Total lease liabilities

THE HERSHEY COMPANYNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(amounts in thousands, except share data or if otherwise indicated)  
The maturity of our lease liabilities as of October 2, 2022 were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Operating leases |  | Finance leases |  | Total |
| 2022 (rest of year) | $ | 10,184  |  |  | $ | 1,860  |  |  | $ | 12,044  |  |
| 2023 | 40,229  |  |  | 6,494  |  |  | 46,723  |  |
| 2024 | 37,277  |  |  | 5,560  |  |  | 42,837  |  |
| 2025 | 26,118  |  |  | 4,398  |  |  | 30,516  |  |
| 2026 | 22,258  |  |  | 4,025  |  |  | 26,283  |  |
| Thereafter | 284,584  |  |  | 146,082  |  |  | 430,666  |  |
| Total lease payments | 420,650  |  |  | 168,419  |  |  | 589,069  |  |
| Less: Imputed interest | 93,541  |  |  | 98,700  |  |  | 192,241  |  |
| Total lease liabilities | $ | 327,109  |  |  | $ | 69,719  |  |  | $ | 396,828  |  |

  
Supplemental cash flow and other information related to leases were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Nine Months Ended |
|  |  | October 2, 2022 |  | October 3, 2021 |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
| Operating cash flows from operating leases |  | $ | 34,528  |  |  | $ | 32,243  |  |
| Operating cash flows from finance leases |  | 3,083  |  |  | 3,321  |  |
| Financing cash flows from finance leases |  | 3,336  |  |  | 3,313  |  |
|  |  |  |  |  |
| ROU assets obtained in exchange for lease liabilities: |  |  |  |  |
| Operating leases |  | $ | 6,629  |  |  | $ | 7,013  |  |
| Finance leases |  | 4,192  |  |  | 436  |  |

8. INVESTMENTS IN UNCONSOLIDATED AFFILIATESWe invest in partnerships that make equity investments in projects eligible to receive federal historic and renewable energy tax credits. The tax credits, when realized, are recognized as a reduction of tax expense under the flow-through method, at which time the corresponding equity investment is written-down to reflect the remaining value of the future benefits to be realized. The equity investment write-down is reflected within other (income) expense, net in the Consolidated Statements of Income (see [Note 17](#i0bc28196a24d4084af1a4cbdf6bdf4bd_88)).  
Additionally, we acquire ownership interests in emerging snacking businesses and startup companies, which vary in method of accounting based on our percentage of ownership and ability to exercise significant influence over decisions relating to operating and financial affairs. These investments afford the Company the rights to distribute brands that the Company does not own to third-party customers primarily in North America. Net sales and expenses of our equity method investees are not consolidated into our financial statements; rather, our proportionate share of earnings or losses are recorded on a net basis within other (income) expense, net in the Consolidated Statements of Income.  
Both equity and cost method investments are reported within other non-current assets in our Consolidated Balance Sheets. We regularly review our investments and adjust accordingly for capital contributions, dividends received and other-than-temporary impairments. Total investments in unconsolidated affiliates were $132,226 and $93,089 as of October 2, 2022 and December 31, 2021, respectively.  
  


|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| [Table of Contents](#i0bc28196a24d4084af1a4cbdf6bdf4bd_7) | The Hershey Company | Q3 2022 Form 10-Q | Page 21 | hsy-20221002_g2.jpg |

  

