Exhibit 99.1
PART II
Note: The information contained in this exhibit has been updated for the retrospective adoption of a new accounting standard issued by the Financial Accounting Standards Board, Accounting Standards Update ("ASU") No. 2017-07, Compensation-Retirement Benefits (Topic 715). The non-service cost components of net periodic benefit cost are now presented in the income statement separately from the service cost component and outside the subtotal of income from operations. The Company is presenting these non-service cost components within the Other (income) expense, net caption. This exhibit has not been updated for any other changes since the filing of the 2017 Annual Report on Form 10-K (the "2017 Form 10-K"). For additional developments since the filing of the 2017 Form 10-K, refer to our periodic reports filed with the U.S. Securities and Exchange Commission through the date of this Current Report on Form 8-K, including our Quarterly Report on Form 10-Q for the period ended April 1, 2018.
Item 6. SELECTED FINANCIAL DATA
FIVE-YEAR CONSOLIDATED FINANCIAL SUMMARY
(All dollar and share amounts in thousands except market price and per share statistics)
|
| | | | | | | | | | | | | | | | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| Summary of Operations | | | | | | | | | | |
| Net Sales | | $ | 7,515,426 |
| | 7,440,181 |
| | 7,386,626 |
| | 7,421,768 |
| | 7,146,079 |
|
| Cost of Sales (1) | | $ | 4,060,050 |
| | 4,270,642 |
| | 4,000,071 |
| | 4,085,602 |
| | 3,865,231 |
|
| Selling, Marketing and Administrative (1) | | $ | 1,885,492 |
| | 1,891,305 |
| | 1,945,361 |
| | 1,900,970 |
| | 1,922,508 |
|
| Goodwill, Indefinite and Long-Lived Asset Impairment Charges | | $ | 208,712 |
| | 4,204 |
| | 280,802 |
| | 15,900 |
| | — |
|
| Business Realignment Costs (1) | | $ | 47,763 |
| | 18.857 |
| | 84.628 |
| | 29,721 |
| | 18,665 |
|
| Interest Expense, Net | | $ | 98,282 |
| | 90,143 |
| | 105,773 |
| | 83,532 |
| | 88,356 |
|
| Provision for Income Taxes | | $ | 354,131 |
| | 379,437 |
| | 388,896 |
| | 459,131 |
| | 430,849 |
|
| Net Income Attributable to The Hershey Company | | $ | 782,981 |
| | 720,044 |
| | 512,951 |
| | 846,912 |
| | 820,470 |
|
| Net Income Per Share: | | | | | | | | | | |
| —Basic—Common Stock | | $ | 3.79 |
| | 3.45 |
| | 2.40 |
| | 3.91 |
| | 3.76 |
|
| —Diluted—Common Stock | | $ | 3.66 |
| | 3.34 |
| | 2.32 |
| | 3.77 |
| | 3.61 |
|
| —Basic—Class B Stock | | $ | 3.44 |
| | 3.15 |
| | 2.19 |
| | 3.54 |
| | 3.39 |
|
| —Diluted—Class B Stock | | $ | 3.44 |
| | 3.14 |
| | 2.19 |
| | 3.52 |
| | 3.37 |
|
| Weighted-Average Shares Outstanding: | | | | | | | | | | |
| —Basic—Common Stock | | 151,625 |
| | 153,519 |
| | 158,471 |
| | 161,935 |
| | 163,549 |
|
| —Basic—Class B Stock | | 60,620 |
| | 60,620 |
| | 60,620 |
| | 60,620 |
| | 60,627 |
|
| —Diluted—Common Stock | | 213,742 |
| | 215,304 |
| | 220,651 |
| | 224,837 |
| | 227,203 |
|
| Dividends Paid on Common Stock | | $ | 387,466 |
| | 369.292 |
| | 352,953 |
| | 328,752 |
| | 294,979 |
|
| Per Share | | $ | 2.548 |
| | 2.402 |
| | 2.236 |
| | 2.040 |
| | 1.810 |
|
| Dividends Paid on Class B Stock | | $ | 140,394 |
| | 132,394 |
| | 123,179 |
| | 111,662 |
| | 98,822 |
|
| Per Share | | $ | 2.316 |
| | 2.184 |
| | 2.032 |
| | 1.842 |
| | 1.630 |
|
| Depreciation | | $ | 211,592 |
| | 231,735 |
| | 197,054 |
| | 176,312 |
| | 166,544 |
|
| Amortization | | $ | 50,261 |
| | 70,102 |
| | 47,874 |
| | 35,220 |
| | 34,489 |
|
| Advertising | | $ | 541,293 |
| | 521,479 |
| | 561,644 |
| | 570,223 |
| | 582,354 |
|
| Year-End Position and Statistics | | | | | | | | | | |
| Capital Additions (including software) | | $ | 257,675 |
| | 269,476 |
| | 356,810 |
| | 370,789 |
| | 350,911 |
|
| Total Assets | | $ | 5,553,726 |
| | 5,524,333 |
| | 5,344,371 |
| | 5,622,870 |
| | 5,349,724 |
|
| Short-term Debt and Current Portion of Long-term Debt | | $ | 859,457 |
| | 632,714 |
| | 863,436 |
| | 635,501 |
| | 166,875 |
|
| Long-term Portion of Debt | | $ | 2,061,023 |
| | 2,347,455 |
| | 1,557,091 |
| | 1,542,317 |
| | 1,787,378 |
|
| Stockholders’ Equity | | $ | 931,565 |
| | 827,687 |
| | 1,047,462 |
| | 1,519,530 |
| | 1,616,052 |
|
| Full-time Employees | | 15,360 |
| | 16,300 |
| | 19,060 |
| | 20,800 |
| | 12,600 |
|
| Stockholders’ Data | | | | | | | | | | |
| Outstanding Shares of Common Stock and Class B Stock at Year-end | | 210,861 |
| | 212,260 |
| | 216,777 |
| | 221,045 |
| | 223,895 |
|
| Market Price of Common Stock at Year-end | | $ | 113.51 |
| | 103.43 |
| | 89.27 |
| | 103.93 |
| | 97.23 |
|
| Price Range During Year (high) | | $ | 115.96 |
| | 113.89 |
| | 110.78 |
| | 108.07 |
| | 100.90 |
|
| Price Range During Year (low) | | $ | 102.87 |
| | 83.32 |
| | 83.58 |
| | 88.15 |
| | 73.51 |
|
| |
| (1) | In accordance with ASU No. 2017-07, the non-service cost components of net periodic benefit cost relating to the Company's pension and other post retirement benefit plans have been reclassified to the Other (income) expense, net caption for the years ended December 31, 2017, 2016 and 2015. Other (income) expense, net is not presented above. |
