PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS

9 Months Ended

Sep. 29, 2024

Retirement Benefits [Abstract]

PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS

PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS

Net Periodic Benefit Cost

The components of net periodic benefit cost for the three months ended September 29, 2024 and October 1, 2023 were as follows:

	Pension Benefits				Other Benefits
	Three Months Ended				Three Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Service cost	$	3,827	$	3,747	$	33	$	57
Interest cost	9,662		10,259		1,215		1,794
Expected return on plan assets	(12,800)		(12,275)		—		—
Amortization of prior service credit	(1,374)		(1,414)		(38)		(13)
Amortization of net loss (gain)	3,814		4,974		138		(242)
Settlement loss	—		943		—		926
Total net periodic benefit cost	$	3,129	$	6,234	$	1,348	$	2,522

We made contributions of $1,134 and $3,498 to the pension plans and other benefits plans, respectively, during the third quarter of 2024. In the third quarter of 2023, we made contributions of $987 and $5,314 to our pension plans and other benefit plans, respectively. The contributions in 2024 and 2023 also included benefit payments from our non-qualified pension plans and post-retirement benefit plans.

The components of net periodic benefit cost for the nine months ended September 29, 2024 and October 1, 2023 were as follows:  

	Pension Benefits				Other Benefits
	Nine Months Ended				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Service cost	$	11,512	$	11,269	$	100	$	166
Interest cost	28,995		30,819		3,646		5,984
Expected return on plan assets	(38,407)		(37,041)		—		—
Amortization of prior service credit	(4,120)		(4,243)		(113)		(13)
Amortization of net loss (gain)	11,435		14,961		416		(901)
Settlement loss	—		5,332		—		926
Total net periodic benefit cost	$	9,415	$	21,097	$	4,049	$	6,162

We made contributions of $2,120 and $7,980 to the pension plans and other benefits plans, respectively, during the first nine months of 2024. In the first nine months of 2023, we made contributions of $4,849 and $16,224 to our pension plans and other benefit plans, respectively. The contributions in 2024 and 2023 also included benefit payments from our non-qualified pension plans and post-retirement benefit plans.

The non-service cost components of net periodic benefit cost relating to pension and other post-retirement benefit plans is reflected within other (income) expense, net in the Consolidated Statements of Income (see Note 17).

Annuitization of Other Post Employment Benefits

On August 21, 2023, the Hershey Employee Benefits Committee approved the purchase of an irrevocable group annuity contract with an insurance company for eligible retirees of The Hershey Company Retiree Medical and Life Insurance Plan to cover their medical benefits. On August 31, 2023, we paid $88,689 for the irrevocable group annuity contract. As a result of this transaction, we remeasured the projected benefit obligation and recognized a $926 non-cash pre-tax settlement charge during the quarter ended October 1, 2023