SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 1, 2002 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-3385 H. J. HEINZ COMPANY (Exact name of registrant as specified in its charter) <Table> PENNSYLVANIA 25-0542520 (State of Incorporation) (I.R.S. Employer Identification No.) 600 GRANT STREET, PITTSBURGH, PENNSYLVANIA 15219 (Address of principal executive offices) (Zip Code) </Table> 412-456-5700 (Registrant's telephone number) SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: <Table> <Caption> Title of each class Name of each exchange on which registered ------------------- ----------------------------------------- Common Stock, par value $.25 per share New York Stock Exchange; Pacific Exchange Third Cumulative Preferred Stock, $1.70 First Series, par value $10 per share New York Stock Exchange </Table> SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: None. Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No _ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] As of June 30, 2002 the aggregate market value of the Registrant's voting stock held by non-affiliates of the Registrant was approximately $12,724,676,765. The number of shares of the Registrant's Common Stock, par value $.25 per share, outstanding as of June 30, 2002, was 350,946,092 shares. DOCUMENTS INCORPORATED BY REFERENCE Portions of Registrant's Annual Report to Shareholders for the fiscal year ended May 1, 2002 are incorporated into Part I, Item 1; Part II, Items 5, 7, 7A and 8; and Part IV, Item 14. Portions of Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on September 12, 2002, which will be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant's fiscal year ended May 1, 2002, are incorporated into Part III, Items 10, 11, 12 and 13. PART I ITEM 1. BUSINESS. H. J. Heinz Company was incorporated in Pennsylvania on July 27, 1900. In 1905, it succeeded to the business of a partnership operating under the same name which had developed from a food business founded in 1869 at Sharpsburg, Pennsylvania by Henry J. Heinz. H. J. Heinz Company and its subsidiaries (collectively, the "Company") manufacture and market an extensive line of processed food products throughout the world. The Company's principal products include ketchup, condiments and sauces, frozen food, pet products, soups, beans and pasta meals, tuna and other seafood products, infant food and other processed food products. The Company's products are manufactured and packaged to provide safe, wholesome foods for consumers, foodservice and institutional customers. Many products are prepared from recipes developed in the Company's research laboratories and experimental kitchens. Ingredients are carefully selected, washed, trimmed, inspected and passed on to modern factory kitchens where they are processed, after which the finished product is filled automatically into containers of glass, metal, plastic, paper or fiberboard which are then closed, processed, labeled and cased for market. Finished products are processed by sterilization, homogenization, chilling, freezing, pickling, drying, freeze drying, baking or extruding. Certain finished products and seasonal raw materials are aseptically packed into sterile containers after in-line sterilization. The Company manufactures its products from a wide variety of raw foods. Pre-season contracts are made with farmers for a portion of raw materials such as tomatoes, cucumbers, potatoes, onions and some other fruits and vegetables. Dairy products, meat, sugar, spices, flour and certain other fruits and vegetables are generally purchased on the open market. Tuna is obtained through spot and term contracts directly with tuna vessel owners or their cooperatives and by brokered transactions. In some instances, in order to ensure the continued availability of adequate supplies of tuna, the Company assists, directly or indirectly, in financing the acquisition and operation of fishing vessels. The provision of such assistance is not expected to affect materially the operations of the Company. The Marine Mammal Protection Act of 1972, as amended (the "Act"), and regulations thereunder (the "Regulations") regulate the incidental taking of dolphin in the course of fishing for yellowfin tuna in the eastern tropical Pacific Ocean, where a portion of the Company's light-meat tuna is caught. In 1990, the Company voluntarily adopted a worldwide policy of refusal to purchase tuna caught in the eastern tropical Pacific Ocean through the intentional encirclement of dolphin by purse seine nets and reaffirmed its policy of not purchasing tuna caught anywhere using gill nets or drift nets. Also in 1990, the Dolphin Protection Consumer Information Act (the "Dolphin Information Act") was enacted which regulates the labeling of tuna products as "dolphin safe" and bans the importation of tuna caught using high seas drift nets. The Act was amended in 1992 to further regulate tuna fishing methods which involve marine mammals. Compliance with the Act, the Regulations, the Dolphin Information Act, and the Company's voluntary policy and the 1992 amendments has not had, and is not expected to have, a material adverse effect on the Company's operations. Congress passed the International Dolphin Conservation Program Act ("IDCPA") on August 15, 1997. It modified the regulation of the incidental taking of dolphins in the course of fishing for yellowfin tuna in the eastern tropical Pacific Ocean and revised the definition of "dolphin safe." Revision of the definition of "dolphin safe" and modification of the regulation of the incidental taking of dolphins in the course of fishing for yellowfin tuna in the eastern tropical Pacific Ocean have not had and are not expected to have a material adverse effect on the Company's operations. In recent years, the supply of raw tuna has been variable, causing a fluctuation in raw fish prices; however, such variation in supply has not affected materially, nor is it expected to affect materially, the Company's operations. 