Access the February 20, 2015, filing of the December 31, 2014, 10-K report ofThe Hershey Company(ticker HSY) atwww.SEC.govand complete the following requirements.

Required

Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2014,andDecember 31, 2013. Interpret its profitability using the results obtained for these two years.

1. Profit margin ratio.
2. Gross profit ratio.
3. Return on total assets.
4. Return on common stockholders? equity.
5. Basic net income per common share.

DOCUMENT AND ENTITY INFORMATION (USD $) Document Information [Line Items] Entity Registrant Name Entity Central Index Key Current Fiscal Year End Date Entity Filer Category Document Type Document Period End Date Document Fiscal Year Focus Document Fiscal Period Focus Amendment Flag Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Public Float Common Stock Document Information [Line Items] Entity Common Stock, Shares Outstanding Common Class B Document Information [Line Items] Entity Common Stock, Shares Outstanding 12 Months Ended Dec. 31, 2014 Jun. 27, 2014 Feb. 06, 2015 HERSHEY CO 47111 -19 Large Accelerated Filer 10-K 31-Dec-14 2014 FY 0 Yes No Yes $14,349,963,182 160,208,263 60,619,777 CONSOLIDATED STATEMENTS OF INCOME 12 Months Ended (USD $) In Thousands, except Per Share data, unless Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 otherwise specified Net sales $7,421,768 $7,146,079 $6,644,252 Costs and Expenses Cost of sales 4,085,602 3,865,231 3,784,370 Selling, marketing and administrative 1,900,970 1,922,508 1,703,796 Business realignment and impairment charges 45,621 18,665 44,938 Total costs and expenses 6,032,193 5,806,404 5,533,104 Income before interest and income taxes Interest expense, net Income before income taxes Provision for income taxes Net income Common Stock Costs and Expenses Earnings Per Share - Basic Earnings Per Share - Diluted Cash Dividends Paid Per Share Common Stock Common Class B Costs and Expenses Earnings Per Share - Basic Earnings Per Share - Diluted Cash Dividends Paid Per Share Common Stock 1,389,575 83,532 1,306,043 459,131 $846,912 1,339,675 88,356 1,251,319 430,849 $820,470 1,111,148 95,569 1,015,579 354,648 $660,931 $3.91 $3.77 $3.76 $3.61 $3.01 $2.89 $2.04 $1.81 $1.56 $3.54 $3.52 $3.39 $3.37 $2.73 $2.71 $1.84 $1.63 $1.41 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified Net income Other comprehensive (loss) income, net of tax: 3 Months Ended 12 Months Ended Dec. 31, 2014 Sep. 28, 2014 Jun. 29, 2014 Mar. 30, 2014 Dec. 31, 2013 Sep. 29, 2013 Jun. 30, 2013 Mar. 31, 2013 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 $202,508 $223,741 $168,168 $252,495 $186,075 $232,985 $159,504 $241,906 $846,912 $820,470 $660,931 -26,851 -26,003 7,714 -85,016 166,403 -9,634 -37,077 -43,062 72,334 5,775 -868 60,043 -192,006 $654,906 218,509 $1,038,979 57,255 $718,186 Foreign currency translation adjustments Pension and post-retirement benefit plans Cash flow hedges: (Losses) gains on cash flow hedging derivatives Reclassification adjustments Total other comprehensive (loss) income, net of tax Comprehensive Income CONSOLIDATED BALANCE SHEETS (USD $) Dec. 31, 2014 Dec. 31, 2013 In Thousands, unless otherwise specified Current Assets Cash and cash equivalents Short-term investments Accounts receivable - trade, net Inventories Deferred income taxes Prepaid expenses and other Total current assets Property, Plant and Equipment, Net Goodwill Other intangibles Other assets Total assets Current Liabilities Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Long-term debt Other long-term liabilities Deferred income taxes Total liabilities Stockholders' Equity Preferred stock Common stock Class B common stock Additional paid-in capital Retained earnings Treasury-common stock shares, at cost Accumulated other comprehensive loss The Hershey Company stockholders' equity Noncontrolling interests in subsidiaries Total stockholders' equity Total liabilities and stockholders' equity $374,854 97,131 596,940 801,036 100,515 276,571 2,247,047 2,151,901 792,955 294,841 142,772 5,629,516 $1,118,508 0 477,912 659,541 52,511 178,862 2,487,334 1,805,345 576,561 195,244 293,004 5,357,488 482,017 813,513 4,616 384,696 250,805 1,935,647 1,548,963 526,003 99,373 4,109,986 461,514 699,722 79,911 165,961 914 1,408,022 1,795,142 434,068 104,204 3,741,436 0 299,281 60,620 754,186 5,860,784 -5,161,236 0 299,281 60,620 664,944 5,454,286 -4,707,730 -358,573 -166,567 1,455,062 64,468 1,519,530 1,604,834 11,218 1,616,052 $5,629,516 $5,357,488 CONSOLIDATED BALANCE SHEETS (Parenthetical) Class of Stock [Line Items] Preferred Stock, shares issued Common Stock, shares issued Treasury Common Stock Shares At Cost Common Stock Class of Stock [Line Items] Common Stock, shares issued Common Class B Class of Stock [Line Items] Common Stock, shares issued Dec. 31, 2014 Dec. 31, 2013 0 359,901,744 138,856,786 0 359,901,744 136,007,023 299,281,967 299,281,527 60,619,777 60,620,217 CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) 12 Months Ended In Thousands, unless otherwise specified Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Operating Activities Net Income Adjustments to reconcile net income to net cash provided from operations Depreciation and amortization Stock-based compensation expense Excess tax benefits from stock-based compensation Deferred income taxes Non-cash business realignment and impairment charges Contributions to pension and other benefit plans Changes in assets and liabilities, net of effects from business acquisitions and divestitures Accounts receivable - trade, net Inventories Accounts payable and accrued liabilities Other assets and liabilities Net cash provided by operating activities Investing Activities Capital additions Capitalized software additions Proceeds from sales of property, plant and equipment Loan to affiliate Business acquisitions, net of cash and cash equivalents acquired Purchase of short-term investments Net cash used in investing activities Financing Activities Net increase in short-term debt Long-term borrowings Repayment of long-term debt Cash dividends paid Exercise of stock options Excess tax benefits from stock-based compensation Payments to noncontrolling interests Contributions from noncontrolling interests Repurchase of common stock Net cash used in financing activities (Decrease) increase in cash and cash equivalents Cash and cash equivalents at January 1 Cash and cash equivalents at December 31 Interest paid Income taxes paid $846,912 $820,470 $660,931 211,532 54,068 201,033 53,967 210,037 50,482 -53,497 18,796 -48,396 7,457 -33,876 13,785 39,988 0 38,144 -53,110 -57,213 -44,208 -67,464 -88,497 -16,529 -26,279 -50,470 26,598 -13,847 -56,660 102,411 151,484 69,645 153,759 838,221 1,188,405 1,094,827 -345,947 -24,842 -323,551 -27,360 -258,727 -19,239 1,612 0 15,331 -16,000 453 -23,000 -396,265 -97,131 -862,573 0 0 -351,580 -172,856 0 -473,369 117,515 3,051 -1,442 -440,414 122,306 54,351 250,595 -250,761 -393,801 147,255 77,698 4,025 -99,381 -341,206 261,597 53,497 0 48,396 0 33,876 -15,791 2,940 -576,755 -719,302 2,940 -305,564 -446,589 2,940 -510,630 -586,872 -743,654 1,118,508 390,236 728,272 34,586 693,686 374,854 87,801 $384,318 1,118,508 92,551 $373,902 728,272 100,269 $327,230 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) In Thousands Total stockholders' equity at Dec. 31, 2011 Net Income Other comprehensive income (loss) Common Stock Class B Common Stock Conversion of Class B Common Stock into Common Stock Total Preferred Stock Common Stock $0 $299,269 $490,817 660,931 57,255 Retained Earnings $4,707,892 660,931 Treasury