11 unchanged sentences
Interest Rate Risk
−Removed: In December 2020, our fixed-to-floating interest rate swap matured in connection with the repayment of certain long-term debt upon its maturity.
−Removed: Therefore, as of December 31, 2022 and December 31, 2021, we had no interest rate swap derivative instruments in a fair value hedging relationship.
−Removed: Prior to maturing in December 2020, the total notional amount of interest rate swaps was $350 million.
−Removed: The notional amount relates to fixed-to-floating interest rate swaps which convert a comparable amount of fixed-rate debt to variable rate debt.
−Removed: 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 $230 million and net debt of $610 million, respectively, at December 31, 2022 and 2021.
+Added: The total amount of short-term debt, net of cash, amounted to net debt of $318 million and net debt of $230 million, respectively, at December 31, 2023 and 2022.
A hypothetical 100 basis point increase in interest rates applied to this variable-rate short-term debt as of December 31, 2023 would have changed interest expense by approximately $3.1 million for 2023 and $4.5 million for 2022.
16 unchanged sentences
Foreign currency forward exchange contracts to purchase foreign currencies $ 88.8 Euros
−Removed: Malaysian ringgit $ 53.1 Euros
Malaysian ringgit
−Removed: British pound
+Added: British pound $ 58.3 Euros
+Added: Malaysian ringgit
Foreign currency forward exchange contracts to sell foreign currencies $ 155.3 Canadian dollars
Brazilian reals
−Removed: Mexican Pesos $ 144.7 Canadian dollars
+Added: Japanese yen $ 119.6 Canadian dollars
Brazilian reals
+Added: Mexican pesos
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.
7 unchanged sentences
• Commodity market fluctuations;
−Removed: • Currency exchanges rates;
+Added: • Currency exchange rates;
• Imbalances between supply and demand;
8 unchanged sentences
• Changes in governmental agricultural programs and energy policies;
−Removed: • Other events beyond our control such as the impacts on the business or supply chain arising from the conflict between Russia and Ukraine.
+Added: • Other events beyond our control such as the impacts on the business or supply chain arising from the ongoing conflict between Russia and Ukraine.
The Hershey Company | 2023 Form 10-K | Page 44
7 unchanged sentences
Cocoa Products
−Removed: 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.
−Removed: Production was down significantly in Ghana by nearly 30%, while it was stable in the rest of West Africa.
−Removed: As consumption remained strong, the large surplus in the 2020 - 2021 season became a small deficit in the 2022 season.
−Removed: 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.
+Added: During 2023, average cocoa futures contract prices increased 31.9% compared with 2022 and traded higher every month from January to December from $1.19 and $1.90 per pound, based on the Intercontinental Exchange futures contract.
+Added: The production forecast for the 2023 – 2024 season is down significantly in Ghana and Ivory Coast by over 20% combined, due to a combination of inclement weather, lower inputs and marginally increased farmer prices versus inflation.
+Added: Despite higher cocoa prices to consumers, consumption remained consistent, leading to predictions of a large deficit, the third consecutive one by some accounts.
The table below shows annual average cocoa futures prices and the highest and lowest monthly averages for each of the calendar years indicated.
10 unchanged sentences
The price of sugar is subject to price supports under U.S.
−Removed: farm legislation.
−Removed: Such legislation establishes import quotas and duties to support the price of sugar.
+Added: farm legislation, which establishes import quotas and duties to support the price of sugar.
As a result, sugar prices paid by users in the U.S.
2 unchanged sentences
Prices were historically high throughout 2023 due to lack of imports by the U.S.
−Removed: government resulting in an extremely tight domestic raw sugar market and strong demand which resulted in a scarcity market for much of the year.
+Added: government resulting in an extremely tight domestic raw sugar market and continued 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: The conflict between Russia and Ukraine caused a tightness for global grain stocks in 2022.
−Removed: Corn prices traded in a range from $5.62 to $8.25 per bushel during 2022.
−Removed: Corn sweetener prices were also higher as strong demand resulted in a scarcity market during the year.
+Added: A record crop from both Brazil and the U.S.
+Added: in 2023 drove prices down throughout the year.
+Added: Corn prices traded in the range from $4.74 to $6.83 per bushel during 2023.
+Added: Corn sweetener prices remained elevated due to tight capacity utilization throughout the industry.
The Hershey Company | 2023 Form 10-K | Page 45
1 unchanged sentence
During 2023 prices for fluid dairy milk ranged from a low of $0.176 per pound to a high of $0.214 per pound, on a Class IV milk basis.
−Removed: Fluid dairy milk prices were higher than 2021, driven by declines in U.S.
−Removed: milk production and higher global dairy demand.
+Added: Fluid dairy milk prices were lower than 2022, driven by increases in global milk production linked to improved farmer margins, and exacerbated by a decline in U.S.
+Added: dairy ingredient exports.
Wheat Products
In 2023 we continued utilizing soft and hard wheat futures as a risk management tool for our flour purchasing.
−Removed: The conflict between Russia and Ukraine, in addition to poor U.S.
−Removed: weather, resulted in uncertainty in the wheat market and impacted global availability of supplies.
−Removed: Wheat stock levels were at historic 15-year lows and prices reached historic highs in 2022.
+Added: For the second year in a row, the conflict between Russia and Ukraine, in addition to poor U.S.
+Added: weather, continued to result in volatility in the wheat market and impacted global availability of supplies.
+Added: Despite annual volatility, U.S.
+Added: wheat remains uncompetitive in the world market, anchoring prices to their historical 5-year averages.
Hard wheat prices traded in the range of $6.20 to $8.94 per bushel during 2023, while soft wheat prices traded in the range of $5.78 to $7.86 per bushel during 2023.
2 unchanged sentences
ranged from a low of $0.59 per pound to a high of $0.71 per pound during 2023.
−Removed: Prices rose this year due to higher competing crop prices and a smaller peanut crop.
+Added: Prices increased in 2023 due to higher export demand in the latter half of the year and a smaller peanut crop.
Almond prices traded in the range of $1.75 per pound to $2.15 per pound during 2023.
−Removed: Prices were lower than 2021 as a result of large crop and high inventory levels.
+Added: Prices increased towards the end of 2023, driven by smaller than expected crop and lower availability of small sized almonds.
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.