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| The financial statements of The Hershey Company and Tootsie Roll are presented below. | THE HERSHEY COMPANY CONSOLIDATED STATEMENTS OF INCOME | | | 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.) | | NOTE 6—OTHER INCOME (EXPENSE), NET:Other income (expense), net is comprised of the following: | | 2011 | | 2010 | | 2009 | | Interest and dividend income | | $1,087 | | $879 | | $1,439 | | Gains (losses) on trading securities relating to deferred compensation plans | | 29 | | 3,364 | | 4,524 | | Interest expense | | (121) | | (142) | | (243) | | Impairment of equity method investment. | | _ | | _ | | (4,400) | | Equity method investment loss | | (194) | | (342) | | (233) | | Foreign exchange gains (losses) | | 2,098 | | 4,090 | | 951 | | Capital gains (losses) | | (277) | | (28) | | (38) | | Miscellaneous, net | | 274 | | 537 | | 100 | | | | $2,946 | | $8,358 | | $2,100 | |
As of December 31, 2009, management determined that the carrying value of an equity method investment was impaired as a result of accumulated losses from operations and review of future expectations. The Company recorded a pre-tax impairment charge of $4,400 resulting in an adjusted carrying value of $4,961 as of December 31, 2009. The fair value was primarily assessed using the present value of estimated future cash flows. [removed] Don't show me this message again for the assignment |
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| Based on the information contained in these financial statements, compute the current ratio for 2011 for each company. (Round answers to 2 decimal places, e.g. 15.25.) | | Hershey | | Tootsie Roll | | Current ratio | | [removed] | : 1 | | [removed] | :1 | |
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