Common Stock ($4,258,962) Accumulated Other Comprehensive Income (Loss) ($442,331) 49,175 64,028 210,924 -510,630 Repurchase of common stock Acquisition Earnings of and contributions from noncontrolling interests, net Class B Common Stock $880,943 660,931 57,255 -255,596 -85,610 $60,632 -3 -4,746 0 299,272 592,975 820,470 218,509 5,027,617 820,470 -4,558,668 -385,076 -7,256 11,624 1,048,373 820,470 218,509 -294,979 -98,822 60,629 0 52,465 -11,045 274,952 -510,630 -15,791 -7,256 -510,630 -9 218,509 -294,979 -98,822 9 52,465 19,504 156,502 -305,564 -305,564 176,006 -305,564 -406 Total stockholders' equity at Dec. 31, 2013 Net Income Other comprehensive income (loss) Common Stock Class B Common Stock Stock-based compensation Exercise of stock options and incentive-based transactions Total Stockholders' Equity 0 49,175 3 Stock-based compensation Exercise of stock options and incentive-based transactions Repurchase of common stock Earnings of and contributions from noncontrolling interests, net $23,626 -255,596 -85,610 Total stockholders' equity at Dec. 31, 2012 Net Income Other comprehensive income (loss) Common Stock Class B Common Stock Conversion of Class B Common Stock into Common Stock Noncontrolling Interests in Subsidiaries 57,255 Stock-based compensation Exercise of stock options and incentive-based transactions Repurchase of common stock Acquisition Earnings of and contributions from noncontrolling interests, net Additional Paid-in Capital 1,616,052 846,912 -192,006 0 299,281 664,944 5,454,286 846,912 -4,707,730 -166,567 -406 11,218 1,616,052 846,912 -192,006 -328,752 -111,662 52,870 -192,006 -328,752 -111,662 52,870 36,372 123,249 -576,755 49,724 Total stockholders' equity at Dec. 31, 2014 $1,519,530 $0 $299,281 $754,186 $5,860,784 ($5,161,236) ($358,573) 159,621 -576,755 49,724 3,526 -576,755 3,526 $64,468 $1,519,530 60,620 $60,620 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) Common Stock Common Stock Common Class B Common Stock 3 Months Ended 12 Months Ended Dec. 31, 2014 Sep. 28, 2014 Jun. 29, 2014 Mar. 30, 2014 Dec. 31, 2013 Sep. 29, 2013 Jun. 30, 2013 Mar. 31, 2013 Dec. 31, 2014 Dec. 31, 2013 Dec. 31, 2012 $0.54 $0.54 $0.49 $0.49 $0.49 $0.49 $0.42 $0.42 $2.04 $1.81 $1.56 $0.49 $0.49 $0.44 $0.44 $0.44 $0.44 $0.38 $0.38 $1.84 $1.63 $1.41 12 Months Ended Dec. 31, 2014 SIGNIFICANT ACCOUNTING POLICIES Accounting Policies [Abstract] Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business The Hershey Company together with its wholly-owned subsidiaries and entities in which it has a controlling interest,(the \"Company,\" \"Hershey,\" \"we\" or \"us\") is a global confectionery leader known for its branded portfolio of chocolate, sweets, mints and other great-tasting snacks. The Company has more than 80 brands worldwide including such iconic brand names as Hershey's, Reese's, Hershey's Kisses, Jolly Rancher and Ice Breakers, which are marketed, sold and distributed in approximately 70 countries worldwide. Hershey is focused on growing its presence in key international markets while continuing to build its competitive advantage in North America. The Company currently operates through two reportable segments that are aligned with its management structure and the key markets it serves: North America and International and Other. For additional information on our segment presentation, see Note 11. Our consolidated financial statements Basis of Presentation include the accounts of The Hershey Company and its majority-owned or controlled subsidiaries. Intercompany transactions and balances have been eliminated. We have a controlling financial interest if we own a majority of the outstanding voting common stock and minority shareholders do not have substantive participating rights, we have significant control through contractual or economic interests in which we are the primary beneficiary or we have the power to direct the activities that most significantly impact the entity's economic performance. Net income (loss) attributable to noncontrolling interests is not significant and is recorded within selling, marketing and administrative expense in the Consolidated Statements of Income. We use the equity method of accounting when we have a 20% to 50% interest in other companies and exercise significant influence. Net income (loss) from such investments is not significant and is also recorded in selling, marketing and administrative expense. As of December 31, 2013, equity investments included within other long-term assets in the Consolidated Balance Sheets totaled $39,872. We held no equity investments at December 31, 2014. See Note 12 for additional information on our noncontrolling interests. Use preparation of financial statements in The of Estimates conformity with accounting principles generally accepted in the United States of America (\"U.S. GAAP\") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. Our significant estimates and assumptions include, among others, pension and other post-retirement benefit plan assumptions, valuation assumptions of goodwill and other intangible assets, useful lives of long-lived assets, marketing and trade promotion accruals and income taxes. These estimates and assumptions are based on management's best judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and the effects of any revisions are reflected in the consolidated financial statements in the period that they are determined. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Revenue Recognition We record sales when all of the following criteria have been met: l l l A valid customer order with a fixed price has been received; The product has been delivered to the customer; further significant obligation There is no to assist in the resale of the product; and Collectability is reasonably assured. Net sales include revenue from the sale of finished goods and royalty income, net of allowances for trade promotions, consumer coupon programs and other sales incentives, and allowances and discounts associated with aged or potentially unsaleable products. Trade promotions and sales incentives primarily include reduced price features, merchandising displays, sales growth incentives, new item allowances and cooperative advertising. Sales, use, valueadded and other excise taxes are not recognized in revenue. Cost of Sales l Cost of sales represents costs directly related to the manufacture and distribution of our products. Primary costs include raw materials, packaging, direct labor, overhead, shipping and handling, warehousing and the depreciation of manufacturing, warehousing and distribution facilities. Manufacturing overhead and related expenses include salaries, wages, employee benefits, utilities, maintenance and property taxes. Selling, Marketing and Administrative Expense Selling, marketing and administrative expense (\"SM&A\") represents costs incurred in generating revenues and in managing our business. Such costs include advertising and other marketing expenses, selling expenses, research and development, administrative and other indirect overhead costs, amortization of capitalized software and depreciation of administrative facilities. Research and development costs, charged to expense as incurred, totaled $47,554 in 2014, $47,636 in 2013 and $38,959 in 2012. Advertising expense, also charged to expense as incurred, totaled $570,223 in 2014, $582,354 in 2013 and $480,016 in 2012. Prepaid advertising expense was $8,193 and $8,432 as of December 31, 2014 and 2013, respectively. Cash Equivalents Cash equivalents consist of highly liquid debt instruments, time deposits