Hershey Co., balance sheet: debt

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
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)
Long-term portion of long-term debt	3,343,977)	4,086,627)	4,089,755)	3,530,813)	3,254,280)
Total debt (carrying amount)	4,791,345)	5,028,894)	4,602,625)	4,266,485)	4,457,596)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Hershey Co. total debt increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022
Selected Financial Data (US$ in thousands)
Short-term debt	693,790)
Current portion of long-term debt	749,345)
Long-term portion of long-term debt	2,854,165)
Total debt (fair value)	4,297,300)
Financial Ratio
Debt, fair value to carrying amount ratio	0.90

Weighted-average interest rate on debt: 3.07%

Interest rate	Debt amount¹	Interest rate × Debt amount
4.40%	693,790)	30,527)
2.63%	250,000)	6,563)
3.38%	500,000)	16,875)
2.05%	300,000)	6,150)
0.90%	300,000)	2,700)
3.20%	300,000)	9,600)
2.30%	500,000)	11,500)
7.20%	193,639)	13,942)
2.45%	300,000)	7,350)
1.70%	350,000)	5,950)
3.38%	300,000)	10,125)
3.13%	400,000)	12,500)
2.65%	350,000)	9,275)
6.10%	73,479)	4,482)
Total	4,810,908)	147,538)
3.07%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 147,538 ÷ 4,810,908 = 3.07%

Hershey Co., interest costs incurred

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Interest expense	140,095)	129,846)	153,471)	152,122)	146,858)
Capitalized interest	8,131)	9,310)	6,733)	5,585)	5,092)
Interest costs incurred	148,226)	139,156)	160,204)	157,707)	151,950)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Hershey Co. interest expense decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Hershey Co. capitalized interest increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Hershey Co. interest costs incurred decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Net income attributable to The Hershey Company	1,644,817)	1,477,512)	1,278,708)	1,149,692)	1,177,562)
Add: Net income attributable to noncontrolling interest	—)	5,307)	(3,295)	(2,940)	(6,511)
Add: Income tax expense	272,254)	314,405)	219,584)	234,032)	239,010)
Add: Interest expense	140,095)	129,846)	153,471)	152,122)	146,858)
Earnings before interest and tax (EBIT)	2,057,166)	1,927,070)	1,648,468)	1,532,906)	1,556,919)

Interest costs incurred	148,226)	139,156)	160,204)	157,707)	151,950)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	14.68	14.84	10.74	10.08	10.60
Adjusted interest coverage ratio (with capitalized interest)²	13.88	13.85	10.29	9.72	10.25

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,057,166 ÷ 140,095 = 14.68

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,057,166 ÷ 148,226 = 13.88

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Hershey Co. adjusted interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

Hershey Co. (NYSE:HSY)

Analysis of Debt