | 3,011.5 | $ | 741.2 | $ | 827.3 | $ | 761.6 | $ | 805.9 | $ | 3,136.0 | $ | 727.2 | $ | 791.5 | $ | 815.0 | ||||||||||||||||
| Europe | 2,872.2 | 2,956.3 | 3,418.2 | 893.3 | 866.7 | 783.7 | 785.4 | 3,329.0 | 772.9 | 841.9 | 878.3 | |||||||||||||||||||||||||||
| Asia / Pacific | 1,221.1 | 1,319.2 | 1,599.9 | 457.8 | 386.2 | 354.4 | 429.0 | 1,627.4 | 469.2 | 492.0 | 500.1 | |||||||||||||||||||||||||||
| U.S. Foodservice | 1,511.9 | 1,475.3 | 1,488.2 | 338.0 | 372.7 | 366.2 | 374.0 | 1,450.9 | 336.2 | 373.3 | 355.1 | |||||||||||||||||||||||||||
| Rest of World | 310.7 | 309.8 | 367.7 | 112.6 | 120.1 | 113.8 | 121.4 | 468.0 | 136.1 | 148.2 | 133.2 | |||||||||||||||||||||||||||
| Sales (Net Revenue) | $ | 8,470.0 | $ | 8,800.1 | $ | 9,885.6 | $ | 2,542.9 | $ | 2,572.9 | $ | 2,379.7 | $ | 2,515.8 | $ | 10,011.3 | $ | 2,441.7 | $ | 2,646.8 | $ | 2,681.7 | ||||||||||||||||
|
Sales Variance by Segment: |
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| North American Consumer Products: | ||||||||||||||||||||||||||||||||||||||
| Volume | 7.7 | % | 2.6 | % | 3.5 | % | 4.7 | % | 2.9 | % | (7.6 | %) | (0.3 | %) | (0.4 | %) | (4.9 | %) | (8.0 | %) | 2.8 | % | ||||||||||||||||
| Price | 0.4 | % | 2.1 | % | 3.5 | % | 5.6 | % | 8.0 | % | 5.8 | % | 7.6 | % | 6.8 | % | 5.4 | % | 3.3 | % | 1.0 | % | ||||||||||||||||
| Acquisition | 3.9 | % | 1.9 | % | 0.7 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.3 | % | ||||||||||||||||
| Divestiture | (0.1 | %) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Exchange | 1.3 | % | 0.7 | % | 2.2 | % | 1.3 | % | (1.5 | %) | (3.8 | %) | (4.3 | %) | (2.3 | %) | (2.4 | %) | 0.4 | % | 3.0 | % | ||||||||||||||||
| Total Change in Net Sales | 13.2 | % | 7.3 | % | 9.9 | % | 11.5 | % | 9.4 | % | (5.7 | %) | 2.9 | % | 4.1 | % | (1.9 | %) | (4.3 | %) | 7.0 | % | ||||||||||||||||
| Total Organic Growth (a) | 8.1 | % | 4.7 | % | 7.0 | % | 10.3 | % | 10.9 | % | (1.8 | %) | 7.3 | % | 6.4 | % | 0.5 | % | (4.7 | %) | 3.8 | % | ||||||||||||||||
| Europe: | ||||||||||||||||||||||||||||||||||||||
| Volume | 1.2 | % | (2.4 | %) | 4.9 | % | 7.2 | % | (2.2 | %) | (4.5 | %) | (1.1 | %) | (0.5 | %) | (3.7 | %) | (1.6 | %) | 3.0 | % | ||||||||||||||||
| Price | (1.5 | %) | 1.8 | % | 3.5 | % | 4.5 | % | 7.3 | % | 9.6 | % | 6.7 | % | 7.1 | % | 5.1 | % | 3.8 | % | (0.5 | %) | ||||||||||||||||
| Acquisition | 9.5 | % | 2.0 | % | 0.1 | % | 1.3 | % | 3.6 | % | 3.3 | % | 2.1 | % | 2.6 | % | 2.3 | % | 0.1 | % | 0.0 | % | ||||||||||||||||
| Divestiture | (1.9 | %) | (5.8 | %) | (1.5 | %) | (0.1 | %) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | (0.1 | %) | (0.1 | %) | ||||||||||||||||
| Exchange | (4.3 | %) | 7.3 | % | 8.6 | % | 8.3 | % | (5.9 | %) | (20.7 | %) | (24.5 | %) | (11.8 | %) | (17.1 | %) | (5.0 | %) | 9.7 | % | ||||||||||||||||