and money market funds with original maturities of three months or less. The fair value of cash and cash equivalents approximates the carrying amount. Short-term Investments Short-term investments consist of bank term deposits that have original maturity dates ranging from greater than three months to twelve months. Short-term investments are carried at cost, which approximates fair value. Accounts ReceivableTrade In the normal course of business, we extend credit to customers that satisfy pre-defined credit criteria, based upon the results of our recurring financial account reviews and our evaluation of current and projected economic conditions. Our primary concentrations of credit risk are associated with Wal-Mart Stores, Inc. and McLane Company, Inc., two customers served principally by our North America segment. McLane Company, Inc. is one of the largest wholesale distributors in the United States to convenience stores, drug stores, wholesale clubs and mass merchandisers. As of December 31, 2014, McLane Company, Inc. accounted for approximately 12.8% of our total accounts receivable. Wal-Mart Stores, Inc. accounted for approximately 12.3% of our total accounts receivable as of December 31, 2014. No other customer accounted for more than 10% of our yearend accounts receivable. We believe that we have little concentration of credit risk associated with the remainder of our customer base. Accounts receivable-trade in the Consolidated Balance Sheets is presented net of allowances and anticipated discounts of $15,885 and $14,329 at December 31, 2014 and 2013, respectively. Inventories Inventories are valued at the lower of cost or market value, adjusted for the value of inventory that is estimated to be excess, obsolete or otherwise unsaleable. As of December 31, 2014, approximately 54% of our inventories, representing the majority of our U.S. inventories, were valued under the last-in, first-out (\"LIFO\") method. The remainder of our inventories in the U.S. and inventories for our international businesses are valued at the lower of first-in, first-out (\"FIFO\") cost or market. LIFO cost of inventories valued using the LIFO method was $430,094 as of December 31, 2014 and $314,999 as of December 31, 2013. The net impact of LIFO acquisitions and liquidations was not material to 2014, 2013 or 2012. Property, Plant and Equipment Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: 3 to 15 years for machinery and equipment; and 25 to 40 years for buildings and related improvements. Maintenance and repairs are expensed as incurred. We capitalize applicable interest charges incurred during the construction of new facilities and production lines and amortize these costs over the assets' estimated useful lives. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of longlived assets to future undiscounted net cash flows expected to be generated. If these assets are considered to be impaired, we measure impairment as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets held for sale or disposal at the lower of the carrying amount or fair value less cost to sell. We assess asset retirement obligations on a periodic basis and recognize the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. We capitalize associated asset retirement costs as part of the carrying amount of the long-lived asset. Computer Software We capitalize costs associated with software developed or obtained for internal use when both the preliminary project stage is completed and it is probable the software being developed will be completed and placed in service. Capitalized costs include only (i) external direct costs of materials and services consumed in developing or obtaining internal-use software, (ii) payroll and other related costs for employees who are directly associated with and who devote time to the internal-use software project and (iii) interest costs incurred, when material, while developing internal-use software. We cease capitalization of such costs no later than the point at which the project is substantially complete and ready for its intended purpose. The unamortized amount of capitalized software totaled $63,252 and $56,502 at December 31, 2014 and 2013, respectively. We amortize software costs using the straight-line method over the expected life of the software, generally 3 to 5 years. Accumulated amortization of capitalized software was $300,698 and $277,872 as of December 31, 2014 and 2013, respectively. Such amounts are recorded within other assets in the Consolidated Balance Sheets. We review the carrying value of software and development costs for impairment in accordance with our policy pertaining to the impairment of long-lived assets. Generally, we measure impairment under the following circumstances: l When internal-use computer software is not expected to provide substantive service potential; l When a significant change occurs in the extent or manner in which the software is used or is expected to be used; or When a significant change is made will be made to the software program; and l l When the costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software. Goodwill and Other Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are evaluated for impairment annually or more often if indicators of a potential impairment are present. Our annual impairment tests are conducted at the beginning of the fourth quarter. We use a two-step process to quantitatively evaluate goodwill for impairment. In the first step, we compare the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, we complete a second step to determine the amount of the goodwill impairment that we should record. In the second step, we determine an implied fair value of the reporting unit's goodwill by allocating the reporting unit's fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets). We compare the resulting implied fair value of the goodwill to the carrying amount and record an impairment charge for the difference. We test individual indefinite-lived intangible assets by comparing the estimated fair value with the book values of each asset. We determine the fair value of our reporting units and indefinite-lived intangible assets using an income approach. Under the income approach, we calculate the fair value of our reporting units and indefinite-lived intangible assets based on the present value of estimated future cash flows. Considerable management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate the future cash flows used to measure fair value. Our estimates of future cash flows consider past performance, current and anticipated market conditions and internal projections and operating plans which incorporate estimates for sales growth and profitability, and cash flows associated with taxes and capital spending. Additional assumptions include forecasted growth rates, estimated discount rates, which may be risk-adjusted for the operating market of the reporting unit, and estimated royalty rates that would be charged for comparable branded licenses. We believe such assumptions also reflect current and anticipated market conditions and are consistent with those that would be used by other marketplace participants for similar valuation purposes. Such assumptions are subject to change due to changing economic and competitive conditions. See Note 3 for additional information regarding the results of our annual impairment test. The cost of intangible assets with finite useful lives is amortized on a straight-line basis. Our finite-lived intangible assets consist primarily of certain trademarks, customer-related