DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 27, 2014 | Feb. 06, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | HERSHEY CO | ||
Entity Central Index Key | 47111 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $14,349,963,182 | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 160,208,263 | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 60,619,777 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $7,421,768 | $7,146,079 | $6,644,252 |
Costs and Expenses | |||
Cost of sales | 4,085,602 | 3,865,231 | 3,784,370 |
Selling, marketing and administrative | 1,900,970 | 1,922,508 | 1,703,796 |
Business realignment and impairment charges | 45,621 | 18,665 | 44,938 |
Total costs and expenses | 6,032,193 | 5,806,404 | 5,533,104 |
Income before interest and income taxes | 1,389,575 | 1,339,675 | 1,111,148 |
Interest expense, net | 83,532 | 88,356 | 95,569 |
Income before income taxes | 1,306,043 | 1,251,319 | 1,015,579 |
Provision for income taxes | 459,131 | 430,849 | 354,648 |
Net income | $846,912 | $820,470 | $660,931 |
Common Stock | |||
Costs and Expenses | |||
Earnings Per Share - Basic | $3.91 | $3.76 | $3.01 |
Earnings Per Share - Diluted | $3.77 | $3.61 | $2.89 |
Cash Dividends Paid Per Share | |||
Common Stock | $2.04 | $1.81 | $1.56 |
Common Class B | |||
Costs and Expenses | |||
Earnings Per Share - Basic | $3.54 | $3.39 | $2.73 |
Earnings Per Share - Diluted | $3.52 | $3.37 | $2.71 |
Cash Dividends Paid Per Share | |||
Common Stock | $1.84 | $1.63 | $1.41 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $202,508 | $223,741 | $168,168 | $252,495 | $186,075 | $232,985 | $159,504 | $241,906 | $846,912 | $820,470 | $660,931 |
Other comprehensive (loss) income, net of tax: | |||||||||||
Foreign currency translation adjustments | -26,851 | -26,003 | 7,714 | ||||||||
Pension and post-retirement benefit plans | -85,016 | 166,403 | -9,634 | ||||||||
Cash flow hedges: | |||||||||||
(Losses) gains on cash flow hedging derivatives | -37,077 | 72,334 | -868 | ||||||||
Reclassification adjustments | -43,062 | 5,775 | 60,043 | ||||||||
Total other comprehensive (loss) income, net of tax | -192,006 | 218,509 | 57,255 | ||||||||
Comprehensive Income | $654,906 | $1,038,979 | $718,186 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $374,854 | $1,118,508 |
Short-term investments | 97,131 | 0 |
Accounts receivable - trade, net | 596,940 | 477,912 |
Inventories | 801,036 | 659,541 |
Deferred income taxes | 100,515 | 52,511 |
Prepaid expenses and other | 276,571 | 178,862 |
Total current assets | 2,247,047 | 2,487,334 |
Property, Plant and Equipment, Net | 2,151,901 | 1,805,345 |
Goodwill | 792,955 | 576,561 |
Other intangibles | 294,841 | 195,244 |
Other assets | 142,772 | 293,004 |
Total assets | 5,629,516 | 5,357,488 |
Current Liabilities | ||
Accounts payable | 482,017 | 461,514 |
Accrued liabilities | 813,513 | 699,722 |
Accrued income taxes | 4,616 | 79,911 |
Short-term debt | 384,696 | 165,961 |
Current portion of long-term debt | 250,805 | 914 |
Total current liabilities | 1,935,647 | 1,408,022 |
Long-term debt | 1,548,963 | 1,795,142 |
Other long-term liabilities | 526,003 | 434,068 |
Deferred income taxes | 99,373 | 104,204 |
Total liabilities | 4,109,986 | 3,741,436 |
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock | 299,281 | 299,281 |
Class B common stock | 60,620 | 60,620 |
Additional paid-in capital | 754,186 | 664,944 |
Retained earnings | 5,860,784 | 5,454,286 |
Treasury-common stock shares, at cost | -5,161,236 | -4,707,730 |
Accumulated other comprehensive loss | -358,573 | -166,567 |
The Hershey Company stockholders' equity | 1,455,062 | 1,604,834 |
Noncontrolling interests in subsidiaries | 64,468 | 11,218 |
Total stockholders' equity | 1,519,530 | 1,616,052 |
Total liabilities and stockholders' equity | $5,629,516 | $5,357,488 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||
Preferred Stock, shares issued | 0 | 0 |
Common Stock, shares issued | 359,901,744 | 359,901,744 |
Treasury Common Stock Shares At Cost | 138,856,786 | 136,007,023 |
Common Stock | ||
Class of Stock [Line Items] | ||
Common Stock, shares issued | 299,281,967 | 299,281,527 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common Stock, shares issued | 60,619,777 | 60,620,217 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net Income | $846,912 | $820,470 | $660,931 |
Adjustments to reconcile net income to net cash provided from operations | |||
Depreciation and amortization | 211,532 | 201,033 | 210,037 |
Stock-based compensation expense | 54,068 | 53,967 | 50,482 |
Excess tax benefits from stock-based compensation | -53,497 | -48,396 | -33,876 |
Deferred income taxes | 18,796 | 7,457 | 13,785 |
Non-cash business realignment and impairment charges | 39,988 | 0 | 38,144 |
Contributions to pension and other benefit plans | -53,110 | -57,213 | -44,208 |
Changes in assets and liabilities, net of effects from business acquisitions and divestitures | |||
Accounts receivable - trade, net | -67,464 | -16,529 | -50,470 |
Inventories | -88,497 | -26,279 | 26,598 |
Accounts payable and accrued liabilities | -13,847 | 102,411 | 69,645 |
Other assets and liabilities | -56,660 | 151,484 | 153,759 |
Net cash provided by operating activities | 838,221 | 1,188,405 | 1,094,827 |
Investing Activities | |||
Capital additions | -345,947 | -323,551 | -258,727 |
Capitalized software additions | -24,842 | -27,360 | -19,239 |
Proceeds from sales of property, plant and equipment | 1,612 | 15,331 | 453 |
Loan to affiliate | 0 | -16,000 | -23,000 |
Business acquisitions, net of cash and cash equivalents acquired | -396,265 | 0 | -172,856 |
Purchase of short-term investments | -97,131 | 0 | 0 |
Net cash used in investing activities | -862,573 | -351,580 | -473,369 |
Financing Activities | |||
Net increase in short-term debt | 117,515 | 54,351 | 77,698 |
Long-term borrowings | 3,051 | 250,595 | 4,025 |
Repayment of long-term debt | -1,442 | -250,761 | -99,381 |
Cash dividends paid | -440,414 | -393,801 | -341,206 |
Exercise of stock options | 122,306 | 147,255 | 261,597 |
Excess tax benefits from stock-based compensation | 53,497 | 48,396 | 33,876 |
Payments to noncontrolling interests | 0 | 0 | -15,791 |
Contributions from noncontrolling interests | 2,940 | 2,940 | 2,940 |
Repurchase of common stock | -576,755 | -305,564 | -510,630 |
Net cash used in financing activities | -719,302 | -446,589 | -586,872 |
(Decrease) increase in cash and cash equivalents | -743,654 | 390,236 | 34,586 |
Cash and cash equivalents at January 1 | 1,118,508 | 728,272 | 693,686 |
Cash and cash equivalents at December 31 | 374,854 | 1,118,508 | 728,272 |
Interest paid | 87,801 | 92,551 | 100,269 |
Income taxes paid | $384,318 | $373,902 | $327,230 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Common Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Subsidiaries | Total Stockholders' Equity | Class B |
In Thousands | Common Stock | |||||||||
Total stockholders' equity at Dec. 31, 2011 | $0 | $299,269 | $490,817 | $4,707,892 | ($4,258,962) | ($442,331) | $23,626 | $880,943 | $60,632 | |
Net Income | 660,931 | 660,931 | 660,931 | |||||||
Other comprehensive income (loss) | 57,255 | 57,255 | 57,255 | |||||||
Common Stock | -255,596 | -255,596 | ||||||||
Class B Common Stock | -85,610 | -85,610 | ||||||||
Conversion of Class B Common Stock into Common Stock | 3 | 0 | -3 | |||||||
Stock-based compensation | 49,175 | 49,175 | ||||||||
Exercise of stock options and incentive-based transactions | 64,028 | 210,924 | 274,952 | |||||||
Repurchase of common stock | -510,630 | -510,630 | -510,630 | |||||||
Acquisition | -11,045 | -4,746 | -15,791 | |||||||
Earnings of and contributions from noncontrolling interests, net | -7,256 | -7,256 | ||||||||
Total stockholders' equity at Dec. 31, 2012 | 0 | 299,272 | 592,975 | 5,027,617 | -4,558,668 | -385,076 | 11,624 | 1,048,373 | 60,629 | |
Net Income | 820,470 | 820,470 | 820,470 | |||||||
Other comprehensive income (loss) | 218,509 | 218,509 | 218,509 | |||||||
Common Stock | -294,979 | -294,979 | ||||||||
Class B Common Stock | -98,822 | -98,822 | ||||||||
Conversion of Class B Common Stock into Common Stock | 9 | 0 | -9 | |||||||
Stock-based compensation | 52,465 | 52,465 | ||||||||
Exercise of stock options and incentive-based transactions | 19,504 | 156,502 | 176,006 | |||||||
Repurchase of common stock | -305,564 | -305,564 | -305,564 | |||||||
Earnings of and contributions from noncontrolling interests, net | -406 | -406 | ||||||||
Total stockholders' equity at Dec. 31, 2013 | 1,616,052 | 0 | 299,281 | 664,944 | 5,454,286 | -4,707,730 | -166,567 | 11,218 | 1,616,052 | 60,620 |
Net Income | 846,912 | 846,912 | 846,912 | |||||||
Other comprehensive income (loss) | -192,006 | -192,006 | -192,006 | |||||||
Common Stock | -328,752 | -328,752 | ||||||||
Class B Common Stock | -111,662 | -111,662 | ||||||||
Stock-based compensation | 52,870 | 52,870 | ||||||||
Exercise of stock options and incentive-based transactions | 36,372 | 123,249 | 159,621 | |||||||
Repurchase of common stock | -576,755 | -576,755 | -576,755 | |||||||
Acquisition | 49,724 | 49,724 | ||||||||
Earnings of and contributions from noncontrolling interests, net | 3,526 | 3,526 | ||||||||
Total stockholders' equity at Dec. 31, 2014 | $1,519,530 | $0 | $299,281 | $754,186 | $5,860,784 | ($5,161,236) | ($358,573) | $64,468 | $1,519,530 | $60,620 |
CONSOLIDATED_STATEMENT_OF_STOC1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock | |||||||||||
Common Stock | $0.54 | $0.54 | $0.49 | $0.49 | $0.49 | $0.49 | $0.42 | $0.42 | $2.04 | $1.81 | $1.56 |
Common Class B | |||||||||||
Common Stock | $0.49 | $0.49 | $0.44 | $0.44 | $0.44 | $0.44 | $0.38 | $0.38 | $1.84 | $1.63 | $1.41 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | ||
The Hershey Company together with its wholly-owned subsidiaries and entities in which it has a controlling interest,(the “Company,” “Hershey,” “we” or “us”) is a global confectionery leader known for its branded portfolio of chocolate, sweets, mints and other great-tasting snacks. The Company has more than 80 brands worldwide including such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher and Ice Breakers, which are marketed, sold and distributed in approximately 70 countries worldwide. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. The Company currently operates through two reportable segments that are aligned with its management structure and the key markets it serves: North America and International and Other. For additional information on our segment presentation, see Note 11. | ||
Basis of Presentation | ||
Our consolidated financial statements include the accounts of The Hershey Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. We have a controlling financial interest if we own a majority of the outstanding voting common stock and minority shareholders do not have substantive participating rights, we have significant control through contractual or economic interests in which we are the primary beneficiary or we have the power to direct the activities that most significantly impact the entity's economic performance. Net income (loss) attributable to noncontrolling interests is not significant and is recorded within selling, marketing and administrative expense in the Consolidated Statements of Income. We use the equity method of accounting when we have a 20% to 50% interest in other companies and exercise significant influence. Net income (loss) from such investments is not significant and is also recorded in selling, marketing and administrative expense. As of December 31, 2013, equity investments included within other long-term assets in the Consolidated Balance Sheets totaled $39,872. We held no equity investments at December 31, 2014. See Note 12 for additional information on our noncontrolling interests. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Our significant estimates and assumptions include, among others, pension and other post-retirement benefit plan assumptions, valuation assumptions of goodwill and other intangible assets, useful lives of long-lived assets, marketing and trade promotion accruals and income taxes. These estimates and assumptions are based on management’s best judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and the effects of any revisions are reflected in the consolidated financial statements in the period that they are determined. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. | ||
Revenue Recognition | ||
We record sales when all of the following criteria have been met: | ||
l | A valid customer order with a fixed price has been received; | |
l | The product has been delivered to the customer; | |
l | There is no further significant obligation to assist in the resale of the product; and | |
l | Collectability is reasonably assured. | |
Net sales include revenue from the sale of finished goods and royalty income, net of allowances for trade promotions, consumer coupon programs and other sales incentives, and allowances and discounts associated with aged or potentially unsaleable products. Trade promotions and sales incentives primarily include reduced price features, merchandising displays, sales growth incentives, new item allowances and cooperative advertising. Sales, use, value-added and other excise taxes are not recognized in revenue. | ||
Cost of Sales | ||
Cost of sales represents costs directly related to the manufacture and distribution of our products. Primary costs include raw materials, packaging, direct labor, overhead, shipping and handling, warehousing and the depreciation of manufacturing, warehousing and distribution facilities. Manufacturing overhead and related expenses include salaries, wages, employee benefits, utilities, maintenance and property taxes. | ||
Selling, Marketing and Administrative Expense | ||
Selling, marketing and administrative expense (“SM&A”) represents costs incurred in generating revenues and in managing our business. Such costs include advertising and other marketing expenses, selling expenses, research and development, administrative and other indirect overhead costs, amortization of capitalized software and depreciation of administrative facilities. Research and development costs, charged to expense as incurred, totaled $47,554 in 2014, $47,636 in 2013 and $38,959 in 2012. Advertising expense, also charged to expense as incurred, totaled $570,223 in 2014, $582,354 in 2013 and $480,016 in 2012. Prepaid advertising expense was $8,193 and $8,432 as of December 31, 2014 and 2013, respectively. | ||
Cash Equivalents | ||
Cash equivalents consist of highly liquid debt instruments, time deposits and money market funds with original maturities of three months or less. The fair value of cash and cash equivalents approximates the carrying amount. | ||
Short-term Investments | ||
Short-term investments consist of bank term deposits that have original maturity dates ranging from greater than three months to twelve months. Short-term investments are carried at cost, which approximates fair value. | ||
Accounts Receivable—Trade | ||
In the normal course of business, we extend credit to customers that satisfy pre-defined credit criteria, based upon the results of our recurring financial account reviews and our evaluation of current and projected economic conditions. Our primary concentrations of credit risk are associated with Wal-Mart Stores, Inc. and McLane Company, Inc., two customers served principally by our North America segment. McLane Company, Inc. is one of the largest wholesale distributors in the United States to convenience stores, drug stores, wholesale clubs and mass merchandisers. As of December 31, 2014, McLane Company, Inc. accounted for approximately 12.8% of our total accounts receivable. Wal-Mart Stores, Inc. accounted for approximately 12.3% of our total accounts receivable as of December 31, 2014. No other customer accounted for more than 10% of our year-end accounts receivable. We believe that we have little concentration of credit risk associated with the remainder of our customer base. Accounts receivable-trade in the Consolidated Balance Sheets is presented net of allowances and anticipated discounts of $15,885 and $14,329 at December 31, 2014 and 2013, respectively. | ||
Inventories | ||
Inventories are valued at the lower of cost or market value, adjusted for the value of inventory that is estimated to be excess, obsolete or otherwise unsaleable. As of December 31, 2014, approximately 54% of our inventories, representing the majority of our U.S. inventories, were valued under the last-in, first-out (“LIFO”) method. The remainder of our inventories in the U.S. and inventories for our international businesses are valued at the lower of first-in, first-out (“FIFO”) cost or market. LIFO cost of inventories valued using the LIFO method was $430,094 as of December 31, 2014 and $314,999 as of December 31, 2013. The net impact of LIFO acquisitions and liquidations was not material to 2014, 2013 or 2012. | ||
Property, Plant and Equipment | ||
Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: 3 to 15 years for machinery and equipment; and 25 to 40 years for buildings and related improvements. Maintenance and repairs are expensed as incurred. We capitalize applicable interest charges incurred during the construction of new facilities and production lines and amortize these costs over the assets’ estimated useful lives. | ||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated. If these assets are considered to be impaired, we measure impairment as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets held for sale or disposal at the lower of the carrying amount or fair value less cost to sell. | ||
We assess asset retirement obligations on a periodic basis and recognize the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. We capitalize associated asset retirement costs as part of the carrying amount of the long-lived asset. | ||
Computer Software | ||
We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and it is probable the software being developed will be completed and placed in service. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the internal-use software project and (iii) interest costs incurred, when material, while developing internal-use software. We cease capitalization of such costs no later than the point at which the project is substantially complete and ready for its intended purpose. | ||
The unamortized amount of capitalized software totaled $63,252 and $56,502 at December 31, 2014 and 2013, respectively. We amortize software costs using the straight-line method over the expected life of the software, generally 3 to 5 years. Accumulated amortization of capitalized software was $300,698 and $277,872 as of December 31, 2014 and 2013, respectively. Such amounts are recorded within other assets in the Consolidated Balance Sheets. | ||
We review the carrying value of software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. Generally, we measure impairment under the following circumstances: | ||
l | When internal-use computer software is not expected to provide substantive service potential; | |
l | When a significant change occurs in the extent or manner in which the software is used or is expected to be used; | |
l | When a significant change is made or will be made to the software program; and | |
l | When the costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software. | |
Goodwill and Other Intangible Assets | ||
Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment tests are conducted at the beginning of the fourth quarter. We use a two-step process to quantitatively evaluate goodwill for impairment. In the first step, we compare the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, we complete a second step to determine the amount of the goodwill impairment that we should record. In the second step, we determine an implied fair value of the reporting unit’s goodwill by allocating the reporting unit’s fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets). We compare the resulting implied fair value of the goodwill to the carrying amount and record an impairment charge for the difference. We test individual indefinite-lived intangible assets by comparing the estimated fair value with the book values of each asset. | ||
We determine the fair value of our reporting units and indefinite-lived intangible assets using an income approach. Under the income approach, we calculate the fair value of our reporting units and indefinite-lived intangible assets based on the present value of estimated future cash flows. Considerable management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate the future cash flows used to measure fair value. Our estimates of future cash flows consider past performance, current and anticipated market conditions and internal projections and operating plans which incorporate estimates for sales growth and profitability, and cash flows associated with taxes and capital spending. Additional assumptions include forecasted growth rates, estimated discount rates, which may be risk-adjusted for the operating market of the reporting unit, and estimated royalty rates that would be charged for comparable branded licenses. We believe such assumptions also reflect current and anticipated market conditions and are consistent with those that would be used by other marketplace participants for similar valuation purposes. Such assumptions are subject to change due to changing economic and competitive conditions. See Note 3 for additional information regarding the results of our annual impairment test. | ||
The cost of intangible assets with finite useful lives is amortized on a straight-line basis. Our finite-lived intangible assets consist primarily of certain trademarks, customer-related intangible assets and patents obtained through business acquisitions, which are amortized over estimated useful lives of approximately 25 years, 15 years, and 5 years, respectively. When certain events or changes in operating conditions indicate that the carrying value of these assets may not be recoverable, we perform an impairment assessment and may adjust the remaining useful lives. | ||
Currency Translation | ||
The financial statements of our foreign entities with functional currencies other than the U.S. dollar are translated into U.S. dollars, with the resulting translation adjustments recorded as a component of other comprehensive income (loss). Assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expense items are translated using the average exchange rates during the period. | ||
Derivative Instruments | ||
We use derivative instruments principally to offset exposure to market risks arising from changes in commodity prices, foreign currency exchange rates and interest rates. See Note 5 for additional information on our risk management strategy and the types of instruments we use. | ||
Derivative instruments are recognized on the balance sheet at their fair values. When we become party to a derivative instrument and intend to apply hedge accounting, we designate the instrument for financial reporting purposes as a cash flow or fair value hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship, as noted below: | ||
• | Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in accumulated other comprehensive income (“AOCI”) to the extent effective and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. | |
• | Changes in the fair value of a derivative that is designated as a fair value hedge, along with the offsetting loss or gain on the hedged asset or liability that is attributable to the risk being hedged, are recorded in earnings, thereby reflecting in earnings the net extent to which the hedge is not effective in achieving offsetting changes in fair value. | |
• | Changes in the fair value of a derivative not designated as a hedging instrument are recognized in earnings in cost of sales or SM&A, consistent with the related exposure. | |
For derivatives designated as hedges, we assess, both at the hedge's inception and on an ongoing basis, whether they are highly effective in offsetting changes in fair values or cash flows of hedged items. The ineffective portion, if any, is recorded directly in earnings. In addition, if we determine that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge accounting prospectively. | ||
We do not hold or issue derivative instruments for trading or speculative purposes and are not a party to any instruments with leverage or prepayment features. | ||
Cash flows related to the derivative instruments we use to manage interest, commodity or other currency exposures are classified as operating activities. | ||
Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the effect that ASU No. 2014-09 will have on our consolidated financial statements and related disclosures. | ||
No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
BUSINESS_ACQUISITIONS_AND_DIVE
BUSINESS ACQUISITIONS AND DIVESTITURES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Business Combination Disclosure | BUSINESS ACQUISITIONS AND DIVESTITURES | |||
Acquisitions | ||||
Acquisitions of businesses are accounted for as purchases and, accordingly, the results of operations of the businesses acquired have been included in the consolidated financial statements since the respective dates of the acquisitions. The purchase price for each of the acquisitions is allocated to the assets acquired and liabilities assumed. | ||||
Shanghai Golden Monkey | ||||
On September 26, 2014 (the “Initial Acquisition”), our wholly-owned subsidiary, Hershey Netherlands B.V., completed the acquisition of 80% of the total outstanding shares of Shanghai Golden Monkey Food Joint Stock Co., Ltd. (“SGM”), a privately held confectionery company based in Shanghai, China operating through six production facilities located in China. The Golden Monkey product line is primarily sold in China's traditional trade channels. The business complements our position in China, and we expect to take advantage of SGM's distribution and manufacturing capabilities to expand sales of our Hershey products in the China marketplace. Our consolidated net sales for the year ended December 31, 2014 included approximately $54 million generated by SGM since the date of acquisition. | ||||
The Initial Acquisition was funded by cash consideration of $394,470, subject to working capital and net debt adjustments. As of December 31, 2014, we have recorded a receivable of $37,860, reflecting our current best estimate of the amount due from the selling SGM shareholders for the working capital and net debt adjustments. Such amount is reflected within prepaid expenses and other in the Consolidated Balance Sheet at December 31, 2014. | ||||
Hershey Netherlands B.V. has contractually agreed to purchase the remaining 20% of the outstanding shares of SGM on the one-year anniversary of the Initial Acquisition, subject to the parties obtaining government and regulatory approvals and satisfaction of other closing conditions. As such, we have recorded a liability of $100,067, reflecting the fair value of the future payment to be made to the SGM shareholders. This liability is included within accrued liabilities in the Consolidated Balance Sheet at December 31, 2014. | ||||
The total purchase consideration, net of cash and cash equivalents acquired totaling $14,727, was allocated to the net assets acquired based on their respective fair values at September 26, 2014, as follows: | ||||
In millions of dollars | Purchase Price Allocation | |||
Accounts receivable - trade | $ | 46 | ||
Inventories | 42 | |||
Other current assets | 37 | |||
Property, plant and equipment | 112 | |||
Goodwill | 235 | |||
Distribution channel relationships | 85 | |||
Trademarks | 60 | |||
Other non-current assets | 35 | |||
Current liabilities assumed | (54 | ) | ||
Short-term debt assumed | (105 | ) | ||
Other non-current liabilities assumed, principally deferred taxes | (52 | ) | ||
Net assets acquired | $ | 441 | ||
We are continuing to refine the valuations of acquired assets and liabilities and expect to finalize the purchase price allocation in 2015. Most notably, we are conducting additional procedures to assess the valuation of working capital-related balances at the acquisition date. | ||||
Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. The goodwill resulting from the acquisition is attributable primarily to the value of providing an established platform to leverage our brands in the China market, as well as expected synergies and other benefits from the combined brand portfolios. The recorded goodwill is not expected to be deductible for tax purposes. | ||||
Acquired distribution channel relationships and trademarks were assigned estimated useful lives of 16 years and 22 years, respectively. | ||||
Lotte Shanghai Food Company | ||||
In March 2014, we acquired an additional 5.9% interest in Lotte Shanghai Food Company (“LSFC”), a joint venture established in 2007 in China for the purpose of manufacturing and selling product to the venture partners. For this additional interest, we paid $5,580 in cash, increasing our ownership from 44.1% to 50%. At the same time, we also amended the LSFC shareholders' agreement resulting in our operational control over the venture. With the additional operational control, we reassessed our involvement with LSFC and concluded that we have a controlling financial interest. Therefore, we consolidated the venture as of the March 2014 acquisition date. We had previously accounted for our investment in LSFC using the equity method. | ||||
Total consideration transferred was approximately $99,161, including the $5,580 cash consideration paid, the estimated fair value of our previously held equity interest of $43,857 and the estimated fair value of the remaining noncontrolling interest in LSFC of $49,724, which fair values were determined using a market-based approach. The fair value of the LSFC assets acquired and liabilities assumed on the acquisition date was $99,449, including fixed assets of $106,253, short-term debt obligations of $13,292 and other net assets of $6,488. | ||||
We recognized a gain of approximately $4,627 in connection with this transaction, primarily related to the remeasurement of the fair value of our equity interest immediately before the business combination. The gain is included in selling, marketing and administrative within our Consolidated Statement of Income for the year ended December 31, 2014. Additionally, cash acquired in the transaction exceeded the $5,580 paid for the controlling interest by $10,035, resulting in a positive cash impact from the acquisition as presented in the Consolidated Statement of Cash Flows for the year ended December 31, 2014. | ||||