2 The following table lists the number of the Company's principal food processing factories and major trademarks by business segment: <Table> <Caption> Factories -------------- Owned Leased Major Trademarks ----- ------ ---------------- North America 29 6 Heinz, College Inn, StarKist, Classico, Quality Chef, Yoshida, Jack Daniels*, Catelli, Wyler's, E-Z Squirt, Diana Sauce, Bell 'Orto, Bella Rosa, Pablum, Chef Francisco, Domani, Omstead, 9-Lives, Kibbles n' Bits, Ken-L-Ration, Reward, Gravy Train, Skippy, Nature's Recipe, Pounce, Snausages, Jerky Treats, Pup-Peroni, Wagwells, Techni-cal, Medi-cal, Meaty Bone, Ore-Ida, Bagel Bites, Moore's, Rosetto, Weight Watchers*, Boston Market*, Smart Ones, Hot Bites, Poppers, TGI Friday's*, Delimex Europe 32 4 Heinz, Petit Navire, John West, Mare D'Oro, Mareblu, Marie Elisabeth, Orlando, Guloso, San Marco, Linda McCartney*, Weight Watchers*, Farley's, Farex, Sonnen Basserman, Plasmon, Nipiol, Dieterba, Ortobuono, Frank Coopers*, Pudliszki, Go Ahead!*, Ross, Hak, Honig, De Ruijter Asia/Pacific 16 5 Heinz, Tom Piper, Wattie's, ABC, Tegel, Chef, Champ, Craig's, Bruno, Winna, Hellaby, Hamper, Farley's, Greenseas, Gourmet, Nurture, Complan, Farex Other Operating Entities 6 3 Heinz, StarKist, Olivine, Wellington's, Ganave, Champs, Royal Pacific, 9-Lives, Pounce, Kibbles n' Bits, Super Can -- -- 83 18 * Used under license </Table> The Company also owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world. The Company's food processing plants and principal properties are in good condition and are satisfactory for the purposes for which they are being utilized. The Company has participated in the development of certain of its food processing equipment, some of which is patented. The Company regards these patents as important but does not consider any one or group of them to be materially important to its business as a whole. Although crops constituting some of the Company's raw food ingredients are harvested on a seasonal basis, most of the Company's products are produced throughout the year. Seasonal factors inherent in the business have always influenced the quarterly sales and net income of the Company. Consequently, comparisons between quarters have always been more meaningful when made between the same quarters of different years. The products of the Company are sold under highly competitive conditions, with many large and small competitors. The Company regards its principal competition to be other manufacturers of processed foods, including branded, retail products, foodservice products and private label products, that compete with the Company for consumer preference, distribution, shelf space and merchandising support. Product quality and consumer value are important areas of competition. The Company's products are sold through its own sales force and through independent brokers, agents and distributors to chain, wholesale, cooperative and independent grocery accounts, pharmacies, mass merchants, club stores, pet stores, foodservice distributors and institutions, 3 including hotels, restaurants and certain government agencies. For Fiscal 2002, Wal-Mart Stores, Inc. represented more than 10% of the Company's sales. Compliance with the provisions of national, state and local environmental laws and regulations has not had a material effect upon the capital expenditures, earnings or competitive position of the Company. The Company's estimated capital expenditures for environmental control facilities for the remainder of fiscal year 2003 and the succeeding fiscal year are not material and will not materially affect either the earnings or competitive position of the Company. The Company's factories are subject to inspections by various governmental agencies, including the United States Department of Agriculture, and the Occupational Health and Safety Administration, and its products must comply with the applicable laws, including food and drug laws, such as the Federal Food and Cosmetic Act of 1938, as amended, and the Federal Fair Packaging or Labeling Act of 1966, as amended, of the jurisdictions in which they are manufactured and marketed. The Company employed, on a full-time basis as of May 1, 2002, approximately 46,500 persons around the world. Segment information is set forth on pages 71 through 73 in Note 14 to the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. Such information is incorporated herein by reference. Income from international operations is subject to fluctuation in currency values, export and import restrictions, foreign ownership restrictions, economic controls and other factors. From time to time exchange restrictions imposed by various countries have restricted the transfer of funds between countries and between the Company and its subsidiaries. To date, such exchange restrictions have not had a material adverse effect on the Company's operations. CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION The Private Securities Litigation Reform Act of 1995 (the "Act") provides a safe harbor for forward-looking statements made by or on behalf of the Company. The Company and its representatives may from time to time make written or oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and in its reports to shareholders. These forward-looking statements are based on management's views and assumptions of future events and financial performance. The words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "should," "estimate," "project," "target," "goal" or similar expressions identify "forward-looking statements" within the meaning of the Act. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results and experience to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. These forward-looking statements are uncertain. The risks and uncertainties that may affect operations and financial performance and other activities, some of which may be beyond the control of the Company, include the following: - Changes in laws and regulations, including changes in food and drug laws, accounting standards, taxation requirements (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions; - Competitive product and pricing pressures and the Company's ability to gain or maintain share of sales in the global market as a result of actions by competitors and others; - Fluctuations in the cost and availability of raw materials and the ability to maintain favorable supplier arrangements and relationships; - The impact of higher energy costs and other factors on the cost of producing, transporting and distributing the Company's products; - The Company's ability to generate sufficient cash flows to support capital expenditures, share repurchase programs, debt repayment and general operating activities; 4 - The inherent risks in the marketplace associated with new product or packaging introductions, including uncertainties about trade and consumer acceptance; - The Company's ability to achieve sales and earnings forecasts, which are based on assumptions about sales volume, product mix and other items; - The Company's ability to integrate acquisitions and joint ventures into its existing operations and the availability of new acquisition and joint venture opportunities and the success of divestitures and other business combinations; - The Company's ability to achieve its cost savings objectives, including any restructuring programs and its working capital initiative; - The impact of unforeseen economic and political changes in international markets where the Company competes, such as currency exchange rates, (notably with respect to the euro and the pound sterling) inflation rates, recession, foreign ownership restrictions and other external factors over which the Company has no control; - Interest rate fluctuations and other capital market conditions; - The effectiveness of the Company's advertising, marketing and promotional programs; - Weather conditions, which could impact demand for Company products and the supply and cost of raw materials; - The impact of e-commerce and e-procurement, supply chain efficiency and cash flow initiatives; - The Company's ability to maintain its profit margin in the face of a consolidating retail environment; - The impact of global industry conditions, including the effect of the economic downturn in the food industry and the foodservice business in particular; - The Company's ability to offset the reduction in volume and revenue resulting from participation in categories experiencing declining consumption rates; - With respect to the proposed spin-off and merger between the Company's U.S. and Canadian pet food and pet snacks, U.S. tuna, U.S. retail private label soup and gravy, College Inn broth and U.S. infant feeding businesses, and a wholly-owned subsidiary of Del Monte Foods Company ("Del Monte,") the ability to obtain required third party consents, regulatory and Del Monte shareholders' approval, including a private letter ruling from the Internal Revenue Service, and the success of business integration in a timely and cost effective manner; and - With respect to future dividends on Company stock, meeting certain legal requirements at the time of declaration. The foregoing list of important factors is not exclusive. The forward-looking statements are and will be based on management's then current views and assumptions regarding future events and operating performance and speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. ITEM 2. PROPERTIES. See table in Item 1. ITEM 3. LEGAL PROCEEDINGS. None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Company has not submitted any matters to a vote of security holders since the last annual meeting of shareholders on September 20, 2001. 5 EXECUTIVE OFFICERS OF THE REGISTRANT The following is a list of the names and ages of all of the executive officers of H. J. Heinz Company indicating all positions and offices held by each such person and each such person's principal occupations or employment during the past five years. All the executive officers have been elected to serve until the next annual election of officers or until their successors are elected, or until their earlier resignation or removal. The annual election of officers is scheduled to occur on September 12, 2002. <Table> <Caption> Positions and Offices Held with the Company and Age (as of Principal Occupations or Name September 12, 2002) Employment During Past Five Years ---- ------------------- ----------------------------------------------- William R. Johnson 53 Chairman, President, and Chief Executive Officer since September 2000; President and Chief Executive Officer from April 1998 to September 2000; President and Chief Operating Officer from June 1996 to April 1998. Neil Harrison 49 Executive Vice President and President and Chief Executive Officer--Heinz North America since July 2002; Senior Vice President and President--Heinz Frozen Food Company from September 2001 to July 2002; President and Chief Executive Officer--Heinz Frozen Food Company from October 1998 to September 2001; President and Chief Executive Officer--Weight Watchers Gourmet Food Company from August 1997 to October 1998. Joseph Jimenez 42 Executive Vice President--President and Chief Executive Officer Heinz Europe since July 2002; Senior Vice President and President--Heinz North America from September 2001 to July 2002; President and Chief Executive Officer--Heinz North America from November 1998 to September 2001; President--Orville Redenbacher/Swiss Miss Food Company and Wesson/Peter Pan Food Company from March 1997 to November 1998. Richard H. Wamhoff* 56 Executive Vice President--Asia/Pacific and Global Manufacturing/Supply Chain since August 2000; Executive Vice President--Global Manufacturing/Supply Chain and Frozen Foods from May 1998 to August 2000; President and Chief Executive Officer--Ore-Ida Foods, Inc. from May 1993 to May 1998. David