intangible assets and patents obtained through business acquisitions, which are amortized over estimated useful lives of approximately 25 years, 15 years, and 5 years, respectively. When certain events or changes in operating conditions indicate that the carrying value of these assets may not be recoverable, we perform an impairment assessment and may adjust the remaining useful lives. Currency Translation The financial statements of our foreign entities with functional currencies other than the U.S. dollar are translated into U.S. dollars, with the resulting translation adjustments recorded as a component of other comprehensive income (loss). Assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the balance sheet date, while income and expense items are translated using the average exchange rates during the period. Derivative Instruments We use derivative instruments principally to offset exposure to market risks arising from changes in commodity prices, foreign currency exchange rates and interest rates. See Note 5 for additional information on our risk management strategy and the types of instruments we use. Derivative instruments are recognized on the balance sheet at their fair values. When we become party to a derivative instrument and intend to apply hedge accounting, we designate the instrument for financial reporting purposes as a cash flow or fair value hedge. The accounting for changes in fair value (gains or losses) of a derivative instrument depends on whether we had designated it and it qualified as part of a hedging relationship, as noted below: Changes in the fair value of a derivative that is designated as a cash flow hedge are recorded in accumulated other comprehensive income (\"AOCI\") to the extent effective and reclassified into earnings in the same period or periods during which the transaction hedged by that derivative also affects earnings. Changes in the fair value of a derivative that is designated as a fair value hedge, along with the offsetting loss or gain on the hedged asset or liability that is attributable to the risk being hedged, are recorded in earnings, thereby reflecting in earnings the net extent to which the hedge is not effective in achieving offsetting changes in fair value. Changes in the fair value of a derivative not designated as a hedging instrument are recognized in earnings in cost of sales or SM&A, consistent with the related exposure. For derivatives designated as hedges, we assess, both at the hedge's inception and on an ongoing basis, whether they are highly effective in offsetting changes in fair values or cash flows of hedged items. The ineffective portion, if any, is recorded directly in earnings. In addition, if we determine that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, we discontinue hedge not hold or issue derivative We do accounting prospectively. instruments for trading or speculative purposes and are not a party to any instruments with leverage or prepayment features. Cash flows related to the derivative instruments we use to manage interest, commodity or other currency exposures are classified as operating activities. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (\"ASU\") No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the effect that ASU No. 2014-09 will have on our consolidated financial statements and related disclosures. No other new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our consolidated financial statements or disclosures. BUSINESS ACQUISITIONS AND DIVESTITURES Business Combinations [Abstract] Business Combination Disclosure 12 Months Ended Dec. 31, 2014 BUSINESS ACQUISITIONS AND DIVESTITURES Acquisitions businesses are accounted for as purchases and, accordingly, the Acquisitions of results of operations of the businesses acquired have been included in the consolidated financial statements since the respective dates of the acquisitions. The purchase price for each of the acquisitions is allocated to the assets acquired and liabilities assumed. Shanghai Golden Monkey On September 26, 2014 (the \"Initial Acquisition\"), our wholly-owned subsidiary, Hershey Netherlands B.V., completed the acquisition of 80% of the total outstanding shares of Shanghai Golden Monkey Food Joint Stock Co., Ltd. (\"SGM\"), a privately held confectionery company based in Shanghai, China operating through six production facilities located in China. The Golden Monkey product line is primarily sold in China's traditional trade channels. The business complements our position in China, and we expect to take advantage of SGM's distribution and manufacturing capabilities to expand sales of our Hershey products in the China marketplace. Our consolidated net sales for the year ended December 31, 2014 included approximately $54 million generated by SGM since the date of acquisition. The Initial Acquisition was funded by cash consideration of $394,470, subject to working capital and net debt adjustments. As of December 31, 2014, we have recorded a receivable of $37,860, reflecting our current best estimate of the amount due from the selling SGM shareholders for the working capital and net debt adjustments. Such amount is reflected within prepaid expenses and other in the Consolidated Balance Sheet at December 31, 2014. Hershey Netherlands B.V. has contractually agreed to purchase the remaining 20% of the outstanding shares of SGM on the one-year anniversary of the Initial Acquisition, subject to the parties obtaining government and regulatory approvals and satisfaction of other closing conditions. As such, we have recorded a liability of $100,067, reflecting the fair value of the future payment to be made to the SGM shareholders. This liability is included within accrued liabilities in the Consolidated Balance Sheet at December 31, 2014. The total purchase consideration, net of cash and cash equivalents acquired totaling $14,727, was allocated to the net assets acquired based on their respective fair values at September 26, 2014, as follows: In millions of dollars Accounts receivable - trade Purchase Price Allocation $ 46 Inventories 42 Other current assets 37 Property, plant and equipment 112 Goodwill 235 Distribution channel relationships 85 Trademarks 60 Other non-current assets Current liabilities assumed Short-term debt assumed 35 (54 ) (105 ) Other non-current liabilities assumed, principally deferred taxes Net assets acquired (52 ) $ 441 We are continuing to refine the valuations of acquired assets and liabilities and expect to finalize the purchase price allocation in 2015. Most notably, we are conducting additional procedures to assess the valuation of working capitalrelated balances at the acquisition date. Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired. The goodwill resulting from the acquisition is attributable primarily to the value of providing an established platform to leverage our brands in the China market, as well as expected synergies and other benefits from the combined brand portfolios. The recorded goodwill is not expected to be deductible for tax purposes. Acquired distribution channel relationships and trademarks were assigned estimated useful lives of 16 years and 22 years, respectively. Lotte Shanghai Food Company In March 2014, we acquired an additional 5.9% interest in Lotte Shanghai Food Company (\"LSFC\"), a joint venture established in 2007 in China for the purpose of manufacturing and selling product to the venture partners. For this additional interest, we paid $5,580 in cash, increasing our ownership from 44.1% to 50%. At the same time, we also amended the LSFC shareholders' agreement resulting in our operational control over the venture. With the additional operational control, we reassessed our involvement with LSFC and concluded that we have a controlling financial interest. Therefore, we consolidated the venture as of the March 2014 acquisition date. We had previously accounted for our investment in LSFC using the equity method. Total consideration transferred was approximately $99,161, including the $5,580 cash consideration paid, the estimated fair value of our previously held equity interest of $43,857 and the estimated fair value of the remaining noncontrolling interest in LSFC of $49,724, which fair values were determined using a marketbased approach. The fair value of the LSFC assets acquired and liabilities assumed on the acquisition date was $99,449, including fixed assets of $106,253, short-term debt obligations of $13,292 and other net assets of $6,488. We recognized a gain of approximately $4,627 in connection with this transaction, primarily related to the remeasurement of the fair value of our equity interest immediately before the business combination. The gain is included in selling, marketing and administrative within our Consolidated Statement of Income for the year ended December 31, 2014. Additionally, cash acquired in the transaction exceeded the $5,580 paid for the controlling interest by $10,035, resulting in a positive cash impact from the acquisition as presented in the Consolidated Statement of Cash Flows for the year ended December 31, 2014. The Allan Candy Company Limited In December 2014, our wholly-owned subsidiary, Hershey Canada Inc., completed the acquisition of all of the outstanding shares of The Allan Candy Company Limited (\"Allan\") for cash consideration of approximately $27,376, subject to a working capital adjustment. Allan is headquartered in Ontario, Canada and manufactures certain non-chocolate products on behalf of Hershey, in addition to manufacturing and distributing its own branded products, principally in Canada. The preliminary purchase price allocation includes fixed assets of $10,897, goodwill of $6,996, other intangible assets of $8,092, and other net assets of $1,391. Other intangibles include customer relationships and trademarks with estimated useful lives ranging from 3 to 19 years. We expect to finalize the purchase price allocation for Allan by mid-2015. Brookside Foods Ltd. In January 2012, we acquired all of the outstanding stock of Brookside Foods Ltd. (\"Brookside\"), a privately held confectionery company based in Abbottsford, British Columbia, Canada. As part of this transaction, we acquired two production facilities located in British Columbia and Quebec. The Brookside product line is primarily sold in the U.S. and Canada in a take-home re-sealable pack type. Our financial statements reflect the final accounting for the Brookside acquisition. The purchase price for the acquisition was approximately $173,000. The purchase price allocation of the Brookside acquisition is as follows: Purchase Price Allocation In millions of dollars Goodwill $ 68 Trademarks 60 Other intangibles 51 Other assets, net of liabilities assumed of $18.7 million 22 Non-current deferred tax liabilities (28 ) Purchase price $ 173 The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was recorded to goodwill. The goodwill is not expected to be deductible for tax purposes. Acquired trademarks were assigned estimated useful lives of 25 years, while other intangibles, including customer relationships, patents and covenants not to compete, were assigned estimated useful lives ranging from 6 to 17 years. Pro Forma Presentation Pro forma results of operations have not been presented for these acquisitions, as the impact on our consolidated financial statements is not material. In 2014 and 2013, we incurred net acquisition-related costs primarily related to the SGM acquisition of $13,270 and $4,072, respectively. In 2012, we incurred acquisition costs of $13,374, primarily related to the Brookside acquisition. These costs are recorded within selling, marketing and administrative costs in the Consolidated Statements of Income and primarily include third-party advisory fees; however, the 2014 costs also include net foreign currency exchange losses relating to our strategy to cap the SGM acquisition price as denominated in U.S. dollars. Planned Divestiture In December 2014, we entered into an agreement to sell the Mauna Loa Macadamia Nut Corporation (\"Mauna Loa\") for $38,000, subject to a working capital adjustment and customary closing conditions. The sale is expected to be finalized in the first quarter of 2015. As a result of the expected sale, we have recorded an estimated loss on the anticipated sale of $22,256 to reflect the disposal entity at fair value, less an estimate of the selling costs. This amount includes impairment charges totaling $18,531 to write down goodwill and the indefinite-lived trademark intangible asset, based on the valuation of these assets as implied by the agreed-upon sales price. The estimated loss on the anticipated sale is reflected within business realignment and impairment costs in the Consolidated Statements of Income. Mauna Loa is reported within our North America segment. Its operations are not material to our annual net sales, net income or earnings per share. Amounts classified as assets and liabilities held for sale at December 31, 2014 have been presented within prepaid expenses and other assets and accrued liabilities, respectively, and include the following: Assets held for sale Inventories $ Prepaid expenses and other 21,489 173 Property, plant and equipment, net 12,691 Other intangibles 12,705 $ Liabilities held for sale 47,058 Accounts payable and accrued liabilities $ 3,726 Other long-term liabilities 9,029 $ 12,755 12 Mo Dec. GOODWILL AND INTANGIBLE ASSETS Goodwill and Intangible Assets Disclosure [Abstract] Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS The changes in the carrying value of goodwill by reportable segment for the years ended December 31, 2014 and 2013 are as follows: North America Goodwill $ International and Other 552,596 Accumulated impairment loss $ 105,553 (4,973 ) Balance at January 1, 2013 (65,173 ) 547,623 40,380 Acquisitions Foreign currency translation (8,968 ) Balance at December 31, 2013 (2,474 ) 538,655 6,996 Acquisitions 37,906 235,138 Impairment charge Transfer to assets held for sale (11,400 ) (1,448 ) Foreign currency translation (10,854 ) (2,038 ) Balance at December 31, 2014 $ 533,349 $ 259,606 As discussed in Note 1, we perform our annual impairment test of goodwill and other indefinite-lived intangible assets at the beginning of the fourth quarter. Our goodwill is currently attributed to six reporting units. For step one of our 2014 annual test, the percentage of exc changes in the underlying assumptions, we performed a step two analysis which indicated goodwill impairment of $11,400. Our 2014 annual test of indefinite-lived intangible assets also resulted in a $4,500 pre-tax write-down of a trademark associated with the India busine The following table provides the gross carrying amount and accumulated amortization for each major class of intangible asset: December 31, 2014 Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Trademarks $ 129,223 Customer-related $ (7,593 ) 138,964 18,383 Total (6,090 ) 295,375 Other (11,447 ) 8,805 Patents (20,404 ) (45,534 ) Unamortized intangible assets: Trademarks with indefinite lives Total intangible assets, net 45,000 $ 294,841 Total amortization expense for the years ended December 31, 2014, 2013 and 2012 was $11,328, $10,849 and $10,559, respectively. Amortization expense for the next five years, based on current intangible balances, is estimated to be as follows: Annual Amortization Expense Estimated amortization expense 2015 $ 2016 16,676 $ 16,629 12 Months Ended Dec. 31, 2014 Total $ 658,149 (70,146 ) 588,003 (11,442 ) 576,561 242,134 (11,400 ) (1,448 ) (12,892 ) $ 792,955 014 annual test, the percentage of excess fair value over carrying value was at least 50% for each of our six tested reporting units, with the exception of our India reporting unit, whose estimated fair value approximated its carrying value. As a result and given the sensitivity of the India impairment analysis to mark associated with the India business. These impairment charges were recorded in the fourth quarter. We believe the impairments are largely a result of our recent decision to exit the oils portion of the business and realign our approach to regional marketing and distribution in India. 