The Allan Candy Company Limited | ||||
In December 2014, our wholly-owned subsidiary, Hershey Canada Inc., completed the acquisition of all of the outstanding shares of The Allan Candy Company Limited (“Allan”) for cash consideration of approximately $27,376, subject to a working capital adjustment. Allan is headquartered in Ontario, Canada and manufactures certain non-chocolate products on behalf of Hershey, in addition to manufacturing and distributing its own branded products, principally in Canada. The preliminary purchase price allocation includes fixed assets of $10,897, goodwill of $6,996, other intangible assets of $8,092, and other net assets of $1,391. Other intangibles include customer relationships and trademarks with estimated useful lives ranging from 3 to 19 years. We expect to finalize the purchase price allocation for Allan by mid-2015. | ||||
Brookside Foods Ltd. | ||||
In January 2012, we acquired all of the outstanding stock of Brookside Foods Ltd. (“Brookside”), a privately held confectionery company based in Abbottsford, British Columbia, Canada. As part of this transaction, we acquired two production facilities located in British Columbia and Quebec. The Brookside product line is primarily sold in the U.S. and Canada in a take-home re-sealable pack type. | ||||
Our financial statements reflect the final accounting for the Brookside acquisition. The purchase price for the acquisition was approximately $173,000. The purchase price allocation of the Brookside acquisition is as follows: | ||||
In millions of dollars | Purchase Price | |||
Allocation | ||||
Goodwill | $ | 68 | ||
Trademarks | 60 | |||
Other intangibles | 51 | |||
Other assets, net of liabilities assumed of $18.7 million | 22 | |||
Non-current deferred tax liabilities | (28 | ) | ||
Purchase price | $ | 173 | ||
The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was recorded to goodwill. The goodwill is not expected to be deductible for tax purposes. | ||||
Acquired trademarks were assigned estimated useful lives of 25 years, while other intangibles, including customer relationships, patents and covenants not to compete, were assigned estimated useful lives ranging from 6 to 17 years. | ||||
Pro Forma Presentation | ||||
Pro forma results of operations have not been presented for these acquisitions, as the impact on our consolidated financial statements is not material. In 2014 and 2013, we incurred net acquisition-related costs primarily related to the SGM acquisition of $13,270 and $4,072, respectively. In 2012, we incurred acquisition costs of $13,374, primarily related to the Brookside acquisition. These costs are recorded within selling, marketing and administrative costs in the Consolidated Statements of Income and primarily include third-party advisory fees; however, the 2014 costs also include net foreign currency exchange losses relating to our strategy to cap the SGM acquisition price as denominated in U.S. dollars. | ||||
Planned Divestiture | ||||
In December 2014, we entered into an agreement to sell the Mauna Loa Macadamia Nut Corporation (“Mauna Loa”) for $38,000, subject to a working capital adjustment and customary closing conditions. The sale is expected to be finalized in the first quarter of 2015. As a result of the expected sale, we have recorded an estimated loss on the anticipated sale of $22,256 to reflect the disposal entity at fair value, less an estimate of the selling costs. This amount includes impairment charges totaling $18,531 to write down goodwill and the indefinite-lived trademark intangible asset, based on the valuation of these assets as implied by the agreed-upon sales price. The estimated loss on the anticipated sale is reflected within business realignment and impairment costs in the Consolidated Statements of Income. Mauna Loa is reported within our North America segment. Its operations are not material to our annual net sales, net income or earnings per share. | ||||
Amounts classified as assets and liabilities held for sale at December 31, 2014 have been presented within prepaid expenses and other assets and accrued liabilities, respectively, and include the following: | ||||
Assets held for sale | ||||
Inventories | $ | 21,489 | ||
Prepaid expenses and other | 173 | |||
Property, plant and equipment, net | 12,691 | |||
Other intangibles | 12,705 | |||
$ | 47,058 | |||
Liabilities held for sale | ||||
Accounts payable and accrued liabilities | $ | 3,726 | ||
Other long-term liabilities | 9,029 | |||
$ | 12,755 | |||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||
The changes in the carrying value of goodwill by reportable segment for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
North America | International and Other | Total | |||||||||||||||||||
Goodwill | $ | 552,596 | $ | 105,553 | $ | 658,149 | |||||||||||||||
Accumulated impairment loss | (4,973 | ) | (65,173 | ) | (70,146 | ) | |||||||||||||||
Balance at January 1, 2013 | 547,623 | 40,380 | 588,003 | ||||||||||||||||||
Acquisitions | — | — | — | ||||||||||||||||||
Foreign currency translation | (8,968 | ) | (2,474 | ) | (11,442 | ) | |||||||||||||||
Balance at December 31, 2013 | 538,655 | 37,906 | 576,561 | ||||||||||||||||||
Acquisitions | 6,996 | 235,138 | 242,134 | ||||||||||||||||||
Impairment charge | — | (11,400 | ) | (11,400 | ) | ||||||||||||||||
Transfer to assets held for sale | (1,448 | ) | — | (1,448 | ) | ||||||||||||||||
Foreign currency translation | (10,854 | ) | (2,038 | ) | (12,892 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | 533,349 | $ | 259,606 | $ | 792,955 | |||||||||||||||
As discussed in Note 1, we perform our annual impairment test of goodwill and other indefinite-lived intangible assets at the beginning of the fourth quarter. Our goodwill is currently attributed to six reporting units. For step one of our 2014 annual test, the percentage of excess fair value over carrying value was at least 50% for each of our six tested reporting units, with the exception of our India reporting unit, whose estimated fair value approximated its carrying value. As a result and given the sensitivity of the India impairment analysis to changes in the underlying assumptions, we performed a step two analysis which indicated goodwill impairment of $11,400. Our 2014 annual test of indefinite-lived intangible assets also resulted in a $4,500 pre-tax write-down of a trademark associated with the India business. These impairment charges were recorded in the fourth quarter. We believe the impairments are largely a result of our recent decision to exit the oils portion of the business and realign our approach to regional marketing and distribution in India. | |||||||||||||||||||||
The following table provides the gross carrying amount and accumulated amortization for each major class of intangible asset: | |||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||
Trademarks | $ | 129,223 | $ | (7,593 | ) | $ | 66,274 | $ | (5,198 | ) | |||||||||||
Customer-related | 138,964 | (20,404 | ) | 70,906 | (26,844 | ) | |||||||||||||||
Patents | 18,383 | (11,447 | ) | 19,278 | (9,737 | ) | |||||||||||||||
Other | 8,805 | (6,090 | ) | 9,906 | (5,861 | ) | |||||||||||||||
Total | 295,375 | (45,534 | ) | 166,364 | (47,640 | ) | |||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||
Trademarks with indefinite lives | 45,000 | 76,520 | |||||||||||||||||||
Total intangible assets, net | $ | 294,841 | $ | 195,244 | |||||||||||||||||
Total amortization expense for the years ended December 31, 2014, 2013 and 2012 was $11,328, $10,849 and $10,559, respectively. | |||||||||||||||||||||
Amortization expense for the next five years, based on current intangible balances, is estimated to be as follows: | |||||||||||||||||||||
Annual Amortization Expense | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated amortization expense | $ | 16,676 | $ | 16,629 | $ | 16,253 | $ | 13,972 | $ | 13,792 | |||||||||||
SHORT_AND_LONGTERM_DEBT
SHORT AND LONG-TERM DEBT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Short and Long-Term Debt | SHORT AND LONG-TERM DEBT | ||||||||||||
Short-term Debt | |||||||||||||
As a source of short-term financing, we utilize cash on hand and commercial paper or bank loans with an original maturity of three months or less. In October 2011, we entered into a new five-year agreement establishing an unsecured revolving credit facility to borrow up to $1.1 billion, with an option to increase borrowings by an additional $400,000 with the consent of the lenders. In November 2013, this agreement was amended to reduce the amount of borrowings available under the unsecured revolving credit facility to $1.0 billion, maintain the option to increase borrowings by an additional $400,000 with the consent of the lenders, and extend the termination date to November 2018. In November 2014, the termination date of this agreement was extended an additional year to November 2019. At December 31, 2014, we had outstanding commercial paper totaling $54,995, at a weighted average interest rate of 0.09%. We had no commercial paper borrowings at December 31, 2013. | |||||||||||||
The unsecured committed revolving credit agreement contains a financial covenant whereby the ratio of (a) pre-tax income from operations from the most recent four fiscal quarters to (b) consolidated interest expense for the most recent four fiscal quarters may not be less than 2.0 to 1.0 at the end of each fiscal quarter. The credit agreement also contains customary representations, warranties and events of default. Payment of outstanding advances may be accelerated, at the option of the lenders, should we default in our obligation under the credit agreement. As of December 31, 2014, we complied with all customary affirmative and negative covenants and the financial covenant pertaining to our credit agreement. There were no significant compensating balance agreements that legally restricted these funds. | |||||||||||||
In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks. Our credit limit in various currencies was $447,629 in 2014 and $290,336 in 2013. These lines permit us to borrow at the respective banks’ prime commercial interest rates, or lower. We had short-term foreign bank loans against these lines of credit for $329,701 in 2014 and $165,961 in 2013. Commitment fees relating to our revolving credit facility and lines of credit are not material. | |||||||||||||
The maximum amount of short-term borrowings outstanding during 2014 was $649,195. The weighted-average interest rate on short-term borrowings outstanding was 3.2% as of December 31, 2014 and 1.9% as of December 31, 2013. | |||||||||||||
Long-term Debt | |||||||||||||
Long-term debt consisted of the following: | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
4.85% Notes due 2015 | $ | 250,000 | $ | 250,000 | |||||||||
5.45% Notes due 2016 | 250,000 | 250,000 | |||||||||||
1.50% Notes due 2016 | 250,000 | 250,000 | |||||||||||
4.125% Notes due 2020 | 350,000 | 350,000 | |||||||||||
8.8% Debentures due 2021 | 100,000 | 100,000 | |||||||||||
2.625% Notes due 2023 | 250,000 | 250,000 | |||||||||||
7.2% Debentures due 2027 | 250,000 | 250,000 | |||||||||||
Other obligations, net of unamortized debt discount | 99,768 | 96,056 | |||||||||||
Total long-term debt | 1,799,768 | 1,796,056 | |||||||||||
Less—current portion | 250,805 | 914 | |||||||||||
Long-term portion | $ | 1,548,963 | $ | 1,795,142 | |||||||||
In the third quarter of 2014, we reclassified to current liabilities $250,000 in outstanding principal amount relating to our 4.85% Notes which come due in August 2015. | |||||||||||||
In May 2012, we filed a Registration Statement on Form S-3 with the U.S. Securities and Exchange Commission that registered an indeterminate amount of debt securities. In April 2013, we repaid $250,000 of 5.0% Notes due in 2013. In May 2013, we issued $250,000 of 2.625% Notes due in 2023 under this Registration Statement. | |||||||||||||
Aggregate annual maturities of long-term debt are as follows for the years ending December 31: | |||||||||||||
2015 | $ | 250,805 | |||||||||||
2016 | 506,342 | ||||||||||||
2017 | 1,454 | ||||||||||||
2018 | 1,024 | ||||||||||||
2019 | 1,111 | ||||||||||||
Thereafter | 1,039,032 | ||||||||||||
Our debt is principally unsecured and of equal priority. None of our debt is convertible into our Common Stock. | |||||||||||||
Interest Expense | |||||||||||||
Net interest expense consisted of the following: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Long-term debt and lease obligations | $ | 82,105 | $ | 84,604 | $ | 81,203 | |||||||
Short-term debt | 11,672 | 8,654 | 23,084 | ||||||||||
Capitalized interest | (6,179 | ) | (1,744 | ) | (5,778 | ) | |||||||
Interest expense | 87,598 | 91,514 | 98,509 | ||||||||||
Interest income | (4,066 | ) | (3,158 | ) | (2,940 | ) | |||||||
Interest expense, net | $ | 83,532 | $ | 88,356 | $ | 95,569 | |||||||
DERIVATIVE_INSTRUMENTS_AND_FAI
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Financial Instruments Disclosure | DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||
We are exposed to market risks arising principally from changes in foreign currency exchange rates, interest rates and commodity prices. We use certain derivative instruments to manage these risks. These include interest rate swaps to manage interest rate risk, foreign currency forward exchange contracts and options to manage foreign currency exchange rate risk, and commodities futures and options contracts to manage commodity market price risk exposures. | |||||||||||||||||||||||||||||||||
We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in the income statement. | |||||||||||||||||||||||||||||||||
In entering into these contracts, we have assumed the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. We mitigate this risk by entering into exchanged-traded contracts with collateral posting requirements and/or by performing financial assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a diverse portfolio of qualified counterparties. We do not expect any significant losses from counterparty defaults. | |||||||||||||||||||||||||||||||||
Commodity Price Risk | |||||||||||||||||||||||||||||||||
We enter into commodities futures and options contracts and other commodity derivative instruments to reduce the effect of future price fluctuations associated with the purchase of raw materials, energy requirements and transportation services. We generally hedge commodity price risks for 3- to 24-month periods. The majority of our commodity derivative instruments meet hedge accounting requirements and are designated as cash flow hedges. We account for the effective portion of mark-to-market gains and losses on commodity derivative instruments in other comprehensive income, to be recognized in cost of sales in the same period that we record the hedged raw material requirements in cost of sales. The ineffective portion of gains and losses is recorded currently in cost of sales. | |||||||||||||||||||||||||||||||||
Foreign Exchange Price Risk | |||||||||||||||||||||||||||||||||
We are exposed to foreign currency exchange rate risk related to our international operations, including non-functional currency intercompany debt and other non-functional currency transactions of certain subsidiaries. Principal currencies hedged include the euro, Canadian dollar, Malaysian ringgit, Swiss franc, Chinese renminbi, Japanese yen, and Brazilian real. We typically utilize foreign currency forward exchange contracts and options to hedge these exposures for periods ranging from 3 to 24 months. The contracts are either designated as cash flow hedges or are undesignated. The net notional amount of foreign exchange contracts accounted for as cash flow hedges was $22,725 at December 31, 2014 and $158,375 at December 31, 2013. The effective portion of the changes in fair value on these contracts is recorded in other comprehensive income and reclassified into earnings in the same period in which the hedged transactions affect earnings. The net notional amount of foreign exchange contracts that are not designated as accounting hedges was $4,144 at December 31, 2014 and $2,823 at December 31, 2013. The change in fair value on these instruments is recorded directly in cost of sales or selling, marketing and administrative expense, depending on the nature of the underlying exposure. | |||||||||||||||||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||||||||||||||||
In order to manage interest rate exposure, from time to time we enter into interest rate swap agreements that effectively convert variable rate debt to a fixed interest rate. These swaps are designated as cash flow hedges, with gains and losses deferred in other comprehensive income to be recognized as an adjustment to interest expense in the same period that the hedged interest payments affect earnings. The notional amount of interest rate derivative instruments in cash flow hedging relationships was $750,000 at December 31, 2014 and $250,000 at December 31, 2013. | |||||||||||||||||||||||||||||||||
We also manage our targeted mix of fixed and floating rate debt with debt issuances and by entering into fixed-to-floating interest rate swaps in order to mitigate fluctuations in earnings and cash flows that may result from interest rate volatility. These swaps are designated as fair value hedges, for which the gain or loss on the derivative and the offsetting loss or gain on the hedged item are recognized in current earnings as interest expense (income), net. The notional amount, interest payment and maturity date of these swaps generally match the principal, interest payment and maturity date of the related debt, and the swaps are valued using observable benchmark rates (Level 2 valuation). The notional amount of interest rate derivative instruments in fair value hedge relationships was $450,000 at December 31, 2014. We had no derivative instruments in fair value hedge relationships at December 31, 2013. | |||||||||||||||||||||||||||||||||
Equity Price Risk | |||||||||||||||||||||||||||||||||
We are exposed to market price changes in certain broad market indices related to our deferred compensation obligations to our employees. In the first quarter of 2014, we entered into equity swap contracts to hedge the portion of the exposure that is linked to market-level equity returns. These contracts are not designated as hedges for accounting purposes and are entered into for periods of 3 to 12 months. The change in fair value of these derivatives is recorded in selling, marketing and administrative expense, together with the change in the related liabilities. The notional amount of the contracts settled on December 31, 2014 was $26,417. | |||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
Accounting guidance on fair value measurements requires that financial assets and liabilities be classified and disclosed in one of the following categories of the fair value hierarchy: | |||||||||||||||||||||||||||||||||
Level 1 – Based on unadjusted quoted prices for identical assets or liabilities in an active market. | |||||||||||||||||||||||||||||||||
Level 2 – Based on observable market-based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||||||||||||||||||||||
Level 3 – Based on unobservable inputs that reflect the entity's own assumptions about the assumptions that a market participant would use in pricing the asset or liability. | |||||||||||||||||||||||||||||||||
We did not have any level 3 financial assets or liabilities, nor were there any transfers between levels during the periods presented. | |||||||||||||||||||||||||||||||||
The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||
Assets (1) | Liabilities (1) | Assets (1) | Liabilities (1) | ||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||||||||||||||||||
Commodities futures and options (2) | $ | — | $ | 9,944 | $ | 4,306 | $ | 129 | |||||||||||||||||||||||||
Foreign exchange contracts (3) | 2,196 | 2,447 | 2,813 | — | |||||||||||||||||||||||||||||
Interest rate swap agreements (4) | — | 29,505 | 22,745 | — | |||||||||||||||||||||||||||||
Cross-currency swap agreement (5) | 2,016 | — | — | — | |||||||||||||||||||||||||||||
4,212 | 41,896 | 29,864 | 129 | ||||||||||||||||||||||||||||||
Derivatives designated as fair value hedging instruments: | |||||||||||||||||||||||||||||||||
Interest rate swap agreements (4) | 1,746 | — | — | — | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Deferred compensation derivatives (6) | 1,074 | — | — | — | |||||||||||||||||||||||||||||
Foreign exchange contracts (3) | 4,049 | 2,334 | 610 | 198 | |||||||||||||||||||||||||||||
5,123 | 2,334 | 610 | 198 | ||||||||||||||||||||||||||||||
Total | $ | 11,081 | $ | 44,230 | $ | 30,474 | $ | 327 | |||||||||||||||||||||||||
-1 | Derivatives assets are classified on our balance sheet within prepaid expenses and other as well as other assets. Derivative liabilities are classified on our balance sheet within accrued liabilities and other long-term liabilities. | ||||||||||||||||||||||||||||||||
-2 | The fair value of commodities futures and options contracts is based on quoted market prices and is, therefore, categorized as Level 1 within the fair value hierarchy. As of December 31, 2014, liabilities include the net of assets of $51,225 and liabilities of $56,840 associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period. The comparable amounts reflected on a net basis in liabilities at December 31, 2013 were assets of $23,780 and liabilities of $23,909. At December 31, 2014, the remaining amount reflected in liabilities related to the fair value of options contracts and other non-exchange traded derivative instruments. At December 31, 2013, the amount reflected in assets related to the fair value of options contracts. | ||||||||||||||||||||||||||||||||
-3 | The fair value of foreign currency forward exchange contracts is the difference between the contract and current market foreign currency exchange rates at the end of the period. We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences. These contracts are classified as Level 2 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
-4 | The fair value of interest rate swap agreements represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Such contracts are categorized as Level 2 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
-5 | The fair value of the cross-currency swap agreement is categorized as Level 2 within the fair value hierarchy and is estimated based on the difference between the contract and current market foreign currency exchange rates at the end of the period. | ||||||||||||||||||||||||||||||||
-6 | The fair value of deferred compensation derivatives is based on quotes prices for market interest rates and a broad market equity index and is, therefore, categorized as Level 2 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||||||||||
The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and short-term debt approximated fair value as of December 31, 2014 and December 31, 2013 because of the relatively short maturity of these instruments. | |||||||||||||||||||||||||||||||||
The estimated fair value of our long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy. The fair values and carrying values of long-term debt, including the current portion, was as follows: | |||||||||||||||||||||||||||||||||
Fair Value | Carrying Value | ||||||||||||||||||||||||||||||||
At December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 257,280 | $ | 914 | $ | 250,805 | $ | 914 | |||||||||||||||||||||||||
Long-term debt | 1,722,308 | 1,947,023 | 1,548,963 | 1,795,142 | |||||||||||||||||||||||||||||
Total | $ | 1,979,588 | $ | 1,947,937 | $ | 1,799,768 | $ | 1,796,056 | |||||||||||||||||||||||||
Other Fair Value Measurements | |||||||||||||||||||||||||||||||||
In addition to assets and liabilities that are recorded at fair value on a recurring basis, U.S. GAAP requires that, under certain circumstances, we also record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. As discussed in Note 2, in connection with the planned Mauna Loa divestiture, we classified the net assets as held for sale as of December 31, 2014, resulting in an impairment charge of $18,531 based upon the agreed-upon sales price and related transaction costs. The loss was calculated based on Level 3 inputs and included in 2014 earnings. Also in 2014, as discussed in Note 3, in connection with our annual impairment testing of goodwill and indefinite-lived intangible assets, we recorded impairment charges totaling $15,900 relating to our India business. These charges were determined by comparing the fair value of the assets to their carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. | |||||||||||||||||||||||||||||||||
Income Statement Impact of Derivative Instruments | |||||||||||||||||||||||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income for the years ended December 31, 2014 and December 31, 2013 was as follows: | |||||||||||||||||||||||||||||||||
Non-designated Hedges | Cash Flow Hedges | ||||||||||||||||||||||||||||||||
Gains (losses) recognized in income (a) | Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion) | Gains (losses) reclassified from accumulated OCI into income (effective portion) (b) | Gains recognized in income (ineffective portion) (c) | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Commodities futures and options | $ | 2,339 | $ | — | $ | (11,165 | ) | $ | 84,746 | $ | 68,500 | $ | (8,400 | ) | $ | 2,498 | $ | 3,241 | |||||||||||||||
Foreign exchange contracts | (1,486 | ) | — | 2,056 | 4,049 | 3,403 | 2,641 | — | — | ||||||||||||||||||||||||
Interest rate swap agreements | — | — | (52,249 | ) | 27,534 | (4,500 | ) | (3,606 | ) | — | — | ||||||||||||||||||||||
Deferred compensation derivatives | 2,983 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 3,836 | $ | — | $ | (61,358 | ) | $ | 116,329 | $ | 67,403 | $ | (9,365 | ) | $ | 2,498 | $ | 3,241 | |||||||||||||||
(a) | Gains recognized in income for non-designated commodities futures and options contracts were included in cost of sales. Gains (losses) recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were included in selling, marketing and administrative expenses. | ||||||||||||||||||||||||||||||||
(b) | Gains (losses) reclassified from AOCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the year ended December 31, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from AOCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period originally designated or the subsequent two months thereafter. Losses reclassified from AOCI into income for interest rate swap agreements were included in interest expense. | ||||||||||||||||||||||||||||||||
(c) | Gains representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts. | ||||||||||||||||||||||||||||||||
The amount of net gains on derivative instruments, including interest rate swap agreements, foreign currency forward exchange contracts and options, commodities futures and options contracts, and other commodity derivative instruments expected to be reclassified into earnings in the next 12 months was approximately $377 after tax as of December 31, 2014. This amount was primarily associated with commodities futures contracts. | |||||||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||||||
For the year ended December 31, 2014, we recognized a net pretax benefit to interest expense of $938 relating to our fixed-to-floating interest swap arrangements. |
COMPREHENSIVE_INCOME
COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Comprehensive Income Disclosure [Abstract] | |||||||||||||
Comprehensive Income | COMPREHENSIVE INCOME | ||||||||||||
A summary of the components of comprehensive income is as follows: | |||||||||||||
For the year ended December 31, 2014 | Pre-Tax | Tax | After-Tax | ||||||||||
Amount | (Expense) | Amount | |||||||||||
Benefit | |||||||||||||
Net income | $ | 846,912 | |||||||||||
Other comprehensive loss: | |||||||||||||
Foreign currency translation adjustments | $ | (26,851 | ) | $ | — | (26,851 | ) | ||||||
Pension and post-retirement benefit plans | (135,361 | ) | 50,345 | (85,016 | ) | ||||||||
Cash flow hedges: | |||||||||||||
Losses on cash flow hedging derivatives | (61,358 | ) | 24,281 | (37,077 | ) | ||||||||
Reclassification adjustments | (67,403 | ) | 24,341 | (43,062 | ) | ||||||||
Total other comprehensive loss | $ | (290,973 | ) | $ | 98,967 | (192,006 | ) | ||||||
Comprehensive income | $ | 654,906 | |||||||||||
For the year ended December 31, 2013 | Pre-Tax | Tax | After-Tax | ||||||||||
Amount | (Expense) | Amount | |||||||||||
Benefit | |||||||||||||
Net income | $ | 820,470 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | $ | (26,003 | ) | $ | — | (26,003 | ) | ||||||
Pension and post-retirement benefit plans | 265,015 | (98,612 | ) | 166,403 | |||||||||
Cash flow hedges: | |||||||||||||
Gains on cash flow hedging derivatives | 116,329 | (43,995 | ) | 72,334 | |||||||||
Reclassification adjustments | 9,365 | (3,590 | ) | 5,775 | |||||||||
Total other comprehensive income | $ | 364,706 | $ | (146,197 | ) | 218,509 | |||||||
Comprehensive income | $ | 1,038,979 | |||||||||||
For the year ended December 31, 2012 | Pre-Tax | Tax | After-Tax | ||||||||||
Amount | (Expense) | Amount | |||||||||||
Benefit | |||||||||||||
Net income | $ | 660,931 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | $ | 7,714 | $ | — | 7,714 | ||||||||
Pension and post-retirement benefit plans | (15,159 | ) | 5,525 | (9,634 | ) | ||||||||
Cash flow hedges: | |||||||||||||
Losses on cash flow hedging derivatives | (543 | ) | (325 | ) | (868 | ) | |||||||
Reclassification adjustments | 96,993 | (36,950 | ) | 60,043 | |||||||||
Total other comprehensive income | $ | 89,005 | $ | (31,750 | ) | 57,255 | |||||||
Comprehensive income | $ | 718,186 | |||||||||||
The components of accumulated other comprehensive loss, as shown on the Consolidated Balance Sheets, are as follows: | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Foreign currency translation adjustments | $ | (43,681 | ) | $ | (16,830 | ) | |||||||
Pension and post-retirement benefit plans, net of tax | (284,650 | ) | (199,634 | ) | |||||||||
Cash flow hedges, net of tax | (30,242 | ) | 49,897 | ||||||||||
Total accumulated other comprehensive loss | $ | (358,573 | ) | $ | (166,567 | ) |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||
Our income (loss) before income taxes was as follows: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 1,320,738 | $ | 1,252,208 | $ | 980,176 | |||||||