R. Williams* 59 Executive Vice President since August 2000; President and Chief Operating Officer--Europe, Middle East, Africa and India from August 2000 to July 2002; Executive Vice President from June 1996 to August 2000. * Messrs. Wamhoff and Williams have announced their intention to retire in September 2002. </Table> 6 <Table> <Caption> Positions and Offices Held with the Company and Age (as of Principal Occupations or Name September 12, 2002) Employment During Past Five Years ---- ------------------- ----------------------------------------------- Arthur Winkleblack 45 Executive Vice President and Chief Financial Officer since January 2002; Acting Chief Operating Officer--Perform.com and Chief Executive Officer--Freeride.com at Indigo Capital (Provides financing for early stage technology companies) (1999-2001); Executive Vice President and Chief Financial Officer--C. Dean Metropoulos & Co. (Provides management services for consumer products investment of Hicks, Muse, Tate & Furst) (1998-1999); Chief Financial Officer--Six Flags Entertainment Corporation (1996-1998). Michael J. Bertasso* 52 Senior Vice President--Strategy, Process and Business Development since May 1998; Executive Vice President--Star-Kist Foods, Inc. from July 1996 to May 1998. William C. Goode* 61 Senior Vice President and Chief Administrative Officer since May 2000; Vice President and Chief Administrative Officer from May 1998 to April 2000; Vice President--Operations of Heinz Pet Products from October 1996 to May 1998. Michael D. Milone 46 Senior Vice President--Chief Growth Officer since July 2002; Chief Executive Officer Star- Kist Foods, Inc. since May 2001; Senior Vice President--Global Category Development since May 2000; Vice President--Global Category Development from August 1998 to May 2000; President and Chief Operating Officer of Heinz Pet Products from July 1996 to August 1998. D. Edward I. Smyth* 52 Senior Vice President--Corporate and Government Affairs since May 1998; Vice President--Corporate Affairs from March 1990 to May 1998. Laura Stein 40 Senior Vice President and General Counsel since January 2000; attorney at The Clorox Company from 1992-1999, last serving as Assistant General Counsel--Regulatory Affairs. * Effective September 1, 2002, Mr. Bertasso will be promoted to Senior Vice President-- President Heinz Asia/Pacific. Mr. Goode has announced his intention to retire in December 2002. Effective January 2003, Mr. Smyth will assume the title of Chief Administrative Officer. </Table> 7 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS. Information relating to the Company's common stock is set forth on page 47 under the caption "Stock Market Information" and on page 73 in Note 15, "Quarterly Results (Unaudited)," of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. Such information is incorporated herein by reference. ITEM 6. SELECTED FINANCIAL DATA. The following table presents selected consolidated financial data for the Company and its subsidiaries for each of the five fiscal years 1998 through 2002. All amounts are in thousands except per share data. <Table> Fiscal year ended --------------------------------------------------------------- May 1, May 2, May 3, April 28, April 29, 2002 2001 2000 1999 1998 (52 Weeks) (52 Weeks) (53 Weeks) (52 Weeks) (52 Weeks) ----------- ---------- ---------- ---------- ---------- Sales*..................... $ 9,431,000* $8,820,884* $8,939,416* $9,299,610 $9,209,284 Interest expense........... 294,269 332,957 269,748 258,813 258,616 Net income................. 833,889 478,012 890,553 474,341 801,566 Net income per share-- diluted.................. 2.36 1.36 2.47 1.29 2.15 Net income per share-- basic.................... 2.38 1.37 2.51 1.31 2.19 Short-term debt and current portion of long-term debt..................... 702,645 1,870,834 176,575 904,207 339,626 Long-term debt, exclusive of current portion....... 4,642,968 3,014,853 3,935,826 2,472,206 2,768,277 Total assets............... 10,278,354 9,035,150 8,850,657 8,053,634 8,023,421 Cash dividends per common share.................... 1.6075 1.545 1.445 1.3425 1.235 </Table> * Sales for 2002, 2001 and 2000 reflect the adoption of the new EITF guidelines relating to the classification of consideration from a vendor to a purchaser of a vendor's products, including both customers and consumers. Amounts previously reported for 2001 and 2000 were $9,430,422 and $9,407,949, respectively. SALES FOR 1999 AND 1998 HAVE NOT BEEN ADJUSTED TO REFLECT THE NEW EITF RECLASSIFICATIONS AS IT IS IMPRACTICABLE TO DO SO. The 2002 results include net restructuring and implementation costs of $17.8 million pretax ($0.03 per share) for the Streamline initiative. The 2001 results include restructuring and implementation costs of $298.8 million pretax ($0.66 per share) for the Streamline initiative, net restructuring and implementation costs of $288.5 million pretax ($0.52 per share) for Operation Excel, a benefit of $93.2 million ($0.27 per share) from tax planning and new tax legislation in Italy, a loss of $94.6 million pretax ($0.19 per share) on the sale of The All American Gourmet business, company acquisition costs of $18.5 million pretax ($0.03 per share), a loss of $5.6 million pretax ($0.01 per share) which represents the Company's equity loss associated with The Hain Celestial Group's fourth quarter results which included charges for its merger with Celestial Seasonings and the after-tax impact of adopting SAB No. 101 and SFAS No. 133 of $16.9 million ($0.05 per share). See Notes 3 and 4 to the Consolidated Financial Statements beginning on page 56 of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. 