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Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 29, 2014 shares
Document And Entity Information [Abstract]
Entity Registrant Name	HERSHEY CO
Entity Central Index Key	0000047111
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 29, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Common Class A
Entity Common Stock, Shares Outstanding	161,208,879
Common Class B [Member]
Entity Common Stock, Shares Outstanding	60,619,777

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Net Sales	$ 1,578,350	$ 1,508,514	$ 3,450,163	$ 3,335,940
Costs and Expenses
Cost of sales	860,876	789,940	1,861,199	1,768,029
Selling, marketing and administrative	438,763	446,070	903,722	896,739
Business realignment charges, net	1,247	3,587	4,172	10,438
Total costs and expenses	1,300,886	1,239,597	2,769,093	2,675,206
Income before Interest and Income Taxes	277,464	268,917	681,070	660,734
Interest expense, net	20,734	21,094	42,019	44,727
Income before Income Taxes	256,730	247,823	639,051	616,007
Provision for income taxes	88,562	88,319	218,388	214,597
Net Income	$ 168,168	$ 159,504	$ 420,663	$ 401,410
Common Stock [Member]
Costs and Expenses
Earnings Per Share - Basic	$ 0.78	$ 0.73	$ 1.94	$ 1.84
Earnings Per Share - Diluted	0.75	0.70	1.86	1.77
Cash Dividends Paid Per Share
Common Stock	0.485	0.42	0.97	0.84
Common Class B [Member]
Costs and Expenses
Earnings Per Share - Basic	0.70	0.66	1.74	1.67
Earnings Per Share - Diluted	0.70	0.66	1.73	1.65
Cash Dividends Paid Per Share
Common Stock	$ 0.435	$ 0.38	$ 0.87	$ 0.76

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Net Income	$ 168,168	$ 159,504	$ 420,663	$ 401,410
Other comprehensive income, net of tax:
Foreign currency translation adjustments	5,773	(19,104)	5,305	(18,981)
Pension and post-retirement benefit plans	3,600	6,852	7,160	13,621
Cash flow hedges:
Gains on cash flow hedging derivatives	7,342	5,782	27,781	4,010
Reclassification adjustments	(10,783)	2,151	(20,022)	5,768
Total other comprehensive income (loss), net of tax	5,932	(4,319)	20,224	4,418
Comprehensive Income	$ 174,100	$ 155,185	$ 440,887	$ 405,828

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 29, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 562,601	$ 1,118,508
Short-term Investments	97,216	0
Accounts receivable - trade, net	423,648	477,912
Inventories	855,182	659,541
Deferred income taxes	48,079	52,511
Prepaid Expenses and Other	275,083	178,862
Total current assets	2,261,809	2,487,334
Property, Plant and Equipment, at cost	4,023,857	3,779,394
Less-accumulated depreciation and amortization	(2,080,470)	(1,974,049)
Net property, plant and equipment	1,943,387	1,805,345
Goodwill	576,824	576,561
Other Intangibles	190,381	195,244
Other Long-term Assets	212,568	293,004
Total assets	5,184,969	5,357,488
Liabilities
Accounts Payable	464,938	461,514
Accrued liabilities	523,185	699,722
Accrued income taxes	75,409	79,911
Short-term debt	197,031	165,961
Current portion of long-term debt	1,002	914
Total current liabilities	1,261,565	1,408,022
Long-term Debt	1,794,830	1,795,142
Other Long-term Liabilities	413,807	434,068
Deferred Income Taxes	106,207	104,204
Total liabilities	3,576,409	3,741,436
The Hershey Company Stockholders' Equity
Preferred Stock, shares issued: none at June 29, 2014 and December 31, 2013, respectively	0	0
Common Stock, shares issued: 299,281,967 and 299,281,527 at June 29, 2014 and December 31, 2013, respectively	299,281	299,281
Class B Common Stock, shares issued: 60,619,777 and 60,620,217 at June 29, 2014 and December 31, 2013, respectively	60,620	60,620
Additional Paid in Capital	717,483	664,944
Retained earnings	5,665,043	5,454,286
Treasury-Common Stock shares at cost: 138,046,572 and 136,007,023 at June 29, 2014 and December 31, 2013, respectively	(5,050,817)	(4,707,730)
Accumulated other comprehensive loss	(146,343)	(166,567)
The Hershey Company Stockholders' Equity	1,545,267	1,604,834
Noncontrolling interests in subsidiaries	63,293	11,218
Total stockholders' equity	1,608,560	1,616,052
Total liabilities and stockholders' equity	$ 5,184,969	$ 5,357,488