Foreign | (14,695 | ) | (889 | ) | 35,403 | ||||||||
Income before income taxes | $ | 1,306,043 | $ | 1,251,319 | $ | 1,015,579 | |||||||
Our provision for income taxes was as follows: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 385,642 | $ | 372,649 | $ | 299,122 | |||||||
State | 52,331 | 47,980 | 36,187 | ||||||||||
Foreign | 2,362 | 2,763 | 5,554 | ||||||||||
Current provision for income taxes | 440,335 | 423,392 | 340,863 | ||||||||||
Deferred: | |||||||||||||
Federal | 20,649 | 11,334 | 5,174 | ||||||||||
State | 2,725 | 2,212 | 1,897 | ||||||||||
Foreign | (4,578 | ) | (6,089 | ) | 6,714 | ||||||||
Deferred income tax provision | 18,796 | 7,457 | 13,785 | ||||||||||
Total provision for income taxes | $ | 459,131 | $ | 430,849 | $ | 354,648 | |||||||
The increase in the federal deferred tax provision in 2014 was primarily due to higher deferred tax liabilities associated with bonus depreciation in 2014 compared with 2013. The foreign deferred tax benefit in 2014 principally reflected higher deferred tax assets related to advertising and promotion reserves. | |||||||||||||
The income tax benefit associated with stock-based compensation of $53,497 and $48,396 for the years ended December 31, 2014 and 2013, respectively, reduced accrued income taxes on the Consolidated Balance Sheets. We credited additional paid-in capital to reflect these excess income tax benefits. | |||||||||||||
Deferred taxes reflect temporary differences between the tax basis and financial statement carrying value of assets and liabilities. The significant temporary differences that comprised the deferred tax assets and liabilities were as follows: | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Post-retirement benefit obligations | $ | 109,973 | $ | 101,674 | |||||||||
Accrued expenses and other reserves | 139,492 | 119,387 | |||||||||||
Stock-based compensation | 46,061 | 47,324 | |||||||||||
Derivative instruments | 14,954 | — | |||||||||||
Pension | 24,584 | — | |||||||||||
Lease financing obligation | 18,991 | 19,065 | |||||||||||
Accrued trade promotion reserves | 41,332 | 39,234 | |||||||||||
Net operating loss carryforwards | 50,044 | 39,606 | |||||||||||
Basis difference on assets held for sale | 43,155 | — | |||||||||||
Other | 7,425 | 11,754 | |||||||||||
Gross deferred tax assets | 496,011 | 378,044 | |||||||||||
Valuation allowance | (147,223 | ) | (87,159 | ) | |||||||||
Total deferred tax assets | 348,788 | 290,885 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment, net | 221,389 | 201,224 | |||||||||||
Acquired intangibles | 85,037 | 64,249 | |||||||||||
Inventories | 32,157 | 33,885 | |||||||||||
Derivative instruments | — | 33,779 | |||||||||||
Pension | — | 8,037 | |||||||||||
Other | 9,063 | 1,404 | |||||||||||
Total deferred tax liabilities | 347,646 | 342,578 | |||||||||||
Net deferred tax (liabilities) assets | $ | 1,142 | $ | (51,693 | ) | ||||||||
Included in: | |||||||||||||
Current deferred tax assets, net | $ | 100,515 | $ | 52,511 | |||||||||
Non-current deferred tax liabilities, net | (99,373 | ) | (104,204 | ) | |||||||||
Net deferred tax (liabilities) assets | $ | 1,142 | $ | (51,693 | ) | ||||||||
We believe that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. Changes in deferred tax assets and deferred tax liabilities for derivative instruments reflected the tax impact on net losses as of December 31, 2014 and on net gains as of December 31, 2013. Changes in deferred tax assets and deferred tax liabilities for pension resulted from the change in funded status of our pension plans as of December 31, 2014 compared with December 31, 2013. Additional information on income tax benefits and expenses related to components of accumulated other comprehensive loss is provided in Note 6. | |||||||||||||
The valuation allowances as of December 31, 2014 and 2013 were primarily related to temporary differences associated with advertising and promotions, U.S. capital loss carryforwards and various foreign jurisdictions' tax operating loss carryforwards. | |||||||||||||
The following table reconciles the federal statutory income tax rate with our effective income tax rate: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (reduction) resulting from: | |||||||||||||
State income taxes, net of Federal income tax benefits | 3 | 2.8 | 3.2 | ||||||||||
Qualified production income deduction | (2.4 | ) | (2.6 | ) | (2.5 | ) | |||||||
Business realignment and impairment charges and gain on sale of trademark licensing rights | 0.7 | 0.1 | 0.2 | ||||||||||
International operations | (0.1 | ) | (0.4 | ) | (0.1 | ) | |||||||
Other, net | (1.0 | ) | (0.5 | ) | (0.9 | ) | |||||||
Effective income tax rate | 35.2 | % | 34.4 | % | 34.9 | % | |||||||
The effective income tax rate for 2014 was higher than the effective income tax rate for 2013 due to the impact of tax rates associated with business realignment activities and impairment charges. The reduction in the 2013 effective income tax rate from international operations resulted from an increase in deductions associated with certain foreign tax jurisdictions. The 2012 impact from state income taxes reflects the impact of certain state tax legislation. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 103,963 | $ | 51,520 | |||||||||
Additions for tax positions taken during prior years | — | 58,246 | |||||||||||
Reductions for tax positions taken during prior years | (71,643 | ) | (5,776 | ) | |||||||||
Additions for tax positions taken during the current year | 8,403 | 5,523 | |||||||||||
Settlements | (4,643 | ) | — | ||||||||||
Expiration of statutes of limitations | (3,850 | ) | (5,550 | ) | |||||||||
Balance at end of year | $ | 32,230 | $ | 103,963 | |||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $23,502 as of December 31, 2014 and $31,712 as of December 31, 2013. | |||||||||||||
We report accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized a net tax benefit of $9,082 in 2014, a net tax expense of $5,901 in 2013 and a net tax benefit of $5,270 in 2012 for interest and penalties. Accrued net interest and penalties were $2,638 as of December 31, 2014 and $11,718 as of December 31, 2013. | |||||||||||||
We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. A number of years may elapse before an uncertain tax position, for which we have unrecognized tax benefits, is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our unrecognized tax benefits reflect the most likely outcome. We adjust these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. Favorable resolution would be recognized as a reduction to our effective income tax rate in the period of resolution. | |||||||||||||
The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions include the United States (federal and state), Canada and Mexico. U.S., Canadian and Mexican federal audit issues typically involve the timing of deductions and transfer pricing adjustments. During the first quarter of 2013, the U.S. Internal Revenue Service (“IRS”) commenced its audit of our U.S. income tax returns for 2009 through 2011. The audit was concluded in the second quarter of 2014. Tax examinations by various state taxing authorities could be conducted for years beginning in 2011. | |||||||||||||
We are no longer subject to Canadian federal income tax examinations by the Canada Revenue Agency (“CRA”) for years before 2007. The CRA commenced its audit of our Canadian income tax returns for 2010 through 2012 in the second quarter of 2014. During the fourth quarter of 2013, the CRA concluded its audit for 2007 through 2009 and issued a letter to us indicating proposed adjustments primarily associated with business realignment charges and transfer pricing. During the third quarter of 2014, the CRA withdrew the proposed adjustments related to business realignment charges and transfer pricing of inventory, and we paid a $2,212 assessment related to other cross-border adjustments. During the fourth quarter of 2014, the CRA concluded its audit for 2010 through 2012 and issued a letter to us indicating proposed transfer pricing adjustments. We provided notice to the U.S. Competent Authority and the CRA provided notice to the Canada Competent Authority of the likely need for their assistance to resolve the adjustments. Accordingly, as of December 31, 2014, we recorded a non-current receivable of approximately $1,568 associated with the anticipated resolution of the adjustments by the Competent Authority of each country. | |||||||||||||
We are no longer subject to Mexican federal income tax examinations by the Servicio de Administracion Tributaria (“SAT”) for years before 2009. We work with the IRS, the CRA, and the SAT to resolve proposed audit adjustments and to minimize the amount of adjustments. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations. | |||||||||||||
We reasonably expect reductions in the liability for unrecognized tax benefits of approximately $6,407 within the next 12 months because of the expiration of statutes of limitations and settlements of tax audits. | |||||||||||||
As of December 31, 2014, we had approximately $195,887 of undistributed earnings of our international subsidiaries. We intend to continue to reinvest earnings outside the United States for the foreseeable future and, therefore, have not recognized any U.S. tax expense on these earnings. |
BUSINESS_REALIGNMENT_AND_IMPAI
BUSINESS REALIGNMENT AND IMPAIRMENT CHARGES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Business Realignment and Impairment Charges | BUSINESS REALIGNMENT AND IMPAIRMENT CHARGES | ||||||||||||
Business realignment and impairment charges recorded during 2014, 2013 and 2012 were as follows: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Cost of sales - Next Century and other programs | $ | 1,622 | $ | 402 | $ | 36,383 | |||||||
Selling, marketing and administrative - Next Century and other programs | 2,947 | 18 | 2,446 | ||||||||||
Business realignment and impairment charges: | |||||||||||||
Next Century program: | |||||||||||||
Pension settlement loss | — | — | 15,787 | ||||||||||
Plant closure expenses | 7,465 | 16,387 | 20,780 | ||||||||||
Employee separation costs | — | — | 914 | ||||||||||
Planned divestiture of Mauna Loa | 22,256 | — | — | ||||||||||
India impairment | 15,900 | — | — | ||||||||||
India voluntary retirement program | — | 2,278 | — | ||||||||||
Tri-US, Inc. asset impairment charges | — | — | 7,457 | ||||||||||
Total business realignment and impairment charges | 45,621 | 18,665 | 44,938 | ||||||||||
Total charges associated with business realignment initiatives | $ | 50,190 | $ | 19,085 | $ | 83,767 | |||||||
Next Century Program | |||||||||||||
In June 2010, we announced Project Next Century (the “Next Century program”) as part of our ongoing efforts to create an advantaged supply chain and competitive cost structure. As part of the program, production was transitioned from the Company's century-old facility at 19 East Chocolate Avenue in Hershey, Pennsylvania, to an expanded West Hershey facility, which was built in 1992. The Next Century program is substantially complete as of December 31, 2014. Project-to-date costs totaled $197.9 million through December 31, 2014, in line with our estimates of total pre-tax charges and non-recurring project implementation costs of $190 million to $200 million. | |||||||||||||
In 2014 and 2013, plant closure and other expenses were primarily related to costs associated with the demolition of the former manufacturing facility. | |||||||||||||
In 2012, charges relating to the Next Century program included the following: $36,383 recorded in cost of sales related primarily to start-up costs and accelerated depreciation of fixed assets over the reduced estimated remaining useful lives; $2,446 recorded in selling, marketing and administrative expense for project administration; business realignment charges of $15,787 relating to a non-cash pension settlement loss resulting from lump sum withdrawals by employees retiring or leaving the Company, primarily in connection with the Next Century program; and $20,780 primarily related to costs associated with the closure of the former manufacturing facility and the relocation of production lines. | |||||||||||||
Planned divestiture of Mauna Loa | |||||||||||||
In December 2014, we entered into an agreement to sell Mauna Loa. In connection with the anticipated sale, we have recorded an estimated loss of $22,256 to reflect the disposal entity at fair value, less an estimate of the selling costs. See Note 2 for additional information. | |||||||||||||
India impairment | |||||||||||||
In connection with our annual goodwill and other intangible asset impairment testing, in December 2014, we recorded a non-cash goodwill and other intangible asset impairment charge of $15,900 associated with our business in India. See Note 3 for additional information. | |||||||||||||
Other international restructuring programs | |||||||||||||
During 2014, we implemented restructuring programs at several non-U.S. entities to rationalize select manufacturing and distribution activities, resulting in severance and accelerated depreciation costs of $4,476. These costs were recorded within cost of sales and selling, marketing and administrative expenses. We expect to incur approximately $3,700 of additional accelerated depreciation in 2015; other remaining costs relating to these programs are not expected to be significant. | |||||||||||||
Tri-US, Inc. impairment charges | |||||||||||||
In December 2012, the board of directors of Tri-US, Inc., a company that manufactured, marketed and sold nutritional beverages in which we held a controlling ownership interest decided to cease operations as a result of operational difficulties, quality issues and competitive constraints. It was determined that investments necessary to continue the business would not generate a sufficient return. Accordingly, in December 2012, the Company recorded non-cash asset impairment charges of $7,457, primarily associated with the write off of goodwill and other intangible assets. These charges excluded the portion of the losses attributable to the noncontrolling interests. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [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 plans are The Hershey Company Retirement Plan and The Hershey Company Retirement Plan for Hourly Employees. These are cash balance plans that provide pension benefits for most domestic 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, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Projected benefits obligation at beginning of year | $ | 1,120,492 | $ | 1,237,778 | $ | 270,937 | $ | 318,415 | |||||||||||||||||
Service cost | 26,935 | 31,339 | 706 | 1,094 | |||||||||||||||||||||
Interest cost | 48,886 | 43,962 | 11,696 | 10,747 | |||||||||||||||||||||
Plan amendments | 168 | 55 | — | — | |||||||||||||||||||||
Actuarial (gain) loss | 134,902 | (100,872 | ) | 35,688 | (33,412 | ) | |||||||||||||||||||
Curtailment | — | (8,833 | ) | — | — | ||||||||||||||||||||
Settlement | — | (319 | ) | — | — | ||||||||||||||||||||
Currency translation and other | (6,204 | ) | (5,976 | ) | (1,264 | ) | (1,030 | ) | |||||||||||||||||
Benefits paid | (64,284 | ) | (76,642 | ) | (23,699 | ) | (24,877 | ) | |||||||||||||||||
Projected benefits obligation at end of year | 1,260,895 | 1,120,492 | 294,064 | 270,937 | |||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 1,091,985 | 988,167 | — | — | |||||||||||||||||||||
Actual return on plan assets | 85,921 | 152,976 | — | — | |||||||||||||||||||||
Employer contribution | 29,409 | 32,336 | 23,699 | 24,877 | |||||||||||||||||||||
Settlement | — | (319 | ) | — | — | ||||||||||||||||||||
Currency translation and other | (6,088 | ) | (4,533 | ) | — | — | |||||||||||||||||||
Benefits paid | (64,284 | ) | (76,642 | ) | (23,699 | ) | (24,877 | ) | |||||||||||||||||
Fair value of plan assets at end of year | 1,136,943 | 1,091,985 | — | — | |||||||||||||||||||||
Funded status at end of year | $ | (123,952 | ) | $ | (28,507 | ) | $ | (294,064 | ) | $ | (270,937 | ) | |||||||||||||
Amounts recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||
Other assets | $ | 25 | $ | 32,533 | $ | — | $ | — | |||||||||||||||||
Accrued liabilities | (9,054 | ) | (10,198 | ) | (25,214 | ) | (25,477 | ) | |||||||||||||||||
Other long-term liabilities | (114,923 | ) | (50,842 | ) | (268,850 | ) | (245,460 | ) | |||||||||||||||||
Total | $ | (123,952 | ) | $ | (28,507 | ) | $ | (294,064 | ) | $ | (270,937 | ) | |||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income (Loss), net of tax: | |||||||||||||||||||||||||
Actuarial net (loss) gain | $ | (279,625 | ) | $ | (215,702 | ) | $ | (7,936 | ) | $ | 13,107 | ||||||||||||||
Net prior service credit (cost) | 5,341 | 5,698 | (2,430 | ) | (2,737 | ) | |||||||||||||||||||
Net amounts recognized in AOCI | $ | (274,284 | ) | $ | (210,004 | ) | $ | (10,366 | ) | $ | 10,370 | ||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $1,206,929 as of December 31, 2014 and $1,072,234 as of December 31, 2013. | |||||||||||||||||||||||||
Plans with accumulated benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligation | $ | 1,193,151 | $ | 76,801 | |||||||||||||||||||||
Accumulated benefit obligation | 1,151,210 | 64,340 | |||||||||||||||||||||||
Fair value of plan assets | 1,071,539 | 15,760 | |||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
The components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Amounts recognized in net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 26,935 | $ | 31,339 | $ | 30,823 | $ | 706 | $ | 1,094 | $ | 1,172 | |||||||||||||
Interest cost | 48,886 | 43,962 | 49,909 | 11,696 | 10,747 | 13,258 | |||||||||||||||||||
Expected return on plan assets | (74,080 | ) | (73,128 | ) | (72,949 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost (credit) | (667 | ) | 422 | 731 | 616 | 618 | 619 | ||||||||||||||||||
Amortization of net loss (gain) | 23,360 | 40,397 | 39,723 | (141 | ) | (73 | ) | (101 | ) | ||||||||||||||||
Administrative expenses | 786 | 692 | 545 | 89 | 75 | 120 | |||||||||||||||||||
Curtailment credit | — | (364 | ) | — | — | — | — | ||||||||||||||||||
Settlement loss | — | 18 | 19,676 | — | — | — | |||||||||||||||||||
Total net periodic benefit cost | $ | 25,220 | $ | 43,338 | $ | 68,458 | $ | 12,966 | $ | 12,461 | $ | 15,068 | |||||||||||||
Change in plan assets and benefit obligations recognized in AOCI, pre-tax | |||||||||||||||||||||||||
Actuarial net (gain) loss | $ | 99,136 | $ | (230,605 | ) | $ | 8,536 | $ | 36,021 | $ | (33,165 | ) | $ | 7,952 | |||||||||||
Prior service (credit) cost | 833 | (613 | ) | (716 | ) | (629 | ) | (632 | ) | (613 | ) | ||||||||||||||
Total recognized in other comprehensive (income) loss, pre-tax | $ | 99,969 | $ | (231,218 | ) | $ | 7,820 | $ | 35,392 | $ | (33,797 | ) | $ | 7,339 | |||||||||||
Net amounts recognized in periodic benefit cost and AOCI | $ | 125,189 | $ | (187,880 | ) | $ | 76,278 | $ | 48,358 | $ | (21,336 | ) | $ | 22,407 | |||||||||||
A portion of the pension settlement loss recorded in 2012, totaling $15,787, was associated with the Next Century program, as discussed in Note 8. The remaining settlement losses in 2012 were associated with one of our international businesses. | |||||||||||||||||||||||||
Amounts expected to be amortized from AOCI into net periodic benefit cost during 2015 are as follows: | |||||||||||||||||||||||||
Pension Plans | Post-Retirement | ||||||||||||||||||||||||
Benefit Plans | |||||||||||||||||||||||||
Amortization of net actuarial loss | $ | 32,308 | $ | 616 | |||||||||||||||||||||
Amortization of prior service credit | $ | (1,163 | ) | $ | — | ||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The weighted-average assumptions used in computing the benefit obligations were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 3.7 | % | 4.5 | % | 3.7 | % | 4.5 | % | |||||||||||||||||
Rate of increase in compensation levels | 4 | % | 4 | % | N/A | N/A | |||||||||||||||||||
The weighted-average assumptions used in computing net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 4.5 | % | 3.7 | % | 4.5 | % | 4.5 | % | 3.7 | % | 4.5 | % | |||||||||||||
Expected long-term return on plan assets | 7 | % | 7.75 | % | 8 | % | N/A | N/A | N/A | ||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | 4.1 | % | N/A | N/A | N/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 based the asset return assumption of 7.0% for 2014, 7.75% for 2013 and 8.0% for 2012 on current and expected asset allocations, as well as historical and expected returns on the plan asset categories. For 2015, we reduced the expected return on plan assets assumption to 6.3% from the 7.0% assumption used during 2014, reflecting lower expected future returns on plan assets resulting from a reduction of the pension plan asset allocation to equity securities. The historical average return over the 27 years prior to December 31, 2014, was approximately 8.7%. | |||||||||||||||||||||||||
For purposes of measuring our post-retirement benefit obligation at December 31, 2014, we assumed a 7.8% annual rate of increase in the per capita cost of covered health care benefits for 2015, grading down to 5.0% by 2019. Similarly, for measurement purposes as of December 31, 2013, we assumed a 8.5% annual rate of increase in the per capita cost of covered health care benefits for 2014, grading down to 5.0% by 2019. Assumed health care cost trend rates could have a significant effect on the amounts reported for the post-retirement health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||
Impact of assumed health care cost trend rates | One-Percentage | One-Percentage | |||||||||||||||||||||||
Point Increase | Point (Decrease) | ||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 164 | $ | (149 | ) | ||||||||||||||||||||
Effect on post-retirement benefit obligation | 4,567 | (4,051 | ) | ||||||||||||||||||||||
The valuations and assumptions reflect adoption of the Society of Actuaries updated RP-2014 mortality tables with MP-2014 generational projection scales, which we adopted as of December 31, 2014. Adoption of the updated tables did not have a significant impact on our current pension obligations or net period benefit cost since our primary plans are cash balance plans and most participants take lump-sum settlements upon retirement. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
We broadly diversify our pension plan assets across domestic and international common stock and fixed income asset classes. Our asset investment policies specify ranges of asset allocation percentages for each asset class. The ranges for our major domestic pension plans were as follows: | |||||||||||||||||||||||||
Asset Class | Target Allocation 2014 | ||||||||||||||||||||||||
Equity securities | 40 | % | - | 60% | |||||||||||||||||||||
Debt securities | 40 | % | - | 60% | |||||||||||||||||||||
Cash and certain other investments | 0 | % | - | 5% | |||||||||||||||||||||
As of December 31, 2014, actual allocations were within the specified 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 5), pension plan assets at their fair values as of December 31, 2014: | |||||||||||||||||||||||||
Quoted prices in active markets of identical assets | Significant other observable inputs | Significant other unobservable | Total | ||||||||||||||||||||||
(Level 1) | (Level 2) | inputs (Level 3) | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2,123 | $ | 47,702 | $ | — | $ | 49,825 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. all-cap (a) | 1,034 | 140,948 | — | 141,982 | |||||||||||||||||||||
U.S. large-cap (b) | 91,363 | — | — | 91,363 | |||||||||||||||||||||
U.S. small/mid-cap | 37,797 | — | — | 37,797 | |||||||||||||||||||||
International all-cap (c) | 121,901 | 3,510 | — | 125,411 | |||||||||||||||||||||
Global all-cap (d) | 165,131 | — | — | 165,131 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government/agency | 138,556 | 42,787 | — | 181,343 | |||||||||||||||||||||
Corporate bonds (e) | 144,289 | 41,248 | — | 185,537 | |||||||||||||||||||||
Collateralized obligations (f) | 33,753 | 24,305 | — | 58,058 | |||||||||||||||||||||
International government/ corporate bonds (g) | 53,205 | 47,291 | — | 100,496 | |||||||||||||||||||||
Total assets at fair value | $ | 789,152 | $ | 347,791 | $ | — | $ | 1,136,943 | |||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, pension plan assets at their fair values as of December 31, 2013: | |||||||||||||||||||||||||
Quoted prices in active markets of identical assets | Significant other observable inputs(Level 2) | Significant other unobservable | Total | ||||||||||||||||||||||
(Level 1) | inputs (Level 3) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 657 | $ | 22,998 | $ | — | $ | 23,655 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. all-cap (a) | 64,949 | 137,385 | — | 202,334 | |||||||||||||||||||||
U.S. large-cap (b) | 144,254 | — | — | 144,254 | |||||||||||||||||||||
U.S. small/mid-cap | 33,145 | — | — | 33,145 | |||||||||||||||||||||
International all-cap (c) | 136,892 | 3,062 | — | 139,954 | |||||||||||||||||||||
Global all-cap (d) | 181,702 | — | — | 181,702 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government/agency | 109,995 | 34,907 | — | 144,902 | |||||||||||||||||||||
Corporate bonds (e) | 57,735 | 34,616 | — | 92,351 | |||||||||||||||||||||
Collateralized obligations (f) | 56,016 | 22,350 | — | 78,366 | |||||||||||||||||||||
International government/corporate bonds (g) | 14,018 | 37,304 | — | 51,322 | |||||||||||||||||||||
Total assets at fair value | $ | 799,363 | $ | 292,622 | $ | — | $ | 1,091,985 | |||||||||||||||||
(a) | This category comprises equity funds that track the Russell 3000 index. | ||||||||||||||||||||||||
(b) | This category comprises equity funds that track the S&P 500 and/or Russell 1000 indices. | ||||||||||||||||||||||||
(c) | This category comprises equity funds that track the MSCI World Ex-US index. | ||||||||||||||||||||||||
(d) | This category comprises equity funds that track the MSCI World index. | ||||||||||||||||||||||||
(e) | This category comprises fixed income funds primarily invested in investment grade bonds. | ||||||||||||||||||||||||
(f) | This category comprises fixed income funds primarily invested in high quality mortgage-backed securities and other asset-backed obligations. | ||||||||||||||||||||||||
(g) | This category comprises fixed income funds invested in Canadian and other international bonds. | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
l | To ensure high correlation between the value of plan assets and liabilities; | ||||||||||||||||||||||||
l | To maintain careful control of the risk level within each asset class; and | ||||||||||||||||||||||||
l | 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, 2014. 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 | |||||||||||||||||||||||||
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 $29,409 during 2014, including contributions of $22,000 to improve the funded status of our domestic plans. In 2013, we made total contributions of $32,336 to the pension plans. For 2015, minimum funding requirements for our pension plans are approximately $1,088 and we expect to make additional contributions of approximately $23,600 to improve the funded status of our domestic plans. | |||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | ||||||||||||||||||||
Pension Benefits | $ | 71,685 | $ | 69,918 | $ | 103,081 | $ | 81,715 | $ | 88,847 | $ | 545,365 | |||||||||||||
Other Benefits | 25,247 | 24,344 | 22,933 | 21,364 | 19,954 | 83,846 | |||||||||||||||||||
Multiemployer Pension Plan | |||||||||||||||||||||||||
With the acquisition of Brookside Foods Ltd. in January 2012, we began participation in the Bakery and Confectionery Union and Industry Canadian Pension Fund, a trustee-managed multiemployer defined benefit pension plan. We currently have approximately 160 employees participating in the plan and contributions were not significant in 2014, 2013 or 2012. Our obligation during the term of the collective bargaining agreement is limited to remitting the required contributions to the plan. | |||||||||||||||||||||||||
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 $46,064 in 2014, $43,257 in 2013 and $39,759 in 2012. |
STOCK_COMPENSATION_PLANS
STOCK COMPENSATION PLANS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Stock Compensation Plans | STOCK COMPENSATION PLANS | |||||||||||||||||||||
Share-based grants for compensation and incentive purposes are made pursuant to the Equity and Incentive Compensation Plan (“EICP”). The EICP provides for grants of one or more of the following stock-based compensation awards to employees, non-employee directors and certain service providers upon whom the successful conduct of our business is dependent: | ||||||||||||||||||||||
l | Non-qualified stock options (“stock options”); | |||||||||||||||||||||
l | Performance stock units (“PSUs”) and performance stock; | |||||||||||||||||||||
l | Stock appreciation rights; | |||||||||||||||||||||
l | Restricted stock units (“RSUs”) and restricted stock; and | |||||||||||||||||||||
l | Other stock-based awards. | |||||||||||||||||||||
As of December 31, 2014, 68.5 million shares were authorized and approved by our stockholders for grants under the EICP. The EICP also provides for the deferral of stock-based compensation awards by participants if approved by the Compensation and Executive Organization Committee of our Board and if in accordance with an applicable deferred compensation plan of the Company. Currently, the Compensation and Executive Organization Committee has authorized the deferral of PSU and RSU awards by certain eligible employees under the Company’s Deferred Compensation Plan. Our Board has authorized our non-employee directors to defer any portion of their cash retainer, committee chair fees and RSUs awarded after 2007 that they elect to convert into deferred stock units under our Directors’ Compensation Plan. | ||||||||||||||||||||||
The following table summarizes our compensation costs: | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Total compensation amount charged against income for stock compensation plans, including stock options, PSUs and RSUs | $ | 54,068 | $ | 53,984 | $ | 50,482 | ||||||||||||||||
Total income tax benefit recognized in Consolidated Statements of Income for share-based compensation | 18,653 | 18,517 | 17,517 | |||||||||||||||||||
Compensation costs for stock compensation plans are primarily included in selling, marketing and administrative expense. | ||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||
