Name: Hershey Co. (NYSE:HSY) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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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).

An analysis of the financial position from 2018 to 2022 reveals a consistent expansion of the total balance sheet, with total liabilities and stockholders' equity increasing from 7.70 billion USD to 10.95 billion USD. This growth is characterized by a steady increase in total equity and a fluctuating but generally upward trend in total liabilities.

Current Liabilities and Short-Term Obligations: Current liabilities exhibited a significant upward trend, rising from 2.42 billion USD in 2018 to 3.26 billion USD in 2022. A primary driver of this increase is accounts payable, which grew from 502.3 million USD to 970.6 million USD over the period, indicating an increase in short-term obligations to suppliers. Short-term debt and the current portion of long-term debt showed high volatility; combined obligations in these categories peaked in 2022 at approximately 1.45 billion USD, compared to 1.20 billion USD in 2018, following a period of lower short-term debt in 2019 and 2020.
Long-Term Debt and Non-Current Liabilities: Long-term liabilities peaked in 2021 at 5.16 billion USD before declining to 4.39 billion USD in 2022. The long-term portion of long-term debt followed a similar trajectory, increasing from 3.25 billion USD in 2018 to a peak of 4.09 billion USD in 2020 and 2021, before decreasing to 3.34 billion USD by the end of 2022. Deferred income taxes showed a consistent increase, rising from 176.9 million USD in 2018 to 328.4 million USD in 2022, suggesting a growing gap between accounting and tax-based liability recognition.
Stockholders' Equity and Capital Structure: Total stockholders' equity demonstrated robust growth, more than doubling from 1.41 billion USD in 2018 to 3.30 billion USD in 2022. A notable structural shift occurred between 2018 and 2019, where retained earnings decreased from 7.03 billion USD to 1.29 billion USD, coinciding with a sharp reduction in treasury stock at cost from -6.62 billion USD to -591.0 million USD. Following 2019, retained earnings grew consistently every year, reaching 3.59 billion USD by 2022. Additional paid-in capital also saw a steady rise from 982.2 million USD to 1.30 billion USD.

The overall trajectory indicates a strengthening of the equity base and a strategic reallocation of debt. While total liabilities remained relatively stable between 2021 and 2022, the shift toward higher current liabilities and lower long-term debt suggests a change in the maturity profile of the company's obligations.

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