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Jun. 29, 2014	Dec. 31, 2013
STOCKHOLDERS' EQUITY
Preferred Stock, shares issued	0	0
Common Stock, shares issued	299,281,967	299,281,527
Class B Common Stock, shares issued	60,619,777	60,620,217
Treasury - Common Stock, shares at cost	138,046,572	136,007,023

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Cash Flows Provided by Operating Activities
Net Income	$ 420,663	$ 401,410
Adjustments to Reconcile Net Income to Net Cash Flows
Depreciation and amortization	100,133	98,875
Stock-based compensation expense	27,697	25,988
Excess tax benefits from stock-based compensation	(42,965)	(36,938)
Deferred income taxes	(2,002)	(14,549)
Contributions to pension and other benefit plans	(12,645)	(13,249)
Changes in assets and liabilities, net of effects from business acquisitions
Accounts receivable - trade	55,933	95,095
Inventories	(145,913)	(150,326)
Accounts payable and accrued liabilities	(140,835)	(65,369)
Other assets and liabilities	(88,134)	8,509
Net Cash Flows Provided by Operating Activities	171,932	349,446
Cash Flows Used in Investing Activities
Capital Additions	(136,509)	(151,735)
Capitalized Software Additions	(12,581)	(6,854)
Proceeds from sales of property, plant and equipment	469	15,107
Loan to Affiliate	0	(16,000)
Business acquisitions, net of cash and cash equivalents acquired	10,035	0
Purchase of short-term investments	97,216	0
Net Cash Flows Used in Investing Activities	(235,802)	(159,482)
Cash Flows Used in Financing Activities
Net increase (decrease) in short-term debt	19,010	(13,624)
Long-term borrowings	78	249,785
Repayment of long-term debt	(789)	(250,143)
Cash dividends paid	(209,906)	(182,895)
Exercise of stock options	89,921	114,157
Excess tax benefits from stock-based compensation	42,965	36,938
Contributions from noncontrolling interests	2,940	1,470
Repurchase of Common Stock	(436,256)	(305,564)
Net Cash Flows Used in Financing Activities	(492,037)	(349,876)
Decrease in Cash and Cash Equivalents	(555,907)	(159,912)
Cash and Cash Equivalents, beginning of period	1,118,508	728,272
Cash and Cash Equivalents, end of period	562,601	568,360
Interest Paid	44,064	47,722
Income Taxes Paid	$ 266,527	$ 190,773

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 29, 2014 - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Class B Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Common Stock	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests in Subsidiaries	Total Stockholders' Equity
Balance at Dec. 31, 2013	$ 1,616,052	$ 0	$ 299,281	$ 60,620	$ 664,944	$ 5,454,286	$ (4,707,730)	$ (166,567)	$ 11,218	$ 1,616,052
Net Income	420,663					420,663				420,663
Other comprehensive income	20,224							20,224		20,224
Dividends: Common Stock, $0.97 per share						(157,167)				(157,167)
Dividends: Class B Common Stock, $0.87 per share						(52,739)				(52,739)
Stock-based compensation					26,965					26,965
Exercise of stock options and incentive-based transactions					25,574		93,169			118,743
Repurchase of Common Stock	(436,256)						(436,256)			(436,256)
Acquisition of Lotte Shanghai Food Company									49,724	49,724
Earnings of and contributions from noncontrolling interests, net									2,351	2,351
Balance at Jun. 29, 2014	$ 1,608,560	$ 0	$ 299,281	$ 60,620	$ 717,483	$ 5,665,043	$ (5,050,817)	$ (146,343)	$ 63,293	$ 1,608,560