2013 Gross Carrying Amount $ Accumulated Amortization 66,274 $ (5,198 ) 70,906 (26,844 ) 19,278 (9,737 ) 9,906 (5,861 ) 166,364 (47,640 ) 76,520 $ 195,244 2017 $ 2018 16,253 $ 2019 13,972 $ 13,792 f the India impairment analysis to on in India. 9 12 Months Ended Dec. 31, 2014 SHORT AND LONG-TERM DEBT Debt Disclosure [Abstract] Short and Long-Term Debt SHORT AND LONG-TERM DEBT Short-term Debt As a source of short-term financing, we utilize cash on hand and commercial paper or bank loans with an original maturity of three months or less. In October 2011, we entered into a new five-year agreement establishing an unsecured revolving credit facility to borrow up to $1.1 billio increase borrowings by an additional $400,000 with the consent of the lenders. In November 2013, this agreement was amended to reduce the amount of borrowings available under the unsecured revolving credit facility to $1.0 billion, maintain the option to increase borrowings by a $400,000 with the consent of the lenders, and extend the termination date to November 2018. In November 2014, the termination date of this agreement was extended an additional year to November 2019. At December 31, 2014, we had outstanding commercial paper totaling $54, average interest rate of 0.09%. We had no commercial paper borrowings at December 31, 2013. The unsecured committed revolving credit agreement contains a financial covenant whereby the ratio of (a) pre-tax income from operations from the most recent four fiscal quarters to (b) consolidated interest expense for the most recent four fiscal quarters may not be less than 2.0 each fiscal quarter. The credit agreement also contains customary representations, warranties and events of default. Payment of outstanding advances may be accelerated, at the option of the lenders, should we default in our obligation under the credit agreement. As of December 3 complied with all customary affirmative and negative covenants and the financial covenant pertaining to our credit agreement. There were no significant compensating balance agreements that legally restricted these funds. In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks. Our credit limit in various currencies was $447,629 in 2014 and $290,336 in 2013. These lines permit us to borrow at the respective banks' prime commercial inter We had short-term foreign bank loans against these lines of credit for $329,701 in 2014 and $165,961 in 2013. Commitment fees relating to our revolving credit facility and lines of credit are not material. The maximum amount of short-term borrowings outstanding during 2014 was $649,195. The weighted-average interest rate on short-term borrowings outstanding was 3.2% as of December 31, 2014 and 1.9% as of December 31, 2013. Long-term Debt Long-term debt consisted of the following: December 31, 2014 4.85% Notes due 2015 2013 $ 250,000 $ 250,000 5.45% Notes due 2016 250,000 250,000 1.50% Notes due 2016 250,000 250,000 4.125% Notes due 2020 350,000 350,000 8.8% Debentures due 2021 100,000 100,000 2.625% Notes due 2023 250,000 250,000 7.2% Debentures due 2027 250,000 250,000 Other obligations, net of unamortized debt discount 99,768 Total long-term debt 1,799,768 Lesscurrent portion 96,056 1,796,056 250,805 Long-term portion $ 914 1,548,963 $ 1,795,142 In the third quarter of 2014, we reclassified to current liabilities $250,000 in outstanding principal amount relating to our 4.85% Notes which come due in August 2015. In May 2012, we filed a Registration Statement on Form S-3 with the U.S. Securities and Exchange Commission that registered an indeterminate amount of debt securities. In April 2013, we repaid $250,000 of 5.0% Notes due in 2013. In May 2013, we issued $250,000 of 2.625% Note this Registration Statement. Aggregate annual maturities of long-term debt are as follows for the years ending December 31: 2015 $ 250,805 2016 506,342 2017 1,454 2018 1,024 2019 1,111 Thereafter 1,039,032 Our debt is principally unsecured and of equal priority. None of our debt is convertible into our Common Stock. Interest Expense Net interest expense consisted of the following: For the years ended December 31, Long-term debt and lease obligations 2014 $ Short-term debt 2013 82,105 $ 11,672 201 84,604 $ 8,654 Capitalized interest (6,179 ) (1,744 ) Interest expense 87,598 91,514 Interest income (4,066 ) (3,158 ) Interest expense, net $ 83,532 $ 88,356 $ p to $1.1 billion, with an option to rrowings by an additional totaling $54,995, at a weighted less than 2.0 to 1.0 at the end of f December 31, 2014, we mmercial interest rates, or lower. 2.625% Notes due in 2023 under 2012 81,203 23,084 (5,778 ) 98,509 (2,940 ) 95,569 DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS Derivative Instruments and Hedging Activities Disclosure [Abstract] Financial Instruments Disclosure DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS We are exposed to market risks arising principally from changes in foreign currency exchange rates, interest rates and commodity prices. We use certain derivative instruments to manage these risks. These include interest rate swaps to manage interest rate risk, foreign cur We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in the income statement. In entering into these contracts, we have assumed the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. We mitigate this risk by entering into exchanged-traded contracts with collateral posting requirements and/or by per Commodity Price Risk We enter into commodities futures and options contracts and other commodity derivative instruments to reduce the effect of future price fluctuations associated with the purchase of raw materials, energy requirements and transportation services. We generally hedge comm requirements in cost of sales. The ineffective portion of gains and losses is recorded currently in cost of sales. Foreign Exchange Price Risk We are exposed to foreign currency exchange rate risk related to our international operations, including non-functional currency intercompany debt and other non-functional currency transactions of certain subsidiaries. Principal currencies hedged include the euro, Canadian December 31, 2014 and $158,375 at December 31, 2013. The effective portion of the changes in fair value on these contracts is recorded in other comprehensive income and reclassified into earnings in the same period in which the hedged transactions affect earnings. The Interest Rate Risk In order to manage interest rate exposure, from time to time we enter into interest rate swap agreements that effectively convert