EX-99.1 4 exhibit991-partiiitem6x201.htm EXHIBIT 99.1 - PART II, ITEM 6 OF THE HERSHEY COMPANY'S 2017 FORM 10-K Exhibit


Exhibit 99.1
PART II

Note: The information contained in this exhibit has been updated for the retrospective adoption of a new accounting standard issued by the Financial Accounting Standards Board, Accounting Standards Update ("ASU") No. 2017-07, Compensation-Retirement Benefits (Topic 715). The non-service cost components of net periodic benefit cost are now presented in the income statement separately from the service cost component and outside the subtotal of income from operations. The Company is presenting these non-service cost components within the Other (income) expense, net caption. This exhibit has not been updated for any other changes since the filing of the 2017 Annual Report on Form 10-K (the "2017 Form 10-K"). For additional developments since the filing of the 2017 Form 10-K, refer to our periodic reports filed with the U.S. Securities and Exchange Commission through the date of this Current Report on Form 8-K, including our Quarterly Report on Form 10-Q for the period ended April 1, 2018.

Item 6.     SELECTED FINANCIAL DATA
FIVE-YEAR CONSOLIDATED FINANCIAL SUMMARY
(All dollar and share amounts in thousands except market price and per share statistics)
 
 
2017
 
2016
 
2015
 
2014
 
2013
Summary of Operations
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
7,515,426

 
7,440,181

 
7,386,626

 
7,421,768

 
7,146,079

Cost of Sales (1)
 
$
4,060,050

 
4,270,642

 
4,000,071

 
4,085,602

 
3,865,231

Selling, Marketing and Administrative (1)
 
$
1,885,492

 
1,891,305

 
1,945,361

 
1,900,970

 
1,922,508

Goodwill, Indefinite and Long-Lived Asset Impairment Charges
 
$
208,712

 
4,204

 
280,802

 
15,900

 

Business Realignment Costs (1)
 
$
47,763

 
18.857

 
84.628

 
29,721

 
18,665

Interest Expense, Net
 
$
98,282

 
90,143

 
105,773

 
83,532

 
88,356

Provision for Income Taxes
 
$
354,131

 
379,437

 
388,896

 
459,131

 
430,849

Net Income Attributable to The Hershey Company
 
$
782,981

 
720,044

 
512,951

 
846,912

 
820,470

Net Income Per Share:
 
 
 
 
 
 
 
 
 
 
—Basic—Common Stock
 
$
3.79

 
3.45

 
2.40

 
3.91

 
3.76

—Diluted—Common Stock
 
$
3.66

 
3.34

 
2.32

 
3.77

 
3.61

—Basic—Class B Stock
 
$
3.44

 
3.15

 
2.19

 
3.54

 
3.39

—Diluted—Class B Stock
 
$
3.44

 
3.14

 
2.19

 
3.52

 
3.37

Weighted-Average Shares Outstanding:
 
 
 
 
 
 
 
 
 
 
—Basic—Common Stock
 
151,625

 
153,519

 
158,471

 
161,935

 
163,549

—Basic—Class B Stock
 
60,620

 
60,620

 
60,620

 
60,620

 
60,627

—Diluted—Common Stock
 
213,742

 
215,304

 
220,651

 
224,837

 
227,203

Dividends Paid on Common Stock
 
$
387,466

 
369.292

 
352,953

 
328,752

 
294,979

Per Share
 
$
2.548

 
2.402

 
2.236

 
2.040

 
1.810

Dividends Paid on Class B Stock
 
$
140,394

 
132,394

 
123,179

 
111,662

 
98,822

Per Share
 
$
2.316

 
2.184

 
2.032

 
1.842

 
1.630

Depreciation
 
$
211,592

 
231,735

 
197,054

 
176,312

 
166,544

Amortization
 
$
50,261

 
70,102

 
47,874

 
35,220

 
34,489

Advertising
 
$
541,293

 
521,479

 
561,644

 
570,223

 
582,354

Year-End Position and Statistics
 
 
 
 
 
 
 
 
 
 
Capital Additions (including software)
 
$
257,675

 
269,476

 
356,810

 
370,789

 
350,911

Total Assets
 
$
5,553,726

 
5,524,333

 
5,344,371

 
5,622,870

 
5,349,724

Short-term Debt and Current Portion of Long-term Debt
 
$
859,457

 
632,714

 
863,436

 
635,501

 
166,875

Long-term Portion of Debt
 
$
2,061,023

 
2,347,455

 
1,557,091

 
1,542,317

 
1,787,378

Stockholders’ Equity
 
$
931,565

 
827,687

 
1,047,462

 
1,519,530

 
1,616,052

Full-time Employees
 
15,360

 
16,300

 
19,060

 
20,800

 
12,600

Stockholders’ Data
 
 
 
 
 
 
 
 
 
 
Outstanding Shares of Common Stock and Class B Stock at Year-end
 
210,861

 
212,260

 
216,777

 
221,045

 
223,895

Market Price of Common Stock at Year-end
 
$
113.51

 
103.43

 
89.27

 
103.93

 
97.23

Price Range During Year (high)
 
$
115.96

 
113.89

 
110.78

 
108.07

 
100.90

Price Range During Year (low)
 
$
102.87

 
83.32

 
83.58

 
88.15

 
73.51

(1)
In accordance with ASU No. 2017-07, the non-service cost components of net periodic benefit cost relating to the Company's pension and other post retirement benefit plans have been reclassified to the Other (income) expense, net caption for the years ended December 31, 2017, 2016 and 2015. Other (income) expense, net is not presented above.