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Jun. 29, 2014
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited consolidated financial statements provided in this report include the accounts of The Hershey Company (the “Company,” “Hershey,” “we” or “us”) and our majority-owned subsidiaries and entities in which we have a controlling financial interest after the elimination of intercompany accounts and transactions. We have a controlling financial interest if we own a majority of the outstanding voting common stock and the noncontrolling shareholders do not have substantive participating rights, or we have significant control over an entity through contractual or economic interests in which we are the primary beneficiary. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not contain certain information and disclosures required by GAAP for comprehensive financial statements. Our significant interim accounting policies include the recognition of a pro-rata share of certain estimated annual amounts primarily for raw material purchase price variances, advertising expense, incentive compensation expenses and the effective income tax rate. We have included all adjustments (consisting only of normal recurring accruals) that we believe are considered necessary for a fair presentation. Operating results for the quarter ended June 29, 2014 may not be indicative of the results that may be expected for the year ending December 31, 2014 because of seasonal effects on our business. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013 (our “2013 Annual Report on Form 10-K”), which provides a more complete understanding of our accounting policies, financial position, operating results and other matters. Short-Term Investments Short-term investments consist of bank term deposits that have original maturity dates ranging from greater than three months to twelve months. Short-term investments are carried at cost, which approximates fair value.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

BUSINESS ACQUISITIONS AND DIVESTITURES	6 Months Ended
BUSINESS ACQUISITIONS AND DIVESTITURES	Jun. 29, 2014
Business Combinations [Abstract]
BUSINESS ACQUISITIONS	BUSINESS ACQUISITION Acquisitions of businesses are accounted for as purchases and, accordingly, their results of operations are included in the consolidated financial statements from the respective dates of the acquisitions. The purchase price for business acquisitions is allocated to the assets acquired and liabilities assumed. In March 2014, we acquired an additional 5.9% interest in Lotte Shanghai Food Company (“LSFC”), a joint venture established in 2007 in China for the purpose of manufacturing and selling product to the venture partners. For this additional interest, we paid $5,580 in cash, increasing our ownership from 44.1% to 50%. At the same time, we also amended the LSFC shareholders' agreement resulting in our operational control over the venture. With the additional operational control, we reassessed our involvement with LSFC and concluded that we now have a controlling financial interest. Therefore, we have consolidated the venture as of the March 2014 acquisition date. We had previously accounted for our investment in LSFC using the equity method. Total consideration transferred was approximately $99,161, including the $5,580 cash consideration paid, the estimated fair value of our previously held equity interest of $43,857 and the estimated fair value of the remaining noncontrolling interest in LSFC of $49,724, which fair values were determined using a market-based approach. The preliminary estimate of the fair value of the LSFC assets acquired and liabilities assumed on the acquisition date was $99,449, including fixed assets of $106,253, short-term debt obligations of $13,292 and other net assets of $6,488. We expect to finalize the purchase price allocation by the end of 2014. We recognized a gain of approximately $4,627 in connection with this transaction, primarily related to the remeasurement of the fair value of our equity interest immediately before the business combination. The gain is included in selling, marketing and administrative within our consolidated statement of income. Additionally, cash acquired in the transaction exceeded the $5,580 paid for the controlling interest by $10,035, resulting in a positive cash impact from the acquisition as presented in the consolidated statement of cash flows.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

NONCONTROLLING INTERESTS IN SUBSIDIARIES	6 Months Ended
NONCONTROLLING INTERESTS IN SUBSIDIARIES	Jun. 29, 2014
Noncontrolling Interest [Abstract]
NONCONTROLLING INTERESTS IN SUBSIDIARIES	NONCONTROLLING INTERESTS IN SUBSIDIARIES Noncontrolling interests in subsidiaries totaled $63,293 as of June 29, 2014 and $11,218 as of December 31, 2013, with the increase primarily reflecting the 50% noncontrolling interest resulting from our March 2014 acquisition of LSFC, as discussed in Note 2. We also own a 51% controlling interest in Hershey do Brasil under a cooperative agreement with Pandurata Netherlands B.V. (“Bauducco”), a leading manufacturer of baked goods in Brazil whose primary brand is Bauducco. During the first quarter of 2014 and 2013, we contributed cash of $3,060 and $1,530, respectively, to Hershey do Brasil. Bauducco contributed $2,940 and $1,470 in each of these respective time periods. The share of losses pertaining to the noncontrolling interests in subsidiaries was $130 for the quarter ended June 29, 2014 and $1,054 for the quarter ended June 30, 2013. The share of losses pertaining to the noncontrolling interests in subsidiaries was $309 for the six months ended June 29, 2014 and $2,163 for the six months ended June 30, 2013. These amounts are reflected in selling, marketing and administrative expenses.