The exercise price of each stock option awarded under the EICP equals the closing price of our Common Stock on the New York Stock Exchange on the date of grant. Each stock option has a maximum term of 10 years. Grants of stock options provide for pro-rated vesting, typically over a four year period. We recognize expense for stock options based on the straight-line method as of the grant date fair value. | ||||||||||||||||||||||
The following table summarizes our compensation costs for stock options: | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Compensation amount charged against income for stock options | $ | 25,074 | $ | 21,390 | $ | 19,272 | ||||||||||||||||
A summary of the status of our Company’s stock options and changes during the last three years follows: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Stock Options | Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Outstanding at beginning of year | 8,660,336 | $ | 55.47 | 10,553,914 | $ | 48.08 | 14,540,442 | $ | 44.86 | |||||||||||||
Granted | 1,387,580 | $ | 105.75 | 1,779,109 | $ | 81.95 | 2,110,945 | $ | 60.89 | |||||||||||||
Exercised | (2,537,581 | ) | $ | 48.61 | (3,315,990 | ) | $ | 45.25 | (5,870,607 | ) | $ | 44.55 | ||||||||||
Forfeited | (190,958 | ) | $ | 82.8 | (356,697 | ) | $ | 64.38 | (226,866 | ) | $ | 52.02 | ||||||||||
Outstanding at end of year | 7,319,377 | $ | 66.69 | 8,660,336 | $ | 55.47 | 10,553,914 | $ | 48.08 | |||||||||||||
Options exercisable at year-end | 3,673,726 | $ | 51.01 | 4,290,416 | $ | 46.45 | 5,320,775 | $ | 45.74 | |||||||||||||
Weighted-average fair value of options granted during the year (per share) | $21.50 | $14.51 | $10.60 | |||||||||||||||||||
We use the the Black-Scholes option-pricing model to determine the fair value of stock options granted to employees. The following table sets forth the weighted-average assumptions used for such grants during the year: | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Dividend yields | 2 | % | 2.2 | % | 2.4 | % | ||||||||||||||||
Expected volatility | 22.3 | % | 22.2 | % | 22.4 | % | ||||||||||||||||
Risk-free interest rates | 2.1 | % | 1.4 | % | 1.5 | % | ||||||||||||||||
Expected lives in years | 6.7 | 6.6 | 6.6 | |||||||||||||||||||
l | “Dividend yields” means the sum of dividends declared for the four most recent quarterly periods, divided by the average price of our Common Stock for the comparable periods; | |||||||||||||||||||||
l | “Expected volatility” means the historical volatility of our Common Stock over the expected term of each grant; | |||||||||||||||||||||
l | “Risk-free interest rates” means the U.S. Treasury yield curve rate in effect at the time of grant for periods within the contractual life of the stock option; and | |||||||||||||||||||||
l | “Expected lives” means the period of time that stock options granted are expected to be outstanding based primarily on historical data. | |||||||||||||||||||||
The following table summarizes the intrinsic value of our stock options: | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Intrinsic value of options exercised | $133,948 | $135,396 | $130,219 | |||||||||||||||||||
The aggregate intrinsic value of stock options outstanding as of December 31, 2014 was $258,809. The aggregate intrinsic value of exercisable stock options as of December 31, 2014 was $184,477. | ||||||||||||||||||||||
As of December 31, 2014, there was $22,193 of total unrecognized compensation cost related to non-vested stock option compensation arrangements granted under the EICP, which we expect to recognize over a weighted-average period of 2.4 years. | ||||||||||||||||||||||
The following table summarizes information about stock options outstanding as of December 31, 2014: | ||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted- | |||||||||||||||||
Outstanding as | Average | Average | Exercisable as of | Average | ||||||||||||||||||
of 12/31/14 | Remaining | Exercise Price | 12/31/14 | Exercise Price | ||||||||||||||||||
Contractual | ||||||||||||||||||||||
Life in Years | ||||||||||||||||||||||
$33.40 - $51.42 | 2,484,189 | 4.6 | $42.84 | 2,092,239 | $41.23 | |||||||||||||||||
$51.65 - $72.44 | 2,031,766 | 5.5 | $59.25 | 1,211,277 | $58.21 | |||||||||||||||||
$81.73 - $106.65 | 2,803,422 | 8.4 | $93.22 | 370,210 | $82.69 | |||||||||||||||||
$33.40 - $106.65 | 7,319,377 | 6.3 | $66.69 | 3,673,726 | $51.01 | |||||||||||||||||
Performance Stock Units and Restricted Stock Units | ||||||||||||||||||||||
Under the EICP, we grant PSUs to selected executives and other key employees. Vesting is contingent upon the achievement of certain performance objectives. We grant PSUs over 3-year performance cycles. If we meet targets for financial measures at the end of the applicable 3-year performance cycle, we award a resulting number of shares of our Common Stock to the participants. For each PSU granted from 2012 through 2014, 50% of the target award was comprised of a market-based total shareholder return component and 50% of the target award was comprised of performance-based components. The performance scores for 2012 through 2014 grants of PSUs can range from 0% to 250% of the targeted amounts. | ||||||||||||||||||||||
We recognize the compensation cost associated with PSUs ratably over the 3-year term. Compensation cost is based on the grant date fair value because the grants can only be settled in shares of our Common Stock. The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s Common Stock on the date of grant for performance-based components. | ||||||||||||||||||||||
In 2014, 2013 and 2012, we awarded RSUs to certain executive officers and other key employees under the EICP. We also awarded RSUs quarterly to non-employee directors. | ||||||||||||||||||||||
We recognize the compensation cost associated with employee RSUs over a specified restriction period based on the grant date fair value or year-end market value of our Common Stock. We recognize expense for employee RSUs based on the straight-line method. We recognize the compensation cost associated with non-employee director RSUs ratably over the vesting period. | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Compensation amount charged against income for PSUs and RSUs | $ | 28,994 | $ | 32,594 | $ | 31,210 | ||||||||||||||||
The following table sets forth information about the fair value of the PSUs and RSUs granted for potential future distribution to employees and non-employee directors. In addition, the table provides assumptions used to determine the fair value of the market-based total shareholder return component using the Monte Carlo simulation model on the date of grant. | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Units granted | 331,788 | 395,862 | 503,761 | |||||||||||||||||||
Weighted-average fair value at date of grant | $ | 115.57 | $ | 88.49 | $ | 64.99 | ||||||||||||||||
Monte Carlo simulation assumptions: | ||||||||||||||||||||||
Estimated values | $ | 80.95 | $ | 55.49 | $ | 35.62 | ||||||||||||||||
Dividend yields | 1.8 | % | 2 | % | 2.5 | % | ||||||||||||||||
Expected volatility | 15.5 | % | 17.1 | % | 20 | % | ||||||||||||||||
l | “Estimated values” means the fair value for the market-based total shareholder return component of each PSU at the date of grant using a Monte Carlo simulation model; | |||||||||||||||||||||
l | “Dividend yields” means the sum of dividends declared for the four most recent quarterly periods, divided by the average price of our Common Stock for the comparable periods; | |||||||||||||||||||||
l | “Expected volatility” means the historical volatility of our Common Stock over the expected term of each grant. | |||||||||||||||||||||
A summary of the status of our Company’s PSUs and RSUs as of December 31, 2014 and the change during 2014 follows: | ||||||||||||||||||||||
Performance Stock Units and Restricted Stock Units | 2014 | Weighted-average grant date fair value | ||||||||||||||||||||
for equity awards or market value for | ||||||||||||||||||||||
liability awards | ||||||||||||||||||||||
Outstanding at beginning of year | 1,411,399 | $72.43 | ||||||||||||||||||||
Granted | 331,788 | $115.57 | ||||||||||||||||||||
Performance assumption change | (214,145 | ) | $91.85 | |||||||||||||||||||
Vested | (565,520 | ) | $63.93 | |||||||||||||||||||
Forfeited | (59,216 | ) | $95.86 | |||||||||||||||||||
Outstanding at end of year | 904,306 | $94.48 | ||||||||||||||||||||
The table above excludes PSU awards for 25,462 units as of December 31, 2014 and 29,596 units as of December 31, 2013 for which the measurement date has not yet occurred for accounting purposes. | ||||||||||||||||||||||
As of December 31, 2014, there was $37,341 of unrecognized compensation cost relating to non-vested PSUs and RSUs. We expect to recognize that cost over a weighted-average period of 2.0 years. | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Intrinsic value of share-based liabilities paid, combined with the fair value of shares vested | $ | 57,360 | $ | 62,582 | 37,329 | |||||||||||||||||
Deferred PSUs, deferred RSUs, deferred directors’ fees and accumulated dividend amounts totaled 524,195 units as of December 31, 2014. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Segment Information | SEGMENT INFORMATION | |||||||||||||
We operate under a matrix reporting structure designed to ensure continued focus on North America, coupled with an emphasis on accelerating growth in our international markets, as we transform into a more global company. Our business is organized around geographic regions and strategic business units. It is designed to enable us to build processes for repeatable success in our global markets. The Presidents of our geographic regions, along with the Senior Vice President responsible for our Global Retail and Licensing business, are accountable for delivering our annual financial plans and report into our CEO, who serves as our Chief Operating Decision Maker (“CODM”), so we have defined our operating segments on a geographic basis. Our North America business currently generates over 85% of our consolidated revenue and none of our other geographic regions are individually significant, so we have historically presented our business as one reportable segment. However, given the recent growth in our international business, combined with the September 2014 acquisition of Shanghai Golden Monkey, we have elected to begin reporting our operations within two segments, North America and International and Other, to provide additional transparency into our operations outside of North America. We have defined our reportable segments as follows: | ||||||||||||||
• | North America - This segment is responsible for our chocolate and sugar confectionery market position in the United States and Canada. This includes developing and growing our business in chocolate, sugar confectionery, refreshment, pantry and food service product lines. | |||||||||||||
• | International and Other - This segment includes all other countries where The Hershey Company currently manufactures, imports, markets, sells or distributes chocolate, sugar confectionery and other products. Currently, this includes our operations in Mexico, Brazil and Puerto Rico, as well as Europe, Africa the Middle East and Asia, primarily China, India, Korea, Japan and the Philippines; along with exports to these regions. While a minor component, this segment also includes our global retail operations, including Hershey's Chocolate World stores in Hershey, Pennsylvania, New York City, Chicago, Las Vegas, Shanghai, Niagara Falls (Ontario), Dubai, and Singapore, as well as operations associated with licensing the use of certain of the Company's trademarks and products to third parties around the world. | |||||||||||||
For segment reporting purposes, we use “segment income” to evaluate segment performance and allocate resources. Segment income excludes unallocated general corporate administrative expenses, as well as business realignment and impairment charges, acquisition-related costs, the non-service related portion of pension expense and other unusual gains or losses that are not part of our measurement of segment performance. These items of our operating income are managed centrally at the corporate level and are excluded from the measure of segment income reviewed by the CODM. | ||||||||||||||
Accounting policies associated with our operating segments are generally the same as those described in Note 1. | ||||||||||||||
Certain manufacturing, warehousing, distribution and other activities supporting our global operations are integrated to maximize efficiency and productivity. As a result, assets and capital expenditures are not managed on a segment basis and are not included in the information reported to the CODM for the purpose of evaluating performance or allocating resources. We disclose depreciation and amortization that is generated by segment-specific assets, since these amounts are included within the measure of segment income reported to the CODM. | ||||||||||||||
Our segment net sales and earnings were as follows: | ||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||
Net sales: | ||||||||||||||
North America | $ | 6,352,729 | $ | 6,200,118 | $ | 5,812,639 | ||||||||
International and Other | 1,069,039 | 945,961 | 831,613 | |||||||||||
Total | $ | 7,421,768 | $ | 7,146,079 | $ | 6,644,252 | ||||||||
Segment income: | ||||||||||||||
North America | $ | 1,916,207 | $ | 1,862,636 | $ | 1,656,136 | ||||||||
International and Other | 40,004 | 44,587 | 51,370 | |||||||||||
Total segment income | 1,956,211 | 1,907,223 | 1,707,506 | |||||||||||
Unallocated corporate expense (1) | 503,407 | 533,506 | 478,645 | |||||||||||
Business realignment and impairment charges | 50,190 | 19,085 | 83,767 | |||||||||||
Non-service related pension | (1,834 | ) | 10,885 | 20,572 | ||||||||||
Acquisition integration costs | 14,873 | 4,072 | 13,374 | |||||||||||
Income before interest and income taxes | 1,389,575 | 1,339,675 | 1,111,148 | |||||||||||
Interest expense, net | 83,532 | 88,356 | 95,569 | |||||||||||
Income before income taxes | $ | 1,306,043 | $ | 1,251,319 | $ | 1,015,579 | ||||||||
-1 | Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense, and (d) other gains or losses that are not integral to segment performance. | |||||||||||||
Depreciation and amortization expense included within segment income presented above is as follows: | ||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||
North America | $ | 146,475 | $ | 143,640 | $ | 154,348 | ||||||||
International and Other | 28,463 | 23,461 | 21,707 | |||||||||||
Corporate | 36,594 | 33,932 | 33,982 | |||||||||||
Total | $ | 211,532 | $ | 201,033 | $ | 210,037 | ||||||||
Additional geographic information is as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Net sales: | ||||||||||||||
United States | $ | 5,996,564 | $ | 5,832,070 | $ | 5,449,877 | ||||||||
Other | 1,425,204 | 1,314,009 | 1,194,375 | |||||||||||
Total | $ | 7,421,768 | $ | 7,146,079 | $ | 6,644,252 | ||||||||
Long-lived assets: | ||||||||||||||
United States | $ | 1,477,455 | $ | 1,474,155 | $ | 1,420,548 | ||||||||
Other | 674,446 | 331,190 | 253,523 | |||||||||||
Total | $ | 2,151,901 | $ | 1,805,345 | $ | 1,674,071 | ||||||||
EQUITY_AND_NONCONTROLLING_INTE
EQUITY AND NONCONTROLLING INTERESTS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Class of Stock Disclosures [Abstract] | ||||||||||
Equity and Noncontrolling Interests | EQUITY AND NONCONTROLLING INTERESTS | |||||||||
We had 1,055,000,000 authorized shares of capital stock as of December 31, 2014. Of this total, 900,000,000 shares were designated as Common Stock, 150,000,000 shares were designated as Class B Stock and 5,000,000 shares were designated as Preferred Stock. Each class has a par value of one dollar per share. | ||||||||||
Changes in the outstanding shares of Common Stock for the past three years were as follows: | ||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||
Shares issued | 359,901,744 | 359,901,744 | 359,901,744 | |||||||
Treasury shares at beginning of year | (136,007,023 | ) | (136,115,714 | ) | (134,695,826 | ) | ||||
Stock repurchases: | ||||||||||
Repurchase programs | (2,135,268 | ) | — | (2,054,354 | ) | |||||
Stock-based compensation programs | (3,676,513 | ) | (3,655,830 | ) | (5,598,537 | ) | ||||
Stock issuances: | ||||||||||
Stock-based compensation programs | 2,962,018 | 3,764,521 | 6,233,003 | |||||||
Treasury shares at end of year | (138,856,786 | ) | (136,007,023 | ) | (136,115,714 | ) | ||||
Net shares outstanding at end of year | 221,044,958 | 223,894,721 | 223,786,030 | |||||||
Holders of the Common Stock and the Class B Stock generally vote together without regard to class on matters submitted to stockholders, including the election of directors. The holders of Common Stock have 1 vote per share and the holders of Class B Stock have 10 votes per share. However, the Common Stock holders, voting separately as a class, are entitled to elect one-sixth of the Board. With respect to dividend rights, the Common Stock holders are entitled to cash dividends 10% higher than those declared and paid on the Class B Stock. | ||||||||||
Class B Stock can be converted into Common Stock on a share-for-share basis at any time. During 2014, 440 shares of Class B Stock were converted into Common Stock. During 2013, 8,600 shares were converted and during 2012, 3,225 shares were converted. | ||||||||||
Hershey Trust Company | ||||||||||
Hershey Trust Company, as trustee for the benefit of Milton Hershey School and as direct owner of investment shares, held 12,902,821 shares of our Common Stock as of December 31, 2014. As trustee for the benefit of Milton Hershey School, Hershey Trust Company held 60,612,012 shares of the Class B Stock as of December 31, 2014, and was entitled to cast approximately 80% of all of the votes entitled to be cast on matters requiring the vote of both classes of our common stock voting together. Hershey Trust Company, as trustee for the benefit of Milton Hershey School, or any successor trustee, or Milton Hershey School, as appropriate, must approve any issuance of shares of Common Stock or other action that would result in it not continuing to have voting control of our Company. | ||||||||||
Noncontrolling Interests in Subsidiaries | ||||||||||
Noncontrolling interests in subsidiaries totaled $64,468 as of December 31, 2014 and $11,218 as of December 31, 2013, with the increase primarily reflecting the 50% noncontrolling interest resulting from our March 2014 acquisition of LSFC, as discussed in Note 2. | ||||||||||
We also own a 51% controlling interest in Hershey do Brasil under a cooperative agreement with Pandurata Netherlands B.V. (“Bauducco”), a leading manufacturer of baked goods in Brazil whose primary brand is Bauducco. During 2014 and 2013, the Company contributed cash of $3,060 to Hershey do Brasil and Bauducco contributed $2,940 in each of these time periods. | ||||||||||
The share of losses pertaining to the noncontrolling interests in subsidiaries was $227 and $1,682 for the years ended December 31, 2014 and December 31, 2013, respectively. These amounts are reflected in selling, marketing and administrative expenses. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||
We enter into certain obligations for the purchase of raw materials. These obligations are primarily in the form of forward contracts for the purchase of raw materials from third-party brokers and dealers. These contracts minimize the effect of future price fluctuations by fixing the price of part or all of these purchase obligations. Total obligations consisted of fixed price contracts for the purchase of commodities and unpriced contracts that were valued using market prices as of December 31, 2014. | |||||||||||||||||||
The cost of commodities associated with the unpriced contracts is variable as market prices change over future periods. We mitigate the variability of these costs to the extent that we have entered into commodities futures contracts or other commodity derivative instruments to hedge our costs for those periods. Increases or decreases in market prices are offset by gains or losses on commodities futures contracts or other commodity derivative instruments. Taking delivery of and making payments for the specific commodities for use in the manufacture of finished goods satisfies our obligations under the forward purchase contracts. For each of the three years in the period ended December 31, 2014, we satisfied these obligations by taking delivery of and making payment for the specific commodities. | |||||||||||||||||||
As of December 31, 2014, we had entered into purchase agreements with various suppliers. Subject to meeting our quality standards, the purchase obligations covered by these agreements were as follows as of December 31, 2014: | |||||||||||||||||||
In millions of dollars | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Purchase obligations | $ | 1,298.80 | $ | 618.1 | $ | 138.6 | $ | 66.8 | |||||||||||
We have commitments under various lease obligations. Future minimum payments under lease obligations with a remaining term in excess of one year were as follows as of December 31, 2014: | |||||||||||||||||||
In millions of dollars | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||
Future minimum rental payments | $ | 28.2 | $ | 13.4 | $ | 9.6 | $ | 3.2 | $ | 0.9 | $ | 0.9 | |||||||
Future minimum rental payments reflect commitments under non-cancelable operating leases primarily for offices, retail stores, warehouse and distribution facilities, and certain equipment. | |||||||||||||||||||
In December 2013, we entered into an agreement for the construction of a new confectionery manufacturing plant in Malaysia. We incurred approximately $115 million in capital expenditures for construction of the plant in 2014 and expect to incur costs of $90 million to $110 million in 2015. The total cost of construction is expected to be approximately $265 million to $275 million. The plant is expected to begin operations in the second half of 2015. | |||||||||||||||||||
We have a number of facilities that contain varying amounts of asbestos in certain locations within the facilities. Our asbestos management program is compliant with current applicable regulations, which require that we handle or dispose of asbestos in a special manner if such facilities undergo major renovations or are demolished. Costs associated with the removal of asbestos related to the closure of a manufacturing facility under the Next Century program were recorded primarily in 2012 and included in business realignment and impairment charges. The costs associated with the removal of asbestos from the facility were not material. With regard to other facilities, we do not have sufficient information to estimate the fair value of any asset retirement obligations related to these facilities. We cannot specify the settlement date or range of potential settlement dates and, therefore, sufficient information is not available to apply an expected present value technique. We expect to maintain the facilities with repairs and maintenance activities that would not involve or require the removal of significant quantities of asbestos. | |||||||||||||||||||
Legal contingencies | |||||||||||||||||||
In 2007, the Competition Bureau of Canada began an inquiry into alleged violations of the Canadian Competition Act in the sale and supply of chocolate products sold in Canada between 2002 and 2008 by members of the confectionery industry, including Hershey Canada, Inc. The U.S. Department of Justice also notified the Company in 2007 that it had opened an inquiry, but has not requested any information or documents. | |||||||||||||||||||
Subsequently, 13 civil lawsuits were filed in Canada and 91 civil lawsuits were filed in the United States against the Company. The lawsuits were instituted on behalf of direct purchasers of our products as well as indirect purchasers that purchase our products for use or for resale. Several other chocolate and confectionery companies were named as defendants in these lawsuits as they also were the subject of investigations and/or inquiries by the government entities referenced above. The cases seek recovery for losses suffered as a result of alleged conspiracies in restraint of trade in connection with the pricing practices of the defendants. | |||||||||||||||||||
The Canadian civil cases were settled in 2012. Hershey Canada, Inc. reached a settlement agreement with the Competition Bureau of Canada through their Leniency Program with regard to an inquiry into alleged violations of the Canadian Competition Act in the sale and supply of chocolate products sold in Canada by members of the confectionery industry. On June 21, 2013, Hershey Canada, Inc. pleaded guilty to one count of price fixing related to communications with competitors in Canada in 2007 and paid a fine of approximately $4.0 million. Hershey Canada, Inc. had promptly reported the conduct to the Competition Bureau, cooperated fully with its investigation and did not implement the planned price increase that was the subject of the 2007 communications. | |||||||||||||||||||
With regard to the U.S. lawsuits, the Judicial Panel on Multidistrict Litigation assigned the cases to the U.S. District Court for the Middle District of Pennsylvania. Plaintiffs are seeking actual and treble damages against the Company and other defendants based on an alleged overcharge for certain, or in some cases all, chocolate products sold in the U.S. between December 2002 and December 2007 and certain plaintiff groups have alleged damages that extend beyond the alleged conspiracy period. The lawsuits have been proceeding on different scheduling tracks for different groups of plaintiffs. | |||||||||||||||||||
On February 26, 2014, the District Court granted summary judgment to the Company in the cases brought by the direct purchaser plaintiffs that had not sought class certification as well as those that had been certified as a class. The direct purchaser plaintiffs appealed the District Court's decision to the United States Court of Appeals for the Third Circuit (“Third Circuit”) in May 2014. The appeal remains pending before the Third Circuit. | |||||||||||||||||||
The remaining plaintiff groups - the putative class plaintiffs that purchased product indirectly for resale, the putative class plaintiffs that purchased product indirectly for use, and direct purchaser Associated Wholesale Grocers, Inc. - dismissed their cases with prejudice, subject to reinstatement if the Third Circuit were to reverse the District Court's summary judgment decision. The District Court entered judgment closing the case on April 17, 2014. | |||||||||||||||||||
Competition and antitrust law investigations can be lengthy and violations are subject to civil and/or criminal fines and other sanctions. Class action civil antitrust lawsuits are expensive to defend and could result in significant judgments, including in some cases, payment of treble damages and/or attorneys' fees to the successful plaintiff. Additionally, negative publicity involving these proceedings could affect our Company's brands and reputation, possibly resulting in decreased demand for our products. These possible consequences, in our opinion, are currently not expected to materially impact our financial position or liquidity, but could materially impact our results of operations and cash flows in the period in which any fines, settlements or judgments are accrued or paid, respectively. | |||||||||||||||||||
We have no other material pending legal proceedings, other than ordinary routine litigation incidental to our business. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | EARNINGS PER SHARE | ||||||||||||
We compute basic and diluted earnings per share based on the weighted-average number of shares of Common Stock and Class B Stock outstanding as follows: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Net income | $ | 846,912 | $ | 820,470 | $ | 660,931 | |||||||
Weighted-average shares—basic: | |||||||||||||
Common stock | 161,935 | 163,549 | 164,406 | ||||||||||
Class B common stock | 60,620 | 60,627 | 60,630 | ||||||||||
Total weighted-average shares—basic | 222,555 | 224,176 | 225,036 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | 1,920 | 2,476 | 2,608 | ||||||||||
Performance and restricted stock units | 362 | 551 | 693 | ||||||||||
Weighted-average shares—diluted | 224,837 | 227,203 | 228,337 | ||||||||||
Earnings per share—basic: | |||||||||||||
Common stock | $3.91 | $3.76 | $3.01 | ||||||||||
Class B common stock | $3.54 | $3.39 | $2.73 | ||||||||||
Earnings Per Share—diluted: | |||||||||||||
Common stock | $3.77 | $3.61 | $2.89 | ||||||||||
Class B common stock | $3.52 | $3.37 | $2.71 | ||||||||||
The Class B Stock is convertible into Common Stock on a share for share basis at any time. The calculation of earnings per share-diluted for the Class B Stock was performed using the two-class method and the calculation of earnings per share-diluted for the Common Stock was performed using the if-converted method. | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Stock options excluded from diluted earnings per share calculations because the effect would have been antidilutive | 1,510 | 1,757 | 3,543 | ||||||||||
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION [Abstract] | |||||||||
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
The components of certain Consolidated Balance Sheet accounts are as follows: | |||||||||
December 31, | 2014 | 2013 | |||||||
Inventories: | |||||||||
Raw materials | $ | 377,620 | $ | 226,978 | |||||
Goods in process | 63,916 | 79,861 | |||||||
Finished goods | 531,608 | 517,968 | |||||||
Inventories at FIFO | 973,144 | 824,807 | |||||||
Adjustment to LIFO | (172,108 | ) | (165,266 | ) | |||||
Total inventories | $ | 801,036 | $ | 659,541 | |||||
Property, plant and equipment: | |||||||||
Land | $ | 95,913 | $ | 96,334 | |||||
Buildings | 1,031,050 | 882,508 | |||||||
Machinery and equipment | 2,863,559 | 2,527,420 | |||||||
Construction in progress | 338,085 | 273,132 | |||||||
Property, plant and equipment, gross | 4,328,607 | 3,779,394 | |||||||
Accumulated depreciation | (2,176,706 | ) | (1,974,049 | ) | |||||
Property, plant and equipment, net | $ | 2,151,901 | $ | 1,805,345 | |||||
Other assets: | |||||||||
Pension | $ | 25 | $ | 32,804 | |||||
Capitalized software, net | 63,252 | 56,502 | |||||||
Income tax receivable | 1,568 | 63,863 | |||||||
Other non-current assets | 77,927 | 139,835 | |||||||
Total other assets | $ | 142,772 | $ | 293,004 | |||||
Accrued liabilities: | |||||||||
Payroll, compensation and benefits | $ | 225,439 | $ | 245,641 | |||||
