Loss on sale of property

THE HERSHEY COMPANYNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(amounts in thousands, except share data or if otherwise indicated)  
17. OTHER (INCOME) EXPENSE, NETOther (income) expense, net reports certain gains and losses associated with activities not directly related to our core operations. A summary of the components of other (income) expense, net is as follows: 

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|  | Three Months Ended |  | Nine Months Ended |
|  | October 2, 2022 |  | October 3, 2021 |  | October 2, 2022 |  | October 3, 2021 |
| Write-down of equity investments in partnerships qualifying for historic and renewable energy tax credits (see [Note 8](#i0bc28196a24d4084af1a4cbdf6bdf4bd_61)) | $ | 43,314  |  |  | $ | 20,963  |  |  | $ | 70,754  |  |  | $ | 28,734  |  |
| Non-service cost components of net periodic benefit cost relating to pension and other post-retirement benefit plans (see [Note 11](#i0bc28196a24d4084af1a4cbdf6bdf4bd_70)) | 4,895  |  |  | 1,952  |  |  | 7,462  |  |  | 3,772  |  |
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| Other (income) expense, net | (52) |  |  | 89  |  |  | 6  |  |  | 106  |  |
| Total | $ | 48,157  |  |  | $ | 23,004  |  |  | $ | 78,222  |  |  | $ | 32,612  |  |

  
18. RELATED PARTY TRANSACTIONSHershey Trust Company, as trustee for the trust established by Milton S. and Catherine S. Hershey that has as its sole beneficiary the School Trust, maintains voting control over The Hershey Company.In any given year, we may engage in certain transactions with Hershey Trust Company, Milton Hershey School, the Milton Hershey School Trust and companies owned by and/or affiliated with any of the foregoing. Most transactions with these related parties are immaterial and do not require disclosure, but certain transactions are more significant in nature and have been deemed material for disclosure. A summary of material related party transactions with Hershey Trust Company and/or its affiliates for the nine months ended October 2, 2022 is as follows:Sale and Donation of Property, Plant and Equipment  
In May 2022, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Hershey Trust Company, as trustee for the School Trust, pursuant to which the Company agreed to sell certain real and personal property consisting of approximately six acres of land located in Hershey, Pennsylvania, together with portions of a building located on the land. Additionally, in June 2022, the Company entered into a Donation Agreement with Hershey Trust Company, as trustee for The M.S. Hershey Foundation, pursuant to which the Company agreed to donate a portion of the building concurrently with the closing of the Purchase Agreement. The sale and donation transactions closed in June 2022. Total proceeds from the sale were approximately $6,300 (net of transaction and closing costs), resulting in a loss of $13,568, which was recorded in the SM&A expense caption within the Consolidated Statements of Income. The fair values of the disposed assets were supported by independent appraisals of fair market value and the proposed sales price submitted by a third-party buyer pursuant to a bona fide, arm’s length offer received prior to executing the Purchase Agreement.  
Stock Purchase AgreementIn February 2022, the Company entered into a Stock Purchase Agreement with Hershey Trust Company, as trustee for the School Trust, pursuant to which the Company purchased shares of its Common Stock from the School Trust (see [Note 14](#i0bc28196a24d4084af1a4cbdf6bdf4bd_79)).  


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| [Table of Contents](#i0bc28196a24d4084af1a4cbdf6bdf4bd_7) | The Hershey Company | Q3 2022 Form 10-Q | Page 34 | hsy-20221002_g2.jpg |

  