variable rate debt to a fixed interest rate. These swaps are designated as cash flow hedges, with gains and losses deferred in other comprehens We also manage our targeted mix of fixed and floating rate debt with debt issuances and by entering into fixed-to-floating interest rate swaps in order to mitigate fluctuations in earnings and cash flows that may result from interest rate volatility. These swaps are designated valuation). The notional amount of interest rate derivative instruments in fair value hedge relationships was $450,000 at December 31, 2014. We had no derivative instruments in fair value hedge relationships at December 31, 2013. Equity Price Risk We are exposed to market price changes in certain broad market indices related to our deferred compensation obligations to our employees. In the first quarter of 2014, we entered into equity swap contracts to hedge the portion of the exposure that is linked to market-level Fair Value Accounting guidance on fair value measurements requires that financial assets and liabilities be classified and disclosed in one of the following categories of the fair value hierarchy: Level 1 - Based on unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 - Based on observable marketbased inputs or unobservable inputs that are corroborated by market data. Level 3 - Based on unobservable inputs that reflect the entity's own assumptions about the assumptions that a market participant would use in pricing the asset or liability. We did not have any level 3 financial assets or liabilities, nor were there any transfers between levels during the periods presented. The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 31, 2014 and 2013: December 31, 2014 Assets (1) Liabilities (1) Assets (1) Derivatives designated as cash flow hedging instruments: Commodities futures and options (2) $ Foreign exchange contracts (3) $ 9,944 $ 4,306 2,196 2,447 2,813 29,505 22,745 2,016 4,212 41,896 29,864 1,746 Deferred compensation derivatives (6) 1,074 Foreign exchange contracts (3) 4,049 2,334 610 5,123 2,334 610 Interest rate swap agreements (4) Cross-currency swap agreement (5) Derivatives designated as fair value hedging instruments: Interest rate swap agreements (4) Derivatives not designated as hedging instruments: Total -1 $ Derivatives assets are classified on our balance sheet within prepaid expenses and other as well as other assets. Derivative liabilities are classified on our balance sheet within accrued liabilities and other long-term liabilities. 11,081 $ 44,230 $ 30,474 -2 The fair value of commodities futures and options contracts is based on quoted market prices and is, therefore, categorized as Level 1 within the fair value hierarchy. As of December 31, 2014, liabilities include the net of assets of $51,225 and liabilities of $56,840 associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period. The comparable amounts reflected on a net basis in liabilities at December 31, 2013 were assets of $23,780 and liabilities of $23,909. At December 31, 2014, the remaining amount reflected in liabilities related to the fair value of options contracts and other non-exchange traded derivative instruments. At December 31, 2013, the amount reflected in assets related to the fair value of options contracts. -3 The fair value of foreign currency forward exchange contracts is the difference between the contract 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. These contracts are classified as Level 2 within the fair value hierarchy. -4 The fair value of interest rate swap agreements represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Such contracts are categorized as Level 2 within the fair value hierarchy. -5 The fair value of the cross-currency swap agreement is categorized as Level 2 within the fair value hierarchy and is estimated based on the difference between the contract and current market foreign currency exchange rates at the end of the period. -6 The fair value of deferred compensation derivatives is based on quotes prices for market interest rates and a broad market equity index and is, therefore, categorized as Level 2 within the fair value hierarchy. Other Financial Instruments The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and short-term debt approximated fair value as of December 31, 2014 and December 31, 2013 because of the relatively short maturity of these instruments. The estimated fair value of our long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy. The fair values and carrying values of long-term debt, including the current portion, was as follows: Fair Value 2014 At December 31, Current portion of long-term debt $ Long-term debt 2013 257,280 $ 1,722,308 Total $ 914 1,947,023 1,979,588 $ 1,947,937 Other Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, U.S. GAAP requires that, under certain circumstances, we also record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurrin in connection with our annual impairment testing of goodwill and indefinite-lived intangible assets, we recorded impairment charges totaling $15,900 relating to our India business. These charges were determined by comparing the fair value of the assets to their carrying va Income Statement Impact of Derivative Instruments The effect of derivative instruments on the Consolidated Statements of Income for the years ended December 31, 2014 and December 31, 2013 was as follows: Non-designated Hedges Gains (losses) recognized in income (a) 2014 Commodities futures and options $ Gains (losses) recognized 2013 2,339 $ 2014 $ (11,165 Foreign exchange contracts (1,486 ) Total $ (a) 3,836 $ $ (61,358 Gains (losses) reclassified from AOCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the year ended December 31, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from AOCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period originally designated or the subsequent two months thereafter. Losses reclassified from AOCI into income for interest rate swap agreements were included in interest expense. (c) (52,249 Gains recognized in income for nondesignated commodities futures and options contracts were included in cost of sales. Gains (losses) recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were included in selling, marketing and administrative expenses. (b) 2,983 Deferred compensation derivatives 2,056 Interest rate swap agreements Gains representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts. The amount of net gains on derivative instruments, including interest rate swap agreements, foreign currency forward exchange contracts and options, commodities futures and options contracts, and other commodity derivative instruments expected to be reclassified into e Fair Value Hedges For the year ended December 31, 2014, we recognized a net pretax benefit to interest expense of $938 relating to our fixed-to-floating interest swap arrangements. 