For the years ended december 31201120102009in thousands of, Ask an Expert

Accounting

For the years ended December 31,		2011			2010		2009
	In thousands of dollars except per share amounts
	Net Sales		$6,080,788			$5,671,009		$5,298,668
	Costs and Expenses:
	Cost of sales		3,548,896			3,255,801		3,245,531
	Selling, marketing and administrative		1,477,750			1,426,477		1,208,672
	Business realignment and impairment (credits) charges, net		(886	)		83,433		82,875
	Total costs and expenses		5,025,760			4,765,711		4,537,078
	Income before Interest and Income Taxes		1,055,028			905,298		761,590
	Interest expense, net		92,183			96,434		90,459
	Income before Income Taxes		962,845			808,864		671,131
	Provision for income taxes		333,883			299,065		235,137
	Net Income		$628,962			$509,799		$435,994
	Net Income Per Share-Basic-Class B Common Stock		$2.58			$2.08		$1.77
	Net Income Per Share-Diluted-Class B Common Stock		$2.56			$2.07		$1.77
	Net Income Per Share-Basic-Common Stock		$2.85			$2.29		$1.97
	Net Income Per Share-Diluted-Common Stock		$2.74			$2.21		$1.90
	Cash Dividends Paid Per Share:
	Common Stock		$1.3800			$1.2800		$1.1900
	Class B Common Stock		1.2500			1.1600		1.0712
	The notes to consolidated financial statements are an integral part of these statements and are included in the Hershey's 2011 Annual Report, available at www.thehersheycompany.com.

THE HERSHEY COMPANY CONSOLIDATED BALANCE SHEETS
	December 31,	2011		2010
	In thousands of dollars
	ASSETS
	Current Assets:
	Cash and cash equivalents	$693,686		$884,642
	Accounts receivable-trade	399,499		390,061
	Inventories	648,953		533,622
	Deferred income taxes	136,861		55,760
	Prepaid expenses and other	167,559		141,132
	Total current assets	2,046,558		2,005,217
	Property, Plant and Equipment, Net	1,559,717		1,437,702
	Goodwill	516,745		524,134
	Other Intangibles	111,913		123,080
	Deferred Income Taxes	38,544		21,387
	Other Assets	138,722		161,212
	Total assets	$4,412,199		$4,272,732
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Current Liabilities:
	Accounts payable	$420,017		$410,655
	Accrued liabilities	612,186		593,308
	Accrued income taxes	1,899		9,402
	Short-term debt	42,080		24,088
	Current portion of long-term debt	97,593		261,392
	Total current liabilities	1,173,775		1,298,845
	Long-term Debt	1,748,500		1,541,825
	Other Long-term Liabilities	617,276		494,461
	Total liabilities	3,539,551		3,335,131
	Commitments and Contingencies	-		-
	Stockholders' Equity:
	The Hershey Company Stockholders' Equity
	Preferred Stock, shares issued: none in 2011 and 2010	-		-
	Common Stock, shares issued: 299,269,702 in 2011 and 299,195,325 in 2010	299,269		299,195
	Class B Common Stock, shares issued: 60,632,042 in 2011 and 60,706,419 in 2010	60,632		60,706
	Additional paid-in capital	490,817		434,865
	Retained earnings	4,699,597		4,374,718
	Treasury-Common Stock shares, at cost: 134,695,826 in 2011 and 132,871,512 in 2010	(4,258,962	)	(4,052,101	)
	Accumulated other comprehensive loss	(442,331	)	(215,067	)
	The Hershey Company stockholders' equity	849,022		902,316
	Noncontrolling interests in subsidiaries	23,626		35,285
	Total stockholders' equity	872,648		937,601
	Total liabilities and stockholders'equity	$4,412,199		$4,272,732

THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the years ended December 31,		2011		2010		2009
	In thousands of dollars
	Cash Flows Provided from (Used by) Operating Activities
		Net income	$628,962		$509,799		$435,994
		Adjustments to reconcile net income to net cash provided from operations:
		Depreciation and amortization	215,763		197,116		182,411
		Stock-based compensation expense, net of tax of $15,127, $17,413 and $19,223, respectively	28,341		32,055		34,927
		Excess tax benefits from stock-based compensation	(13,997	)	(1,385	)	(4,455	)
		Deferred income taxes	33,611		(18,654	)	(40,578	)
		Gain on sale of trademark licensing rights, net of tax of $5,962	(11,072	)	-		-
		Business realignment and impairment charges, net of tax of $18,333, $20,635 and $38,308, respectively	30,838		77,935		60,823
		Contributions to pension plans	(8,861	)	(6,073	)	(54,457	)
		Changes in assets and liabilities, net of effects from business acquisitions and divestitures:
		Accounts receivable-trade	(9,438	)	20,329		46,584
		Inventories	(115,331	)	(13,910	)	74,000
		Accounts payable	7,860		90,434		37,228
		Other assets and liabilities	(205,809	)	13,777		293,272
	Net Cash Provided from Operating Activities		580,867		901,423		1,065,749
	Cash Flows Provided from (Used by) Investing Activities
		Capital additions	(323,961	)	(179,538	)	(126,324	)
		Capitalized software additions	(23,606	)	(21,949	)	(19,146	)
		Proceeds from sales of property, plant and equipment	312		2,201		10,364
		Proceeds from sales of trademark licensing rights	20,000		-		-
		Business acquisitions	(5,750	)	-		(15,220	)
	Net Cash (Used by) Investing Activities		(333,005	)	(199,286	)	(150,326	)
	Cash Flows Provided from (Used by) Financing Activities
		Net change in short-term borrowings	10,834		1,156		(458,047	)
		Long-term borrowings	249,126		348,208		-
		Repayment of long-term debt	(256,189	)	(71,548	)	(8,252	)
		Proceeds from lease financing agreement	47,601		-		-
		Cash dividends paid	(304,083	)	(283,434	)	(263,403	)
		Exercise of stock options	184,411		92,033		28,318
		Excess tax benefits from stock-based compensation	13,997		1,385		4,455
		Contributions from noncontrolling interests in subsidiaries	-		10,199		7,322
		Repurchase of Common Stock	(384,515	)	(169,099	)	(9,314	)
	Net Cash (Used by) Financing Activities		(438,818	)	(71,100	)	(698,921	)
	(Decrease) Increase in Cash and Cash Equivalents		(190,956	)	631,037		216,502
	Cash and Cash Equivalents as of January 1		884,642		253,605		37,103
	Cash and Cash Equivalents as of December 31		$693,686		$884,642		$253,605
	Interest Paid		$97,892		$97,932		$91,623
	Income Taxes Paid		292,315		350,948		252,230

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
		For the year ended December 31,
		2011		2010		2009
	Net product sales	$528,369		$517,149		$495,592
	Rental and royalty revenue	4,136		4,299		3,739
	Total revenue	532,505		521,448		499,331
	Product cost of goods sold	365,225		349,334		319,775
	Rental and royalty cost	1,038		1,088		852
	Total costs	366,263		350,422		320,627
	Product gross margin	163,144		167,815		175,817
	Rental and royalty gross margin	3,098		3,211		2,887
	Total gross margin	166,242		171,026		178,704
	Selling, marketing and administrative expenses	108,276		106,316		103,755
	Impairment charges	-		-		14,000
	Earnings from operations	57,966		64,710		60,949
	Other income (expense), net	2,946		8,358		2,100
	Earnings before income taxes	60,912		73,068		63,049
	Provision for income taxes	16,974		20,005		9,892
	Net earnings	$43,938		$53,063		$53,157

	Net earnings	$43,938		$53,063		$53,157
	Other comprehensive earnings (loss)	(8,740	)	1,183		2,845
	Comprehensive earnings	$35,198		$54,246		$56,002

	Retained earnings at beginning of year.	$135,866		$147,687		$144,949
	Net earnings	43,938		53,063		53,157
	Cash dividends	(18,360	)	(18,078	)	(17,790	)
	Stock dividends	(47,175	)	(46,806	)	(32,629	)
	Retained earnings at end of year	$114,269		$135,866		$147,687

	Earnings per share	$0.76		$0.90		$0.89

	Average Common and Class B Common shares outstanding	57,892		58,685		59,425
(The accompanying notes are an integral part of these statements.)

