Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Hershey Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	970,558)	692,338)	580,058)	550,828)	502,314)
Payroll, compensation and benefits	293,865)	291,446)	237,342)	230,518)	180,546)
Advertising, promotion and product allowances	337,024)	305,050)	309,537)	279,440)	293,642)
Current operating lease liabilities	31,787)	36,292)	36,578)	29,209)	—)
Other	169,842)	222,850)	198,309)	163,205)	204,975)
Accrued liabilities	832,518)	855,638)	781,766)	702,372)	679,163)
Accrued income taxes	6,710)	3,070)	17,051)	19,921)	33,773)
Short-term debt	693,790)	939,423)	74,041)	32,282)	1,197,929)
Current portion of long-term debt	753,578)	2,844)	438,829)	703,390)	5,387)
Current liabilities	3,257,154)	2,493,313)	1,891,745)	2,008,793)	2,418,566)
Long-term portion of long-term debt	3,343,977)	4,086,627)	4,089,755)	3,530,813)	3,254,280)
Post-retirement benefits liabilities	147,174)	193,604)	223,507)	211,206)	195,166)
Pension benefits liabilities	27,696)	37,023)	70,727)	58,773)	66,379)
Non-current operating lease liabilities	294,849)	310,899)	181,871)	184,163)	—)
Other	250,023)	245,532)	207,329)	201,635)	184,503)
Other long-term liabilities	719,742)	787,058)	683,434)	655,777)	446,048)
Deferred income taxes	328,403)	288,004)	229,028)	200,018)	176,860)
Long-term liabilities	4,392,122)	5,161,689)	5,002,217)	4,386,608)	3,877,188)
Total liabilities	7,649,276)	7,655,002)	6,893,962)	6,395,401)	6,295,754)
Preferred stock, shares issued: none	—)	—)	—)	—)	—)
Common stock	163,439)	160,939)	160,939)	160,939)	299,287)
Class B common stock	58,114)	60,614)	60,614)	60,614)	60,614)
Additional paid-in capital	1,296,572)	1,260,331)	1,191,200)	1,142,210)	982,205)
Retained earnings	3,589,781)	2,719,936)	1,928,673)	1,290,461)	7,032,020)
Treasury, common stock shares, at cost	(1,556,029)	(1,195,376)	(768,992)	(591,036)	(6,618,625)
Accumulated other comprehensive loss	(252,333)	(249,215)	(338,082)	(323,966)	(356,780)
Total The Hershey Company stockholders’ equity	3,299,544)	2,757,229)	2,234,352)	1,739,222)	1,398,721)
Noncontrolling interest in subsidiary	—)	—)	3,531)	5,772)	8,545)
Total stockholders’ equity	3,299,544)	2,757,229)	2,237,883)	1,744,994)	1,407,266)
Total liabilities and stockholders’ equity	10,948,820)	10,412,231)	9,131,845)	8,140,395)	7,703,020)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Current Liabilities: Current liabilities exhibit a fluctuating trend, initially decreasing from 2,418,566 thousand US$ in 2018 to 1,891,745 thousand US$ in 2020, followed by a sharp increase to 3,257,154 thousand US$ in 2022. Key components such as accounts payable rose steadily each year, reaching 970,558 thousand US$ in 2022. Short-term debt showed significant volatility, dropping drastically in 2019 before peaking again in 2021 and declining in 2022. The current portion of long-term debt experienced considerable swings, especially in 2019 and 2022, indicating variable repayment or refinancing activities.
Long-term Liabilities: Long-term liabilities increased from 3,877,188 thousand US$ in 2018 to a peak of 5,161,689 thousand US$ in 2021, then declined to 4,392,122 thousand US$ in 2022. The long-term portion of long-term debt followed a similar pattern, rising until 2020 before decreasing notably in 2022. Operating lease liabilities, both current and non-current, appeared from 2019 onward, with non-current operating lease liabilities showing an upward trend peaking in 2021. Post-retirement and pension benefits liabilities steadily decreased over the period, suggesting a reduction in long-term employee-related obligations.
Total Liabilities: Total liabilities steadily increased over the five-year period, from 6,295,754 thousand US$ in 2018 to a high of 7,655,002 thousand US$ in 2021, before slightly declining to 7,649,276 thousand US$ in 2022. This overall increase reflects growth in both current and long-term obligations, with some volatility in short-term debt and current liabilities.
Equity: Total stockholders’ equity increased consistently from 1,407,266 thousand US$ in 2018 to 3,299,544 thousand US$ in 2022, reflecting positive retained earnings growth and additional paid-in capital increments. Retained earnings saw significant increases year-over-year, indicating profitability and earnings retention. Treasury stock values, representing shares bought back, increased in negative magnitude, especially after 2019, suggesting an aggressive share repurchase program over the period. Accumulated other comprehensive loss slightly improved, with minor fluctuations but remaining negative.
Income and Expenses Categories: Payroll, compensation, and benefits showed a steady increase, rising from 180,546 thousand US$ in 2018 to 293,865 thousand US$ in 2022, in line with possible growth or inflationary effects on compensation costs. Advertising, promotion, and product allowances fluctuated but showed an overall increase, highlighting continued investment in marketing efforts, culminating at 337,024 thousand US$ in 2022. Accrued liabilities rose consistently, indicating growing accrued expenses or obligations.
Overall Financial Position: The total liabilities and stockholders’ equity grew from 7,703,020 thousand US$ in 2018 to 10,948,820 thousand US$ in 2022, reflecting expansion in the balance sheet size. This growth includes increases in financial obligations balanced against rising equity, driven by retained earnings and paid-in capital contributions. Fluctuations in debt components suggest active management of financing structures and debt repayments. The increase in treasury stock holdings indicates strategic share buybacks, potentially aimed at returning value to shareholders or managing stock dilution.

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Hershey Co. (NYSE:HSY)

Balance Sheet: Liabilities and Stockholders’ Equity