Advertising and promotion | 326,647 | 348,966 | |||||||
Due to SGM shareholders | 98,884 | — | |||||||
Other | 162,543 | 105,115 | |||||||
Total accrued liabilities | $ | 813,513 | $ | 699,722 | |||||
Other long-term liabilities: | |||||||||
Post-retirement benefits liabilities | $ | 268,850 | $ | 245,460 | |||||
Pension benefits liabilities | 114,923 | 50,842 | |||||||
Other | 142,230 | 137,766 | |||||||
Total other long-term liabilities | $ | 526,003 | $ | 434,068 | |||||
QUARTERLY_DATA
QUARTERLY DATA | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Data [Abstract] | |||||||||||||||||
Quarterly Data | QUARTERLY DATA (Unaudited) | ||||||||||||||||
Summary quarterly results were as follows: | |||||||||||||||||
Year 2014 | First | Second | Third | Fourth | |||||||||||||
Net sales | $ | 1,871,813 | $ | 1,578,350 | $ | 1,961,578 | $ | 2,010,027 | |||||||||
Gross profit | 871,490 | 717,474 | 860,137 | 887,065 | |||||||||||||
Net income | 252,495 | 168,168 | 223,741 | 202,508 | |||||||||||||
Common stock: | |||||||||||||||||
Net income per share—Basic | 1.16 | 0.78 | 1.03 | 0.94 | |||||||||||||
Net income per share—Diluted | 1.11 | 0.75 | 1 | 0.91 | |||||||||||||
Dividends paid per share | 0.485 | 0.485 | 0.535 | 0.535 | |||||||||||||
Class B common stock: | |||||||||||||||||
Net income per share—Basic | 1.04 | 0.7 | 0.94 | 0.85 | |||||||||||||
Net income per share—Diluted(a) | 1.03 | 0.7 | 0.94 | 0.85 | |||||||||||||
Dividends paid per share | 0.435 | 0.435 | 0.486 | 0.486 | |||||||||||||
Market price—common stock: | |||||||||||||||||
High | 108.07 | 104.11 | 96.93 | 106.64 | |||||||||||||
Low | 95.54 | 96.02 | 88.15 | 91.09 | |||||||||||||
Year 2013 | First | Second | Third | Fourth | |||||||||||||
Net sales | $ | 1,827,426 | $ | 1,508,514 | $ | 1,853,886 | $ | 1,956,253 | |||||||||
Gross profit | 849,337 | 718,574 | 855,551 | 857,386 | |||||||||||||
Net income | 241,906 | 159,504 | 232,985 | 186,075 | |||||||||||||
Common stock: | |||||||||||||||||
Net income per share—Basic(a) | 1.11 | 0.73 | 1.07 | 0.85 | |||||||||||||
Net income per share—Diluted | 1.06 | 0.7 | 1.03 | 0.82 | |||||||||||||
Dividends paid per share | 0.42 | 0.42 | 0.485 | 0.485 | |||||||||||||
Class B common stock: | |||||||||||||||||
Net income per share—Basic | 1 | 0.66 | 0.96 | 0.77 | |||||||||||||
Net income per share—Diluted | 0.99 | 0.66 | 0.95 | 0.76 | |||||||||||||
Dividends paid per share | 0.38 | 0.38 | 0.435 | 0.435 | |||||||||||||
Market price—common stock: | |||||||||||||||||
High | 87.53 | 91.25 | 97.69 | 100.9 | |||||||||||||
Low | 73.51 | 85.25 | 89.17 | 91.04 | |||||||||||||
(a) | Quarterly income per share amounts do not total to the annual amount due to changes in weighted-average shares outstanding during the year. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | ||||||||||||||||
Beginning | Costs and | to Other Accounts | from | at End | |||||||||||||||||
of Period | Expenses | Reserves | of Period | ||||||||||||||||||
In thousands of dollars | |||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||
Reserves deducted in the consolidated balance sheet from the assets to which they apply (a) | |||||||||||||||||||||
Accounts Receivable—Trade, Net | $ | 14,329 | $ | 153,652 | $ | — | $ | (152,096 | ) | $ | 15,885 | ||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||
Reserves deducted in the consolidated balance sheet from the assets to which they apply (a) | |||||||||||||||||||||
Accounts Receivable—Trade, Net | $ | 15,246 | $ | 154,874 | $ | — | $ | (155,791 | ) | $ | 14,329 | ||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||
Reserves deducted in the consolidated balance sheet from the assets to which they apply (a) | |||||||||||||||||||||
Accounts Receivable—Trade, Net | $ | 19,453 | $ | 135,443 | $ | — | $ | (139,650 | ) | $ | 15,246 | ||||||||||
(a) Includes allowances for doubtful accounts and anticipated discounts. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Description of Business | Description of Business | |
The Hershey Company together with its wholly-owned subsidiaries and entities in which it has a controlling interest,(the “Company,” “Hershey,” “we” or “us”) is a global confectionery leader known for its branded portfolio of chocolate, sweets, mints and other great-tasting snacks. The Company has more than 80 brands worldwide including such iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher and Ice Breakers, which are marketed, sold and distributed in approximately 70 countries worldwide. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. The Company currently operates through two reportable segments that are aligned with its management structure and the key markets it serves: North America and International and Other. For additional information on our segment presentation, see Note 11. | ||
Basis of Accounting | Basis of Presentation | |
Our consolidated financial statements include the accounts of The Hershey Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. We have a controlling financial interest if we own a majority of the outstanding voting common stock and minority shareholders do not have substantive participating rights, we have significant control through contractual or economic interests in which we are the primary beneficiary or we have the power to direct the activities that most significantly impact the entity's economic performance. Net income (loss) attributable to noncontrolling interests is not significant and is recorded within selling, marketing and administrative expense in the Consolidated Statements of Income. We use the equity method of accounting when we have a 20% to 50% interest in other companies and exercise significant influence. Net income (loss) from such investments is not significant and is also recorded in selling, marketing and administrative expense. As of December 31, 2013, equity investments included within other long-term assets in the Consolidated Balance Sheets totaled $39,872. We held no equity investments at December 31, 2014. See Note 12 for additional information on our noncontrolling interests | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Our significant estimates and assumptions include, among others, pension and other post-retirement benefit plan assumptions, valuation assumptions of goodwill and other intangible assets, useful lives of long-lived assets, marketing and trade promotion accruals and income taxes. These estimates and assumptions are based on management’s best judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and the effects of any revisions are reflected in the consolidated financial statements in the period that they are determined. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. | ||
Revenue Recognition | Revenue Recognition | |
We record sales when all of the following criteria have been met: | ||
l | A valid customer order with a fixed price has been received; | |
l | The product has been delivered to the customer; | |
l | There is no further significant obligation to assist in the resale of the product; and | |
l | Collectability is reasonably assured. | |
Net sales include revenue from the sale of finished goods and royalty income, net of allowances for trade promotions, consumer coupon programs and other sales incentives, and allowances and discounts associated with aged or potentially unsaleable products. Trade promotions and sales incentives primarily include reduced price features, merchandising displays, sales growth incentives, new item allowances and cooperative advertising. Sales, use, value-added and other excise taxes are not recognized in revenue. | ||
Cost of Sales | Cost of Sales | |
Cost of sales represents costs directly related to the manufacture and distribution of our products. Primary costs include raw materials, packaging, direct labor, overhead, shipping and handling, warehousing and the depreciation of manufacturing, warehousing and distribution facilities. Manufacturing overhead and related expenses include salaries, wages, employee benefits, utilities, maintenance and property taxes. | ||
Selling, General and Administrative Expenses | Selling, Marketing and Administrative Expense | |
Selling, marketing and administrative expense (“SM&A”) represents costs incurred in generating revenues and in managing our business. Such costs include advertising and other marketing expenses, selling expenses, research and development, administrative and other indirect overhead costs, amortization of capitalized software and depreciation of administrative facilities. Research and development costs, charged to expense as incurred, totaled $47,554 in 2014, $47,636 in 2013 and $38,959 in 2012. Advertising expense, also charged to expense as incurred, totaled $570,223 in 2014, $582,354 in 2013 and $480,016 in 2012. Prepaid advertising expense was $8,193 and $8,432 as of December 31, 2014 and 2013, respectively. | ||
Cash Equivalents | Cash Equivalents | |
Cash equivalents consist of highly liquid debt instruments, time deposits and money market funds with original maturities of three months or less. The fair value of cash and cash equivalents approximates the carrying amount. | ||
Short-term Investments | ||
Short-term investments consist of bank term deposits that have original maturity dates ranging from greater than three months to twelve months. Short-term investments are carried at cost, which approximates fair value. | ||
Trade and Other Accounts Receivable, Policy | Accounts Receivable—Trade | |
In the normal course of business, we extend credit to customers that satisfy pre-defined credit criteria, based upon the results of our recurring financial account reviews and our evaluation of current and projected economic conditions. Our primary concentrations of credit risk are associated with Wal-Mart Stores, Inc. and McLane Company, Inc., two customers served principally by our North America segment. McLane Company, Inc. is one of the largest wholesale distributors in the United States to convenience stores, drug stores, wholesale clubs and mass merchandisers. As of December 31, 2014, McLane Company, Inc. accounted for approximately 12.8% of our total accounts receivable. Wal-Mart Stores, Inc. accounted for approximately 12.3% of our total accounts receivable as of December 31, 2014. No other customer accounted for more than 10% of our year-end accounts receivable. We believe that we have little concentration of credit risk associated with the remainder of our customer base. Accounts receivable-trade in the Consolidated Balance Sheets is presented net of allowances and anticipated discounts of $15,885 and $14,329 at December 31, 2014 and 2013, respectively. | ||
Inventory, Policy | Inventories | |
Inventories are valued at the lower of cost or market value, adjusted for the value of inventory that is estimated to be excess, obsolete or otherwise unsaleable. As of December 31, 2014, approximately 54% of our inventories, representing the majority of our U.S. inventories, were valued under the last-in, first-out (“LIFO”) method. The remainder of our inventories in the U.S. and inventories for our international businesses are valued at the lower of first-in, first-out (“FIFO”) cost or market. LIFO cost of inventories valued using the LIFO method was $430,094 as of December 31, 2014 and $314,999 as of December 31, 2013. The net impact of LIFO acquisitions and liquidations was not material to 2014, 2013 or 2012. | ||
Property, Plant and Equipment | Property, Plant and Equipment | |
Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: 3 to 15 years for machinery and equipment; and 25 to 40 years for buildings and related improvements. Maintenance and repairs are expensed as incurred. We capitalize applicable interest charges incurred during the construction of new facilities and production lines and amortize these costs over the assets’ estimated useful lives. | ||
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated. If these assets are considered to be impaired, we measure impairment as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets held for sale or disposal at the lower of the carrying amount or fair value less cost to sell. | ||
We assess asset retirement obligations on a periodic basis and recognize the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. We capitalize associated asset retirement costs as part of the carrying amount of the long-lived asset. | ||
Computer Software | Computer Software | |
We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and it is probable the software being developed will be completed and placed in service. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the internal-use software project and (iii) interest costs incurred, when material, while developing internal-use software. We cease capitalization of such costs no later than the point at which the project is substantially complete and ready for its intended purpose. | ||
The unamortized amount of capitalized software totaled $63,252 and $56,502 at December 31, 2014 and 2013, respectively. We amortize software costs using the straight-line method over the expected life of the software, generally 3 to 5 years. Accumulated amortization of capitalized software was $300,698 and $277,872 as of December 31, 2014 and 2013, respectively. Such amounts are recorded within other assets in the Consolidated Balance Sheets. | ||
We review the carrying value of software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. Generally, we measure impairment under the following circumstances: | ||
l | When internal-use computer software is not expected to provide substantive service potential; | |
l | When a significant change occurs in the extent or manner in which the software is used or is expected to be used; | |
l | When a significant change is made or will be made to the software program; and | |
l | When the costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software. | |
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment tests are conducted at the beginning of the fourth quarter. We use a two-step process to quantitatively evaluate goodwill for impairment. In the first step, we compare the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, we complete a second step to determine the amount of the goodwill impairment that we should record. In the second step, we determine an implied fair value of the reporting unit’s goodwill by allocating the reporting unit’s fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets). We compare the resulting implied fair value of the goodwill to the carrying amount and record an impairment charge for the difference. We test individual indefinite-lived intangible assets by comparing the estimated fair value with the book values of each asset. | ||
We determine the fair value of our reporting units and indefinite-lived intangible assets using an income approach. Under the income approach, we calculate the fair value of our reporting units and indefinite-lived intangible assets based on the present value of estimated future cash flows. Considerable management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate the future cash flows used to measure fair value. Our estimates of future cash flows consider past performance, current and anticipated market conditions and internal projections and operating plans which incorporate estimates for sales growth and profitability, and cash flows associated with taxes and capital spending. Additional assumptions include forecasted growth rates, estimated discount rates, which may be risk-adjusted for the operating market of the reporting unit, and estimated royalty rates that would be charged for comparable branded licenses. We believe such assumptions also reflect current and anticipated market conditions and are consistent with those that would be used by other marketplace participants for similar valuation purposes. Such assumptions are subject to change due to changing economic and competitive conditions. See Note 3 for additional information regarding the results of our annual impairment test. | ||
The cost of intangible assets with finite useful lives is amortized on a straight-line basis. Our finite-lived intangible assets consist primarily of certain trademarks, customer-related intangible assets and patents obtained through business acquisitions, which are amortized over estimated useful lives of approximately 25 years, 15 years, and 5 years, respectively. When certain events or changes in operating conditions indicate that the carrying value of these assets may not be recoverable, we perform an impairment assessment and may adjust the remaining useful lives. | ||
Foreign Currency Transactions and Translations Policy | Currency Translation | |
The financial statements of our foreign entities with functional currencies other than the U.S. dollar are translated into U.S. dollars, with the resulting translation adjustments recorded as a component of other comprehensive income (loss). Assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expense items are translated using the average exchange rates during the period. | ||
Derivative Contracts | Derivative Instruments | |
We use derivative instruments principally to offset exposure to market risks arising from changes in commodity prices, foreign currency exchange rates and interest rates. See Note 5 for additional information on our risk management strategy and the types of instruments we use. | ||
Derivative instruments are recognized on the balance sheet at their fair values. When we become party to a derivative instrument and intend to apply hedge accounting, we designate the instrument for financial reporting purposes as a cash flow or fair value hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship, as noted below: | ||
• | Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in accumulated other comprehensive income (“AOCI”) to the extent effective and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. | |
• | Changes in the fair value of a derivative that is designated as a fair value hedge, along with the offsetting loss or gain on the hedged asset or liability that is attributable to the risk being hedged, are recorded in earnings, thereby reflecting in earnings the net extent to which the hedge is not effective in achieving offsetting changes in fair value. | |
• | Changes in the fair value of a derivative not designated as a hedging instrument are recognized in earnings in cost of sales or SM&A, consistent with the related exposure. | |
For derivatives designated as hedges, we assess, both at the hedge's inception and on an ongoing basis, whether they are highly effective in offsetting changes in fair values or cash flows of hedged items. The ineffective portion, if any, is recorded directly in earnings. In addition, if we determine that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge accounting prospectively. | ||
We do not hold or issue derivative instruments for trading or speculative purposes and are not a party to any instruments with leverage or prepayment features. | ||
Cash flows related to the derivative instruments we use to manage interest, commodity or other currency exposures are classified as operating activities. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the effect that ASU No. 2014-09 will have on our consolidated financial statements and related disclosures. | ||
No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. |
BUSINESS_ACQUISITIONS_AND_DIVE1
BUSINESS ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Acquisition and Divestitures [Line Items] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Amounts classified as assets and liabilities held for sale at December 31, 2014 have been presented within prepaid expenses and other assets and accrued liabilities, respectively, and include the following: | |||
Assets held for sale | ||||
Inventories | $ | 21,489 | ||
Prepaid expenses and other | 173 | |||
Property, plant and equipment, net | 12,691 | |||
Other intangibles | 12,705 | |||
$ | 47,058 | |||
Liabilities held for sale | ||||
Accounts payable and accrued liabilities | $ | 3,726 | ||
Other long-term liabilities | 9,029 | |||
$ | 12,755 | |||
Shanghai Golden Monkey [Member] | ||||
Business Acquisition and Divestitures [Line Items] | ||||
Schedule of Business Acquisitions, Purchase Price Allocation | The total purchase consideration, net of cash and cash equivalents acquired totaling $14,727, was allocated to the net assets acquired based on their respective fair values at September 26, 2014, as follows: | |||
In millions of dollars | Purchase Price Allocation | |||
Accounts receivable - trade | $ | 46 | ||
Inventories | 42 | |||
Other current assets | 37 | |||
Property, plant and equipment | 112 | |||
Goodwill | 235 | |||
Distribution channel relationships | 85 | |||
Trademarks | 60 | |||
Other non-current assets | 35 | |||
Current liabilities assumed | (54 | ) | ||
Short-term debt assumed | (105 | ) | ||
Other non-current liabilities assumed, principally deferred taxes | (52 | ) | ||
Net assets acquired | $ | 441 | ||
Brookside [Member] | ||||
Business Acquisition and Divestitures [Line Items] | ||||
Schedule of Business Acquisitions, Purchase Price Allocation | Our financial statements reflect the final accounting for the Brookside acquisition. The purchase price for the acquisition was approximately $173,000. The purchase price allocation of the Brookside acquisition is as follows: | |||
In millions of dollars | Purchase Price | |||
Allocation | ||||
Goodwill | $ | 68 | ||
Trademarks | 60 | |||
Other intangibles | 51 | |||
Other assets, net of liabilities assumed of $18.7 million | 22 | |||
Non-current deferred tax liabilities | (28 | ) | ||
Purchase price | $ | 173 | ||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying value of goodwill by reportable segment for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
North America | International and Other | Total | |||||||||||||||||||
Goodwill | $ | 552,596 | $ | 105,553 | $ | 658,149 | |||||||||||||||
Accumulated impairment loss | (4,973 | ) | (65,173 | ) | (70,146 | ) | |||||||||||||||
Balance at January 1, 2013 | 547,623 | 40,380 | 588,003 | ||||||||||||||||||
Acquisitions | — | — | — | ||||||||||||||||||
Foreign currency translation | (8,968 | ) | (2,474 | ) | (11,442 | ) | |||||||||||||||
Balance at December 31, 2013 | 538,655 | 37,906 | 576,561 | ||||||||||||||||||
Acquisitions | 6,996 | 235,138 | 242,134 | ||||||||||||||||||
Impairment charge | — | (11,400 | ) | (11,400 | ) | ||||||||||||||||
Transfer to assets held for sale | (1,448 | ) | — | (1,448 | ) | ||||||||||||||||
Foreign currency translation | (10,854 | ) | (2,038 | ) | (12,892 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | 533,349 | $ | 259,606 | $ | 792,955 | |||||||||||||||
Schedule of Finite-Lived Intangible Assets | The following table provides the gross carrying amount and accumulated amortization for each major class of intangible asset: | ||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||
Trademarks | $ | 129,223 | $ | (7,593 | ) | $ | 66,274 | $ | (5,198 | ) | |||||||||||
Customer-related | 138,964 | (20,404 | ) | 70,906 | (26,844 | ) | |||||||||||||||
Patents | 18,383 | (11,447 | ) | 19,278 | (9,737 | ) | |||||||||||||||
Other | 8,805 | (6,090 | ) | 9,906 | (5,861 | ) | |||||||||||||||
Total | 295,375 | (45,534 | ) | 166,364 | (47,640 | ) | |||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||
Trademarks with indefinite lives | 45,000 | 76,520 | |||||||||||||||||||
Total intangible assets, net | $ | 294,841 | $ | 195,244 | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for the next five years, based on current intangible balances, is estimated to be as follows: | ||||||||||||||||||||
Annual Amortization Expense | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated amortization expense | $ | 16,676 | $ | 16,629 | $ | 16,253 | $ | 13,972 | $ | 13,792 | |||||||||||
SHORT_AND_LONGTERM_DEBT_Tables
SHORT AND LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
4.85% Notes due 2015 | $ | 250,000 | $ | 250,000 | |||||||||
5.45% Notes due 2016 | 250,000 | 250,000 | |||||||||||
1.50% Notes due 2016 | 250,000 | 250,000 | |||||||||||
4.125% Notes due 2020 | 350,000 | 350,000 | |||||||||||
8.8% Debentures due 2021 | 100,000 | 100,000 | |||||||||||
2.625% Notes due 2023 | 250,000 | 250,000 | |||||||||||
7.2% Debentures due 2027 | 250,000 | 250,000 | |||||||||||
Other obligations, net of unamortized debt discount | 99,768 | 96,056 | |||||||||||
Total long-term debt | 1,799,768 | 1,796,056 | |||||||||||
Less—current portion | 250,805 | 914 | |||||||||||
Long-term portion | $ | 1,548,963 | $ | 1,795,142 | |||||||||
Schedule of Maturities of Long-term Debt | Aggregate annual maturities of long-term debt are as follows for the years ending December 31: | ||||||||||||
2015 | $ | 250,805 | |||||||||||
2016 | 506,342 | ||||||||||||
2017 | 1,454 | ||||||||||||
2018 | 1,024 | ||||||||||||
2019 | 1,111 | ||||||||||||
Thereafter | 1,039,032 | ||||||||||||
Schedule Of Net Interest Expense | Net interest expense consisted of the following: | ||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Long-term debt and lease obligations | $ | 82,105 | $ | 84,604 | $ | 81,203 | |||||||
Short-term debt | 11,672 | 8,654 | 23,084 | ||||||||||
Capitalized interest | (6,179 | ) | (1,744 | ) | (5,778 | ) | |||||||
Interest expense | 87,598 | 91,514 | 98,509 | ||||||||||
Interest income | (4,066 | ) | (3,158 | ) | (2,940 | ) | |||||||
Interest expense, net | $ | 83,532 | $ | 88,356 | $ | 95,569 | |||||||
DERIVATIVE_INSTRUMENTS_AND_FAI1
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Fair value of derivatives instruments | The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||
Assets (1) | Liabilities (1) | Assets (1) | Liabilities (1) | ||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||||||||||||||||||||
Commodities futures and options (2) | $ | — | $ | 9,944 | $ | 4,306 | $ | 129 | |||||||||||||||||||||||||
Foreign exchange contracts (3) | 2,196 | 2,447 | 2,813 | — | |||||||||||||||||||||||||||||
Interest rate swap agreements (4) | — | 29,505 | 22,745 | — | |||||||||||||||||||||||||||||
Cross-currency swap agreement (5) | 2,016 | — | — | — | |||||||||||||||||||||||||||||
4,212 | 41,896 | 29,864 | 129 | ||||||||||||||||||||||||||||||
Derivatives designated as fair value hedging instruments: | |||||||||||||||||||||||||||||||||
Interest rate swap agreements (4) | 1,746 | — | — | — | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Deferred compensation derivatives (6) | 1,074 | — | — | — | |||||||||||||||||||||||||||||
Foreign exchange contracts (3) | 4,049 | 2,334 | 610 | 198 | |||||||||||||||||||||||||||||
5,123 | 2,334 | 610 | 198 | ||||||||||||||||||||||||||||||
Total | $ | 11,081 | $ | 44,230 | $ | 30,474 | $ | 327 | |||||||||||||||||||||||||
-1 | Derivatives assets are classified on our balance sheet within prepaid expenses and other as well as other assets. Derivative liabilities are classified on our balance sheet within accrued liabilities and other long-term liabilities. | ||||||||||||||||||||||||||||||||
-2 | The fair value of commodities futures and options contracts is based on quoted market prices and is, therefore, categorized as Level 1 within the fair value hierarchy. As of December 31, 2014, liabilities include the net of assets of $51,225 and liabilities of $56,840 associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period. The comparable amounts reflected on a net basis in liabilities at December 31, 2013 were assets of $23,780 and liabilities of $23,909. At December 31, 2014, the remaining amount reflected in liabilities related to the fair value of options contracts and other non-exchange traded derivative instruments. At December 31, 2013, the amount reflected in assets related to the fair value of options contracts. | ||||||||||||||||||||||||||||||||
-3 | The fair value of foreign currency forward exchange contracts is the difference between the contract and current market foreign currency exchange rates at the end of the period. We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences. These contracts are classified as Level 2 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
-4 | The fair value of interest rate swap agreements represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Such contracts are categorized as Level 2 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
-5 | The fair value of the cross-currency swap agreement is categorized as Level 2 within the fair value hierarchy and is estimated based on the difference between the contract and current market foreign currency exchange rates at the end of the period. | ||||||||||||||||||||||||||||||||
-6 | The fair value of deferred compensation derivatives is based on quotes prices for market interest rates and a broad market equity index and is, therefore, categorized as Level 2 within the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Long-term Debt, including current portion | The estimated fair value of our long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy. The fair values and carrying values of long-term debt, including the current portion, was as follows: | ||||||||||||||||||||||||||||||||
Fair Value | Carrying Value | ||||||||||||||||||||||||||||||||
At December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 257,280 | $ | 914 | $ | 250,805 | $ | 914 | |||||||||||||||||||||||||
Long-term debt | 1,722,308 | 1,947,023 | 1,548,963 | 1,795,142 | |||||||||||||||||||||||||||||
Total | $ | 1,979,588 | $ | 1,947,937 | $ | 1,799,768 | $ | 1,796,056 | |||||||||||||||||||||||||
Effect of derivatives instruments on the Consolidated Statements of Income | The effect of derivative instruments on the Consolidated Statements of Income for the years ended December 31, 2014 and December 31, 2013 was as follows: | ||||||||||||||||||||||||||||||||
Non-designated Hedges | Cash Flow Hedges | ||||||||||||||||||||||||||||||||
Gains (losses) recognized in income (a) | Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion) | Gains (losses) reclassified from accumulated OCI into income (effective portion) (b) | Gains recognized in income (ineffective portion) (c) | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Commodities futures and options | $ | 2,339 | $ | — | $ | (11,165 | ) | $ | 84,746 | $ | 68,500 | $ | (8,400 | ) | $ | 2,498 | $ | 3,241 | |||||||||||||||
Foreign exchange contracts | (1,486 | ) | — | 2,056 | 4,049 | 3,403 | 2,641 | — | — | ||||||||||||||||||||||||
Interest rate swap agreements | — | — | (52,249 | ) | 27,534 | (4,500 | ) | (3,606 | ) | — | — | ||||||||||||||||||||||
