Employees' Stock Incentive Plans and Management Incentive Plans

6 Months Ended

Jun. 28, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employees' Stock Incentive Plans and Management Incentive Plans

Employees’ Stock Incentive Plans

In October 2013, the Board adopted the H.J. Heinz Holding Corporation 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”) which authorizes the issuance of up to 17,555,947 shares of the Company's capital stock. The Company grants non-qualified stock options under the 2013 Omnibus Plan to select employees and Directors with a five-year cliff vesting provided the employee is continuously employed by the Company or one of its subsidiaries or affiliates. If a participant is involuntarily terminated without cause, 20% of their options will vest, on an accelerated basis, for each full year of service after the grant date.

In 2015 and 2014, options were also issued in conjunction with a Bonus Swap Program whereby participants could elect to use a portion of their calculated non-equity incentive compensation (after all required taxes and deductions) to purchase shares of Common Stock in the Company. Participants who elected to purchase such shares were granted matching stock options.

The compensation cost related to equity plans and the related tax benefit is primarily recognized in SG&A as follows:

	Second Quarter Ended
	June 28, 2015		June 29, 2014
	(In millions)
Pre-tax compensation cost	$	3	$	2
Tax benefit	1		1
After-tax compensation cost	$	2	$	1

	Six Months Ended
	June 28, 2015		June 29, 2014
	(In millions)
Pre-tax compensation cost	$	5	$	4
Tax benefit	2		1
After-tax compensation cost	$	3	$	3

Unrecognized compensation cost related to unvested option awards under the 2013 Omnibus Plan was $43 million as of June 28, 2015 and $38 million as of June 29, 2014.

A summary of the Company’s stock option activity and related information is as follows:

	Number of Options
	(In millions)
Options outstanding at December 28, 2014	8
Options granted	2
Options forfeited	—
Options exercised	—
Options outstanding at June 28, 2015	10