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.

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			: 1			:1

Based on the information contained in these financial statements, compute the following 2011 ratios for each company. (Round answers to 1 decimal places, e.g. 15.2% or 15.2 times.)

(1)	Debt to assets.
(2)	Times interest earned. (Hershey’s total interest expense for 2011 was $94,780,000. See Tootsie Roll’s Note 6 for its interest expense.)

		Hershey			Tootsie Roll
Debt to assets			%			%
Times interest earned			times			times