HERSHEY COHSY
HERSHEY CO Segments Disclosure
SEGMENT INFORMATION
The Company reports its operations through three segments: (i) North America Confectionery, (ii) North America Salty Snacks and (iii) International. This organizational structure aligns with how our CODM, Kirk Tanner, President and Chief Executive Officer, manages our business, including resource allocation and performance assessment, and further aligns with our product categories and the key markets we serve.
•North America Confectionery – This segment is responsible for our traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes our business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes our retail operations, including Hershey’s Chocolate World stores in Hershey, Pennsylvania; New York, New York; Las Vegas, Nevada; Niagara Falls (Ontario) and Singapore, as well as operations associated with licensing the use of certain of the Company’s trademarks and products to third parties around the world.
•North America Salty Snacks – This segment is responsible for our salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat-free snacks, pretzels, and other snacks.
•International – International is a combination of all other operating segments that are not individually material, including those geographic regions where we operate outside of North America. We currently have operations and manufacture product in Mexico, Brazil, India, and Malaysia, primarily for consumers in these regions, and also distribute and sell confectionery products in export markets of Asia, Latin America, Middle East, Europe, Africa, and other regions.
For segment reporting purposes, the CODM uses “segment income” to evaluate segment performance and allocate resources, including considering budget-to-actual variances and prior year-to-actual variances on a monthly basis. Segment income excludes unallocated general corporate administrative expenses, unallocated mark-to-market gains and losses on commodity derivatives, business realignment and impairment charges, acquisition-related costs and other unusual gains or losses that are not part of our measurement of segment performance. These items of our operating profit are managed centrally at the corporate level and are excluded from the measure of segment income reviewed by the CODM as well the measure of segment performance used for incentive compensation purposes.
Accounting policies associated with our operating segments are generally the same as those described in Note 1.
As discussed in Note 5, derivatives used to manage commodity price risk are not designated for hedge accounting treatment. These derivatives are recognized at fair market value with the resulting realized and unrealized (gains) losses recognized in unallocated derivative (gains) losses outside of the reporting segment results until the related inventory is sold, at which time the related gains and losses are reallocated to segment income. This enables us to align the derivative gains and losses with the underlying economic exposure being hedged and thereby eliminate the mark-to-market volatility within our reported segment income.
Certain manufacturing, warehousing, distribution, and other activities supporting our global operations are integrated to maximize efficiency and productivity. As a result, assets and capital expenditures are not managed on a segment basis and are not included in the information reported to the CODM for the purpose of evaluating performance or allocating resources. We disclose depreciation and amortization that is generated by segment-specific assets, since these amounts are included within the measure of segment income reported to the CODM.
Our segment net sales and earnings were as follows:
For the year ended December 31, 2025 | North America Confectionery | North America Salty Snacks | International | Total | ||||||||||||||||||||||
| Net sales | $ | 9,479,709 | $ | 1,271,299 | $ | 941,568 | $ | 11,692,576 | ||||||||||||||||||
| Cost of sales | 5,796,018 | 804,635 | 740,764 | |||||||||||||||||||||||
| SM&A expense | 1,189,959 | 225,311 | 197,486 | |||||||||||||||||||||||
| Total segment income | $ | 2,493,732 | $ | 241,353 | $ | 3,318 | $ | 2,738,403 | ||||||||||||||||||
| Unallocated corporate expense (1) | 814,313 | |||||||||||||||||||||||||
| Unallocated mark-to-market losses on commodity derivatives | 423,161 | |||||||||||||||||||||||||
| 59,401 | ||||||||||||||||||||||||||
| Operating profit | $ | 1,441,528 | ||||||||||||||||||||||||
| 190,206 | ||||||||||||||||||||||||||
| 37,114 | ||||||||||||||||||||||||||
| Income before income taxes | $ | 1,214,208 | ||||||||||||||||||||||||
For the year ended December 31, 2024 | North America Confectionery | North America Salty Snacks | International | Total | ||||||||||||||||||||||
