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PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS
We sponsor a number of defined benefit pension plans. The primary plan is The Hershey Retirement Plan for Salaried and Hourly Employees. This is a cash balance plan that provides pension benefits for most U.S. employees hired prior to January 1, 2007. We also sponsor two post-retirement benefit plans: health care and life insurance. The health care plan is contributory, with participants’ contributions adjusted annually. The life insurance plan is non-contributory.
Obligations and Funded Status
A summary of the changes in benefit obligations, plan assets, and funded status of these plans is as follows:
Pension Benefits Other Benefits 
December 31,2025202420252024
Change in benefit obligation
Projected benefit obligation at beginning of year$778,682 $822,035 $95,963 $100,311 
Service cost13,897 15,323 114 131 
Interest cost35,877 38,675 4,928 4,852 
Actuarial (gain) loss18,974 (5,337)20,668 4,845 
Settlement(70,647)(64,665)(2,762)— 
Currency translation and other4,074 (5,008)515 (2,143)
Benefits paid(23,383)(22,341)(11,805)(12,033)
Projected benefit obligation at end of year757,474 778,682 107,621 95,963 
Change in plan assets
Fair value of plan assets at beginning of year779,977 836,843 — — 
Actual return on plan assets85,069 30,626 — — 
Employer contributions3,862 3,566 11,805 12,033 
Settlement(70,647)(64,665)(3,070)— 
Annuity purchase— — 3,070 — 
Currency translation and other3,368 (4,052)— — 
Benefits paid(23,383)(22,341)(11,805)(12,033)
Fair value of plan assets at end of year778,246 779,977 — — 
Funded status at end of year
$20,772 $1,295 $(107,621)$(95,963)
Amounts recognized in the Consolidated Balance Sheets:
Other assets$64,520 $41,298 $— $— 
Accrued liabilities(761)(6,166)(9,520)(8,957)
Other long-term liabilities(42,987)(33,837)(98,101)(87,006)
Total$20,772 $1,295 $(107,621)$(95,963)
Amounts recognized in Accumulated Other Comprehensive Income (Loss), net of tax:
Actuarial net (loss) gain$(86,073)$(117,030)$(24,563)$(10,903)
Net prior service credit2,091 4,631 926 1,205 
Net amounts recognized in AOCI$(83,982)$(112,399)$(23,637)$(9,698)
The projected benefit obligation during 2025 was impacted by actuarial loss of $18,974 which was mainly the result of the discount rate assumption decreasing from 5.5% at December 31, 2024 to 5.2% at December 31, 2025. The accumulated benefit obligation for all defined benefit pension plans was $733,179 as of December 31, 2025 and $753,886 as of December 31, 2024.
Plans with accumulated benefit obligations in excess of plan assets were as follows:  
December 31,20252024
Projected benefit obligation
$51,425 $46,812 
Accumulated benefit obligation44,640 41,853 
Fair value of plan assets
8,104 7,138 
Plans with projected benefit obligations in excess of plan assets were as follows:  
December 31,20252024
Projected benefit obligation
$54,486 $49,539 
Accumulated benefit obligation45,835 42,897 
Fair value of plan assets
10,738 9,536 
Net Periodic Benefit Cost
The components of net periodic benefit cost were as follows:  
Pension BenefitsOther Benefits
For the years ended December 31,202520242023202520242023
Amounts recognized in net periodic benefit cost
Service cost$13,897 $15,323 $14,991 $114 $131 $221 
Interest cost35,877 38,675 41,205 4,928 4,852 7,171 
Expected return on plan assets(48,178)(51,193)(48,978)— — — 
Amortization of prior service credit(3,558)(5,493)(5,658)(387)(151)(50)
Amortization of net (gain) loss 12,793 15,248 19,846 1,254 557 (966)
Curtailment credit— — — — — (740)
Settlement loss12,443 14,894 15,254 — — 926 
Total net periodic benefit cost$23,274 $27,454 $36,660 $5,909 $5,389 $6,562 
Change in plan assets and benefit obligations recognized in AOCI, pre-tax
Actuarial net (gain) loss$(42,728)$(15,513)$(32,720)$19,535 $4,609 $38,698 
Prior service cost (credit)3,559 5,436 5,670 382 (963)(736)
Total recognized in other comprehensive (income) loss, pre-tax
$(39,169)$(10,077)$(27,050)$19,917 $3,646 $37,962 
Net amounts recognized in periodic benefit cost and AOCI$(15,895)$17,377 $9,610 $25,826 $9,035 $44,524 

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).