12 Months Ended Dec. 31, 2014 ign currency forward exchange contracts and options to manage foreign currency exchange rate risk, and commodities futures and options contracts to manage commodity market price risk exposures. by performing financial assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a diverse portfolio of qualified counterparties. We do not expect any significant losses from counterparty defaults. commodity price risks for 3- to 24-month periods. The majority of our commodity derivative instruments meet hedge accounting requirements and are designated as cash flow hedges. We account for the effective portion of mark-to-market gains and losses on commodity derivative instruments in other comprehen nadian dollar, Malaysian ringgit, Swiss franc, Chinese renminbi, Japanese yen, and Brazilian real. We typically utilize foreign currency forward exchange contracts and options to hedge these exposures for periods ranging from 3 to 24 months. The contracts are either designated as cash flow hedges or are undesigna gs. The net notional amount of foreign exchange contracts that are not designated as accounting hedges was $4,144 at December 31, 2014 and $2,823 at December 31, 2013. The change in fair value on these instruments is recorded directly in cost of sales or selling, marketing and administrative expense, depend prehensive income to be recognized as an adjustment to interest expense in the same period that the hedged interest payments affect earnings. The notional amount of interest rate derivative instruments in cash flow hedging relationships was $750,000 at December 31, 2014 and $250,000 at December 31, 2013. gnated as fair value hedges, for which the gain or loss on the derivative and the offsetting loss or gain on the hedged item are recognized in current earnings as interest expense (income), net. The notional amount, interest payment and maturity date of these swaps generally match the principal, interest payment a et-level equity returns. These contracts are not designated as hedges for accounting purposes and are entered into for periods of 3 to 12 months. The change in fair value of these derivatives is recorded in selling, marketing and administrative expense, together with the change in the related liabilities. The notional 2013 Liabilities (1) $ 129 129 198 198 $ 327 ments. ows: Carrying Value 2014 $ 2013 250,805 $ 1,548,963 $ 914 1,795,142 1,799,768 $ 1,796,056 ecurring basis as a result of impairment charges. As discussed in Note 2, in connection with the planned Mauna Loa divestiture, we classified the net assets as held for sale as of December 31, 2014, resulting in an impairment charge of $18,531 based upon the agreed-upon sales price and related transaction costs. ying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Cash Flow Hedges gnized in other comprehensive income (\"OCI\") (effective portion) Gains (losses) reclassified from accumulated OCI into income (effective portion) (b) 2013 ) $ 2014 84,746 $ 2013 68,500 $ 2014 (8,400 ) $ 2,498 4,049 ) 3,403 ) $ 116,329 (4,500 ) 27,534 2,641 (3,606 ) $ 67,403 d into earnings in the next 12 months was approximately $377 after tax as of December 31, 2014. This amount was primarily associated with commodities futures contracts. $ (9,365 ) $ 2,498 other comprehensive income, to be recognized in cost of sales in the same period that we record the hedged raw material s or are undesignated. The net notional amount of foreign exchange contracts accounted for as cash flow hedges was $22,725 at expense, depending on the nature of the underlying exposure. ember 31, 2013. nterest payment and maturity date of the related debt, and the swaps are valued using observable benchmark rates (Level 2 ties. The notional amount of the contracts settled on December 31, 2014 was $26,417. ransaction costs. The loss was calculated based on Level 3 inputs and included in 2014 earnings. Also in 2014, as discussed in Note 3, Gains recognized in income (ineffective portion) (c) 2014 2013 $ 3,241 $ 3,241 12 Months Ended Dec. 31, 2014 COMPREHENSIVE INCOME Comprehensive Income Disclosure [Abstract] Comprehensive Income COMPREHENSIVE INCOME A summary of the components of comprehensive income is as follows: Pre-Tax Tax After-Tax Amount (Expense) Amount For the year ended December 31, 2014 Benefit Net income Other comprehensive loss: Foreign currency translation adjustments $ $ Total other comprehensive loss (26,851 ) 50,345 (85,016 ) (61,358 ) 24,281 (37,077 ) (67,403 ) Reclassification adjustments (135,361 ) Pension and postretirement benefit plans Cash flow hedges: Losses on cash flow hedging derivatives (26,851 ) 24,341 (43,062 ) 98,967 (192,006 ) $ (290,973 ) $ 846,912 $ Comprehensive income $ 654,906 Pre-Tax Tax After-Tax Amount (Expense) Amount For the year ended December 31, 2013 Benefit Net income Other comprehensive income (loss): Foreign currency translation adjustments $ $ Pension and postretirement benefit plans Cash flow hedges: Gains on cash flow hedging derivatives $ (26,003 ) 265,015 (98,612 ) 166,403 116,329 (43,995 ) 72,334 9,365 (3,590 ) 5,775 $ 364,706 $ (146,197 ) 218,509 Reclassification adjustments Total other comprehensive income (26,003 ) 820,470 Comprehensive income $ 1,038,979 Pre-Tax Tax After-Tax Amount (Expense) Amount For the year ended December 31, 2012 Benefit Net income Other comprehensive income (loss): Foreign currency translation adjustments $ $ Pension and postretirement benefit plans Cash flow hedges:cash Losses on flow hedging derivatives $ (15,159 ) (325 ) 96,993 $ 89,005 5,525 (543 ) Reclassification adjustments Total other comprehensive income 7,714 660,931 7,714 (9,634 ) (868 ) (36,950 ) $ 60,043 (31,750 ) 57,255 Comprehensive income $ 718,186 The components of accumulated other comprehensive loss, as shown on the Consolidated Balance Sheets, are as follows: December 31, Foreign currency 2014 translation adjustments Pension and post-retirement benefit plans, net of tax Cash flow hedges, net of tax $ (43,681 ) (284,650 ) (30,242 ) 2013 $ (16,830 ) (199,634 ) 49,897 Total accumulated other comprehensive loss $ (358,573 ) $ (166,567 ) 12 Months Ended Dec. 31, 2014 INCOME TAXES Income Tax Disclosure [Abstract] Income Taxes INCOME TAXES Our income (loss) before income taxes was as follows: For the years ended December 31, Domestic 2014 $ 2013 1,320,738 Foreign $ 1,252,208 (14,695 ) Income before income taxes $ 1,306,043 2012 $ (889 ) $ 1,251,319 980,176 35,403 $ 1,015,579 Our provision for income taxes was as follows: For the years ended December 31, 2014 2013 2012 Current: Federal $ 385,642 State $ 372,649 $ 299,122 52,331 Deferred income tax provision 340,863 11,334 5,174 2,212 1,897 (4,578 ) Foreign 423,392 2,725 State 5,554 20,649 Federal 2,763 440,335 Current provision for income taxes Deferred: 36,187 2,362 Foreign 47,980 (6,089 ) 6,714 18,796 7,457 13,785 Total provision for income taxes $ 459,131 $ 430,849 $ The increase in the federal deferred tax provision in 2014 was primarily due to higher deferred tax liabilities associated with bonus depreciation in 2014 compared with 2013. The foreign deferred tax benefit in 2014 principally reflected higher 354,648 tax assets related to deferred advertising and promotion reserves. The income tax benefit associated with stock-based compensation of $53,497 and $48,396 for the years ended December 31, 2014 and 2013, respectively, reduced accrued income taxes on the Consolidated Balance Sheets. We credited additional paid-in capital to reflect these excess income tax benefits. Deferred taxes reflect temporary differences between the tax basis and financial statement carrying value of assets and liabilities. The significant temporary differences that comprised the deferred tax assets and liabilities were as follows: December 31, 2014 Deferred tax assets: Post-retirement benefit obligations Accrued expenses and other reserves $ 2013 109,973 $ 101,674 139,492 119,387 46,061 47,324 14,954 24,584 18,991 19,065 Accrued trade promotion reserves 41,332 39,234 Net operating loss carryforwards 50,044 39,606 Basis difference on assets held for sale 43,155 7,425 11,754 496,011 378,044 Stock-based compensation Derivative instruments Pension Lease financing obligation Other Gross deferred tax assets Valuation allowance Total defer