| Total Change in Net Sales | 2.9 | % | 2.9 | % | 15.6 | % | 21.2 | % | 2.7 | % | (12.3 | %) | (16.8 | %) | (2.6 | %) | (13.5 | %) | (2.9 | %) | 12.1 | % | ||||||||||||||||
| Total Organic Growth (a) | (0.3 | %) | (0.6 | %) | 8.4 | % | 11.7 | % | 5.1 | % | 5.1 | % | 5.6 | % | 6.6 | % | 1.4 | % | 2.2 | % | 2.5 | % | ||||||||||||||||
| Asia/Pacific: | ||||||||||||||||||||||||||||||||||||||
| Volume | 8.1 | % | 4.6 | % | 6.5 | % | 10.2 | % | (3.7 | %) | (7.6 | %) | (3.8 | %) | (1.4 | %) | (2.2 | %) | (0.3 | %) | 2.5 | % | ||||||||||||||||
| Price | 0.0 | % | 2.3 | % | 2.8 | % | 5.6 | % | 5.2 | % | 7.2 | % | 6.4 | % | 6.1 | % | 4.1 | % | 3.4 | % | 0.3 | % | ||||||||||||||||
| Acquisition | 2.3 | % | 0.0 | % | 2.8 | % | 1.8 | % | (0.1 | %) | 8.9 | % | 15.4 | % | 6.8 | % | 12.7 | % | 20.3 | % | 18.5 | % | ||||||||||||||||
| Divestiture | (1.3 | %) | (0.3 | %) | (1.2 | %) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Exchange | (0.9 | %) | 1.5 | % | 10.4 | % | 5.8 | % | (3.9 | %) | (16.9 | %) | (21.8 | %) | (9.8 | %) | (12.0 | %) | 4.0 | % | 19.9 | % | ||||||||||||||||
| Total Change in Net Sales | 8.2 | % | 8.0 | % | 21.3 | % | 23.3 | % | (2.4 | %) | (8.3 | %) | (3.8 | %) | 1.7 | % | 2.5 | % | 27.4 | % | 41.1 | % | ||||||||||||||||
| Total Organic Growth (a) | 8.1 | % | 6.9 | % | 9.3 | % | 15.8 | % | 1.5 | % | (0.4 | %) | 2.6 | % | 4.7 | % | 1.9 | % | 3.1 | % | 2.8 | % | ||||||||||||||||
| U.S. Foodservice: | ||||||||||||||||||||||||||||||||||||||
| Volume | 0.2 | % | (0.4 | %) | (0.5 | %) | (3.7 | %) | (4.6 | %) | (8.0 | %) | (4.9 | %) | (5.3 | %) | (4.9 | %) | (4.9 | %) | (7.3 | %) | ||||||||||||||||
| Price | 0.3 | % | 1.7 | % | 1.8 | % | 1.5 | % | 2.8 | % | 5.1 | % | 5.4 | % | 3.7 | % | 6.0 | % | 5.0 | % | 4.3 | % | ||||||||||||||||
| Acquisition | 0.5 | % | 0.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Divestiture | 0.0 | % | (3.9 | %) | (0.4 | %) | 0.0 | % | (1.4 | %) | (1.0 | %) | (1.2 | %) | (0.9 | %) | (1.6 | %) | 0.0 | % | 0.0 | % | ||||||||||||||||
| Exchange | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Total Change in Net Sales | 0.9 | % | (2.4 | %) | 0.9 | % | (2.2 | %) | (3.2 | %) | (3.9 | %) | (0.7 | %) | (2.5 | %) | (0.5 | %) | 0.1 | % | (3.0 | %) | ||||||||||||||||
| Total Organic Growth (a) | 0.5 | % | 1.3 | % | 1.3 | % | (2.2 | %) | (1.8 | %) | (2.9 | %) | 0.5 | % | (1.6 | %) | 1.1 | % | 0.1 | % | (3.0 | %) | ||||||||||||||||
| Rest of World: | ||||||||||||||||||||||||||||||||||||||
| Volume | 2.6 | % | 5.0 | % | 6.3 | % | 12.6 | % | 6.3 | % | 2.7 | % | (1.9 | %) | 4.6 | % | (3.3 | %) | 0.7 | % | 1.6 | % | ||||||||||||||||
| Price | 6.4 | % | 8.9 | % | 13.6 | % | 24.6 | % | 27.2 | % | 29.5 | % | 28.8 | % | 27.6 | % | 26.2 | % | 22.6 | % | 19.0 | % | ||||||||||||||||
| Acquisition | 4.9 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.8 | % | 0.2 | % | 1.0 | % | 1.0 | % | 1.0 | % | ||||||||||||||||