Deferred compensation derivatives | 2,983 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Total | $ | 3,836 | $ | — | $ | (61,358 | ) | $ | 116,329 | $ | 67,403 | $ | (9,365 | ) | $ | 2,498 | $ | 3,241 | |||||||||||||||
(a) | Gains recognized in income for non-designated commodities futures and options contracts were included in cost of sales. Gains (losses) recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were included in selling, marketing and administrative expenses. | ||||||||||||||||||||||||||||||||
(b) | Gains (losses) reclassified from AOCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the year ended December 31, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from AOCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period originally designated or the subsequent two months thereafter. Losses reclassified from AOCI into income for interest rate swap agreements were included in interest expense. | ||||||||||||||||||||||||||||||||
(c) | Gains representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts. |
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Comprehensive Income Disclosure [Abstract] | |||||||||||||
Comprehensive Income (Loss) | A summary of the components of comprehensive income is as follows: | ||||||||||||
For the year ended December 31, 2014 | Pre-Tax | Tax | After-Tax | ||||||||||
Amount | (Expense) | Amount | |||||||||||
Benefit | |||||||||||||
Net income | $ | 846,912 | |||||||||||
Other comprehensive loss: | |||||||||||||
Foreign currency translation adjustments | $ | (26,851 | ) | $ | — | (26,851 | ) | ||||||
Pension and post-retirement benefit plans | (135,361 | ) | 50,345 | (85,016 | ) | ||||||||
Cash flow hedges: | |||||||||||||
Losses on cash flow hedging derivatives | (61,358 | ) | 24,281 | (37,077 | ) | ||||||||
Reclassification adjustments | (67,403 | ) | 24,341 | (43,062 | ) | ||||||||
Total other comprehensive loss | $ | (290,973 | ) | $ | 98,967 | (192,006 | ) | ||||||
Comprehensive income | $ | 654,906 | |||||||||||
For the year ended December 31, 2013 | Pre-Tax | Tax | After-Tax | ||||||||||
Amount | (Expense) | Amount | |||||||||||
Benefit | |||||||||||||
Net income | $ | 820,470 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | $ | (26,003 | ) | $ | — | (26,003 | ) | ||||||
Pension and post-retirement benefit plans | 265,015 | (98,612 | ) | 166,403 | |||||||||
Cash flow hedges: | |||||||||||||
Gains on cash flow hedging derivatives | 116,329 | (43,995 | ) | 72,334 | |||||||||
Reclassification adjustments | 9,365 | (3,590 | ) | 5,775 | |||||||||
Total other comprehensive income | $ | 364,706 | $ | (146,197 | ) | 218,509 | |||||||
Comprehensive income | $ | 1,038,979 | |||||||||||
For the year ended December 31, 2012 | Pre-Tax | Tax | After-Tax | ||||||||||
Amount | (Expense) | Amount | |||||||||||
Benefit | |||||||||||||
Net income | $ | 660,931 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | $ | 7,714 | $ | — | 7,714 | ||||||||
Pension and post-retirement benefit plans | (15,159 | ) | 5,525 | (9,634 | ) | ||||||||
Cash flow hedges: | |||||||||||||
Losses on cash flow hedging derivatives | (543 | ) | (325 | ) | (868 | ) | |||||||
Reclassification adjustments | 96,993 | (36,950 | ) | 60,043 | |||||||||
Total other comprehensive income | $ | 89,005 | $ | (31,750 | ) | 57,255 | |||||||
Comprehensive income | $ | 718,186 | |||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss, as shown on the Consolidated Balance Sheets, are as follows: | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Foreign currency translation adjustments | $ | (43,681 | ) | $ | (16,830 | ) | |||||||
Pension and post-retirement benefit plans, net of tax | (284,650 | ) | (199,634 | ) | |||||||||
Cash flow hedges, net of tax | (30,242 | ) | 49,897 | ||||||||||
Total accumulated other comprehensive loss | $ | (358,573 | ) | $ | (166,567 | ) |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income/(Loss) before Income Taxes | Our income (loss) before income taxes was as follows: | ||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 1,320,738 | $ | 1,252,208 | $ | 980,176 | |||||||
Foreign | (14,695 | ) | (889 | ) | 35,403 | ||||||||
Income before income taxes | $ | 1,306,043 | $ | 1,251,319 | $ | 1,015,579 | |||||||
Schedule of Components of Income Tax Expense (Benefit) | Our provision for income taxes was as follows: | ||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 385,642 | $ | 372,649 | $ | 299,122 | |||||||
State | 52,331 | 47,980 | 36,187 | ||||||||||
Foreign | 2,362 | 2,763 | 5,554 | ||||||||||
Current provision for income taxes | 440,335 | 423,392 | 340,863 | ||||||||||
Deferred: | |||||||||||||
Federal | 20,649 | 11,334 | 5,174 | ||||||||||
State | 2,725 | 2,212 | 1,897 | ||||||||||
Foreign | (4,578 | ) | (6,089 | ) | 6,714 | ||||||||
Deferred income tax provision | 18,796 | 7,457 | 13,785 | ||||||||||
Total provision for income taxes | $ | 459,131 | $ | 430,849 | $ | 354,648 | |||||||
Schedule of Deferred Tax Asset and Liabilities | Deferred taxes reflect temporary differences between the tax basis and financial statement carrying value of assets and liabilities. The significant temporary differences that comprised the deferred tax assets and liabilities were as follows: | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Post-retirement benefit obligations | $ | 109,973 | $ | 101,674 | |||||||||
Accrued expenses and other reserves | 139,492 | 119,387 | |||||||||||
Stock-based compensation | 46,061 | 47,324 | |||||||||||
Derivative instruments | 14,954 | — | |||||||||||
Pension | 24,584 | — | |||||||||||
Lease financing obligation | 18,991 | 19,065 | |||||||||||
Accrued trade promotion reserves | 41,332 | 39,234 | |||||||||||
Net operating loss carryforwards | 50,044 | 39,606 | |||||||||||
Basis difference on assets held for sale | 43,155 | — | |||||||||||
Other | 7,425 | 11,754 | |||||||||||
Gross deferred tax assets | 496,011 | 378,044 | |||||||||||
Valuation allowance | (147,223 | ) | (87,159 | ) | |||||||||
Total deferred tax assets | 348,788 | 290,885 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment, net | 221,389 | 201,224 | |||||||||||
Acquired intangibles | 85,037 | 64,249 | |||||||||||
Inventories | 32,157 | 33,885 | |||||||||||
Derivative instruments | — | 33,779 | |||||||||||
Pension | — | 8,037 | |||||||||||
Other | 9,063 | 1,404 | |||||||||||
Total deferred tax liabilities | 347,646 | 342,578 | |||||||||||
Net deferred tax (liabilities) assets | $ | 1,142 | $ | (51,693 | ) | ||||||||
Included in: | |||||||||||||
Current deferred tax assets, net | $ | 100,515 | $ | 52,511 | |||||||||
Non-current deferred tax liabilities, net | (99,373 | ) | (104,204 | ) | |||||||||
Net deferred tax (liabilities) assets | $ | 1,142 | $ | (51,693 | ) | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the federal statutory income tax rate with our effective income tax rate: | ||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (reduction) resulting from: | |||||||||||||
State income taxes, net of Federal income tax benefits | 3 | 2.8 | 3.2 | ||||||||||
Qualified production income deduction | (2.4 | ) | (2.6 | ) | (2.5 | ) | |||||||
Business realignment and impairment charges and gain on sale of trademark licensing rights | 0.7 | 0.1 | 0.2 | ||||||||||
International operations | (0.1 | ) | (0.4 | ) | (0.1 | ) | |||||||
Other, net | (1.0 | ) | (0.5 | ) | (0.9 | ) | |||||||
Effective income tax rate | 35.2 | % | 34.4 | % | 34.9 | % | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 103,963 | $ | 51,520 | |||||||||
Additions for tax positions taken during prior years | — | 58,246 | |||||||||||
Reductions for tax positions taken during prior years | (71,643 | ) | (5,776 | ) | |||||||||
Additions for tax positions taken during the current year | 8,403 | 5,523 | |||||||||||
Settlements | (4,643 | ) | — | ||||||||||
Expiration of statutes of limitations | (3,850 | ) | (5,550 | ) | |||||||||
Balance at end of year | $ | 32,230 | $ | 103,963 | |||||||||
BUSINESS_REALIGNMENT_AND_IMPAI1
BUSINESS REALIGNMENT AND IMPAIRMENT CHARGES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Business Realignment And Impairment Charges | Business realignment and impairment charges recorded during 2014, 2013 and 2012 were as follows: | ||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Cost of sales - Next Century and other programs | $ | 1,622 | $ | 402 | $ | 36,383 | |||||||
Selling, marketing and administrative - Next Century and other programs | 2,947 | 18 | 2,446 | ||||||||||
Business realignment and impairment charges: | |||||||||||||
Next Century program: | |||||||||||||
Pension settlement loss | — | — | 15,787 | ||||||||||
Plant closure expenses | 7,465 | 16,387 | 20,780 | ||||||||||
Employee separation costs | — | — | 914 | ||||||||||
Planned divestiture of Mauna Loa | 22,256 | — | — | ||||||||||
India impairment | 15,900 | — | — | ||||||||||
India voluntary retirement program | — | 2,278 | — | ||||||||||
Tri-US, Inc. asset impairment charges | — | — | 7,457 | ||||||||||
Total business realignment and impairment charges | 45,621 | 18,665 | 44,938 | ||||||||||
Total charges associated with business realignment initiatives | $ | 50,190 | $ | 19,085 | $ | 83,767 | |||||||
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Defined Benefit Plans | 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, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Projected benefits obligation at beginning of year | $ | 1,120,492 | $ | 1,237,778 | $ | 270,937 | $ | 318,415 | |||||||||||||||||
Service cost | 26,935 | 31,339 | 706 | 1,094 | |||||||||||||||||||||
Interest cost | 48,886 | 43,962 | 11,696 | 10,747 | |||||||||||||||||||||
Plan amendments | 168 | 55 | — | — | |||||||||||||||||||||
Actuarial (gain) loss | 134,902 | (100,872 | ) | 35,688 | (33,412 | ) | |||||||||||||||||||
Curtailment | — | (8,833 | ) | — | — | ||||||||||||||||||||
Settlement | — | (319 | ) | — | — | ||||||||||||||||||||
Currency translation and other | (6,204 | ) | (5,976 | ) | (1,264 | ) | (1,030 | ) | |||||||||||||||||
Benefits paid | (64,284 | ) | (76,642 | ) | (23,699 | ) | (24,877 | ) | |||||||||||||||||
Projected benefits obligation at end of year | 1,260,895 | 1,120,492 | 294,064 | 270,937 | |||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 1,091,985 | 988,167 | — | — | |||||||||||||||||||||
Actual return on plan assets | 85,921 | 152,976 | — | — | |||||||||||||||||||||
Employer contribution | 29,409 | 32,336 | 23,699 | 24,877 | |||||||||||||||||||||
Settlement | — | (319 | ) | — | — | ||||||||||||||||||||
Currency translation and other | (6,088 | ) | (4,533 | ) | — | — | |||||||||||||||||||
Benefits paid | (64,284 | ) | (76,642 | ) | (23,699 | ) | (24,877 | ) | |||||||||||||||||
Fair value of plan assets at end of year | 1,136,943 | 1,091,985 | — | — | |||||||||||||||||||||
Funded status at end of year | $ | (123,952 | ) | $ | (28,507 | ) | $ | (294,064 | ) | $ | (270,937 | ) | |||||||||||||
Amounts recognized in the Consolidated Balance Sheets: | |||||||||||||||||||||||||
Other assets | $ | 25 | $ | 32,533 | $ | — | $ | — | |||||||||||||||||
Accrued liabilities | (9,054 | ) | (10,198 | ) | (25,214 | ) | (25,477 | ) | |||||||||||||||||
Other long-term liabilities | (114,923 | ) | (50,842 | ) | (268,850 | ) | (245,460 | ) | |||||||||||||||||
Total | $ | (123,952 | ) | $ | (28,507 | ) | $ | (294,064 | ) | $ | (270,937 | ) | |||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income (Loss), net of tax: | |||||||||||||||||||||||||
Actuarial net (loss) gain | $ | (279,625 | ) | $ | (215,702 | ) | $ | (7,936 | ) | $ | 13,107 | ||||||||||||||
Net prior service credit (cost) | 5,341 | 5,698 | (2,430 | ) | (2,737 | ) | |||||||||||||||||||
Net amounts recognized in AOCI | $ | (274,284 | ) | $ | (210,004 | ) | $ | (10,366 | ) | $ | 10,370 | ||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Plans with accumulated benefit obligations in excess of plan assets were as follows: | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Projected benefit obligation | $ | 1,193,151 | $ | 76,801 | |||||||||||||||||||||
Accumulated benefit obligation | 1,151,210 | 64,340 | |||||||||||||||||||||||
Fair value of plan assets | 1,071,539 | 15,760 | |||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost Not yet Recognized | The components of net periodic benefit cost were as follows: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Amounts recognized in net periodic benefit cost | |||||||||||||||||||||||||
Service cost | $ | 26,935 | $ | 31,339 | $ | 30,823 | $ | 706 | $ | 1,094 | $ | 1,172 | |||||||||||||
Interest cost | 48,886 | 43,962 | 49,909 | 11,696 | 10,747 | 13,258 | |||||||||||||||||||
Expected return on plan assets | (74,080 | ) | (73,128 | ) | (72,949 | ) | — | — | — | ||||||||||||||||
Amortization of prior service cost (credit) | (667 | ) | 422 | 731 | 616 | 618 | 619 | ||||||||||||||||||
Amortization of net loss (gain) | 23,360 | 40,397 | 39,723 | (141 | ) | (73 | ) | (101 | ) | ||||||||||||||||
Administrative expenses | 786 | 692 | 545 | 89 | 75 | 120 | |||||||||||||||||||
Curtailment credit | — | (364 | ) | — | — | — | — | ||||||||||||||||||
Settlement loss | — | 18 | 19,676 | — | — | — | |||||||||||||||||||
Total net periodic benefit cost | $ | 25,220 | $ | 43,338 | $ | 68,458 | $ | 12,966 | $ | 12,461 | $ | 15,068 | |||||||||||||
Change in plan assets and benefit obligations recognized in AOCI, pre-tax | |||||||||||||||||||||||||
Actuarial net (gain) loss | $ | 99,136 | $ | (230,605 | ) | $ | 8,536 | $ | 36,021 | $ | (33,165 | ) | $ | 7,952 | |||||||||||
Prior service (credit) cost | 833 | (613 | ) | (716 | ) | (629 | ) | (632 | ) | (613 | ) | ||||||||||||||
Total recognized in other comprehensive (income) loss, pre-tax | $ | 99,969 | $ | (231,218 | ) | $ | 7,820 | $ | 35,392 | $ | (33,797 | ) | $ | 7,339 | |||||||||||
Net amounts recognized in periodic benefit cost and AOCI | $ | 125,189 | $ | (187,880 | ) | $ | 76,278 | $ | 48,358 | $ | (21,336 | ) | $ | 22,407 | |||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | Amounts expected to be amortized from AOCI into net periodic benefit cost during 2015 are as follows: | ||||||||||||||||||||||||
Pension Plans | Post-Retirement | ||||||||||||||||||||||||
Benefit Plans | |||||||||||||||||||||||||
Amortization of net actuarial loss | $ | 32,308 | $ | 616 | |||||||||||||||||||||
Amortization of prior service credit | $ | (1,163 | ) | $ | — | ||||||||||||||||||||
Schedule of Assumptions Used | The weighted-average assumptions used in computing the benefit obligations were as follows: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 3.7 | % | 4.5 | % | 3.7 | % | 4.5 | % | |||||||||||||||||
Rate of increase in compensation levels | 4 | % | 4 | % | N/A | N/A | |||||||||||||||||||
The weighted-average assumptions used in computing net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 4.5 | % | 3.7 | % | 4.5 | % | 4.5 | % | 3.7 | % | 4.5 | % | |||||||||||||
Expected long-term return on plan assets | 7 | % | 7.75 | % | 8 | % | N/A | N/A | N/A | ||||||||||||||||
Rate of compensation increase | 4 | % | 4 | % | 4.1 | % | N/A | N/A | N/A | ||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||
Impact of assumed health care cost trend rates | One-Percentage | One-Percentage | |||||||||||||||||||||||
Point Increase | Point (Decrease) | ||||||||||||||||||||||||
Effect on total service and interest cost components | $ | 164 | $ | (149 | ) | ||||||||||||||||||||
Effect on post-retirement benefit obligation | 4,567 | (4,051 | ) | ||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The ranges for our major domestic pension plans were as follows: | ||||||||||||||||||||||||
Asset Class | Target Allocation 2014 | ||||||||||||||||||||||||
Equity securities | 40 | % | - | 60% | |||||||||||||||||||||
Debt securities | 40 | % | - | 60% | |||||||||||||||||||||
Cash and certain other investments | 0 | % | - | 5% | |||||||||||||||||||||
As of December 31, 2014, actual allocations were within the specified 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 5), pension plan assets at their fair values as of December 31, 2014: | |||||||||||||||||||||||||
Quoted prices in active markets of identical assets | Significant other observable inputs | Significant other unobservable | Total | ||||||||||||||||||||||
(Level 1) | (Level 2) | inputs (Level 3) | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2,123 | $ | 47,702 | $ | — | $ | 49,825 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. all-cap (a) | 1,034 | 140,948 | — | 141,982 | |||||||||||||||||||||
U.S. large-cap (b) | 91,363 | — | — | 91,363 | |||||||||||||||||||||
U.S. small/mid-cap | 37,797 | — | — | 37,797 | |||||||||||||||||||||
International all-cap (c) | 121,901 | 3,510 | — | 125,411 | |||||||||||||||||||||
Global all-cap (d) | 165,131 | — | — | 165,131 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government/agency | 138,556 | 42,787 | — | 181,343 | |||||||||||||||||||||
Corporate bonds (e) | 144,289 | 41,248 | — | 185,537 | |||||||||||||||||||||
Collateralized obligations (f) | 33,753 | 24,305 | — | 58,058 | |||||||||||||||||||||
International government/ corporate bonds (g) | 53,205 | 47,291 | — | 100,496 | |||||||||||||||||||||
Total assets at fair value | $ | 789,152 | $ | 347,791 | $ | — | $ | 1,136,943 | |||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, pension plan assets at their fair values as of December 31, 2013: | |||||||||||||||||||||||||
Quoted prices in active markets of identical assets | Significant other observable inputs(Level 2) | Significant other unobservable | Total | ||||||||||||||||||||||
(Level 1) | inputs (Level 3) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 657 | $ | 22,998 | $ | — | $ | 23,655 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. all-cap (a) | 64,949 | 137,385 | — | 202,334 | |||||||||||||||||||||
U.S. large-cap (b) | 144,254 | — | — | 144,254 | |||||||||||||||||||||
U.S. small/mid-cap | 33,145 | — | — | 33,145 | |||||||||||||||||||||
International all-cap (c) | 136,892 | 3,062 | — | 139,954 | |||||||||||||||||||||
Global all-cap (d) | 181,702 | — | — | 181,702 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. government/agency | 109,995 | 34,907 | — | 144,902 | |||||||||||||||||||||
Corporate bonds (e) | 57,735 | 34,616 | — | 92,351 | |||||||||||||||||||||
Collateralized obligations (f) | 56,016 | 22,350 | — | 78,366 | |||||||||||||||||||||
International government/corporate bonds (g) | 14,018 | 37,304 | — | 51,322 | |||||||||||||||||||||
Total assets at fair value | $ | 799,363 | $ | 292,622 | $ | — | $ | 1,091,985 | |||||||||||||||||
(a) | This category comprises equity funds that track the Russell 3000 index. | ||||||||||||||||||||||||
(b) | This category comprises equity funds that track the S&P 500 and/or Russell 1000 indices. | ||||||||||||||||||||||||
(c) | This category comprises equity funds that track the MSCI World Ex-US index. | ||||||||||||||||||||||||
(d) | This category comprises equity funds that track the MSCI World index. | ||||||||||||||||||||||||
(e) | This category comprises fixed income funds primarily invested in investment grade bonds. | ||||||||||||||||||||||||
(f) | This category comprises fixed income funds primarily invested in high quality mortgage-backed securities and other asset-backed obligations. | ||||||||||||||||||||||||
(g) | This category comprises fixed income funds invested in Canadian and other international bonds. | ||||||||||||||||||||||||
Schedule of Expected Benefit Payments | 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 | |||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | ||||||||||||||||||||
Pension Benefits | $ | 71,685 | $ | 69,918 | $ | 103,081 | $ | 81,715 | $ | 88,847 | $ | 545,365 | |||||||||||||
Other Benefits | 25,247 | 24,344 | 22,933 | 21,364 | 19,954 | 83,846 | |||||||||||||||||||
STOCK_COMPENSATION_PLANS_Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Stock Compensation Costs | The following table summarizes our compensation costs: | |||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Total compensation amount charged against income for stock compensation plans, including stock options, PSUs and RSUs | $ | 54,068 | $ | 53,984 | $ | 50,482 | ||||||||||||||||
Total income tax benefit recognized in Consolidated Statements of Income for share-based compensation | 18,653 | 18,517 | 17,517 | |||||||||||||||||||
Compensation Amount Charged Against Income For Stock Options | The following table summarizes our compensation costs for stock options: | |||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Compensation amount charged against income for stock options | $ | 25,074 | $ | 21,390 | $ | 19,272 | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the status of our Company’s stock options and changes during the last three years follows: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Stock Options | Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Outstanding at beginning of year | 8,660,336 | $ | 55.47 | 10,553,914 | $ | 48.08 | 14,540,442 | $ | 44.86 | |||||||||||||
Granted | 1,387,580 | $ | 105.75 | 1,779,109 | $ | 81.95 | 2,110,945 | $ | 60.89 | |||||||||||||
Exercised | (2,537,581 | ) | $ | 48.61 | (3,315,990 | ) | $ | 45.25 | (5,870,607 | ) | $ | 44.55 | ||||||||||
Forfeited | (190,958 | ) | $ | 82.8 | (356,697 | ) | $ | 64.38 | (226,866 | ) | $ | 52.02 | ||||||||||
Outstanding at end of year | 7,319,377 | $ | 66.69 | 8,660,336 | $ | 55.47 | 10,553,914 | $ | 48.08 | |||||||||||||
Options exercisable at year-end | 3,673,726 | $ | 51.01 | 4,290,416 | $ | 46.45 | 5,320,775 | $ | 45.74 | |||||||||||||
Weighted-average fair value of options granted during the year (per share) | $21.50 | $14.51 | $10.60 | |||||||||||||||||||
Fair Value of Each Stock Option Grant | We use the the Black-Scholes option-pricing model to determine the fair value of stock options granted to employees. The following table sets forth the weighted-average assumptions used for such grants during the year: | |||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Dividend yields | 2 | % | 2.2 | % | 2.4 | % | ||||||||||||||||
Expected volatility | 22.3 | % | 22.2 | % | 22.4 | % | ||||||||||||||||
Risk-free interest rates | 2.1 | % | 1.4 | % | 1.5 | % | ||||||||||||||||
Expected lives in years | 6.7 | 6.6 | 6.6 | |||||||||||||||||||
l | “Dividend yields” means the sum of dividends declared for the four most recent quarterly periods, divided by the average price of our Common Stock for the comparable periods; | |||||||||||||||||||||
l | “Expected volatility” means the historical volatility of our Common Stock over the expected term of each grant; | |||||||||||||||||||||
l | “Risk-free interest rates” means the U.S. Treasury yield curve rate in effect at the time of grant for periods within the contractual life of the stock option; and | |||||||||||||||||||||
l | “Expected lives” means the period of time that stock options granted are expected to be outstanding based primarily on historical data. | |||||||||||||||||||||
Intrinsic Value Of Options Exercised | The following table summarizes the intrinsic value of our stock options: | |||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Intrinsic value of options exercised | $133,948 | $135,396 | $130,219 | |||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding as of December 31, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Number | Weighted- | |||||||||||||||||
Outstanding as | Average | Average | Exercisable as of | Average | ||||||||||||||||||
of 12/31/14 | Remaining | Exercise Price | 12/31/14 | Exercise Price | ||||||||||||||||||
Contractual | ||||||||||||||||||||||
Life in Years | ||||||||||||||||||||||
$33.40 - $51.42 | 2,484,189 | 4.6 | $42.84 | 2,092,239 | $41.23 | |||||||||||||||||
$51.65 - $72.44 | 2,031,766 | 5.5 | $59.25 | 1,211,277 | $58.21 | |||||||||||||||||
$81.73 - $106.65 | 2,803,422 | 8.4 | $93.22 | 370,210 | $82.69 | |||||||||||||||||
$33.40 - $106.65 | 7,319,377 | 6.3 | $66.69 | 3,673,726 | $51.01 | |||||||||||||||||
Compensation Amount Charged Against Income For Performance And Restricted Stock Units | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Compensation amount charged against income for PSUs and RSUs | $ | 28,994 | $ | 32,594 | $ | 31,210 | ||||||||||||||||
Schedule Of Share Based Payment Award Market Based Total Shareholder Return Valuation Assumptions | The following table sets forth information about the fair value of the PSUs and RSUs granted for potential future distribution to employees and non-employee directors. In addition, the table provides assumptions used to determine the fair value of the market-based total shareholder return component using the Monte Carlo simulation model on the date of grant. | |||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Units granted | 331,788 | 395,862 | 503,761 | |||||||||||||||||||
Weighted-average fair value at date of grant | $ | 115.57 | $ | 88.49 | $ | 64.99 | ||||||||||||||||
Monte Carlo simulation assumptions: | ||||||||||||||||||||||
Estimated values | $ | 80.95 | $ | 55.49 | $ | 35.62 | ||||||||||||||||
Dividend yields | 1.8 | % | 2 | % | 2.5 | % | ||||||||||||||||
Expected volatility | 15.5 | % | 17.1 | % | 20 | % | ||||||||||||||||
l | “Estimated values” means the fair value for the market-based total shareholder return component of each PSU at the date of grant using a Monte Carlo simulation model; | |||||||||||||||||||||
l | “Dividend yields” means the sum of dividends declared for the four most recent quarterly periods, divided by the average price of our Common Stock for the comparable periods; | |||||||||||||||||||||
l | “Expected volatility” means the historical volatility of our Common Stock over the expected term of each grant. | |||||||||||||||||||||
Schedule of Share-based Compensation, Performance Stock Unit and Restricted Stock Unit Activity | A summary of the status of our Company’s PSUs and RSUs as of December 31, 2014 and the change during 2014 follows: | |||||||||||||||||||||
Performance Stock Units and Restricted Stock Units | 2014 | Weighted-average grant date fair value | ||||||||||||||||||||
for equity awards or market value for | ||||||||||||||||||||||
liability awards | ||||||||||||||||||||||
Outstanding at beginning of year | 1,411,399 | $72.43 | ||||||||||||||||||||
Granted | 331,788 | $115.57 | ||||||||||||||||||||
Performance assumption change | (214,145 | ) | $91.85 | |||||||||||||||||||
Vested | (565,520 | ) | $63.93 | |||||||||||||||||||
Forfeited | (59,216 | ) | $95.86 | |||||||||||||||||||
Outstanding at end of year | 904,306 | $94.48 | ||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Intrinsic Value Of Share Based Liabilities Paid Combined With Fair Value Of Shares Vested | ||||||||||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||
Intrinsic value of share-based liabilities paid, combined with the fair value of shares vested | $ | 57,360 | $ | 62,582 | 37,329 | |||||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of Segment Reporting Information, by Segment | Our segment net sales and earnings were as follows: | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||
Net sales: | ||||||||||||||
North America | $ | 6,352,729 | $ | 6,200,118 | $ | 5,812,639 | ||||||||
International and Other | 1,069,039 | 945,961 | 831,613 | |||||||||||
Total | $ | 7,421,768 | $ | 7,146,079 | $ | 6,644,252 | ||||||||
Segment income: | ||||||||||||||
North America | $ | 1,916,207 | $ | 1,862,636 | $ | 1,656,136 | ||||||||
International and Other | 40,004 | 44,587 | 51,370 | |||||||||||
Total segment income | 1,956,211 | 1,907,223 | 1,707,506 | |||||||||||
Unallocated corporate expense (1) | 503,407 | 533,506 | 478,645 | |||||||||||
Business realignment and impairment charges | 50,190 | 19,085 | 83,767 | |||||||||||
Non-service related pension | (1,834 | ) | 10,885 | 20,572 | ||||||||||
Acquisition integration costs | 14,873 | 4,072 | 13,374 | |||||||||||
Income before interest and income taxes | 1,389,575 | 1,339,675 | 1,111,148 | |||||||||||
Interest expense, net | 83,532 | 88,356 | 95,569 | |||||||||||
Income before income taxes | $ | 1,306,043 | $ | 1,251,319 | $ | 1,015,579 | ||||||||
-1 | Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based compensation expense, and (d) other gains or losses that are not integral to segment performance. | |||||||||||||
Depreciation and amortization expense included within segment income presented above is as follows: | ||||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||||||
North America | $ | 146,475 | $ | 143,640 | $ | 154,348 | ||||||||
International and Other | 28,463 | 23,461 | 21,707 | |||||||||||
Corporate | 36,594 | 33,932 | 33,982 | |||||||||||
Total | $ | 211,532 | $ | 201,033 | $ | 210,037 | ||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Additional geographic information is as follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Net sales: | ||||||||||||||
United States | $ | 5,996,564 | $ | 5,832,070 | $ | 5,449,877 | ||||||||
Other | 1,425,204 | 1,314,009 | 1,194,375 | |||||||||||
Total | $ | 7,421,768 | $ | 7,146,079 | $ | 6,644,252 | ||||||||
Long-lived assets: | ||||||||||||||
United States | $ | 1,477,455 | $ | 1,474,155 | $ | 1,420,548 | ||||||||
Other | 674,446 | 331,190 | 253,523 | |||||||||||
Total | $ | 2,151,901 | $ | 1,805,345 | $ | 1,674,071 | ||||||||
EQUITY_AND_NONCONTROLLING_INTE1
EQUITY AND NONCONTROLLING INTERESTS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Class of Stock Disclosures [Abstract] | ||||||||||
Schedule of Stock by Class | Changes in the outstanding shares of Common Stock for the past three years were as follows: | |||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | |||||||
Shares issued | 359,901,744 | 359,901,744 | 359,901,744 | |||||||
Treasury shares at beginning of year | (136,007,023 | ) | (136,115,714 | ) | (134,695,826 | ) | ||||
Stock repurchases: | ||||||||||
Repurchase programs | (2,135,268 | ) | — | (2,054,354 | ) | |||||
Stock-based compensation programs | (3,676,513 | ) | (3,655,830 | ) | (5,598,537 | ) | ||||
Stock issuances: | ||||||||||
Stock-based compensation programs | 2,962,018 | 3,764,521 | 6,233,003 | |||||||
Treasury shares at end of year | (138,856,786 | ) | (136,007,023 | ) | (136,115,714 | ) | ||||
Net shares outstanding at end of year | 221,044,958 | 223,894,721 | 223,786,030 | |||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||
Purchase Obligations Covered by Purchase Agreements with Various Suppliers | As of December 31, 2014, we had entered into purchase agreements with various suppliers. Subject to meeting our quality standards, the purchase obligations covered by these agreements were as follows as of December 31, 2014: | ||||||||||||||||||
In millions of dollars | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Purchase obligations | $ | 1,298.80 | $ | 618.1 | $ | 138.6 | $ | 66.8 | |||||||||||
