For the years ended December 31, 2022 2021 2020 Common Stock Class B Common Stock Common Stock Class B Common Stock Common Stock Class B Common Stock Basic earnings per share: Numerator: Allocation of distributed earnings (cash dividends paid) $ 567,897 Allocation of undistributed earnings 637,438 207,133 $ 232,349 498,084 574,772 S 187,903 216,753 467,013 464,802 S 173,719 173,174 Total earnings-basic $ 1,205,335 $ 439,482 $ 1,072,856 $ 404,656 $ 931,815 $ 346,893 Denominator (shares in thousands): Total weighted-average shares-basic Earnings Per Share-basic 146,713 58,822 146.120 60,614 147,832 60,614 S 8.22 $ 7.47 $ 7.34 S 6.68 $ 6.30 S 5.72 Diluted earnings per share: Numerator: Allocation of total earnings used in basic computation S 1,205,335 439,482 $ 1,072,856 $ 404,656 931,815 $ 346,893 Reallocation of total earnings as a result of conversion of Class B common stock to Common stock 439,482 404,656 346,893 Reallocation of undistributed earnings Total earningsdiluted S 1,644,817 $ (1,201) 438,281 S 1,477,512 $ (1,098) 403,558 (822) $ 1,278,708 $ 346,071 Denominator (shares in thousands): Number of shares used in basic computation 146,713 58,822 146,120 60,614 147,832 60,614 Weighted-average effect of dilutive securities: Conversion of Class B common stock to Common shares outstanding Employee stock options Performance and restricted stock units Total weighted-average shares-diluted Earnings Per Share-diluted 58,822 571 60,614 60,614 609 600 469 415 368 206,575 58,822 207,758 60,614 209,414 60,614 7.96 $ 7.45 $ 7.11 6.66 $ 6.11 S 5.71 Percent Change For the years ended December 31, In millions of dollars except per share amounts Net sales Cost of sales Gross profit Gross margin SM&A expense SM&A expense as a percent of net sales Long-lived asset impairment charges Business realignment costs Operating profit Operating profit margin Interest expense, net Other (income) expense, net Provision for income taxes 2022 2021 2020 2022 vs 2021 2021 vs 2020 10,419.3 8,971.3 8,149.7 16.1% 10.1 % 5,920.5 4,922.7 4,448.5 20.3% 10.7% 4,498.8 4,048.6 3,701.2 11.1 % 9.4% 43.2% 45.1% 45.4% 2,236.0 2,001.4 1,890.9 11.7% 5.8% 21.5% 22.3% 23.2% 9.1 NM NM 2.0 3.5 18.5 (43.6)% (80.9)% 2,260.8 2,043.7 1,782.7 10.6% 14.6% 21.7% 22.8% 21.9% 137.6 127.4 149.4 8.0% (14.7)% 206.1 119.1 138.3 73.1% (13.9)% 272.3 314.4 219.6 (13.4)% 43.2% Effective income tax rate 14.2% 17.5% 14.7% Net income including noncontrolling interest 1,644.8 1,482.8 1,275.4 10.9% 16.3 % Less: Net gain (loss) attributable to noncontrolling interest 5.3 (3.3) NM NM Net income attributable to The Hershey Company $ 1,644.8 $ 1,477.5 1,278.7 11.3% 15.5% Net income per share-diluted $ 7.96 $ 7.11 S 6.11 12.0% 16.4%