| Net sales | $ | 9,118,590 | $ | 1,135,720 | $ | 947,953 | $ | 11,202,263 | ||||||||||||||||||
| Cost of sales | 4,984,764 | 719,850 | 642,634 | |||||||||||||||||||||||
| SM&A expense | 1,188,138 | 216,480 | 193,800 | |||||||||||||||||||||||
| Total segment income | $ | 2,945,688 | $ | 199,390 | $ | 111,519 | $ | 3,256,597 | ||||||||||||||||||
| Unallocated corporate expense (1) | 701,266 | |||||||||||||||||||||||||
| Unallocated mark-to-market gains on commodity derivatives | (460,437) | |||||||||||||||||||||||||
| 117,536 | ||||||||||||||||||||||||||
| Operating profit | $ | 2,898,232 | ||||||||||||||||||||||||
| 165,655 | ||||||||||||||||||||||||||
| 258,641 | ||||||||||||||||||||||||||
| Income before income taxes | $ | 2,473,936 | ||||||||||||||||||||||||
For the year ended December 31, 2023 | North America Confectionery | North America Salty Snacks | International | Total | ||||||||||||||||||||||
| Net sales | $ | 9,123,139 | $ | 1,092,689 | $ | 949,164 | $ | 11,164,992 | ||||||||||||||||||
| Cost of sales | 4,781,671 | 726,569 | 601,175 | |||||||||||||||||||||||
| SM&A expense | 1,224,424 | 207,787 | 199,730 | |||||||||||||||||||||||
| Total segment income | $ | 3,117,044 | $ | 158,333 | $ | 148,259 | $ | 3,423,636 | ||||||||||||||||||
| Unallocated corporate expense (1) | 800,390 | |||||||||||||||||||||||||
| Unallocated mark-to-market losses on commodity derivatives | 58,939 | |||||||||||||||||||||||||
| 3,440 | ||||||||||||||||||||||||||
| Operating profit | $ | 2,560,867 | ||||||||||||||||||||||||
| 151,785 | ||||||||||||||||||||||||||
| 237,218 | ||||||||||||||||||||||||||
| Income before income taxes | $ | 2,171,864 | ||||||||||||||||||||||||
(1)Includes centrally-managed (a) corporate functional costs relating to legal, treasury, finance, and human resources, (b) expenses associated with the oversight and administration of our global operations, including warehousing, distribution and manufacturing, information systems and global shared services, (c) non-cash stock-based
compensation expense, (d) acquisition-related costs and (e) other gains or losses that are not integral to segment performance.
Activity within the unallocated mark-to-market losses (gains) on commodity derivatives is as follows:
| For the years ended December 31, | 2025 | 2024 | 2023 | |||||||||||||||||
| Net (gains) losses on mark-to-market valuation of commodity derivative positions recognized in income | $ | (18,837) | $ | (509,870) | $ | 53,085 | ||||||||||||||
| Net gains on commodity derivative positions reclassified from unallocated to segment income | 441,998 | 49,433 | 5,854 | |||||||||||||||||
| Net losses (gains) on mark-to-market valuation of commodity derivative positions recognized in unallocated derivative losses (gains) | $ | 423,161 | $ | (460,437) | $ | 58,939 | ||||||||||||||
As of December 31, 2025, the cumulative amount of mark-to-market losses on commodity derivatives that have been recognized in our consolidated cost of sales and not yet allocated to reportable segments was $12,930. Based on our forecasts of the timing of the recognition of the underlying hedged items, we expect to reclassify net pretax losses on commodity derivatives of $23,752 to segment operating results in the next twelve months.
Depreciation and amortization expense included within segment income presented above is as follows:
| For the years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||||||||
| North America Confectionery | $ | 299,038 | $ | 259,502 | $ | 238,786 | |||||||||||||||||
| North America Salty Snacks | 87,238 | 86,446 | 85,566 | ||||||||||||||||||||
| International | 28,857 | 24,793 | 23,699 | ||||||||||||||||||||
| Corporate | 88,568 | 84,514 | 71,764 | ||||||||||||||||||||
| Total | $ | 503,701 | $ | 455,255 | $ | 419,815 | |||||||||||||||||
Additional information regarding our net sales and long-lived assets disaggregated by geographical region is as follows:
| For the years ended December 31, | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||
United States | $ | 10,251,643 | $ | 9,771,343 | $ | 9,752,314 | |||||||||||||||||
Other | 1,440,933 | 1,430,920 | 1,412,678 | ||||||||||||||||||||
| Total | $ | 11,692,576 | $ | 11,202,263 | $ | 11,164,992 | |||||||||||||||||
| Long-lived assets: | |||||||||||||||||||||||
United States | $ | 2,967,499 | $ | 2,925,420 | $ | 2,732,787 | |||||||||||||||||
Other | 562,109 | 533,433 | 576,891 | ||||||||||||||||||||
| Total | $ | 3,529,608 | $ | 3,458,853 | $ | 3,309,678 | |||||||||||||||||
Free Sentinel
Track for freeWant the next HERSHEY CO segments disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment HERSHEY CO's next filing hits EDGAR. No credit card, your email never gets sold.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.