Future Minimum Payments under Non-Cancelable Operating Leases | We have commitments under various lease obligations. Future minimum payments under lease obligations with a remaining term in excess of one year were as follows as of December 31, 2014: | ||||||||||||||||||
In millions of dollars | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||
Future minimum rental payments | $ | 28.2 | $ | 13.4 | $ | 9.6 | $ | 3.2 | $ | 0.9 | $ | 0.9 | |||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Basic and Diluted Earnings Per Share | We compute basic and diluted earnings per share based on the weighted-average number of shares of Common Stock and Class B Stock outstanding as follows: | ||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Net income | $ | 846,912 | $ | 820,470 | $ | 660,931 | |||||||
Weighted-average shares—basic: | |||||||||||||
Common stock | 161,935 | 163,549 | 164,406 | ||||||||||
Class B common stock | 60,620 | 60,627 | 60,630 | ||||||||||
Total weighted-average shares—basic | 222,555 | 224,176 | 225,036 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | 1,920 | 2,476 | 2,608 | ||||||||||
Performance and restricted stock units | 362 | 551 | 693 | ||||||||||
Weighted-average shares—diluted | 224,837 | 227,203 | 228,337 | ||||||||||
Earnings per share—basic: | |||||||||||||
Common stock | $3.91 | $3.76 | $3.01 | ||||||||||
Class B common stock | $3.54 | $3.39 | $2.73 | ||||||||||
Earnings Per Share—diluted: | |||||||||||||
Common stock | $3.77 | $3.61 | $2.89 | ||||||||||
Class B common stock | $3.52 | $3.37 | $2.71 | ||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||||||||||
For the years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Stock options excluded from diluted earnings per share calculations because the effect would have been antidilutive | 1,510 | 1,757 | 3,543 | ||||||||||
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION [Abstract] | |||||||||
Schedule of Amounts Recognized in Balance Sheet | The components of certain Consolidated Balance Sheet accounts are as follows: | ||||||||
December 31, | 2014 | 2013 | |||||||
Inventories: | |||||||||
Raw materials | $ | 377,620 | $ | 226,978 | |||||
Goods in process | 63,916 | 79,861 | |||||||
Finished goods | 531,608 | 517,968 | |||||||
Inventories at FIFO | 973,144 | 824,807 | |||||||
Adjustment to LIFO | (172,108 | ) | (165,266 | ) | |||||
Total inventories | $ | 801,036 | $ | 659,541 | |||||
Property, plant and equipment: | |||||||||
Land | $ | 95,913 | $ | 96,334 | |||||
Buildings | 1,031,050 | 882,508 | |||||||
Machinery and equipment | 2,863,559 | 2,527,420 | |||||||
Construction in progress | 338,085 | 273,132 | |||||||
Property, plant and equipment, gross | 4,328,607 | 3,779,394 | |||||||
Accumulated depreciation | (2,176,706 | ) | (1,974,049 | ) | |||||
Property, plant and equipment, net | $ | 2,151,901 | $ | 1,805,345 | |||||
Other assets: | |||||||||
Pension | $ | 25 | $ | 32,804 | |||||
Capitalized software, net | 63,252 | 56,502 | |||||||
Income tax receivable | 1,568 | 63,863 | |||||||
Other non-current assets | 77,927 | 139,835 | |||||||
Total other assets | $ | 142,772 | $ | 293,004 | |||||
Accrued liabilities: | |||||||||
Payroll, compensation and benefits | $ | 225,439 | $ | 245,641 | |||||
Advertising and promotion | 326,647 | 348,966 | |||||||
Due to SGM shareholders | 98,884 | — | |||||||
Other | 162,543 | 105,115 | |||||||
Total accrued liabilities | $ | 813,513 | $ | 699,722 | |||||
Other long-term liabilities: | |||||||||
Post-retirement benefits liabilities | $ | 268,850 | $ | 245,460 | |||||
Pension benefits liabilities | 114,923 | 50,842 | |||||||
Other | 142,230 | 137,766 | |||||||
Total other long-term liabilities | $ | 526,003 | $ | 434,068 | |||||
QUARTERLY_DATA_Tables
QUARTERLY DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Data [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | Summary quarterly results were as follows: | ||||||||||||||||
Year 2014 | First | Second | Third | Fourth | |||||||||||||
Net sales | $ | 1,871,813 | $ | 1,578,350 | $ | 1,961,578 | $ | 2,010,027 | |||||||||
Gross profit | 871,490 | 717,474 | 860,137 | 887,065 | |||||||||||||
Net income | 252,495 | 168,168 | 223,741 | 202,508 | |||||||||||||
Common stock: | |||||||||||||||||
Net income per share—Basic | 1.16 | 0.78 | 1.03 | 0.94 | |||||||||||||
Net income per share—Diluted | 1.11 | 0.75 | 1 | 0.91 | |||||||||||||
Dividends paid per share | 0.485 | 0.485 | 0.535 | 0.535 | |||||||||||||
Class B common stock: | |||||||||||||||||
Net income per share—Basic | 1.04 | 0.7 | 0.94 | 0.85 | |||||||||||||
Net income per share—Diluted(a) | 1.03 | 0.7 | 0.94 | 0.85 | |||||||||||||
Dividends paid per share | 0.435 | 0.435 | 0.486 | 0.486 | |||||||||||||
Market price—common stock: | |||||||||||||||||
High | 108.07 | 104.11 | 96.93 | 106.64 | |||||||||||||
Low | 95.54 | 96.02 | 88.15 | 91.09 | |||||||||||||
Year 2013 | First | Second | Third | Fourth | |||||||||||||
Net sales | $ | 1,827,426 | $ | 1,508,514 | $ | 1,853,886 | $ | 1,956,253 | |||||||||
Gross profit | 849,337 | 718,574 | 855,551 | 857,386 | |||||||||||||
Net income | 241,906 | 159,504 | 232,985 | 186,075 | |||||||||||||
Common stock: | |||||||||||||||||
Net income per share—Basic(a) | 1.11 | 0.73 | 1.07 | 0.85 | |||||||||||||
Net income per share—Diluted | 1.06 | 0.7 | 1.03 | 0.82 | |||||||||||||
Dividends paid per share | 0.42 | 0.42 | 0.485 | 0.485 | |||||||||||||
Class B common stock: | |||||||||||||||||
Net income per share—Basic | 1 | 0.66 | 0.96 | 0.77 | |||||||||||||
Net income per share—Diluted | 0.99 | 0.66 | 0.95 | 0.76 | |||||||||||||
Dividends paid per share | 0.38 | 0.38 | 0.435 | 0.435 | |||||||||||||
Market price—common stock: | |||||||||||||||||
High | 87.53 | 91.25 | 97.69 | 100.9 | |||||||||||||
Low | 73.51 | 85.25 | 89.17 | 91.04 | |||||||||||||
(a) | Quarterly income per share amounts do not total to the annual amount due to changes in weighted-average shares outstanding during the year. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Significant Accounting Policies [Line Items] | |||
Number Of Brand Names Under Which Products Are Sold | 80 | ||
Approximate Number Of Countries In Which Confectionery Products Are Marketed | 70 | ||
Equity Method Investments | $0 | $39,872 | |
Research and Development Expense | 47,554 | 47,636 | 38,959 |
Advertising Expense | 570,223 | 582,354 | 480,016 |
Prepaid Advertising | 8,193 | 8,432 | |
Accounts Receivable Percentage Greater Than Other Individual Customer Accounts | 12.80% | ||
Percentage Of Total Accounts Receivable Accounted For By Wal-Mart | 12.30% | ||
Allowance for Doubtful Accounts Receivable, Current | 15,885 | 14,329 | |
Percentage of LIFO Inventory | 54.00% | ||
LIFO Inventory Amount | 430,094 | 314,999 | |
Capitalized Computer Software, Net | 63,252 | 56,502 | |
Accumulated Amortization | 2,176,706 | 1,974,049 | |
Patents [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years 0 months | ||
Customer Relationships [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years 0 months | ||
Software and Software Development Costs [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Capitalized Computer Software, Net | 63,252 | 56,502 | |
Accumulated Amortization | $300,698 | $277,872 | |
Trademarks [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 25 years 0 months | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years 0 months | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 25 years 0 months | ||
Minimum [Member] | Software and Software Development Costs [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years 0 months | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years 0 months | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years 0 months | ||
Maximum [Member] | Software and Software Development Costs [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years 0 months |
BUSINESS_ACQUISITIONS_Details
BUSINESS ACQUISITIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 26, 2014 | Dec. 31, 2014 | Mar. 30, 2014 | Dec. 31, 2014 | Jan. 29, 2012 | |
Business Acquisition [Line Items] | ||||||||
Goodwill, Acquired During Period | $242,134,000 | $0 | ||||||
Payments to Acquire Additional Interest in Subsidiaries | 0 | 0 | 15,791,000 | |||||
Equity Method Investments | 0 | 39,872,000 | 0 | 0 | ||||
Noncontrolling interests in subsidiaries | 64,468,000 | 11,218,000 | 64,468,000 | 64,468,000 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 396,265,000 | 0 | 172,856,000 | |||||
Business Combination, Acquisition Related Costs | 13,270,000 | 4,072,000 | 13,374,000 | |||||
Shanghai Golden Monkey [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | 26-Sep-14 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | |||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 54,000,000 | |||||||
Business Combination, Consideration Transferred | 394,470,000 | |||||||
Business Combination, Contingent Consideration, Asset | 37,860,000 | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 20.00% | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 100,067,000 | |||||||
Cash Acquired from Acquisition | 14,727,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 46,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 42,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 37,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 112,000,000 | |||||||
Goodwill, Acquired During Period | 235,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 35,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | -54,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | -105,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | -52,000,000 | |||||||
Net assets acquired | 441,000,000 | |||||||
Lotte Shanghai Food Company [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | 1-Mar-14 | |||||||
Business Combination, Consideration Transferred | 99,161,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 106,253,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | -13,292,000 | |||||||
Net assets acquired | 99,449,000 | |||||||
Additional Ownership Percentage Acquired | 5.90% | |||||||
Payments to Acquire Additional Interest in Subsidiaries | 5,580,000 | |||||||
Equity Method Investment, Ownership Percentage | 44.10% | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | |||||||
Equity Method Investments | 43,857,000 | |||||||
Noncontrolling interests in subsidiaries | 49,724,000 | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 4,627,000 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | -10,035,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 6,488,000 | |||||||
The Allan Candy Company Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | 1-Dec-14 | |||||||
Business Combination, Consideration Transferred | 27,376,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 10,897,000 | 10,897,000 | 10,897,000 | |||||
Goodwill, Acquired During Period | 6,996,000 | |||||||
Finite-Lived Acquired Intangibles | 8,092,000 | 8,092,000 | 8,092,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,391,000 | 1,391,000 | 1,391,000 | |||||
Brookside [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Effective Date of Acquisition | 1-Jan-12 | |||||||
Goodwill, Acquired During Period | 68,000,000 | |||||||
Finite-Lived Acquired Intangibles | 51,000,000 | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 173,000,000 | |||||||
Non-current deferred tax liabilities | -28,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 18,700,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 22,000,000 | |||||||
Customer-Related Intangible Assets [Member] | Shanghai Golden Monkey [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Acquired Intangibles | 85,000,000 | |||||||
Finite-Lived Intangible Asset, Useful Life | 16 years 0 months | |||||||
Trademarks [Member] | Shanghai Golden Monkey [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Acquired Intangibles | 60,000,000 | |||||||
Finite-Lived Intangible Asset, Useful Life | 22 years 0 months | |||||||
Trademarks [Member] | Brookside [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Acquired Intangibles | $60,000,000 | |||||||
Finite-Lived Intangible Asset, Useful Life | 25 years 0 months | |||||||
Minimum [Member] | The Allan Candy Company Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years 0 months | |||||||
Minimum [Member] | Brookside [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 6 years 0 months | |||||||
Maximum [Member] | The Allan Candy Company Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 19 years 0 months | |||||||
Maximum [Member] | Brookside [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 17 years 0 months |
BUSINESS_DIVESTITURES_Details
BUSINESS DIVESTITURES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Business | $22,256 | $0 | $0 |
Goodwill and Intangible Asset Impairment | 15,900 | 0 | 0 |
Mauna Loa [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | 38,000 | ||
Gain (Loss) on Disposition of Business | 22,256 | ||
Goodwill and Intangible Asset Impairment | 18,531 | ||
Disposal Group, Including Discontinued Operation, Inventory | 21,489 | ||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 173 | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 12,691 | ||
Disposal Group, Including Discontinued Operation, Intangible Assets | 12,705 | ||
Disposal Group, Including Discontinued Operation, Assets | 47,058 | ||
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities | 3,726 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities | 9,029 | ||
Disposal Group, Including Discontinued Operation, Liabilities | $12,755 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Goodwill, Gross | $658,149 | ||
Goodwill, Impaired, Accumulated Impairment Loss | -70,146 | ||
Goodwill | 576,561 | 588,003 | |
Goodwill, Acquired During Period | 242,134 | 0 | |
Goodwill, Impairment Loss | -11,400 | ||
Goodwill, Other Changes | -1,448 | ||
Goodwill, Translation Adjustments | -12,892 | -11,442 | |
Goodwill | 792,955 | 576,561 | 588,003 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 295,375 | 166,364 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -45,534 | -47,640 | |
Amortization of Intangible Assets | 11,328 | 10,849 | 10,559 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 16,676 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 16,629 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 16,253 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13,972 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 13,792 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Other Intangibles | 294,841 | 195,244 | |
North America [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross | 552,596 | ||
Goodwill, Impaired, Accumulated Impairment Loss | -4,973 | ||
Goodwill | 538,655 | 547,623 | |
Goodwill, Acquired During Period | 6,996 | 0 | |
Goodwill, Impairment Loss | 0 | ||
Goodwill, Other Changes | -1,448 | ||
Goodwill, Translation Adjustments | -10,854 | -8,968 | |
Goodwill | 533,349 | 538,655 | |
International and Other [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross | 105,553 | ||
Goodwill, Impaired, Accumulated Impairment Loss | -65,173 | ||
Goodwill | 37,906 | 40,380 | |
Goodwill, Acquired During Period | 235,138 | 0 | |
Goodwill, Impairment Loss | -11,400 | ||
Goodwill, Other Changes | 0 | ||
Goodwill, Translation Adjustments | -2,038 | -2,474 | |
Goodwill | 259,606 | 37,906 | |
Impairment of Intangible Assets (Excluding Goodwill) | 4,500 | ||
Trademarks [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 129,223 | 66,274 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -7,593 | -5,198 | |
Customer-Related Intangible Assets [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 138,964 | 70,906 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -20,404 | -26,844 | |
Patents [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 18,383 | 19,278 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -11,447 | -9,737 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Finite-Lived Intangible Assets, Gross | 8,805 | 9,906 | |
Finite-Lived Intangible Assets, Accumulated Amortization | -6,090 | -5,861 | |
Trademarks [Member] | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $45,000 | $76,520 |
SHORTTERM_DEBT_Details
SHORT-TERM DEBT (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Nov. 24, 2019 | Dec. 31, 2013 | Dec. 31, 2011 | |
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $1,000,000,000 | $1,100,000,000 | ||
Line Of Credit Facility Increase Additional Borrowing Capacity | 400,000,000 | 400,000,000 | ||
Commercial Paper | 54,995,000 | 0 | ||
Line of Credit Facility, Maximum Amount Outstanding During Period | 649,195,000 | |||
Short-term Debt, Weighted Average Interest Rate | 3.20% | 1.90% | ||
Commercial Paper [Member] | ||||
Short-term Debt [Line Items] | ||||
Short-term Debt, Weighted Average Interest Rate | 0.09% | |||
Foreign Line of Credit [Member] | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 447,629,000 | 290,336,000 | ||
Line of Credit, Current | $329,701,000 | $165,961,000 | ||
Scenario, Forecast [Member] | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Expiration Date | 1-Nov-19 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Long-term Debt | $1,799,768 | $1,796,056 | |
Other Long-term Debt | 99,768 | 96,056 | |
Current portion of long-term debt | 250,805 | 914 | |
Long-term Debt, Excluding Current Maturities | 1,548,963 | 1,795,142 | |
Long-term borrowings | 3,051 | 250,595 | 4,025 |
Maturities of Long-term Debt [Abstract] | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 506,342 | ||
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Three | 1,454 | ||
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Four | 1,024 | ||
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Five | 1,111 | ||
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal after Year Five | 1,039,032 | ||
Notes Due 2013 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Repayments of Long-term Debt | 250,000 | ||
Notes Due 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 250,000 | 250,000 | |
Current portion of long-term debt | 250,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.85% | ||
5.45% Notes due 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 250,000 | 250,000 | |
1.50% Notes Due 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 250,000 | 250,000 | |
Notes Due 2020 Member | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 350,000 | 350,000 | |
Debentures due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 100,000 | 100,000 | |
Notes Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 250,000 | 250,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.63% | ||
Long-term borrowings | 250,000 | ||
Debentures due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $250,000 | $250,000 |
INTEREST_EXPENSE_Details
INTEREST EXPENSE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Long-term debt and lease obligations | $82,105 | $84,604 | $81,203 |
Short-term debt | 11,672 | 8,654 | 23,084 |
Capitalized interest | -6,179 | -1,744 | -5,778 |
Interest expense | 87,598 | 91,514 | 98,509 |
Interest income | -4,066 | -3,158 | -2,940 |
Interest expense, net | $83,532 | $88,356 | $95,569 |
DERIVATIVE_INSTRUMENTS_AND_FAI2
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $4,212,000 | $29,864,000 | |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 41,896,000 | 129,000 | |
Notional Disclosures [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 5,123,000 | 610,000 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 2,334,000 | 198,000 | |
Derivative Asset Current Commodity Last Day Activity | 51,225,000 | 23,780,000 | |
Derivative Liability Current Commodity Last Day Activity | 56,840,000 | 23,909,000 | |
Debt Instrument, Fair Value Disclosure [Abstract] | |||
Long-term Debt, Fair Value | 1,979,588,000 | 1,947,937,000 | |
Long-term Debt, Excluding Current Maturities | 1,548,963,000 | 1,795,142,000 | |
Long-term Debt | 1,799,768,000 | 1,796,056,000 | |
Current portion of long-term debt | 250,805,000 | 914,000 | |
Goodwill and Intangible Asset Impairment | 15,900,000 | 0 | 0 |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 3,836,000 | 0 | |
Cash Flow Hedging Derivatives | |||
Gains (losses) recognized in other comprehensive income (OCI)(effective portion) | -61,358,000 | 116,329,000 | |
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 67,403,000 | -9,365,000 | |
Gains (losses) recognized in income (ineffective portion) | 2,498,000 | 3,241,000 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 377,000 | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 938,000 | ||
Commodity [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Minimum Length of Time Hedged in Cash Flow Hedge | 3 months | ||
Maximum Length of Time Hedged in Cash Flow Hedge | 24 months | ||
Interest Rate Swap Agreements | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 0 | 0 | |
Cash Flow Hedging Derivatives | |||
Gains (losses) recognized in other comprehensive income (OCI)(effective portion) | -52,249,000 | 27,534,000 | |
Gains (losses) reclassified from accumulated OCI into income (effective portion) | -4,500,000 | -3,606,000 | |
Gains (losses) recognized in income (ineffective portion) | 0 | 0 | |
Equity Swap [Member] | |||
Notional Disclosures [Abstract] | |||
Minimum Length of Time Hedged in Fair Value Hedge | 3 months | ||
Maximum Length of Time Hedged in Fair Value Hedge | 12 months | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2,983,000 | 0 | |
Cash Flow Hedging Derivatives | |||
Gains (losses) recognized in other comprehensive income (OCI)(effective portion) | 0 | 0 | |
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 0 | 0 | |
Gains (losses) recognized in income (ineffective portion) | 0 | 0 | |
Foreign Exchange Forward Contracts and Options | |||
Derivatives, Fair Value [Line Items] | |||
Minimum Length of Time Hedged in Cash Flow Hedge | 3 months | ||
Maximum Length of Time Hedged in Cash Flow Hedge | 24 months | ||
Notional Disclosures [Abstract] | |||
Investment Foreign Currency, Contract, Amount Purchased | 22,725,000 | 158,375,000 | |
Investment Foreign Currency, Contract, Foreign Currency Amount | 4,144,000 | 2,823,000 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | -1,486,000 | 0 | |
Cash Flow Hedging Derivatives | |||
Gains (losses) recognized in other comprehensive income (OCI)(effective portion) | 2,056,000 | 4,049,000 | |
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 3,403,000 | 2,641,000 | |
Gains (losses) recognized in income (ineffective portion) | 0 | 0 | |
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 3,801,000 | ||
Commodities Futures and Options Contracts | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2,339,000 | 0 | |
Cash Flow Hedging Derivatives | |||
Gains (losses) recognized in other comprehensive income (OCI)(effective portion) | -11,165,000 | 84,746,000 | |
Gains (losses) reclassified from accumulated OCI into income (effective portion) | 68,500,000 | -8,400,000 | |
Gains (losses) recognized in income (ineffective portion) | 2,498,000 | 3,241,000 | |
Fair Value, Inputs, Level 1 [Member] | Commodity [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | 4,306,000 | |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 9,944,000 | 129,000 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap Agreements | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Hedge Assets | 1,746,000 | 0 | |
Fair Value Hedge Liabilities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Equity Swap [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1,074,000 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Forward Contracts and Options | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 2,196,000 | 2,813,000 | |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 2,447,000 | 0 | |
Notional Disclosures [Abstract] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 4,049,000 | 610,000 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 2,334,000 | 198,000 | |
Fair Value, Inputs, Level 2 [Member] | Currency Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 2,016,000 | 0 | |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | 22,745,000 | |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 29,505,000 | 0 | |
Liability [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative Liability, Fair Value, Gross Asset | 44,230,000 | 327,000 | |
Assets [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative Asset, Fair Value, Gross Asset | 11,081,000 | 30,474,000 | |
Long-term Debt [Member] | |||
Debt Instrument, Fair Value Disclosure [Abstract] | |||
Long-term Debt, Fair Value | 1,722,308,000 | 1,947,023,000 | |
Long-term Debt, Current Portion [Member] | |||
Debt Instrument, Fair Value Disclosure [Abstract] | |||
Long-term Debt, Fair Value | 257,280,000 | 914,000 | |
Mauna Loa [Member] | |||
Debt Instrument, Fair Value Disclosure [Abstract] | |||
Goodwill and Intangible Asset Impairment | 18,531,000 | ||
Cash Flow Hedging [Member] | Interest Rate Swap Agreements | |||
Notional Disclosures [Abstract] | |||
Derivative, Notional Amount | 750,000,000 | 250,000,000 | |
Fair Value Hedging [Member] | Interest Rate Swap Agreements | |||
Notional Disclosures [Abstract] | |||
Derivative, Notional Amount | 450,000,000 | 0 | |
Fair Value Hedging [Member] | Equity Swap [Member] | |||
Notional Disclosures [Abstract] | |||
Derivative, Notional Amount | $26,417,000 |
COMPREHENSIVE_INCOME_Details
COMPREHENSIVE INCOME (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other comprehensive income (loss) Pre-Tax Amount: | |||||||||||
Foreign currency translation adjustments | ($26,851) | ($26,003) | $7,714 | ||||||||
Pension and post-retirement benefit plans | -135,361 | 265,015 | -15,159 | ||||||||
Cash Flow Hedges: | |||||||||||
Gains (Losses) on cash flow hedging derivatives | -61,358 | 116,329 | -543 | ||||||||
Reclassification adjustments | -67,403 | 9,365 | 96,993 | ||||||||
Total other comprehensive income (loss) | -290,973 | 364,706 | 89,005 | ||||||||
Other comprehensive income (loss) Tax (Expense) Benefit: | |||||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension and post-retirement benefit plans | 50,345 | -98,612 | 5,525 | ||||||||
Cash Flow Hedges: | |||||||||||
Gains (Losses) on cash flow hedging derivatives | 24,281 | -43,995 | -325 | ||||||||
Reclassification adjustments | 24,341 | -3,590 | -36,950 | ||||||||
Total other comprehensive income (loss) | 98,967 | -146,197 | -31,750 | ||||||||
Comprehensive income (loss) After-Tax Amount: | |||||||||||
Net Income | 202,508 | 223,741 | 168,168 | 252,495 | 186,075 | 232,985 | 159,504 | 241,906 | 846,912 | 820,470 | 660,931 |
Other Comprehensive Income (Loss) After-Tax Amount: | |||||||||||
Foreign currency translation adjustments | -26,851 | -26,003 | 7,714 | ||||||||
Pension and post-retirement benefit plans | -85,016 | 166,403 | -9,634 | ||||||||
Cash Flow Hedges: | |||||||||||
Gains (Losses) on cash flow hedging derivatives | -37,077 | 72,334 | -868 | ||||||||
Reclassification adjustments | -43,062 | 5,775 | 60,043 | ||||||||
Total other comprehensive income (loss), net of tax | -192,006 | 218,509 | 57,255 | ||||||||
Comprehensive Income | 654,906 | 1,038,979 | 718,186 | ||||||||
Components of Accumulated Other Comprehensive Income (Loss) Abstract | |||||||||||
Foreign currency translation adjustments | -43,681 | -16,830 | -43,681 | -16,830 | |||||||
Pension and post-retirement benefit plans, net of tax | -284,650 | -199,634 | -284,650 | -199,634 | |||||||
Cash flow hedges, net of tax | -30,242 | 49,897 | -30,242 | 49,897 | |||||||
Total accumulated other comprehensive loss | ($358,573) | ($166,567) | ($358,573) | ($166,567) |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $53,497 | $48,396 | |
Domestic | 1,320,738 | 1,252,208 | 980,176 |
Foreign | -14,695 | -889 | 35,403 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current Federal | 385,642 | 372,649 | 299,122 |
Current State | 52,331 | 47,980 | 36,187 |
Current Foreign | 2,362 | 2,763 | 5,554 |
Current Provision for Income Taxes | 440,335 | 423,392 | 340,863 |
Deferred Federal | 20,649 | 11,334 | 5,174 |
Deferred State | 2,725 | 2,212 | 1,897 |
Deferred Foreign | -4,578 | -6,089 | 6,714 |
Deferred Income Tax Provision (Benefit) | 18,796 | 7,457 | 13,785 |
Total provision for income taxes | 459,131 | 430,849 | 354,648 |
Components of Deferred Tax Assets [Abstract] | |||
Post-retirement benefit obligations | 109,973 | 101,674 | |
Accrued expenses and other reserves | 139,492 | 119,387 | |
Stock-based compensation | 46,061 | 47,324 | |
Derivative instruments | 14,954 | 0 | |
Pension | 24,584 | 0 | |
Lease financing obligation | 18,991 | 19,065 | |
Accrued trade promotion reserves | 41,332 | 39,234 | |
Net operating loss carryforwards | 50,044 | 39,606 | |
Disposal Group, Including Discontinued Operation, Deferred Tax Assets | 43,155 | 0 | |
Other | 7,425 | 11,754 | |
Gross deferred tax assets | 496,011 | 378,044 | |
Valuation Allowance | -147,223 | -87,159 | |
Total deferred tax assets | 348,788 | 290,885 | |
Components of Deferred Tax Liabilities [Abstract] | |||
Property, plant and equipment, net | 221,389 | 201,224 | |
Acquired intangibles | 85,037 | 64,249 | |
Inventories | 32,157 | 33,885 | |
Derivatives instruments | 0 | 33,779 | |
Pension | 0 | 8,037 | |
Other | 9,063 | 1,404 | |
Deferred Tax Liabilities, Gross | 347,646 | 342,578 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Current deferred tax assets, net | 100,515 | 52,511 | |
Non- current deferred tax liabilities, net | -99,373 | -104,204 | |
Net deferred tax (liabilities) assets | 1,142 | -51,693 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of Federal income tax benefits | 3.00% | 2.80% | 3.20% |
Qualified production income deduction | -2.40% | -2.60% | -2.50% |
Business realignment and impairment charges and gain on sale of trademark licensing rights | 0.70% | 0.10% | 0.20% |
International operations | -0.10% | -0.40% | -0.10% |
Other, net | -1.00% | -0.50% | -0.90% |
Effective Income Tax Rate | 35.20% | 34.40% | 34.90% |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the Beginning of the Year | 103,963 | 51,520 | |
Additions for tax positions taken during prior years | 0 | 58,246 | |
Reductions for tax positions taken during prior years | -71,643 | -5,776 | |
Additions for tax positions taken during the current year | 8,403 | 5,523 | |
Settlements | -4,643 | 0 | |
Expiration of Statute of Limitations | -3,850 | -5,550 | |
Balance at the End of the Year | 32,230 | 103,963 | 51,520 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 23,502 | 31,712 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | -9,082 | 5,901 | -5,270 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,638 | 11,718 | |