| Divestiture | (8.3 | %) | (11.8 | %) | (1.7 | %) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Exchange | (3.9 | %) | (2.3 | %) | 0.6 | % | (0.9 | %) | (3.5 | %) | (9.7 | %) | (6.0 | %) | (5.2 | %) | (3.1 | %) | (1.0 | %) | (4.6 | %) | ||||||||||||||||
| Total Change in Net Sales | 1.7 | % | (0.3 | %) | 18.7 | % | 36.4 | % | 30.0 | % | 22.4 | % | 21.7 | % | 27.3 | % | 20.9 | % | 23.3 | % | 17.1 | % | ||||||||||||||||
| Total Organic Growth (a) | 8.9 | % | 13.8 | % | 19.9 | % | 37.2 | % | 33.5 | % | 32.2 | % | 26.9 | % | 32.2 | % | 22.9 | % | 23.3 | % | 20.6 | % | ||||||||||||||||
| Total Heinz: | ||||||||||||||||||||||||||||||||||||||
| Volume | 3.9 | % | 0.8 | % | 3.9 | % | 5.4 | % | (0.9 | %) | (6.2 | %) | (1.9 | %) | (1.1 | %) | (3.9 | %) | (3.8 | %) | 1.2 | % | ||||||||||||||||
| Price | (0.1 | %) | 2.2 | % | 3.5 | % | 5.3 | % | 7.2 | % | 8.1 | % | 7.6 | % | 7.1 | % | 6.0 | % | 4.6 | % | 1.8 | % | ||||||||||||||||
| Acquisition | 5.0 | % | 1.3 | % | 0.7 | % | 0.7 | % | 1.2 | % | 2.5 | % | 3.4 | % | 2.0 | % | 3.1 | % | 3.1 | % | 2.9 | % | ||||||||||||||||
| Divestiture | (1.2 | %) | (3.1 | %) | (0.8 | %) | 0.0 | % | (0.2 | %) | (0.1 | %) | (0.2 | %) | (0.1 | %) | (0.2 | %) | 0.0 | % | 0.0 | % | ||||||||||||||||
| Exchange | (1.4 | %) | 2.8 | % | 5.2 | % | 4.1 | % | (3.2 | %) | (11.3 | %) | (13.9 | %) | (6.6 | %) | (9.0 | %) | (1.0 | %) | 6.9 | % | ||||||||||||||||
| 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 | % | ||||||||||||||||
| Total Organic Growth (a) | 3.8 | % | 3.0 | % | 7.4 | % | 10.7 | % | 6.3 | % | 1.9 | % | 5.7 | % | 6.0 | % | 2.1 | % | 0.8 | % | 3.0 | % | ||||||||||||||||
| (a) Organic sales growth is a non-GAAP measure that excludes the impact of foreign currency exchange rates and acquisitions/divestitures. | ||||||||||||||||||||||||||||||||||||||
| ** Fiscal 2007 had one less week than Fiscal 2006 | ||||||||||||||||||||||||||||||||||||||
| Amounts have been restated for the disposals of the private label frozen desserts business in the U.K. as well as the Kabobs and Appetizers And, Inc. businesses in the U.S., which were all reported in discontinued operations in Fiscal 2010. | ||||||||||||||||||||||||||||||||||||||
| (Totals may not add due to rounding) | ||||||||||||||||||||||||||||||||||||||
| H. J. Heinz Company | |||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In millions) | 2006 | 2007 | 2008 | 2009 | Q310 | ||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 445.4 | $ | 652.9 | $ | 617.7 | $ | 373.1 | $ | 562.3 | |||||
| Trade receivables, net | 773.8 | 812.2 | 919.4 | 881.2 | 784.9 | ||||||||||
| Other receivables, net | 228.3 | 184.7 | 242.1 | 290.6 | 293.8 | ||||||||||
| Inventories | 1,073.7 | 1,198.0 | 1,378.2 | 1,237.6 | 1,376.2 | ||||||||||
