Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Hershey Co., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income including noncontrolling interest	1,644,817)	1,482,819)	1,275,413)	1,146,752)	1,171,051)
Depreciation and amortization	378,959)	315,002)	294,907)	291,544)	295,144)
Stock-based compensation expense	65,991)	66,711)	57,584)	51,899)	49,286)
Deferred income taxes	36,889)	13,374)	26,880)	(15,072)	36,255)
Impairment of long-lived assets	—)	—)	9,143)	112,485)	57,729)
Write-down of equity investments	188,286)	113,756)	125,579)	50,457)	50,329)
Other	120,818)	96,016)	113,470)	57,426)	37,278)
Accounts receivable, trade, net	(38,165)	(14,642)	(55,537)	40,252)	8,585)
Inventories	(186,963)	21,457)	(151,918)	(21,194)	(12,746)
Prepaid expenses and other current assets	(14,507)	8,619)	2,493)	13,593)	(39,899)
Accounts payable and accrued liabilities	216,479)	39,732)	41,470)	41,101)	(100,252)
Accrued income taxes	5,005)	(29,682)	(16,158)	(9,544)	75,568)
Contributions to pension and other benefit plans	(78,547)	(51,100)	(11,671)	(20,134)	(25,864)
Other assets and liabilities	(11,225)	20,822)	(11,998)	24,308)	(2,471)
Changes in assets and liabilities, net of business acquisitions and divestitures	(107,923)	(4,794)	(203,319)	68,382)	(97,079)
Adjustments to reconcile net income to net cash provided by operating activities	683,020)	600,065)	424,244)	617,121)	428,942)
Net cash provided by operating activities	2,327,837)	2,082,884)	1,699,657)	1,763,873)	1,599,993)
Capital additions, including software	(519,481)	(495,877)	(441,626)	(318,192)	(328,601)
Proceeds from sales of businesses, net of cash and cash equivalents divested	—)	—)	—)	—)	167,048)
Equity investments in tax credit qualifying partnerships	(275,534)	(128,417)	(87,211)	(80,230)	(52,641)
Business acquisitions, net of cash and cash equivalents acquired	—)	(1,601,073)	—)	(402,160)	(1,338,459)
Other investing activities	7,639)	2,539)	(2,443)	20,102)	49,759)
Net cash used in investing activities	(787,376)	(2,222,828)	(531,280)	(780,480)	(1,502,894)
Net increase (decrease) in short-term debt	(245,633)	869,030)	41,759)	(1,168,205)	645,805)
Long-term borrowings, net of debt issuance costs	—)	—)	989,876)	989,618)	1,199,845)
Repayment of long-term debt and finance leases	(4,741)	(439,444)	(704,467)	(6,151)	(910,844)
Repayment of tax receivable obligation	—)	—)	—)	—)	(72,000)
Cash dividends paid	(775,030)	(685,987)	(640,732)	(610,312)	(562,521)
Repurchase of common stock	(388,964)	(457,946)	(211,196)	(527,211)	(247,500)
Exercise of stock options	34,158)	49,821)	46,372)	240,806)	63,323)
Taxes withheld and paid on employee stock awards	(35,515)	(16,610)	(20,840)	—)	—)
Net cash provided by (used in) financing activities	(1,415,725)	(681,136)	(499,228)	(1,081,455)	116,108)
Effect of exchange rate changes on cash and cash equivalents	9,887)	(5,075)	(6,990)	3,326)	(5,388)
Increase (decrease) in cash and cash equivalents, including cash classified as held for sale	134,623)	(826,155)	662,159)	(94,736)	207,819)
(Increase) decrease in cash and cash equivalents classified as held for sale	—)	11,434)	(11,434)	—)	—)
Net increase (decrease) in cash and cash equivalents	134,623)	(814,721)	650,725)	(94,736)	207,819)
Cash and cash equivalents, beginning of period	329,266)	1,143,987)	493,262)	587,998)	380,179)
Cash and cash equivalents, end of period	463,889)	329,266)	1,143,987)	493,262)	587,998)

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).

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Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Hershey Co. net cash provided by operating activities increased from 2020 to 2021 and from 2021 to 2022.
Net cash used in investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Hershey Co. net cash used in investing activities decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Net cash provided by (used in) financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Hershey Co. net cash provided by (used in) financing activities decreased from 2020 to 2021 and from 2021 to 2022.

Hershey Co. (NYSE:HSY)

Cash Flow Statement