v3.23.3
EARNINGS PER SHARE
9 Months Ended
Oct. 01, 2023
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
We compute basic earnings per share for Common Stock and Class B common stock using the two-class method. The Class B common stock is convertible into Common Stock on a share-for-share basis at any time. In May 2023, 2,500,000 shares of Class B Common Stock were converted to Common Stock by Hershey Trust Company, as trustee for the School Trust. The computation of diluted earnings per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings per share of Class B common stock does not assume the conversion of those shares.
Three Months Ended
October 1, 2023October 2, 2022
Common StockClass B Common StockCommon StockClass B Common Stock
Basic earnings per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)$178,573 $59,146 $152,262 $54,743 
Allocation of undistributed earnings211,085 69,773 141,630 50,852 
Total earnings—basic$389,658 $128,919 $293,892 $105,595 
Denominator (shares in thousands):
Total weighted-average shares—basic150,116 54,614 147,169 58,114 
Earnings Per Share—basic$2.60 $2.36 $2.00 $1.82 
Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation$389,658 $128,919 $293,892 $105,595 
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock128,919 — 105,595 — 
Reallocation of undistributed earnings— (264)— (251)
Total earnings—diluted$518,577 $128,655 $399,487 $105,344 
Denominator (shares in thousands):
Number of shares used in basic computation150,116 54,614 147,169 58,114 
Weighted-average effect of dilutive securities:
Conversion of Class B common stock to Common shares outstanding54,614 — 58,114 — 
Employee stock options400 — 561 — 
Performance and restricted stock units358 — 430 — 
Total weighted-average shares—diluted205,488 54,614 206,274 58,114 
Earnings Per Share—diluted$2.52 $2.36 $1.94 $1.81 
The earnings per share calculations for the three months ended October 1, 2023 and October 2, 2022 excluded 8 and 4 stock options (in thousands), respectively, that would have been antidilutive.
Nine Months Ended
October 1, 2023October 2, 2022
Common StockClass B Common StockCommon StockClass B Common Stock
Basic earnings per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)$484,517 $166,749 $415,599 $152,390 
Allocation of undistributed earnings644,062 217,417 498,070 182,462 
Total earnings—basic$1,128,579 $384,166 $913,669 $334,852 
Denominator (shares in thousands):
Total weighted-average shares—basic149,307 55,447 146,557 59,058 
Earnings Per Share—basic$7.56 $6.93 $6.23 $5.67 
Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation$1,128,579 $384,166 $913,669 $334,852 
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock384,166 — 334,852 — 
Reallocation of undistributed earnings— (931)— (954)
Total earnings—diluted$1,512,745 $383,235 $1,248,521 $333,898 
Denominator (shares in thousands):
Number of shares used in basic computation149,307 55,447 146,557 59,058 
Weighted-average effect of dilutive securities:
Conversion of Class B common stock to Common shares outstanding55,447 — 59,058 — 
Employee stock options457 — 582 — 
Performance and restricted stock units402 — 470 — 
Total weighted-average shares—diluted205,613 55,447 206,667 59,058 
Earnings Per Share—diluted$7.36 $6.91 $6.04 $5.65 
The earnings per share calculations for the nine months ended October 1, 2023 and October 2, 2022 excluded 12 and 4 stock options (in thousands), respectively, that would have been antidilutive.