STOCK COMPENSATION PLAN

6 Months Ended

Jun. 29, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK COMPENSATION PLANS

The Hershey Company Equity and Incentive Compensation Plan (“EICP”) is the plan under which grants using shares for compensation and incentive purposes are made. The following table summarizes our stock compensation costs:



	Three Months Ended				Six Months Ended
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
Total compensation amount charged against income for stock options, performance stock units (“PSUs”) and restricted stock units (“RSUs”)	$	14,742	$	13,534	$	27,697	$	25,988
Total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation	$	5,056	$	4,786	$	9,500	$	9,070

Stock Options

A summary of the status of our stock options as of June 29, 2014 and the change during 2014 is presented below:



	Six Months Ended June 29, 2014
Stock Options	Shares		Weighted-Average Exercise Price (per share)	Weighted-Average Remaining Contractual Term
Outstanding at beginning of the period	8,660,336		$55.47	6.3 years
Granted	1,365,825		$105.92
Exercised	(1,832,346	)	$48.93
Forfeited	(96,699	)	$83.51
Outstanding as of June 29, 2014	8,097,116		$65.15	6.6 years
Options exercisable as of June 29, 2014	4,322,469		$50.21	5.0 years



	Six Months Ended
	June 29, 2014	June 30, 2013
Weighted-average fair value of options granted (per share)	$21.55	$14.40
Intrinsic value of options exercised	$99,645	$96,724

We estimated the fair value of each stock option grant on the date of the grant using a Black-Scholes option-pricing model and the weighted-average assumptions set forth in the following table:



	Six Months Ended
	June 29, 2014		June 30, 2013
Dividend yields	2.0	%	2.2	%
Expected volatility	22.3	%	22.2	%
Risk-free interest rates	2.1	%	1.4	%
Expected lives in years	6.7		6.6

As of June 29, 2014, the aggregate intrinsic value of options outstanding was $273,315 and the aggregate intrinsic value of options exercisable was $204,547.

As of June 29, 2014, there was $36,970 of total unrecognized compensation cost related to non-vested stock option compensation arrangements granted under our stock option plans. That cost is expected to be recognized over a weighted-average period of 2.3 years.

Performance Stock Units and Restricted Stock Units

A summary of the status of our PSUs and RSUs as of June 29, 2014 and the change during 2014 is presented below:



Performance Stock Units and Restricted Stock Units	Six Months Ended June 29, 2014		Weighted-average grant date fair value for equity awards or market value for liability awards (per unit)
Outstanding at beginning of year	1,411,399		$72.43
Granted	301,282		$117.41
Performance assumption change	(163,632	)	$76.97
Vested	(520,250	)	$62.83
Forfeited	(27,798	)	$89.52
Outstanding as of June 29, 2014	1,001,001		$93.14

The table above excludes PSU awards for 29,596 units as of December 31, 2013 and 26,396 units as of June 29, 2014 for which the measurement date has not yet occurred for accounting purposes.

The following table sets forth information about the fair value of the PSUs and RSUs granted during the period indicated for potential future distribution to employees and directors. In addition, the table provides assumptions used to determine the fair value of the market-based total shareholder return component of the PSU grants using a Monte Carlo simulation model on the date of grant:



	Six Months Ended
	June 29, 2014		June 30, 2013
Units granted	301,282		353,776
Weighted-average fair value at date of grant (per unit)	$117.41		$87.89
Monte Carlo simulation assumptions:
Estimated values (per unit)	$80.95		$55.49
Dividend yields	1.8	%	2.0	%
Expected volatility	15.5	%	17.1	%

As of June 29, 2014, there was $55,786 of total unrecognized compensation cost related to non-vested PSUs and RSUs. We expect to recognize that cost over a weighted-average period of 2.2 years.



	Six Months Ended
	June 29, 2014		June 30, 2013
Intrinsic value of share-based liabilities paid, combined with the fair value of shares vested	$	54,933	$	58,226

Deferred PSUs, deferred RSUs and deferred stock units representing directors’ fees totaled 553,096 units as of June 29, 2014. Each unit is equivalent to one share of the Company’s Common Stock.