Assumptions
The weighted-average assumptions used in computing the year end benefit obligations were as follows:
Pension Benefits Other Benefits
December 31,2025202420252024
Discount rate
5.2 %5.5 %5.5 %5.7 %
Rate of increase in compensation levels
3.4 %3.6 %4.0 %4.0 %
Interest crediting rate
4.5 %4.6 %N/AN/A
The weighted-average assumptions used in computing net periodic benefit cost were as follows:  
Pension BenefitsOther Benefits
For the years ended December 31,202520242023202520242023
Discount rate
5.5 %5.1 %5.5 %5.7 %5.2 %5.5 %
Expected long-term return on plan assets6.7 %6.6 %6.2 %N/AN/AN/A
Rate of compensation increase
3.6 %3.6 %3.4 %N/AN/AN/A

The Company’s discount rate assumption is determined by developing a yield curve based on high quality corporate bonds with maturities matching the plans’ expected benefit payment streams. The plans’ expected cash flows are then discounted by the resulting year-by-year spot rates. We base the asset return assumption on current and expected asset allocations, as well as historical and expected returns on the plan asset categories.
We utilize a full yield curve approach in the estimation of service and interest costs by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. This approach provides a more precise measurement of service and interest costs by improving the correlation between the projected cash flows to the corresponding spot rates along the yield curve. This approach does not affect the measurement of our pension and other post-retirement benefit liabilities but generally results in lower benefit expense in periods when the yield curve is upward sloping.
For purposes of measuring our post-retirement benefit obligation at December 31, 2025, we assumed an 8.7% annual rate of increase in the per capita cost of covered health care benefits for 2026, grading down to 4.9% by 2034. For purposes of measuring our post-retirement benefit obligation at December 31, 2024, we assumed a 6.9% annual rate of increase in the per capita cost of covered health care benefits for 2025, grading down to 4.9% by 2033.
The valuations and assumptions reflect adoption of the Society of Actuaries updated Pri-2012 mortality tables with MP-2021 generational projection scales, which we adopted as of December 31, 2021. The Society of Actuaries did not update the Pri-2012 mortality tables in 2024 or 2025.
Plan Assets
We broadly diversify our pension plan assets across public equity, fixed income, diversified credit strategies and diversified alternative strategies asset classes. Our target asset allocation for our major domestic pension plans as of December 31, 2025 was as follows:
Asset ClassTarget Asset Allocation 
Cash
1%
Equity securities
27%
Fixed income securities
48%
Alternative investments, including real estate, listed infrastructure and other
24%
As of December 31, 2025, actual allocations were consistent with the targets and within our allowable ranges. We expect the level of volatility in pension plan asset returns to be in line with the overall volatility of the markets within each asset class.