8 The 2000 results include net restructuring and implementation costs of $392.7 million pretax ($0.74 per share) for Operation Excel, a pretax contribution of $30.0 million ($0.05 per share) to the H. J. Heinz Company Foundation, costs related to Ecuador of $20.0 million pretax ($0.05 per share), a gain of $464.6 million pretax ($0.72 per share) on the sale of the Weight Watchers classroom business and a gain of $18.2 million pretax ($0.03 per share) on the sale of an office building in the U.K. See Notes 3 and 4 to the Consolidated Financial Statements beginning on page 58 of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. The 1999 results include restructuring and implementation costs of $552.8 million pretax ($1.11 per share) for Operation Excel and costs of $22.3 million pretax ($0.04 per share) related to the implementation of Project Millennia, offset by the reversal of unutilized Project Millennia accruals for severance and exit costs of $25.7 million pretax ($0.04 per share) and a gain of $5.7 million pretax on the sale of the bakery products unit. The 1998 results include costs of $84.1 million pretax ($0.14 per share) related to the implementation of Project Millennia, offset by the gain on the sale of the Ore-Ida frozen foodservice business, $96.6 million pretax ($0.14 per share). Note: All earnings per share amounts are presented on an after-tax diluted basis unless otherwise noted. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. This information is set forth in the Management's Discussion and Analysis section on pages 31 through 48 of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. Such information is incorporated herein by reference. ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. This information is set forth in the Management's Discussion and Analysis section on pages 43 through 45 of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. Such information is incorporated herein by reference. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The Consolidated Balance Sheets of the Company and its subsidiaries as of May 1, 2002 and May 2, 2001 and the related Consolidated Statements of Income, Shareholders' Equity and Cash Flows for the fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 together with the related Notes to Consolidated Financial Statements, on pages 49 through 75 of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002, are incorporated herein by reference. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. There is nothing to be reported under this item. 9 PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. Information relating to the Directors of the Company is set forth under the captions "Election of Directors" and "Additional Information--Section 16 Beneficial Ownership Reporting Compliance" in the Company's definitive Proxy Statement in connection with its Annual Meeting of Shareholders to be held September 12, 2002. Such information is incorporated herein by reference. Information relating to the executive officers of the Company is set forth under the caption "Executive Officers of the Registrant" in Part I above. ITEM 11. EXECUTIVE COMPENSATION. Information relating to executive compensation is set forth under the caption "Executive Compensation" in the Company's definitive Proxy Statement in connection with its Annual Meeting of Shareholders to be held September 12, 2002. Such information is incorporated herein by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT. Information relating to the ownership of equity securities of the Company by certain beneficial owners and management is set forth under the captions "Security Ownership of Certain Principal Share Owners" and "Security Ownership of Management" in the Company's definitive Proxy Statement in connection with its Annual Meeting of Shareholders to be held September 12, 2002. Such information is incorporated herein by reference. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. Information relating to certain relationships with a beneficial shareholder and certain related transactions is set forth under the caption "Certain Business Relationships" in the Company's definitive Proxy Statement in connection with its Annual Meeting of Shareholders to be held September 12, 2002. Such information is incorporated herein by reference. 10 PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K. <Table> (a)(1) The following financial statements and report included in the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002 are incorporated herein by reference: Consolidated Balance Sheets as of May 1, 2002 and May 2, 2001 Consolidated Statements of Income for the fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 Consolidated Statements of Shareholders' Equity for the fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 Consolidated Statements of Cash Flows for the fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 Notes to Consolidated Financial Statements Report of Independent Accountants of PricewaterhouseCoopers LLP dated June 13, 2002, on the Company's consolidated financial statements for the fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 (2) The following report and schedule is filed herewith as a part hereof: Report of Independent Accountants of PricewaterhouseCoopers LLP dated June 13, 2002 on the Company's consolidated financial statement schedule filed as a part hereof for the fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 Consent of Independent Accountants of PricewaterhouseCoopers LLP dated July 26, 2002 filed as a part hereof Schedule II (Valuation and Qualifying Accounts and Reserves) for the three fiscal years ended May 1, 2002, May 2, 2001 and May 3, 2000 All other schedules are omitted because they are not applicable or the required information is included herein or is shown in the consolidated financial statements or notes thereto incorporated herein by reference. (3) 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) The Company's Articles of Amendment dated July 13, 1994, amending and restating the Company's amended and restated Articles of Incorporation in their entirety, are incorporated herein by reference to Exhibit 3(i) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 1994. 