HERSHEY COHSY
HERSHEY CO Debt Disclosure
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. We maintain a $1.875 billion unsecured revolving credit facility with the option to increase the aggregate amount of the commitments by up to $1.0 billion with the consent of the lenders. This facility is scheduled to expire on October 21, 2030; however, we may extend the termination date for up to two additional one-year periods upon notice to the administrative agent under the facility.
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 to 1.0 at the end of 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 31, 2025, we are in compliance with all 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 $517,062 at December 31, 2025 and $391,279 at December 31, 2024. These lines permit us to borrow at the respective banks’ prime commercial interest rates, or lower. Commitment fees relating to our revolving credit facility and lines of credit are not material. Short-term debt consisted of the following:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Short-term foreign bank borrowings against lines of credit | $ | 218,546 | $ | 161,364 | |||||||
| U.S. commercial paper | — | 1,145,612 | |||||||||
| Total short-term debt | $ | 218,546 | $ | 1,306,976 | |||||||
| Weighted average interest rate on outstanding commercial paper | — | % | 4.5 | % | |||||||
The maximum amount of short-term borrowings outstanding during 2025 and 2024 was $1,121,718 and $1,321,274, respectively. The weighted-average interest rate on short-term borrowings outstanding was 7.9% as of December 31, 2025 and 4.8% as of December 31, 2024.
Long-term Debt
Long-term debt consisted of the following:
December 31, | Maturity Date | 2025 | 2024 | |||||||||||||||||
0.900% Notes (1) | June 1, 2025 | — | 300,000 | |||||||||||||||||
3.200% Notes (2) | August 21, 2025 | — | 300,000 | |||||||||||||||||
2.300% Notes | August 15, 2026 | 500,000 | 500,000 | |||||||||||||||||
7.200% Debentures | August 15, 2027 | 193,639 | 193,639 | |||||||||||||||||
4.550% Notes (3) | February 24, 2028 | 500,000 | — | |||||||||||||||||
4.250% Notes | May 4, 2028 | 350,000 | 350,000 | |||||||||||||||||
2.450% Notes | November 15, 2029 | 300,000 | 300,000 | |||||||||||||||||
4.750% Notes (3) | February 24, 2030 | 500,000 | — | |||||||||||||||||
1.700% Notes | June 1, 2030 | 350,000 | 350,000 | |||||||||||||||||
4.950% Notes (3) | February 24, 2032 | 500,000 | — | |||||||||||||||||
4.500% Notes | May 4, 2033 | 400,000 | 400,000 | |||||||||||||||||
5.100% Notes (3) | February 24, 2035 | 500,000 | — | |||||||||||||||||
3.375% Notes | August 15, 2046 | 300,000 | 300,000 | |||||||||||||||||
3.125% Notes | November 15, 2049 | 400,000 | 400,000 | |||||||||||||||||
2.650% Notes | June 1, 2050 | 350,000 | 350,000 | |||||||||||||||||
| 73,510 | 73,802 | |||||||||||||||||||
| Net impact of interest rate swaps, debt issuance costs and unamortized debt discounts | (32,628) | (22,266) | ||||||||||||||||||
| 5,184,521 | 3,795,175 | |||||||||||||||||||
| Less—current portion | 503,327 | 604,965 | ||||||||||||||||||
| Long-term portion | $ | 4,681,194 | $ | 3,190,210 | ||||||||||||||||
(1) In June 2025, we repaid $300,000 of 0.900% Notes due upon their maturity.
(2) In August 2025, we repaid $300,000 of 3.200% Notes due upon their maturity.
(3) During the first quarter of 2025, we issued $500,000 of 4.550% Notes due in February 2028, $500,000 of 4.750% Notes due in February 2030, $500,000 of 4.950% Notes due in February 2032 and $500,000 of 5.100% Notes due in February 2035 (together, the “2025 Notes”). Proceeds from the issuance of the 2025 Notes, net of discounts and issuance costs, totaled $1,984,545. The 2025 Notes were issued under a shelf registration on Form S-3 filed in May 2024 that registered an indeterminate amount of debt securities.
Aggregate annual maturities of our long-term Notes (excluding finance lease obligations and net impact of interest rate swaps, debt issuance costs and unamortized debt discounts) are as follows for the years ending December 31:
| 2026 | $ | 500,000 | |||
| 2027 | 193,639 | ||||
| 2028 | 850,000 | ||||
| 2029 | 300,000 | ||||
| 2030 | 850,000 | ||||
| Thereafter | 2,450,000 | ||||
Our debt is principally unsecured and of equal priority. None of our debt is convertible into our Common Stock.
Interest Expense
Net interest expense consists of the following:
| For the years ended December 31, | 2025 | 2024 | 2023 | |||||||||||||||||
| Interest expense | $ | 236,784 | $ | 194,240 | $ | 176,066 | ||||||||||||||
Capitalized interest | (11,978) | (19,923) | (14,555) | |||||||||||||||||
Interest expense | 224,806 | 174,317 | 161,511 | |||||||||||||||||
| Interest income | (34,600) | (8,662) | (9,726) | |||||||||||||||||
Interest expense, net | $ | 190,206 | $ | 165,655 | $ | 151,785 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.