INTRODUCTION
Hershey’s Chocolate will cover everyone in Kisses. This company manufacturers such recognizable chocolate and candy brands as Hershey's Kisses, Jolly Ranchers, Ice Breakers gum and mints in addition to Kit Kat, which is licensed from Nestlé. Hershey also makes grocery products such as baking chocolate, various toppings for ice cream, syrups, cocoa mix, cookies as well as peanut butter. Hershey’s products are sold all over North America and abroad.
ANALYSIS OF BALANCE SHEET
ASSETS
Total assets increased $233.1 million, or 7%, as of December 31, 2002, primarily as a result of higher cash and cash equivalents, prepaid expenses and other current assets, and other non-current assets, partially offset by lower deferred income taxes, inventories, property, plant, and equipment, and goodwill.
Current assets increased by $96.1 million, or 8%, principally reflecting increased cash and cash equivalents, prepaid expenses and other current assets, substantially offset by a decrease in deferred income taxes. The increase in cash and cash equivalents reflected strong cash flows from operations during the year, offset by contributions of $308.1 million to the Corporation's pension plans. Prepaid expenses and other current assets reflected higher prepaid pension expense associated with the funding of pension plans during the year and increased original margin balances for commodity futures. The elimination of current deferred income taxes resulted primarily from the significant liability related to the tax effect on other comprehensive income associated with the gains on commodity futures contracts during the year. Property, plant and equipment was lower than the prior year primarily due to depreciation expense of $155.4 million and the retirement of property, plant and equipment of $19.0 million, partially offset by capital additions of $132.7 million.
The decrease in goodwill primarily reflected the impact of the sale of certain confectionery...