16 unchanged sentences
A hypothetical 100 basis point increase in interest rates applied to this variable-rate debt through its December 2020 maturity would have increased interest expense by approximately $3.2 million for 2020.
−Removed: In addition, the total amount of short-term debt, net of cash, amounted to net debt of $610 million and net cash of $1.1 billion, respectively, at December 31, 2021 and 2020.
+Added: In addition, the total amount of short-term debt, net of cash, amounted to net debt of $230 million and net debt of $610 million, respectively, at December 31, 2022 and 2021.
A hypothetical 100 basis point increase in interest rates applied to this variable-rate short-term debt as of December 31, 2022 would have changed interest expense by approximately $4.5 million for 2022 and $2.4 million for 2021.
16 unchanged sentences
Foreign currency forward exchange contracts to purchase foreign currencies $ 58.3 Euros
−Removed: Malaysian ringgit
−Removed: British pound $ 45.4 Euros
+Added: Malaysian ringgit $ 53.1 Euros
Malaysian ringgit
+Added: British pound
Foreign currency forward exchange contracts to sell foreign currencies $ 119.6 Canadian dollars
Brazilian reals
−Removed: Japanese yen $ 178.0 Canadian dollars
+Added: Mexican Pesos $ 144.7 Canadian dollars
Brazilian reals
−Removed: British pound
The fair value of foreign currency forward exchange contracts represents the difference between the contracted and current market foreign currency exchange rates at the end of the period.
We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences.
−Removed: At December 31, 2021 and 2020, the net fair value of these instruments was an asset of $2.8 million and a liability of $3.1 million, respectively.
+Added: At December 31, 2022 and 2021, the net fair value of these instruments was an asset of $3.9 million and an asset of $2.8 million, respectively.
In addition, assuming an unfavorable 10% change in year-end foreign currency exchange rates, the fair value of these instruments would have declined by $18.4 million and $24.8 million, respectively, generally offset by a reduction in foreign exchange associated with our transactional activities.
−Removed: The Hershey Company | 2021 Form 10-K | Page 44
Commodities—Price Risk Management and Futures Contracts
−Removed: Our most significant raw material requirements include cocoa products, sugar, corn products, dairy products, peanuts and almonds.
+Added: Our most significant raw material requirements include cocoa products, sugar, corn products, dairy products, wheat, peanuts and almonds.
The cost of cocoa products and prices for related futures contracts and costs for certain other raw materials historically have been subject to wide fluctuations attributable to a variety of factors.
1 unchanged sentence
• Commodity market fluctuations;
−Removed: • Foreign currency exchange rates;
+Added: • Currency exchanges rates;
• Imbalances between supply and demand;
−Removed: • Rising levels of inflation related to domestic and global economic conditions or supply chain issues;
+Added: • Rising levels of inflation and interest rates related to domestic and global economic conditions or supply chain issues;
• The effects of climate change and extreme weather on crop yield and quality;
6 unchanged sentences
• Changes in governmental agricultural programs and energy policies;
+Added: • Other events beyond our control such as the impacts on the business or supply chain arising from the conflict between Russia and Ukraine.
+Added: The Hershey Company | 2022 Form 10-K | Page 42
We use futures and options contracts and other commodity derivative instruments in combination with forward purchasing of cocoa products, sugar, corn products, certain dairy products, wheat products, natural gas and diesel fuel primarily to mitigate price volatility and provide visibility to future costs within our supply chain.
6 unchanged sentences
Cocoa Products
−Removed: During 2021, average cocoa futures contract prices increased 2.7% compared with 2020 and traded in a narrow range between $1.04 and $1.27 per pound, based on the Intercontinental Exchange futures contract.
−Removed: Strong global production growth more than offset a firmer consumption picture with a corresponding increase in global stocks, especially in the United States.
−Removed: While the global surplus weighed on the price outlook for the first half of 2021, concerns over the next main crop, owing to early pod counts and below average rainfall, underpinned prices through year-end.
+Added: During 2022, average cocoa futures contract prices decreased 0.9% compared with 2021 and continued to trade in a narrow range between $1.06 and $1.22 per pound, based on the Intercontinental Exchange futures contract.
+Added: Production was down significantly in Ghana by nearly 30%, while it was stable in the rest of West Africa.
+Added: As consumption remained strong, the large surplus in the 2020 - 2021 season became a small deficit in the 2022 season.
+Added: The global surplus of the 2020 - 2021 season weighed on the price outlook for the first half of 2022 and the futures market corrected to accommodate the Living Income Differential being imposed by the Ghana and Ivory Coast cocoa marketing boards, leading to fairly similar price levels to the previous year.
The table below shows annual average cocoa futures prices and the highest and lowest monthly averages for each of the calendar years indicated.
9 unchanged sentences
As a result, the average futures contract prices are not necessarily indicative of our average costs.
−Removed: The Hershey Company | 2021 Form 10-K | Page 45
The price of sugar is subject to price supports under U.S.
5 unchanged sentences
Prices were historically high throughout 2022 due to lack of imports by the U.S.
−Removed: government resulting in an extremely tight domestic raw sugar market.
+Added: government resulting in an extremely tight domestic raw sugar market and strong demand which resulted in a scarcity market for much of the year.
Corn Products
We use corn futures to price our corn sweetener product requirements.
−Removed: A strong rebound in ethanol production, along with continued strong exports, drove prices higher in 2021.
+Added: The conflict between Russia and Ukraine caused a tightness for global grain stocks in 2022.
Corn prices traded in a range from $5.62 to $8.25 per bushel during 2022.
+Added: Corn sweetener prices were also higher as strong demand resulted in a scarcity market during the year.
+Added: The Hershey Company | 2022 Form 10-K | Page 43
Dairy Products
1 unchanged sentence
Fluid dairy milk prices were higher than 2021, driven by declines in U.S.
−Removed: milk production and higher dairy demand.
+Added: milk production and higher global dairy demand.
Wheat Products
−Removed: In 2021 we began utilizing soft and hard wheat futures as a risk management tool for our flour purchasing.
−Removed: weather impacted production and resulted in lower stocks and higher prices compared to 2020.
+Added: In 2022 we continued utilizing soft and hard wheat futures as a risk management tool for our flour purchasing.
+Added: The conflict between Russia and Ukraine, in addition to poor U.S.
+Added: weather, resulted in uncertainty in the wheat market and impacted global availability of supplies.
+Added: Wheat stock levels were at historic 15-year lows and prices reached historic highs in 2022.
Hard wheat prices traded in the range of $7.72 to $13.21 per bushel during 2022, while soft wheat prices traded in the range of $7.40 to $12.29 per bushel during 2022.
2 unchanged sentences
ranged from a low of $0.55 per pound to a high of $0.64 per pound during 2022.
−Removed: Prices rose this year due strong demand and tight supply.
−Removed: Almond prices began the year at $2.03 per pound and closed the year at $2.85 per pound during 2021.
−Removed: Persistent drought and concerns over the 2021 almond crop size drove price volatility.
+Added: Prices rose this year due to higher competing crop prices and a smaller peanut crop.
+Added: Almond prices traded in the range of $2.00 per pound to $2.25 per pound during 2022.
+Added: Prices were lower than 2021 as a result of large crop and high inventory levels.
Changes in the Value of Futures Contracts
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.