| Prepaid expenses | 139.7 | 132.6 | 139.5 | 125.8 | 131.8 | ||||||||||
| Other current assets | 43.0 | 38.7 | 28.7 | 36.7 | 107.7 | ||||||||||
| Total current assets | 2,703.9 | 3,019.0 | 3,325.6 | 2,945.0 | 3,256.6 | ||||||||||
| Property, plant and equipment, net | 1,900.6 | 1,998.2 | 2,104.7 | 1,978.3 | 2,058.6 | ||||||||||
| Other non-current assets: | |||||||||||||||
| Goodwill | 2,822.6 | 2,834.6 | 2,997.5 | 2,687.8 | 2,826.8 | ||||||||||
| Trademarks, net | 776.9 | 892.7 | 957.1 | 889.8 | 918.2 | ||||||||||
| Other intangibles, net | 269.6 | 412.5 | 456.9 | 405.4 | 415.4 | ||||||||||
| Long-term restricted cash | - | - | - | 192.7 | - | ||||||||||
| Other non-current assets | 1,264.3 | 876.0 | 723.2 | 565.2 | 595.6 | ||||||||||
| Total other non-current assets | 5,133.3 | 5,015.9 | 5,134.8 | 4,740.9 | 4,756.0 | ||||||||||
| Total assets | $ | 9,737.8 | $ | 10,033.0 | $ | 10,565.0 | $ | 9,664.2 | $ | 10,071.2 | |||||
| Current liabilities: | |||||||||||||||
| Short-term debt | $ | 54.1 | $ | 165.1 | $ | 124.3 | $ | 61.3 | $ | 43.6 | |||||
| Portion of long-term debt due within one year | 0.9 | 303.2 | 328.4 | 4.3 | 4.9 | ||||||||||
| Trade payables | 879.5 | 972.5 | 1,125.0 | 955.4 | 917.8 | ||||||||||
| Other payables | 155.6 | 208.6 | 122.5 | 157.9 | 135.0 | ||||||||||
| Salaries and wages | 84.8 | 85.8 | 92.6 | 91.3 | 89.4 | ||||||||||
| Accrued marketing | 216.3 | 262.2 | 298.3 | 233.3 | 318.1 | ||||||||||
| Other accrued liabilities | 476.7 | 414.1 | 487.7 | 485.4 | 491.0 | ||||||||||
| Income taxes | 150.4 | 93.6 | 91.3 | 73.9 | 88.7 | ||||||||||
| Total current liabilities | 2,018.2 | 2,505.1 | 2,670.1 | 2,062.8 | 2,088.5 | ||||||||||
| Long-term debt and other liabilities: | |||||||||||||||
| Long-term debt | 4,357.0 | 4,413.6 | 4,730.9 | 5,076.2 | 4,764.2 | ||||||||||
| Deferred income taxes | 518.7 | 463.7 | 409.2 | 345.7 | 533.7 | ||||||||||
| Other liabilities | 674.8 | 710.6 | 801.3 | 900.3 | 794.6 | ||||||||||
| Total long-term debt and other liabilities | 5,550.6 | 5,587.9 | 5,941.4 | 6,322.2 | 6,092.5 | ||||||||||
| Shareholders' equity: | |||||||||||||||
| Preferred stock | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||
| Common stock | 107.8 | 107.8 | 107.8 | 107.8 | 107.8 | ||||||||||
| Additional capital | 502.2 | 580.6 | 617.8 | 737.9 | 665.7 | ||||||||||
| Retained earnings | 5,454.1 | 5,778.6 | 6,129.0 | 6,525.7 | 6,798.0 | ||||||||||
| Less: | |||||||||||||||
| Treasury shares, at cost | 3,852.2 | 4,406.1 | 4,905.8 | 4,881.8 | 4,818.3 | ||||||||||
| Unearned compensation | 32.8 | - | - | - | - | ||||||||||
| Accumulated other comprehensive loss | 130.4 | 219.3 | 61.1 | 1,269.7 | 929.6 | ||||||||||
| Total H.J. Heinz Company shareholders'equity | 2,048.8 | 1,841.7 | 1,887.8 | 1,219.9 | 1,823.7 | ||||||||||
| Noncontrolling interest | 120.2 | 98.3 | 65.7 | 59.2 | 66.5 | ||||||||||
| Total shareholders' equity | 2,169.0 | 1,940.0 | 1,953.5 | 1,279.1 | 1,890.1 | ||||||||||
| Total liabilities and shareholder's equity | $ | 9,737.8 | $ | 10,033.0 | $ | 10,565.0 | $ | 9,664.2 | $ | 10,071.2 | |||||
| The following are acquisitions (A) and divestitures (D) that occurred during the respective years: | |||||||||||||||
| Fiscal 2006: HP Foods (A-U.K., U.S. and Canada), Petrosoyuz (A-Russia), Nancy's Specialty Foods, Inc. (A-U.S. and Canada), Kabobs, Inc. (A-U.S. Foodservice), European seafood (D), Tegel® poultry (D- New Zealand), Hain equity investment (D-U.S.) and HAK® vegetable product line (D- Northern Europe). | |||||||||||||||
| Fiscal 2007: Renee's Gourmet Foods (A-Canada), non-core U.S. Foodservice product line (D), U.K. frozen and chilled product line (D) and Argentina pet food business (D). | |||||||||||||||
| Fiscal 2008: Cottee's® and Rose's® license (A-Australia and New Zealand), Wyko® brand and sauce business (A- Netherlands) and Portugal tomato paste business (D). | |||||||||||||||
| Fiscal 2009: Benedicta (A- France), La Bonne Cuisine (A- New Zealand), Golden Circle (A- Australia) and Papillion (A- South Africa) | |||||||||||||||
| Fiscal 2010: Kabobs (D- U.S.), U.K. private label frozen desserts (D- U.K.), Appetizers And (D- U.S.), Arthur's Fresh (A- Canada) | |||||||||||||||
| (Totals may not add due to rounding) | |||||||||||||||
| H. J. Heinz Company | ||||||||||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In Millions) |
2006 (a)(b) |
|
2007 (b) |
|
2008 (b) |
|
2009 (b) |
|
Nine Mo. FY10 (b) | |||||||||||
| Cash Flows from Operating Activities | ||||||||||||||||||||
| Net income | $ | 651.3 | $ | 800.0 | $ | 856.5 | $ | 938.0 | $ | 687.6 | ||||||||||
|
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||||||||||||||
| Depreciation | 227.5 | 233.4 | 250.8 | 241.3 | 183.9 | |||||||||||||||
| Amortization | 36.4 | 32.8 | 38.1 | 40.1 | 35.5 | |||||||||||||||
| Deferred tax (benefit)/provision | (57.7 | ) | 52.2 | 18.5 | 109.0 | 204.2 | ||||||||||||||
| Other items, net | 81.3 | (4.6 | ) | (4.9 | ) | (225.2 | ) | (95.7 | ) | |||||||||||
|
Changes in current assets and liabilities, excluding effects of acquisitions and divestitures: |
||||||||||||||||||||
| Receivables securitization facility | - | - | - | - | 146.8 | |||||||||||||||
| Receivables | 115.6 | 11.0 | (55.8 | ) | (10.9 | ) | 11.1 | |||||||||||||
| Inventories | (47.4 | ) | (82.5 | ) | (133.6 | ) | 50.7 | (81.2 | ) | |||||||||||
| Prepaid expenses and other current assets | 13.6 | 14.2 | 5.7 | 1.0 | 6.2 | |||||||||||||||
| Accounts payable | 56.5 | 56.5 | 89.2 | (62.9 | ) | (112.5 | ) | |||||||||||||
| Accrued liabilities | 57.4 | (4.5 | ) | 28.3 | 24.6 | 61.2 | ||||||||||||||
| Income taxes | (59.5 | ) | (46.3 | ) | 95.6 | 61.2 | (45.1 | ) | ||||||||||||