Tax Adjustments, Settlements, and Unusual Provisions | 2,212 | ||
Income Taxes Receivable, Noncurrent | 1,568 | 63,863 | |
Reduction in liability for unrecognized tax benefits | 6,407 | ||
Undistributed Earnings of Foreign Subsidiaries | 195,887 | ||
Income before income taxes | $1,306,043 | $1,251,319 | $1,015,579 |
BUSINESS_REALIGNMENT_AND_IMPAI2
BUSINESS REALIGNMENT AND IMPAIRMENT CHARGES (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Business Realignment And Impairment Charges [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | $39,988,000 | $0 | $38,144,000 | |
Gain (Loss) on Disposition of Business | 22,256,000 | 0 | 0 | |
Goodwill and Intangible Asset Impairment | 15,900,000 | 0 | 0 | |
Business realignment and impairment charges | 45,621,000 | 18,665,000 | 44,938,000 | |
Total net charges associated with business realignment initiatives and impairment | 50,190,000 | 19,085,000 | 83,767,000 | |
Next Century Program [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Pension settlement loss | 0 | 0 | 15,787,000 | |
Plant closure expenses | 7,465,000 | 16,387,000 | 20,780,000 | |
Employee separation costs | 0 | 0 | 914,000 | |
Restructuring and Related Cost, Cost Incurred to Date | 197,900,000 | |||
Estimated Next Century pretax and nonrecurring project implementation costs, minimum | 190,000,000 | |||
Estimated Next Century pretax and nonrecurring project implementation costs, maximum | 200,000,000 | |||
International Restructuring Programs [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | 4,476,000 | |||
Tri-US, Inc. [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Asset Impairment Charges | 0 | 0 | 7,457,000 | |
Hershey India [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Employee separation costs | 0 | 2,278,000 | 0 | |
Scenario, Forecast [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Restructuring and Related Cost, Accelerated Depreciation | 3,700,000 | |||
Cost of Sales [Member] | Next Century Program [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | 1,622,000 | 402,000 | 36,383,000 | |
Selling, General and Administrative Expenses [Member] | Next Century Program [Member] | ||||
Business Realignment And Impairment Charges [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | $2,947,000 | $18,000 | $2,446,000 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement Loss Amount Associated to Business Realignment Initiatives | 15787000 | ||||
Defined Benefit Plan, Accumulated Benefit Obligation | $1,206,929 | $1,072,234 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at Beginning of Year | 1,091,985 | ||||
Employer Contributions | 29,409 | 32,336 | |||
Defined Benefit Plan, Voluntary Employer Contributions | 22,000 | ||||
Fair Value of Plan Assets at End of Year | 1,136,943 | 1,091,985 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 25 | 32,804 | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||||
Total | 284,650 | 199,634 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | |||||
Projected Benefit Obligation | 1,193,151 | 76,801 | |||
Accumulated Benefit Obligation | 1,151,210 | 64,340 | |||
Fair Value of Plan Assets | 1,071,539 | 15,760 | |||
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 135,361 | -265,015 | 15,159 | ||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 164 | ||||
Defined Benefit Plan, Effect of One Percentage Point Increase on Postretirement Benefit Obligation | 4,567 | ||||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Postretirement Benefit Obligation | -4,051 | ||||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | -149 | ||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||||
Defined Contribution Plan, Cost Recognized | 46,064 | 43,257 | 39,759 | ||
Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 789,152 | 799,363 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 347,791 | 292,622 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at Beginning of Year | 23,655 | ||||
Fair Value of Plan Assets at End of Year | 49,825 | ||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 5.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | ||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 2,123 | 657 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 47,702 | 22,998 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Equity Securities [Member] | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 60.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 40.00% | ||||
U.S. all-cap [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 141,982 | 202,334 | |||
U.S. all-cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 1,034 | 64,949 | |||
U.S. all-cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 140,948 | 137,385 | |||
U.S. all-cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
U.S. large-cap [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 91,363 | 144,254 | |||
U.S. large-cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 91,363 | 144,254 | |||
U.S. large-cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
U.S. large-cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
U.S. small/mid cap [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 37,797 | 33,145 | |||
U.S. small/mid cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 37,797 | 33,145 | |||
U.S. small/mid cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
U.S. small/mid cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
International all-cap [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 125,411 | 139,954 | |||
International all-cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 121,901 | 136,892 | |||
International all-cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 3,510 | 3,062 | |||
International all-cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Global all-cap [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 165,131 | 181,702 | |||
Global all-cap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 165,131 | 181,702 | |||
Global all-cap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Global all-cap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Debt Securities [Member] | |||||
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 60.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 40.00% | ||||
U.S. government/agency [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 181,343 | 144,902 | |||
U.S. government/agency [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 138,556 | 109,995 | |||
U.S. government/agency [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 42,787 | 34,907 | |||
U.S. government/agency [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Corporate bonds [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 185,537 | 92,351 | |||
Corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 144,289 | 57,735 | |||
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 41,248 | 34,616 | |||
Corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Collateralized obligations [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 58,058 | 78,366 | |||
Collateralized obligations [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 33,753 | 56,016 | |||
Collateralized obligations [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 24,305 | 22,350 | |||
Collateralized obligations [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
International government/corporate bonds [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 100,496 | 51,322 | |||
International government/corporate bonds [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 53,205 | 14,018 | |||
International government/corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 47,291 | 37,304 | |||
International government/corporate bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at End of Year | 0 | 0 | |||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan Historic Geometric Average Return On Plan Assets Over Prior 26 Years | 8.70% | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected Benefit Obligation at Beginning of Year | 1,120,492 | 1,237,778 | |||
Service cost | 26,935 | 31,339 | 30,823 | ||
Interest cost | 48,886 | 43,962 | 49,909 | ||
Plan Amendments | 168 | 55 | |||
Defined Benefit Plan, Actuarial Gain (Loss) | 134,902 | -100,872 | |||
Curtailments | 0 | -8,833 | |||
Settlement | 0 | -319 | |||
Currency Translation and Other | -6,204 | -5,976 | |||
Benefits Paid | -64,284 | -76,642 | |||
Projected Benefit Obligation at End of Year | 1,260,895 | 1,120,492 | 1,237,778 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at Beginning of Year | 1,091,985 | 988,167 | |||
Actual Return on Plan Assets | 85,921 | 152,976 | |||
Employer Contributions | 29,409 | 32,336 | |||
Settlement | 0 | -319 | |||
Currency Translation and Other | -6,088 | -4,533 | |||
Fair Value of Plan Assets at End of Year | 1,136,943 | 1,091,985 | 988,167 | ||
Funded Status at End of Year | -123,952 | -28,507 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 25 | 32,533 | |||
Accrued Liabilities | -9,054 | -10,198 | |||
Other Long-Term Liabilities | -114,923 | -50,842 | |||
Total | -123,952 | -28,507 | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||||
Actuarial Net (Loss) | -279,625 | -215,702 | |||
Net Prior Service Credit (Cost) | 5,341 | 5,698 | |||
Total | -274,284 | -210,004 | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Expected return on plan assets | -74,080 | -73,128 | -72,949 | ||
Amortization of prior service cost | -667 | 422 | 731 | ||
Defined Benefit Plan, Amortization of Gains (Losses) | 23,360 | 40,397 | 39,723 | ||
Administrative expenses | 786 | 692 | 545 | ||
Curtailment credit | 0 | -364 | 0 | ||
Settlement loss | 0 | 18 | 19,676 | ||
Total amount reflected in earnings | 25,220 | 43,338 | 68,458 | ||
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Actuarial Net Loss (Gain) | 99,136 | -230,605 | 8,536 | ||
Total Recognized in Accumulated Other Comprehensive Loss (Income) | 833 | -613 | -716 | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 99,969 | -231,218 | 7,820 | ||
Total Recognized In Net Periodic Benefit Cost In Income And Accumulated Other Comprehensive Income Loss | 125,189 | -187,880 | 76,278 | ||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||||
Defined Benefit Plan, Amortization of Net Loss | 32,308 | ||||
Defined Benefit Plan, Amortization of Net Prior Service (Credit) | -1,163 | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||||
Discount Rate | 3.70% | 4.50% | |||
Rate of Compensation Increase | 4.00% | 4.00% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Discount Rate | 4.50% | 3.70% | 4.50% | ||
Expected Long-term Return on Assets | 7.00% | 7.75% | 8.00% | ||
Rate of Compensation Increase | 4.00% | 4.00% | 4.10% | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||||
2015 | 71,685 | ||||
2016 | 69,918 | ||||
2017 | 103,081 | ||||
2018 | 81,715 | ||||
2019 | 88,847 | ||||
2020-2024 | 545,365 | ||||
Other Benefits | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected Benefit Obligation at Beginning of Year | 270,937 | 318,415 | |||
Service cost | 706 | 1,094 | 1,172 | ||
Interest cost | 11,696 | 10,747 | 13,258 | ||
Plan Amendments | 0 | 0 | |||
Defined Benefit Plan, Actuarial Gain (Loss) | 35,688 | -33,412 | |||
Curtailments | 0 | 0 | |||
Settlement | 0 | 0 | |||
Currency Translation and Other | -1,264 | -1,030 | |||
Benefits Paid | -23,699 | -24,877 | |||
Projected Benefit Obligation at End of Year | 294,064 | 270,937 | 318,415 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets at Beginning of Year | 0 | 0 | |||
Actual Return on Plan Assets | 0 | 0 | |||
Employer Contributions | 23,699 | 24,877 | |||
Settlement | 0 | 0 | |||
Currency Translation and Other | 0 | 0 | |||
Fair Value of Plan Assets at End of Year | 0 | 0 | 0 | ||
Funded Status at End of Year | -294,064 | -270,937 | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 0 | 0 | |||
Accrued Liabilities | -25,214 | -25,477 | |||
Other Long-Term Liabilities | -268,850 | -245,460 | |||
Total | -294,064 | -270,937 | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||||
Actuarial Net (Loss) | -7,936 | 13,107 | |||
Net Prior Service Credit (Cost) | -2,430 | -2,737 | |||
Total | -10,366 | 10,370 | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Expected return on plan assets | 0 | 0 | 0 | ||
Amortization of prior service cost | 616 | 618 | 619 | ||
Defined Benefit Plan, Amortization of Gains (Losses) | -141 | -73 | -101 | ||
Administrative expenses | 89 | 75 | 120 | ||
Curtailment credit | 0 | 0 | 0 | ||
Settlement loss | 0 | 0 | 0 | ||
Total amount reflected in earnings | 12,966 | 12,461 | 15,068 | ||
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||
Actuarial Net Loss (Gain) | 36,021 | -33,165 | 7,952 | ||
Total Recognized in Accumulated Other Comprehensive Loss (Income) | -629 | -632 | -613 | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 35,392 | -33,797 | 7,339 | ||
Total Recognized In Net Periodic Benefit Cost In Income And Accumulated Other Comprehensive Income Loss | 48,358 | -21,336 | 22,407 | ||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||||
Defined Benefit Plan, Amortization of Net Loss | 616 | ||||
Defined Benefit Plan, Amortization of Net Prior Service (Credit) | 0 | ||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||||
Discount Rate | 3.70% | 4.50% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Discount Rate | 4.50% | 3.70% | 4.50% | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.80% | 8.50% | |||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||||
2015 | 25,247 | ||||
2016 | 24,344 | ||||
2017 | 22,933 | ||||
2018 | 21,364 | ||||
2019 | 19,954 | ||||
2020-2024 | 83,846 | ||||
Scenario, Forecast [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Minimum Funding Requirement | 1,088 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Defined Benefit Plan, Voluntary Employer Contributions | $23,600 | ||||
Scenario, Forecast [Member] | Pension Benefits | |||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Expected Long-term Return on Assets | 6.30% | ||||
Scenario, Forecast [Member] | Other Benefits | |||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% |
STOCK_COMPENSATION_PLANS_Detai
STOCK COMPENSATION PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options: | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 68,500,000 | ||
Compensation Related Costs [Abstract] | |||
Total compensation amount charged against income for stock options, performance stock units (PSUs) and restricted stock units | $54,068,000 | $53,984,000 | $50,482,000 |
Total income tax benefit recognized in the Consolidated Statements of Income for share-based compensation | 18,653,000 | 18,517,000 | 17,517,000 |
Compensation amount charged against income for stock options | 25,074,000 | 21,390,000 | 19,272,000 |
Status Of Stock Options: | |||
Outstanding shares at beginning of year | 8,660,336 | 10,553,914 | 14,540,442 |
Shares Granted | 1,387,580 | 1,779,109 | 2,110,945 |
Shares Exercised | -2,537,581 | -3,315,990 | -5,870,607 |
Shares Forfeited | -190,958 | -356,697 | -226,866 |
Outstanding shares at end of year | 7,319,377 | 8,660,336 | 10,553,914 |
Options exercisable as of end of period | 3,673,726 | 4,290,416 | 5,320,775 |
Weighted-average fair value of options granted (per share) | $21.50 | $14.51 | $10.60 |
Options outstanding at beginning of year weighted average exercise price | $55.47 | $48.08 | $44.86 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $105.75 | $81.95 | $60.89 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $48.61 | $45.25 | $44.55 |
Options forfeited weighted average exercise price | $82.80 | $64.38 | $52.02 |
Options outstanding at end of year weighted average exercise price | $66.69 | $55.47 | $48.08 |
Options exercisable as of end of period weighted average exercise price | $51.01 | $46.45 | $45.74 |
Fair Value Of Stock Option Grant: | |||
Dividend yields | 2.00% | 2.20% | 2.40% |
Expected volatility | 22.30% | 22.20% | 22.40% |
Risk-free interest rates | 2.10% | 1.40% | 1.50% |
Expected lives in years | 6 years 8 months | 6 years 7 months | 6 years 7 months |
Intrinsic Value of Stock Options [Abstract] | |||
Intrinsic value of options exercised (in millions of dollars) | 133,948,000 | 135,396,000 | 130,219,000 |
Aggregate intrinsic value of options outstanding | 258,809,000 | ||
Aggregate intrinsic value of options exercisable | 184,477,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 22,193,000 | ||
Weighted Average Period In Years That Total Unrecognized Compensation Cost is Expected To be Recognized | 2 years 5 months | ||
Compensation amounts charged against income for Performance and Restricted Stock units [Abstract] | |||
Share Based Compensation Arrangement By Share Based Payment Award For Performance And Restricted Stock Units Compensation Cost | 28,994,000 | 32,594,000 | 31,210,000 |
PSU Fair Value Monte Carlo Simulation Estimated Value | 80.95 | 55.49 | 35.62 |
PSU Fair Value Monte Carlo Simulation Dividend Yields | 1.80% | 2.00% | 2.50% |
PSU Fair Value Monte Carlo Simulation Expected Volatility | 15.50% | 17.10% | 20.00% |
Status of Performance Stock units and Restricted Stock Units: | |||
Stock performance units and restricted stock units outstanding as of beginning of period | 1,411,399 | ||
Performance stock units and Restricted stock units, Granted | 331,788 | 395,862 | 503,761 |
Performance stock units and Restricted stock units Performance assumption change | -214,145 | ||
Performance stock units and Restricted stock units, Vested | -565,520 | ||
Performance stock units and Restricted stock units, Forfeited | -59,216 | ||
Stock performance units and restricted stock units outstanding as of end of period | 904,306 | 1,411,399 | |
Weighted-average grant date fair value for equity awards or market value for liability awards: | |||
Outstanding at beginning of year | $72.43 | ||
Granted | $115.57 | $88.49 | $64.99 |
Performance assumption change | $91.85 | ||
Vested | $63.93 | ||
Forfeited | $95.86 | ||
Outstanding at end of year | $94.48 | $72.43 | |
Performance stock units for which measurement date has not yet occurred for accounting purposes | 25,462 | 29,596 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 37,341,000 | ||
Weighted-average period (in years) that total unrecognized compensation cost related to non-vested stock units and restricted stock units is expected to be recognized | 2 years 0 months | ||
Intrinsic value of share-based liabilities paid, combined with the fair value of shares vested (in millions of dollars) | $57,360,000 | $62,582,000 | $37,329 |
Deferred performance stock units, deferred restricted stock units, and directors' fees and accumulated dividend amounts representing deferred stock units outstanding | 524,195 | ||
$33.40 - $51.42 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Outstanding Options | 2,484,189 | ||
Weighted Average Remaining Contractual Life in Years | 4 years 7 months | ||
Weighted Average Exercise Price | $42.84 | ||
Number of Exercisable Options | 2,092,239 | ||
Weighted Average Exercise Price | $41.23 | ||
$51.65 - $72.44 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Outstanding Options | 2,031,766 | ||
Weighted Average Remaining Contractual Life in Years | 5 years 6 months | ||
Weighted Average Exercise Price | $59.25 | ||
Number of Exercisable Options | 1,211,277 | ||
Weighted Average Exercise Price | $58.21 | ||
$81.73 - $106.65 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Outstanding Options | 2,803,422 | ||
Weighted Average Remaining Contractual Life in Years | 8 years 5 months | ||
Weighted Average Exercise Price | $93.22 | ||
Number of Exercisable Options | 370,210 | ||
Weighted Average Exercise Price | $82.69 | ||
Price Range $33.40 - $106.65 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of Outstanding Options | 7,319,377 | ||
Weighted Average Remaining Contractual Life in Years | 6 years 4 months | ||
Weighted Average Exercise Price | $66.69 | ||
Number of Exercisable Options | 3,673,726 | ||
Weighted Average Exercise Price | $51.01 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Depreciation and amortization | $211,532 | $201,033 | $210,037 | ||||||||
Net Sales | 2,010,027 | 1,961,578 | 1,578,350 | 1,871,813 | 1,956,253 | 1,853,886 | 1,508,514 | 1,827,426 | 7,421,768 | 7,146,079 | 6,644,252 |
Operating Income (Loss) | 1,956,211 | 1,907,223 | 1,707,506 | ||||||||
Nonoperating Income (Expense) | 503,407 | 533,506 | 478,645 | ||||||||
Total net charges associated with business realignment initiatives and impairment | 50,190 | 19,085 | 83,767 | ||||||||
Other Nonoperating Income (Expense) | -1,834 | 10,885 | 20,572 | ||||||||
Business Combination, Integration Related Costs | 14,873 | 4,072 | 13,374 | ||||||||
Income before interest and income taxes | 1,389,575 | 1,339,675 | 1,111,148 | ||||||||
Interest expense, net | 83,532 | 88,356 | 95,569 | ||||||||
Income before income taxes | 1,306,043 | 1,251,319 | 1,015,579 | ||||||||
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 146,475 | 143,640 | 154,348 | ||||||||
Net Sales | 6,352,729 | 6,200,118 | 5,812,639 | ||||||||
Operating Income (Loss) | 1,916,207 | 1,862,636 | 1,656,136 | ||||||||
International and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 28,463 | 23,461 | 21,707 | ||||||||
Net Sales | 1,069,039 | 945,961 | 831,613 | ||||||||
Operating Income (Loss) | 40,004 | 44,587 | 51,370 | ||||||||
Corporate Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | $36,594 | $33,932 | $33,982 |
SEGMENT_INFORMATION_BY_GEOGRAP
SEGMENT INFORMATION BY GEOGRAPHY (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $2,010,027 | $1,961,578 | $1,578,350 | $1,871,813 | $1,956,253 | $1,853,886 | $1,508,514 | $1,827,426 | $7,421,768 | $7,146,079 | $6,644,252 |
Long-Lived Assets | 2151901 | 1805345 | 1674071 | ||||||||
UNITED STATES | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 5,996,564 | 5,832,070 | 5,449,877 | ||||||||
Long-Lived Assets | 1477455 | 1474155 | 1420548 | ||||||||
Other Country [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $1,425,204 | $1,314,009 | $1,194,375 | ||||||||
Long-Lived Assets | 674446 | 331190 | 253523 |
EQUITY_AND_NONCONTROLLING_INTE2
EQUITY AND NONCONTROLLING INTERESTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | |||
Capital Stock, Shares Authorized | 1,055,000,000 | ||
Preferred Stock, Shares Authorized | 5,000,000 | ||
Schedule Of Changes In Outstanding Common Stock [Abstract] | |||
Common Stock, Shares, Issued | 359,901,744 | 359,901,744 | 359,901,744 |
Treasury Shares at Beginning of Year | -136,007,023 | -136,115,714 | -134,695,826 |
Repurchase Programs | -2,135,268 | 0 | -2,054,354 |
Stock-Based Compensation Programs, Shares Repurchased | -3,676,513 | -3,655,830 | -5,598,537 |
Stock-Based Compensation Programs, Shares Issued | 2,962,018 | 3,764,521 | 6,233,003 |
Treasury Shares at End of Year | -138,856,786 | -136,007,023 | -136,115,714 |
Common Stock, Shares, Outstanding | 221,044,958 | 223,894,721 | 223,786,030 |
Noncontrolling Interest [Abstract] | |||
Noncontrolling interests in subsidiaries | $64,468 | $11,218 | |
Proceeds from Noncontrolling Interests | 2,940 | 2,940 | 2,940 |
Net Income (Loss) Attributable to Noncontrolling Interest | 227 | 1,682 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Capital Stock, Shares Authorized | 900,000,000 | ||
Schedule Of Changes In Outstanding Common Stock [Abstract] | |||
Common Stock, Shares, Issued | 299,281,967 | 299,281,527 | |
Common Stock, Voting Rights | 1 | ||
Number Of Shares Held By Hershey Trust Company | 12,902,821 | ||
Common Class B | |||
Class of Stock [Line Items] | |||
Capital Stock, Shares Authorized | 150,000,000 | ||
Schedule Of Changes In Outstanding Common Stock [Abstract] | |||
Common Stock, Shares, Issued | 60,619,777 | 60,620,217 | |
Common Stock, Voting Rights | 10 | ||
Conversion of Stock, Shares Converted | 440 | 8,600 | 3,225 |
Number Of Shares Held By Hershey Trust Company | 60,612,012 | ||
Approximate Percentage Of Total Votes Held By Trustee | 80.00% | ||
Lotte Shanghai Food Company [Member] | |||
Noncontrolling Interest [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% | ||
Hershey Do Brasil Subsidiary | |||
Noncontrolling Interest [Abstract] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | 3,060 | 3,060 | |
Proceeds from Noncontrolling Interests | $2,940 | $2,940 |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $1,298,800,000 | ||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 618,100,000 | ||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 138,600,000 | ||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 66,800,000 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 28,200,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 13,400,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 9,600,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 3,200,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 900,000 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 900,000 | ||
Long-term Purchase Commitment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | 345,947,000 | 323,551,000 | 258,727,000 |
MALAYSIA | |||
Long-term Purchase Commitment [Line Items] | |||
Payments to Acquire Property, Plant, and Equipment | 115,000,000 | ||
Minimum [Member] | MALAYSIA | |||
Long-term Purchase Commitment [Line Items] | |||
Expected construction costs | 265,000,000 | ||
Purchase Obligation, Due in Next Twelve Months | 90,000,000 | ||
Maximum [Member] | MALAYSIA | |||
Long-term Purchase Commitment [Line Items] | |||
Expected construction costs | 275,000,000 | ||
Purchase Obligation, Due in Next Twelve Months | $110,000,000 |
CONTINGENCIES_Details
CONTINGENCIES (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jun. 21, 2013 | Dec. 31, 2014 |
US [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 91 | |
Canada [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 13 | |
Loss Contingency, Damages Paid, Value | $4 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net Income | $202,508 | $223,741 | $168,168 | $252,495 | $186,075 | $232,985 | $159,504 | $241,906 | $846,912 | $820,470 | $660,931 |
Weighted Average Number of Shares Outstanding, Basic | 222,555 | 224,176 | 225,036 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 224,837 | 227,203 | 228,337 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,510 | 1,757 | 3,543 | ||||||||
Common Stock | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 161,935 | 163,549 | 164,406 | ||||||||
Earnings Per Share - Basic | $0.94 | $1.03 | $0.78 | $1.16 | $0.85 | $1.07 | $0.73 | $1.11 | $3.91 | $3.76 | $3.01 |
Earnings Per Share - Diluted | $0.91 | $1 | $0.75 | $1.11 | $0.82 | $1.03 | $0.70 | $1.06 | $3.77 | $3.61 | $2.89 |
Common Class B | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 60,620 | 60,627 | 60,630 | ||||||||
Earnings Per Share - Basic | $0.85 | $0.94 | $0.70 | $1.04 | $0.77 | $0.96 | $0.66 | $1 | $3.54 | $3.39 | $2.73 |
Earnings Per Share - Diluted | $0.85 | $0.94 | $0.70 | $1.03 | $0.76 | $0.95 | $0.66 | $0.99 | $3.52 | $3.37 | $2.71 |
Employee stock options [Member] | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,920 | 2,476 | 2,608 | ||||||||
Amount Of Dilutive Securities Performance And Restrictive Stock Units Member | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 362 | 551 | 693 |
SUPPLEMENTAL_BALANCE_SHEET_INF2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw Materials | $377,620 | $226,978 |
Goods in process | 63,916 | 79,861 |
Finished Goods | 531,608 | 517,968 |
Inventories at FIFO | 973,144 | 824,807 |
Adjustment to LIFO | -172,108 | -165,266 |
Total inventories | 801,036 | 659,541 |
Property, Plant and Equipment [Abstract] | ||
Land | 95,913 | 96,334 |
Buildings | 1,031,050 | 882,508 |
Machinery and equipment | 2,863,559 | 2,527,420 |
Construction in progress | 338,085 | 273,132 |
Property, plant and equipment, gross | 4,328,607 | 3,779,394 |
Accumulated depreciation | -2,176,706 | -1,974,049 |
Property, plant and equipment, net | 2,151,901 | 1,805,345 |
Other Assets [Abstract] | ||
Pension | 25 | 32,804 |
Capitalized software, net | 63,252 | 56,502 |
Income tax receivable | 1,568 | 63,863 |
Other non-current assets | 77,927 | 139,835 |
Total other assets | 142,772 | 293,004 |
Accrued Liabilities, Current [Abstract] | ||
Payroll, compensation and benefits | 225,439 | 245,641 |
Advertising and promotion | 326,647 | 348,966 |
Due to SGM shareholders | 98,884 | 0 |
Other | 162,543 | 105,115 |
Total accrued liabilities | 813,513 | 699,722 |
Other Liabilities, Noncurrent [Abstract] | ||
Post-retirement benefits liabilities | 268,850 | 245,460 |
Pension benefits liabilities | 114,923 | 50,842 |
Other | 142,230 | 137,766 |
Total other long-term liabilities | $526,003 | $434,068 |
QUARTERLY_DATA_Details
QUARTERLY DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
QUATERLY FINANCIAL DATA [Line Items] | |||||||||||
Net Sales | $2,010,027 | $1,961,578 | $1,578,350 | $1,871,813 | $1,956,253 | $1,853,886 | $1,508,514 | $1,827,426 | $7,421,768 | $7,146,079 | $6,644,252 |
Gross Profit | 887,065 | 860,137 | 717,474 | 871,490 | 857,386 | 855,551 | 718,574 | 849,337 | |||
Net Income | $202,508 | $223,741 | $168,168 | $252,495 | $186,075 | $232,985 | $159,504 | $241,906 | $846,912 | $820,470 | $660,931 |
Market Price of Common Stock High | $106.64 | $96.93 | $104.11 | $108.07 | $100.90 | $97.69 | $91.25 | $87.53 | |||
Market Price of Common Stock Low | $91.09 | $88.15 | $96.02 | $95.54 | $91.04 | $89.17 | $85.25 | $73.51 | |||
Common Stock | |||||||||||
QUATERLY FINANCIAL DATA [Line Items] | |||||||||||
Earnings Per Share - Basic | $0.94 | $1.03 | $0.78 | $1.16 | $0.85 | $1.07 | $0.73 | $1.11 | $3.91 | $3.76 | $3.01 |
Earnings Per Share - Diluted | $0.91 | $1 | $0.75 | $1.11 | $0.82 | $1.03 | $0.70 | $1.06 | $3.77 | $3.61 | $2.89 |
Common Stock | $0.54 | $0.54 | $0.49 | $0.49 | $0.49 | $0.49 | $0.42 | $0.42 | $2.04 | $1.81 | $1.56 |
Common Class B | |||||||||||
QUATERLY FINANCIAL DATA [Line Items] | |||||||||||
Earnings Per Share - Basic | $0.85 | $0.94 | $0.70 | $1.04 | $0.77 | $0.96 | $0.66 | $1 | $3.54 | $3.39 | $2.73 |
Earnings Per Share - Diluted | $0.85 | $0.94 | $0.70 | $1.03 | $0.76 | $0.95 | $0.66 | $0.99 | $3.52 | $3.37 | $2.71 |
Common Stock | $0.49 | $0.49 | $0.44 | $0.44 | $0.44 | $0.44 | $0.38 | $0.38 | $1.84 | $1.63 | $1.41 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $14,329 | $15,246 | $19,453 |
Charged to Cost and Expense | 153,652 | 154,874 | 135,443 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions from Reserves | -152,096 | -155,791 | -139,650 |
Balance at End of Period | $15,885 | $14,329 | $15,246 |