Conversion of stock, shares converted (shares)

THE HERSHEY COMPANYNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(amounts in thousands, except share data or if otherwise indicated)  
16. EARNINGS PER SHARE We compute basic earnings per share for Common Stock and Class B common stock using the two-class method. The Class B common stock is convertible into Common Stock on a share-for-share basis at any time. In June 2022, 1,500,000 shares of Class B Common Stock were converted to Common Stock by Hershey Trust Company, as trustee for the School Trust. The computation of diluted earnings per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings per share of Class B common stock does not assume the conversion of those shares. 

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|  |  | Three Months Ended |
|  |  | October 2, 2022 |  | October 3, 2021 |
|  |  | Common Stock |  | Class B Common Stock |  | Common Stock |  | Class B Common Stock |
| Basic earnings per share: |  |  |  |  |  |  |  |  |
| Numerator: |  |  |  |  |  |  |  |  |
| Allocation of distributed earnings (cash dividends paid) |  | $ | 152,262  |  |  | $ | 54,743  |  |  | $ | 131,247  |  |  | $ | 49,643  |  |
| Allocation of undistributed earnings |  | 141,630  |  |  | 50,852  |  |  | 191,575  |  |  | 72,462  |  |
| Total earnings—basic |  | $ | 293,892  |  |  | $ | 105,595  |  |  | $ | 322,822  |  |  | $ | 122,105  |  |
|  |  |  |  |  |  |  |  |  |
| Denominator (shares in thousands): |  |  |  |  |  |  |  |  |
| Total weighted-average shares—basic |  | 147,169  |  |  | 58,114  |  |  | 145,665  |  |  | 60,614  |  |
|  |  |  |  |  |  |  |  |  |
| Earnings Per Share—basic |  | $ | 2.00  |  |  | $ | 1.82  |  |  | $ | 2.22  |  |  | $ | 2.01  |  |
|  |  |  |  |  |  |  |  |  |
| Diluted earnings per share: |  |  |  |  |  |  |  |  |
| Numerator: |  |  |  |  |  |  |  |  |
| Allocation of total earnings used in basic computation |  | $ | 293,892  |  |  | $ | 105,595  |  |  | $ | 322,822  |  |  | $ | 122,105  |  |
| Reallocation of total earnings as a result of conversion of Class B common stock to Common stock |  | 105,595  |  |  | —  |  |  | 122,105  |  |  | —  |  |
| Reallocation of undistributed earnings |  | —  |  |  | (251) |  |  | —  |  |  | (369) |  |
| Total earnings—diluted |  | $ | 399,487  |  |  | $ | 105,344  |  |  | $ | 444,927  |  |  | $ | 121,736  |  |
|  |  |  |  |  |  |  |  |  |
| Denominator (shares in thousands): |  |  |  |  |  |  |  |  |
| Number of shares used in basic computation |  | 147,169  |  |  | 58,114  |  |  | 145,665  |  |  | 60,614  |  |
| Weighted-average effect of dilutive securities: |  |  |  |  |  |  |  |  |
| Conversion of Class B common stock to Common shares outstanding |  | 58,114  |  |  | —  |  |  | 60,614  |  |  | —  |  |
| Employee stock options |  | 561  |  |  | —  |  |  | 625  |  |  | —  |  |
| Performance and restricted stock units |  | 430  |  |  | —  |  |  | 522  |  |  | —  |  |
| Total weighted-average shares—diluted |  | 206,274  |  |  | 58,114  |  |  | 207,426  |  |  | 60,614  |  |
|  |  |  |  |  |  |  |  |  |
| Earnings Per Share—diluted |  | $ | 1.94  |  |  | $ | 1.81  |  |  | $ | 2.14  |  |  | $ | 2.01  |  |

The earnings per share calculations for the three months ended October 2, 2022 excluded 4 stock options (in thousands), that would have been antidilutive. There were no antidilutive stock options for the three months ended October 3, 2021.  


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| [Table of Contents](#i0bc28196a24d4084af1a4cbdf6bdf4bd_7) | The Hershey Company | Q3 2022 Form 10-Q | Page 32 | hsy-20221002_g2.jpg |

  