3(ii) The Company's By-Laws, as amended effective September 8, 1999 are incorporated herein by reference to Exhibit 3 to the Company's Quarterly Report on Form 10-Q for the three months ended July 28, 1999. 4. Except as set forth below, there are no instruments with respect to long-term debt of the Company that involve indebtedness or securities authorized thereunder exceeding 10 percent of the total assets of the Company on a consolidated basis. The Company agrees to file 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. </Table> 11 <Table> (a) The Indenture between the Company and The First National Bank of Chicago dated as of July 15, 1992 is incorporated herein by reference to Exhibit 4(a) to the Company's Registration Statement on Form S-3 (Reg. No. 333-48017) and the supplements to such Indenture are incorporated herein by reference to the Company's Form 8-Ks dated January 27, 1993, March 25, 1998 and July 16, 1998 relating to the Company's $200,000,000 6 7/8% Notes due 2003, $300,000,000 6% Notes due 2008 and $250,000,000 6.375% Debentures due 2028, respectively. (i) The Supplement dated May 3, 2001 to the Indenture between the Company and The First National Bank of Chicago dated as of July 15, 1992 is incorporated herein by reference to Exhibit 4(a)(i) of the Company's Form 10-K for the fiscal year ended May 2, 2001. (b) The Indenture between the Company and Bank One, National Association dated November 6, 2000, is incorporated herein by reference to Exhibit 4 to the Company's Quarterly Report on Form 10-Q for the nine months ended January 31, 2001. (i) The Supplement dated May 3, 2001 to the Indenture between the Company and Bank One, National Association dated as of November 6, 2000 is incorporated herein by reference to Exhibit 4(b)(i) of the Company's Form 10-K for the fiscal year ended May 2, 2001. (c) 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 Company's $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. (d) The Certificate of Designations, Preferences and Rights of Voting Cumulative Preferred Stock, Series A of H. J. Heinz Finance Company is incorporated herein by reference to Exhibit 4 of the Company's Quarterly Report on Form 10-Q for the three months ended August 1, 2001. 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 December 6, 1995, is incorporated herein by reference to Exhibit 10(c)(i) to the Company's Annual Report on Form 10-K for the fiscal year ended May 1, 1995. (ii) H. J. Heinz Company 1984 Stock Option Plan, as amended, is incorporated herein by reference to Exhibit 10(n) to the Company's Annual Report on Form 10-K for the fiscal year ended May 2, 1990. (iii) H. J. Heinz Company 1987 Stock Option Plan, as amended, is incorporated herein by reference to Exhibit 10(o) to the Company's Annual Report on Form 10-K for the fiscal year ended May 2, 1990. (iv) H. J. Heinz Company 1990 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 3, 1990. (v) H. J. Heinz Company 1994 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 5, 1994. (vi) H. J. Heinz Company Supplemental Executive Retirement Plan, as amended, is incorporated herein by reference to Exhibit 10(c)(ix) to the Company's Annual Report on Form 10-K for the fiscal year ended April 28, 1993. </Table> 12 <Table> (vii) H. J. Heinz Company Executive Deferred Compensation Plan (as amended and restated on December 27, 2001). (viii) H. J. Heinz Company Incentive Compensation Plan is incorporated herein by reference to Appendix B to the Company's Proxy Statement dated August 5, 1994. (ix) H. J. Heinz Company Stock Compensation Plan for Non-Employee Directors is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 3, 1995. (x) H. J. Heinz Company 1996 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 2, 1996. (xi) H. J. Heinz Company Deferred Compensation Plan for Directors is incorporated herein by reference to Exhibit 10(a)(xiii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 1998. (xii) H. J. Heinz Company Global Stock Purchase Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 3, 1999. (xiii) Form of Severance Protection Agreement is incorporated herein by reference to Exhibit 10(a)(xiv) to the Company's Annual Report on Form 10-K for the fiscal year ended May 3, 2000. (xiv) H. J. Heinz Company 2000 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 4, 2000. (xv) H. J. Heinz Company Executive Estate Life Insurance Program. (xvi) H. J. Heinz Company Restricted Stock Recognition Plan for Salaried Employees. (xvii) Retirement Agreement for Mr. Williams. (xviii) Retirement Agreement for Mr. Wamhoff. 12. Computation of Ratios of Earnings to Fixed Charges. 13. Pages 27 through 74 of the H. J. Heinz Company Annual Report to Shareholders for the fiscal year ended May 1, 2002, portions of which are incorporated herein by reference. Those portions of the Annual Report to Shareholders that are not incorporated herein by reference shall not be deemed to be filed as a part of this Report. 21. Subsidiaries of the Registrant. 23. The following Exhibit is filed by incorporation by reference to Item 14(a)(2) of this Report: (a) Consent of PricewaterhouseCoopers LLP. 24. Powers-of-attorney of the Company's directors. 99. Consolidated and combined financial statements of H. J. Heinz Finance Company and subsidiaries as of May 1, 2002 and May 2, 2001 and for the three years in the period ended May 1, 2002. Copies of the exhibits listed above will be furnished upon request to holders or beneficial holders of any class of the Company's stock, subject to payment in advance of the cost of reproducing the exhibits requested. </Table> (b) There have been no reports filed on Form 8-K during the last fiscal quarter of the period covered by this Report. 13 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, on July 29, 2002. H. J. HEINZ COMPANY (Registrant) By: /s/ ARTHUR WINKLEBLACK ................................................. ARTHUR WINKLEBLACK Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated, on July 29, 2002. <Table> <Caption> Signature Capacity --------- -------- /s/ WILLIAM R. JOHNSON Chairman, President and ............................................ Chief Executive Officer WILLIAM R. JOHNSON (Principal Executive Officer) /s/ ARTHUR WINKLEBLACK Executive Vice President and ............................................ Chief Financial Officer ARTHUR WINKLEBLACK (Principal Financial Officer) /s/ BRUNA GAMBINO Corporate Controller ............................................ (Principal Accounting Officer) BRUNA GAMBINO </Table> William R. Johnson Director Nicholas F. Brady Director Mary C. Choksi Director Leonard S. Coleman, Jr. Director Peter H. Coors Director Edith E. Holiday Director Samuel C. Johnson Director Candace Kendle Director Dean R. O'Hare Director Thomas J. Usher Director David R. Williams Director James M. Zimmerman Director By /s/ ARTHUR WINKLEBLACK ........................................ ARTHUR WINKLEBLACK Attorney-in-Fact 14 REPORT OF INDEPENDENT ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE To the Shareholders of H. J. Heinz Company: Our audits of the consolidated financial statements referred to in our report dated June 13, 2002, appearing in the 2002 Annual Report to Shareholders of H. J. Heinz Company and Subsidiaries (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also included an audit of the financial statement schedule listed in Item 14(a)(2) of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. /s/ PRICEWATERHOUSECOOPERS LLP PricewaterhouseCoopers LLP Pittsburgh, Pennsylvania June 13, 2002 ------------------------ CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 2-51719, 33-32563, 33-42015, 33-55777, 33-62623, 333-13849, 333-87419 and 333-49728) of H. J. Heinz Company and Subsidiaries of our report dated June 13, 2002 relating to the financial statements, which appears in the 2002 Annual Report to Shareholders, which is incorporated in this Annual Report on Form 10-K. We also consent to the incorporation by reference of our report dated June 13, 2002 relating to the financial statement schedule, which appears in this Form 10-K. /s/ PRICEWATERHOUSECOOPERS LLP PricewaterhouseCoopers LLP Pittsburgh, Pennsylvania July 26, 2002 15 SCHEDULE II H. J. HEINZ COMPANY AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FISCAL YEARS ENDED MAY 1, 2002, MAY 2, 2001 AND MAY 3, 2000 (THOUSANDS OF DOLLARS) <Table> <Caption> Additions ---------------------- Balance at Charged to Charged Balance at beginning costs and to other end of Description of period expenses accounts Deductions period - ----------- ---------- ---------- --------- ---------- ---------- Fiscal year ended May 1, 2002: Reserves deducted in the balance sheet from the assets to which they apply: Receivables............................... $ 15,075 $11,094 $-- $ 6,820(1) $ 19,349 ======== ======= == ======= ======== Investments, advances and other assets.... $ 1,114 $ -- $-- $ 490 $ 624 ======== ======= == ======= ======== Deferred tax assets (2)................... $ 60,298 $50,392 $-- $10,332 $100,358 ======== ======= == ======= ======== Fiscal year ended May 2, 2001: Reserves deducted in the balance sheet from the assets to which they apply: Receivables............................... $ 18,697 $ 9,162 $-- $12,784(1) $ 15,075 ======== ======= == ======= ======== Investments, advances and other assets.... $ 1,597 $ -- $-- $ 483 $ 1,114 ======== ======= == ======= ======== Deferred tax assets (3)................... $ 75,109 $ 8,121 $-- $22,932 $ 60,298 ======== ======= == ======= ======== Fiscal year ended May 3, 2000: Reserves deducted in the balance sheet from the assets to which they apply: Receivables............................... $ 21,633 $ 3,986 $-- $ 6,922(1) $ 18,697 ======== ======= == ======= ======== Investments, advances and other assets.... $ 1,876 $ -- $-- $ 279 $ 1,597 ======== ======= == ======= ======== Deferred tax assets (4)................... $ 40,811 $49,173 $-- $14,875 $ 75,109 ======== ======= == ======= ======== </Table> NOTES: (1) Principally reserves on assets sold, written-off or reclassified. (2) The net change in the valuation allowance for deferred tax assets was an increase of $40.1 million. The increase was due to increases in the valuation allowance related to additional deferred tax assets for foreign tax credit carryforward ($36.8 million) and loss carryforwards ($13.6 million). The increase was partially offset by decreases in the valuation allowance related to reduction in deferred tax assets for loss carryforwards ($10.3 million). See Note 5 to the Consolidated Financial Statements on pages 62 and 63 of the Company's Annual Report to Shareholders for the fiscal year ended May 1, 2002. (3) The net change in the valuation allowance for deferred tax assets was a decrease of $14.8 million. The decrease was due to reductions in the valuation allowance related to deferred tax assets for foreign tax credit carryforward ($11.0 million) and loss carryforwards ($11.9 million). The decrease was partially offset by an increase in the valuation allowance related to deferred tax assets for loss carryforwards ($8.1 million). See Note 5 to the Consolidated Financial Statements on pages 56 and 57 of the Company's Annual Report to Shareholders for the fiscal year ended May 2, 2001. (4) The net change in the valuation allowance for deferred tax assets was an increase of $34.3 million. The increase was due to increases in the valuation allowance related to additional deferred tax assets for foreign tax credit carryforward ($34.3 million) and loss carryforwards ($14.8 million). The increase was partially offset by decreases in the valuation allowance related to reduction in deferred tax assets for loss carryforwards ($14.8 million). See Note 5 to the Consolidated Financial Statements on pages 58 and 59 of the Company's Annual Report to Shareholders for the fiscal year ended May 3, 2000. EXHIBIT INDEX <Table> <Caption> 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) The Company's Articles of Amendment dated July 13, 1994, amending and restating the Company's amended and restated Articles of Incorporation in their entirety, are incorporated herein by reference to Exhibit 3(i) to the Company's Annual Report on Form 10-K for the fiscal year ended April 27, 1994. 