| Cash provided by operating activities | 1,075.0 | 1,062.3 | 1,188.3 | 1,166.9 | 1,002.1 | |||||||||||||||
| Investing activities: | ||||||||||||||||||||
| Capital expenditures | (230.6 | ) | (244.6 | ) | (301.6 | ) | (292.1 | ) | (150.4 | ) | ||||||||||
| Proceeds from disposals of property, plant and equipment | 19.4 | 60.7 | 8.5 | 5.4 | 1.3 | |||||||||||||||
| Operating Free Cash Flow | 863.8 | 878.4 | 895.2 | 880.2 | 853.0 | |||||||||||||||
| Acquisitions, net of cash acquired | (1,100.4 | ) | (89.0 | ) | (151.6 | ) | (293.9 | ) | (73.4 | ) | ||||||||||
| Net proceeds/(payments) related to divestitures | 856.7 | (4.1 | ) | 63.5 | 13.4 | 18.4 | ||||||||||||||
| Change in restricted cash | - | - | - | (192.7 | ) | 192.7 | ||||||||||||||
| Other items, net | 3.1 | (49.2 | ) | (173.0 | ) | (1.2 | ) | (5.3 | ) | |||||||||||
| Cash used for investing activities | (451.8 | ) | (326.2 | ) | (554.2 | ) | (761.2 | ) | (16.6 | ) | ||||||||||
| Financing activities: | ||||||||||||||||||||
| Payments on long-term debt | (727.8 | ) | (52.1 | ) | (368.2 | ) | (427.4 | ) | (622.7 | ) | ||||||||||
| Proceeds from long-term debt | 230.8 | - | - | 853.1 | 440.1 | |||||||||||||||
| Proceeds/(payments) from commercial paper and short-term debt, net | 298.5 | 384.1 | 483.7 | (483.7 | ) | (253.2 | ) | |||||||||||||
| Dividends | (408.2 | ) | (461.2 | ) | (485.2 | ) | (525.3 | ) | (399.6 | ) | ||||||||||
| Purchase of treasury stock | (823.4 | ) | (760.7 | ) | (580.7 | ) | (181.4 | ) | - | |||||||||||
| Exercise of stock options | 142.0 | 259.8 | 78.6 | 264.9 | 22.5 | |||||||||||||||
| Other items, net | 18.5 | 9.2 | 113.7 | (16.5 | ) | 9.3 | ||||||||||||||
| Cash used for financing activities | (1,269.4 | ) | (620.9 | ) | (758.1 | ) | (516.3 | ) | (803.6 | ) | ||||||||||
| Cash provided by operating activities of discontinued operations spun-off to Del Monte | 13.3 | 33.5 | - | - | - | |||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (5.4 | ) | 58.8 | 88.8 | (133.9 | ) | 7.2 | |||||||||||||
| Net (decrease)/increase in cash and cash equivalents | (638.3 | ) | 207.5 | (35.2 | ) | (244.5 | ) | 189.2 | ||||||||||||
| Cash and cash equivalents at beginning of year | 1,083.7 | 445.4 | 652.9 | 617.7 | 373.1 | |||||||||||||||
| Cash and cash equivalents at end of year | $ | 445.4 | $ | 652.9 | $ | 617.7 | $ | 373.1 | $ | 562.3 | ||||||||||
| (a) Includes amounts from the European seafood and Tegel® poultry businesses that were discontinued in Fiscal 2006. | ||||||||||||||||||||
| (b) Includes amounts from the Kabobs business that was discontinued in the second quarter of Fiscal 2010 and the U.K. private label frozen desserts and Appetizers And businesses which were discontinued in the third quarter of Fiscal 2010. | ||||||||||||||||||||
| (Totals may not add due to rounding) | ||||||||||||||||||||