The following table sets forth by level, within the fair value hierarchy (as defined in Note 6), pension plan assets at their fair values as of December 31, 2025:
Quoted prices in active
markets of identical assets
(Level 1)		Significant other observable inputs
(Level 2)		Significant other unobservable inputs
(Level 3)		Investments Using NAV as a Practical Expedient
(1)
Total
Cash and cash equivalents$741 $24,284 $— $604 $25,629 
Equity securities:
International all-cap— — — 494 494 
Global all-cap (a)— — — 217,175 217,175 
Fixed income securities:
U.S. government/agency— — — 159,061 159,061 
Corporate bonds (b)— — — 55,895 55,895 
International government/corporate bonds (c)— — — 29,866 29,866 
Diversified credit (d)— — — 105,102 105,102 
Alternative investments:
Global diversified assets (e)— — — 68,053 68,053 
Real assets fund (f)— — — 116,971 116,971 
Total pension plan assets$741 $24,284 $— $753,221 $778,246 
The following table sets forth by level, within the fair value hierarchy, pension plan assets at their fair values as of December 31, 2024:
Quoted prices in active
markets of identical assets
(Level 1)		Significant other observable inputs
(Level 2)		Significant other unobservable inputs
(Level 3)		Investments Using NAV as a Practical Expedient
(1)		Total
Cash and cash equivalents
$981 $32,404 $— $598 $33,983 
Equity securities:
International all-cap— — — 483 483 
Global all-cap (a)— — — 204,421 204,421 
Fixed income securities:
U.S. government/agency— — — 156,146 156,146 
Corporate bonds (b)
— — — 59,602 59,602 
International government/corporate bonds (c)— — — 27,303 27,303 
Diversified credit (d)— — — 120,259 120,259 
Alternative investments:
Global diversified assets (e)
— — — 63,497 63,497 
Real assets fund (f)— — — 114,283 114,283 
Total pension plan assets
$981 $32,404 $— $746,592 $779,977 

(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in our Obligations and Funded Status table.
(a)This category comprises equity funds that primarily track the MSCI World Index or MSCI All Country World Index.
(b)This category comprises fixed income funds primarily invested in investment grade and high yield bonds.
(c)This category comprises fixed income funds primarily invested in Canadian and other international bonds.
(d)This category comprises fixed income funds primarily invested in high yield bonds, loans, securitized debt and emerging market debt.
(e)This category comprises diversified funds invested across alternative asset classes.
(f)
This category comprises funds primarily invested in publicly traded real estate securities, publicly listed infrastructure securities and real estate debt.
The fair value of the Level 1 assets was based on quoted prices in active markets for the identical assets. The fair value of the Level 2 assets was determined by management based on an assessment of valuations provided by asset management entities and was calculated by aggregating market prices for all underlying securities.
Investment objectives for our domestic plan assets are:
•To ensure high correlation between the value of plan assets and liabilities;
•To maintain careful control of the risk level within each asset class; and
•To focus on a long-term return objective.
We believe that there are no significant concentrations of risk within our plan assets as of December 31, 2025. We comply with the rules and regulations promulgated under the Employee Retirement Income Security Act of 1974 (“ERISA”) and we prohibit investments and investment strategies not allowed by ERISA. We do not permit direct purchases of our Company’s securities or the use of derivatives for the purpose of speculation. We invest the assets of non-domestic plans in compliance with laws and regulations applicable to those plans.
Cash Flows and Plan Termination
Our policy is to fund domestic pension liabilities in accordance with the limits imposed by the ERISA, federal income tax laws, and the funding requirements of the Pension Protection Act of 2006. We fund non-domestic pension liabilities in accordance with laws and regulations applicable to those plans.
We made total contributions to the pension plans of $3,862 during 2025. In 2024, we made total contributions of $3,566 to the pension plans. For 2026, minimum funding requirements for our pension plans are approximately $1,189.
Total benefit payments expected to be paid to plan participants, including pension benefits funded from the plans and other benefits funded from Company assets, are as follows:
Expected Benefit Payments
202620272028202920302031-2035
Pension Benefits
$114,162 $103,662 $70,940 $68,700 $63,190 $278,650 
Other Benefits
9,520 9,139 8,828 8,627 8,010 36,289 
Savings Plans
The Company sponsors several defined contribution plans to provide retirement benefits to employees. Contributions to The Hershey Company 401(k) Plan and similar plans for non-domestic employees are based on a portion of eligible pay up to a defined maximum. All matching contributions were made in cash. Expense associated with the defined contribution plans was $72,889 in 2025, $74,094 in 2024 and $67,763 in 2023.