3(ii) The Company's By-Laws, as amended effective September 8, 1999, are incorporated herein by reference to Exhibit 3 to the Company's Quarterly Report on Form 10-Q for the three months ended July 28, 1999. 4. Except as set forth below, there are no instruments with respect to long-term debt of the Company that involve indebtedness or securities authorized thereunder exceeding 10 percent of the total assets of the Company on a consolidated basis. The Company agrees to file 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 between the Company and The First National Bank of Chicago dated as of July 15, 1992 is incorporated herein by reference to Exhibit 4(a) to the Company's Registration Statement on Form S-3 (Reg. No. 333-48017) and the supplements to such Indenture are incorporated herein by reference to the Company's Form 8-Ks dated January 27, 1993, March 25, 1998 and July 16, 1998 relating to the Company's $200,000,000 6 7/8% Notes due 2003, $300,000,000 6% Notes due 2008 and $250,000,000 6.375% Debentures due 2028, respectively. (i) The Supplement dated May 3, 2001 to the Indenture between the Company and The First National Bank of Chicago dated as of July 15, 1992 is incorporated herein by reference to Exhibit 4(a)(i) of the Company's Form 10-K for the fiscal year ended May 2, 2001. (b) The Indenture between the Company and Bank One, National Association dated November 6, 2000, is incorporated herein by reference to Exhibit 4 to the Company's Quarterly Report on Form 10-Q for the nine months ended January 31, 2001. (i) The Supplement dated May 3, 2001 to the Indenture between the Company and Bank One, National Association dated as of November 6, 2000 is incorporated herein by reference to Exhibit 4(b)(i) of the Company's Form 10-K for the fiscal year ended May 2, 2001. (c) 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 Company's $750,000,000 6.625% Guaranteed Notes due 2011, $700,000,000 6.00% Guaranteed Notes due 2012 and $550,000,000 Guaranteed Notes due 2032. </Table> <Table> <Caption> DESCRIPTION OF EXHIBIT ------------------------------------------------------------ (d) The Certificate of Designations, Preferences and Rights of Voting Cumulative Preferred Stock, Series A of H. J. Heinz Finance Company is incorporated herein by reference to Exhibit 4 of the Company's Quarterly Report on Form 10-Q for the three months ended August 1, 2001. 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 December 6, 1995, is incorporated herein by reference to Exhibit 10(c)(i) to the Company's Annual Report on Form 10-K for the fiscal year ended May 1, 1995. (ii) H. J. Heinz Company 1984 Stock Option Plan, as amended, is incorporated herein by reference to Exhibit 10(n) to the Company's Annual Report on Form 10-K for the fiscal year ended May 2, 1990. (iii) H. J. Heinz Company 1987 Stock Option Plan, as amended, is incorporated herein by reference to Exhibit 10(o) to the Company's Annual Report on Form 10-K for the fiscal year ended May 2, 1990. (iv) H. J. Heinz Company 1990 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 3, 1990. (v) H. J. Heinz Company 1994 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 5, 1994. (vi) H. J. Heinz Company Supplemental Executive Retirement Plan, as amended, is incorporated herein by reference to Exhibit 10(c)(ix) to the Company's Annual Report on Form 10-K for the fiscal year ended April 28, 1993. (vii) H. J. Heinz Company Executive Deferred Compensation Plan (as amended and restated on December 27, 2001). (viii) H. J. Heinz Company Incentive Compensation Plan is incorporated herein by reference to Appendix B to the Company's Proxy Statement dated August 5, 1994. (ix) H. J. Heinz Company Stock Compensation Plan for Non-Employee Directors is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 3, 1995. (x) H. J. Heinz Company 1996 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 2, 1996. (xi) H. J. Heinz Company Deferred Compensation Plan for Directors is incorporated herein by reference to Exhibit 10(a)(xiii) to the Company's Annual Report on Form 10-K for the fiscal year ended April 29, 1998. (xii) H. J. Heinz Company Global Stock Purchase Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 3, 1999. (xiii) Form of Severance Protection Agreement is incorporated herein by reference to Exhibit 10(a)(xiv) for the fiscal year ended May 3, 2000. </Table> <Table> <Caption> DESCRIPTION OF EXHIBIT ------------------------------------------------------------ (xiv) H. J. Heinz Company 2000 Stock Option Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement dated August 4, 2000. (xv) H. J. Heinz Company Executive Estate Life Insurance Program. (xvi) H. J. Heinz Company Restricted Stock Recognition Plan for Salaried Employees. (xvii) Retirement Agreement for Mr. Williams. (xviii) Retirement Agreement for Mr. Wamhoff. 12. Computation of Ratios of Earnings to Fixed Charges. 13. Pages 27 through 74 of the H. J. Heinz Company Annual Report to Shareholders for the fiscal year ended May 1, 2002, portions of which are incorporated herein by reference. Those portions of the Annual Report to Shareholders that are not incorporated herein by reference shall not be deemed to be filed as a part of this Report. 21. Subsidiaries of the Registrant. 23. The following Exhibit is filed by incorporation by reference to Item 14(a)(2) of this Report: (a) Consent of PricewaterhouseCoopers LLP. 24. Powers-of-attorney of the Company's directors. 99. Consolidated and combined financial statements of H. J. Heinz Finance Company and subsidiaries as of May 1, 2002 and May 2, 2001 and for the three years in the period ended May 1, 2002. </Table>