Business acquisitions, net of cash and cash equivalents acquired

  
THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)(unaudited)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Nine Months Ended |
|  | October 2, 2022 |  | October 3, 2021 |
| Operating Activities |  |  |  |
| Net income including noncontrolling interest | $ | 1,248,521  |  |  | $ | 1,143,028  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization | 279,082  |  |  | 231,953  |  |
| Stock-based compensation expense | 50,640  |  |  | 51,009  |  |
| Deferred income taxes | (9,751) |  |  | 762  |  |
|  |  |  |  |
|  |  |  |  |
| Write-down of equity investments | 70,754  |  |  | 28,734  |  |
|  |  |  |  |
| Other | 92,632  |  |  | 77,548  |  |
| Changes in assets and liabilities, net of business acquisitions and divestitures: |  |  |  |
| Accounts receivable—trade, net | (259,064) |  |  | (222,864) |  |
| Inventories | (201,425) |  |  | (38,864) |  |
| Prepaid expenses and other current assets | (40,565) |  |  | 11,908  |  |
| Accounts payable and accrued liabilities | 248,230  |  |  | 76,446  |  |
| Accrued income taxes | 124,965  |  |  | 92,236  |  |
| Contributions to pension and other benefit plans | (16,639) |  |  | (38,576) |  |
| Other assets and liabilities | (27,186) |  |  | (9,603) |  |
| Net cash provided by operating activities | 1,560,194  |  |  | 1,403,717  |  |
| Investing Activities |  |  |  |
| Capital additions (including software) | (359,993) |  |  | (347,450) |  |
|  |  |  |  |
|  |  |  |  |
| Equity investments in tax credit qualifying partnerships | (159,713) |  |  | (75,917) |  |
| Business acquisitions, net of cash and cash equivalents acquired | —  |  |  | (419,501) |  |
| Other investing activities | 9,730  |  |  | 3,129  |  |
|  |  |  |  |
| Net cash used in investing activities | (509,976) |  |  | (839,739) |  |
| Financing Activities |  |  |  |
| Net (decrease) increase in short-term debt | (145,552) |  |  | 339,981  |  |
|  |  |  |  |
| Repayment of long-term debt and finance leases | (3,321) |  |  | (438,029) |  |
|  |  |  |  |
|  |  |  |  |
| Cash dividends paid | (567,989) |  |  | (505,194) |  |
| Repurchase of common stock | (355,271) |  |  | (457,946) |  |
| Proceeds from exercised stock options | 30,824  |  |  | 39,499  |  |
| Taxes withheld and paid on employee stock awards | (34,722) |  |  | (16,137) |  |
|  |  |  |  |
| Net cash used in financing activities | (1,076,031) |  |  | (1,037,826) |  |
| Effect of exchange rate changes on cash and cash equivalents | 24,288  |  |  | (6,057) |  |
| Decrease in cash and cash equivalents, including cash classified as held for sale | (1,525) |  |  | (479,905) |  |
| Less: Increase in cash and cash equivalents classified as held for sale | —  |  |  | 11,434  |  |
| Net decrease in cash and cash equivalents | (1,525) |  |  | (468,471) |  |
| Cash and cash equivalents, beginning of period | 329,266  |  |  | 1,143,987  |  |
| Cash and cash equivalents, end of period | $ | 327,741  |  |  | $ | 675,516  |  |
| Supplemental Disclosure |  |  |  |
| Interest paid | $ | 90,787  |  |  | $ | 92,397  |  |
| Income taxes paid | 190,724  |  |  | 199,735  |  |

  
See Notes to Unaudited Consolidated Financial Statements.  


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