CONSOLIDATED STATEMENTS OF Financial Position TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
	Assets		December 31,
			2011		2010
	CURRENT ASSETS:
		Cash and cash equivalents	$78,612		$115,976
		Investments	10,895		7,996
		Accounts receivable trade, less allowances of $1,731 and $1,531	41,895		37,394
		Other receivables	3,391		9,961
		Inventories:
		Finished goods and work-in-process	42,676		35,416
		Raw materials and supplies	29,084		21,236
		Prepaid expenses	5,070		6,499
		Deferred income taxes	578		689
		Total current assets	212,201		235,167
	PROPERTY, PLANT AND EQUIPMENT, at cost:
		Land	21,939		21,696
		Buildings	107,567		102,934
		Machinery and equipment	322,993		307,178
		Construction in progress	2,598		9,243
			455,097		440,974
		Less-Accumulated depreciation	242,935		225,482
		Net property, plant and equipment	212,162		215,492
	OTHER ASSETS:
		Goodwill	73,237		73,237
		Trademarks	175,024		175,024
		Investments	96,161		64,461
		Split dollar officer life insurance	74,209		74,441
		Prepaid expenses	3,212		6,680
		Equity method investment	3,935		4,254
		Deferred income taxes	7,715		9,203
		Total other assets	433,493		407,300
		Total assets	$857,856		$857,959
	Liabilities and Shareholders' Equity		December 31,
			2011		2010
	CURRENT LIABILITIES:
		Accounts payable	$10,683		$9,791
		Dividends payable	4,603		4,529
		Accrued liabilities	43,069		44,185
		Total current liabilities	58,355		58,505
	NONCURRENT LIABILITES:
		Deferred income taxes	43,521		47,865
		Postretirement health care and life insurance benefits	26,108		20,689
		Industrial development bonds	7,500		7,500
		Liability for uncertain tax positions	8,345		9,835
		Deferred compensation and other liabilities	48,092		46,157
		Total noncurrent liabilities	133,566		132,046
	SHAREHOLDERS' EQUITY:
		Common stock, $.69-4/9 par value-120,000 shares authorized-36,479 and 36,057 respectively, issued	25,333		25,040
		Class B common stock, $.69-4/9 par value-40,000 shares authorized-21,025 and 20,466 respectively, issued	14,601		14,212
		Capital in excess of par value	533,677		505,495
		Retained earnings, per accompanying statement	114,269		135,866
		Accumulated other comprehensive loss	(19,953	)	(11,213	)
		Treasury stock (at cost)-71 shares and 69 shares, respectively	(1,992	)	(1,992	)
		Total shareholders' equity	665,935		667,408
		Total liabilities and shareholders' equity	$857,856		$857,959

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF Cash Flows (in thousands)
				For the year ended December 31,
				2011		2010		2009
	CASH FLOWS FROM OPERATING ACTIVITIES:
		Net earnings		$43,938		$53,063		$53,157
		Adjustments to reconcile net earnings to net cash provided by operating activities:
			Depreciation	19,229		18,279		17,862
			Impairment charges	-		-		14,000
			Impairment of equity method investment	-		-		4,400
			Loss from equity method investment	194		342		233
			Amortization of marketable security premiums	1,267		522		320
			Changes in operating assets and liabilities:
			Accounts receivable	(5,448	)	717		(5,899	)
			Other receivables	3,963		(2,373	)	(2,088	)
			Inventories	(15,631	)	(1,447	)	455
			Prepaid expenses and other assets	5,106		4,936		5,203
			Accounts payable and accrued liabilities	84		2,180		(2,755	)
			Income taxes payable and deferred	(5,772	)	2,322		(12,543	)
			Postretirement health care and life insurance benefits	2,022		1,429		1,384
			Deferred compensation and other liabilities	2,146		2,525		2,960
			Others	(708	)	310		305
		Net cash provided by operating activities		50,390		82,805		76,994
	CASH FLOWS FROM INVESTING ACTIVITIES:
			Capital expenditures	(16,351	)	(12,813	)	(20,831	)
			Net purchase of trading securities	(3,234	)	(2,902	)	(1,713	)
			Purchase of available for sale securities	(39,252	)	(9,301	)	(11,331	)
			Sale and maturity of available for sale securities	7,680		8,208		17,511
			Net cash used in investing activities	(51,157	)	(16,808	)	(16,364	)
	CASH FLOWS FROM FINANCING ACTIVITIES:
			Shares repurchased and retired	(18,190	)	(22,881	)	(20,723	)
			Dividends paid in cash	(18,407	)	(18,130	)	(17,825	)
			Net cash used in financing activities	(36,597	)	(41,011	)	(38,548	)
	Increase (decrease) in cash and cash equivalents			(37,364	)	24,986		22,082
	Cash and cash equivalents at beginning of year			115,976		90,990		68,908
	Cash and cash equivalents at end of year			$78,612		$115,976		$90,990
	Supplemental cash flow information
			Income taxes paid	$16,906		$20,586		$22,364
			Interest paid	$38		$49		$182
			Stock dividend issued	$47,053		$46,683		$32,538
(The accompanying notes are an integral part of these statements.)

Based on the information contained in these financial statements, compute the following 2011 values for each company. (Round answers to 1 decimal place, e.g. 15.2.)

(1) Accounts receivable turnover. (For Tootsie Roll, use "Net product sales." Assume all sales were credit sales.)

(2) Average collection period for accounts receivable.

	Tootsie Roll		Hershey Company
Accounts receivable turnover	3.64	times	1.74	times
Average collection period	22.4	days	80.2	days

View complete question

Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91982996

Have any Question?Write your Review or question?

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer