Percent Change For the years ended December 31, 2022 2021 2020 2022 vs 2021 2021 vs 2020 In millions of dollars except per share amounts Net sales $ 10,419.3 $ 8,971.3 $ 8,149.7 16.1 % 10.1 % Cost of sales 5,920.5 4,922.7 4,448.5 20.3 % 10.7 % Gross profit 4,498.8 4,048.6 3,701.2 11.1 % 9.4 % Gross margin 43.2 % 45.1 % 45.4 % SM&A expense 2,236.0 2,001.4 1,890.9 11.7 % 5.8 % SM&A expense as a percent of net sales 21.5 % 22.3% 23.2% Long-lived asset impairment charges 9.1 NM NM Business realignment costs 2.0 3.5 18.5 (43.6) % (80.9) % Operating profit 2,260.8 2,043.7 1,782.7 10.6 % 14.6 % Operating profit margin 21.7 % 22.8 % 21.9 % Interest expense, net 137.6 127.4 149.4 8.0 % (14.7) % Other (income) expense, net 206.1 119.1 138.3 73.1 % (13.9) % Provision for income taxes 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