BUSINESS REALIGNMENT

6 Months Ended

Jun. 29, 2014

Restructuring and Related Activities [Abstract]

BUSINESS REALIGNMENT

In June 2010, we announced Project Next Century (the “Next Century program”) as part of our ongoing efforts to create an advantaged supply chain and competitive cost structure. As part of the Next Century program, production transitioned from the Company's century-old facility at 19 East Chocolate Avenue in Hershey, Pennsylvania, to an expanded West Hershey facility, which was built in 1992.

Project-to-date costs for the Next Century program totaled $194.6 million through June 29, 2014, in line with our estimates of total pre-tax charges and non-recurring project implementation costs of $190 million to $200 million.

Business realignment charges recorded during the three-month and six-month periods ended June 29, 2014 and June 30, 2013 were as follows:



	Three Months Ended					Six Months Ended
	June 29, 2014			June 30, 2013		June 29, 2014		June 30, 2013
Cost of sales – Next Century program	$	(8	)	$	20	$	93	$	147
Selling, marketing and administrative – Next Century program	—			11		—		17
Business realignment charges, net
Next Century program
Plant closure expenses	1,247			3,587		4,172		10,438
Total business realignment charges, net	1,247			3,587		4,172		10,438
Total business realignment charges	$	1,239		$	3,618	$	4,265	$	10,602

The majority of the charges incurred in both the first and second quarters of 2014 and 2013 related to ongoing costs under the Next Century program associated with the demolition of a former manufacturing facility.

EARNINGS PER SHARE

6 Months Ended

Jun. 29, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

We compute Basic and Diluted Earnings Per Share based on the weighted-average number of shares of Common Stock and Class B Common Stock outstanding as follows:



	Three Months Ended				Six Months Ended
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
In thousands except per share data
Net income	$	168,168	$	159,504	$	420,663	$	401,410
Weighted-average shares - Basic
Common Stock	162,168		163,295		162,873		163,537
Class B Common Stock	60,620		60,629		60,620		60,629
Total weighted-average shares - Basic	222,788		223,924		223,493		224,166
Effect of dilutive securities:
Employee stock options	1,913		2,448		2,125		2,516
Performance and restricted stock units	280		468		388		592
Weighted-average shares - Diluted	224,981		226,840		226,006		227,274
Earnings Per Share - Basic
Common Stock	$	0.78	$	0.73	$	1.94	$	1.84
Class B Common Stock	$	0.70	$	0.66	$	1.74	$	1.67

Earnings Per Share - Diluted
Common Stock	$	0.75	$	0.70	$	1.86	$	1.77
Class B Common Stock	$	0.70	$	0.66	$	1.73	$	1.65

The Class B Common Stock is convertible into Common Stock on a share for share basis at any time. The calculation of earnings per share-diluted for the Class B Common Stock was performed using the two-class method and the calculation of earnings per share-diluted for the Common Stock was performed using the if-converted method.



	Three Months Ended		Six Months Ended
	June 29, 2014	June 30, 2013	June 29, 2014	June 30, 2013
In thousands
Stock options excluded from diluted earnings per share calculations because the effect would have been antidilutive	1,363	1,699	1,365	1,757

FINANCIAL INSTRUMENTS AND FAIR VALUE

6 Months Ended

Jun. 29, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FINANCIAL INSTRUMENTS AND FAIR VALUE

We are exposed to market risks arising principally from changes in foreign currency exchange rates, interest rates and commodity prices. We use certain derivative instruments to manage these risks. These include interest rate swaps to manage interest rate risk, foreign currency forward exchange contracts and options to manage foreign currency exchange rate risk, and commodities futures and options contracts to manage commodity market price risk exposures.

We also use derivatives that do not qualify for hedge accounting treatment. We account for such derivatives at market value with the resulting gains and losses reflected in the income statement. We do not hold or issue derivative instruments for trading or speculative purposes and are not a party to any instruments with leverage or prepayment features.

In entering into these contracts, we have assumed the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. We mitigate this risk by entering into exchanged-traded contracts with collateral posting requirements and/or by performing financial assessments prior to contract execution, conducting periodic evaluations of counterparty performance and maintaining a diverse portfolio of qualified counterparties. We do not expect any significant losses from counterparty defaults.

Commodity Price Risk

We enter into commodities futures and options contracts and other commodity derivative instruments to reduce the effect of future price fluctuations associated with the purchase of raw materials, energy requirements and transportation services. We generally hedge commodity price risks for 3 to 24 month periods. The majority of our commodity derivative instruments meet hedge accounting requirements and are designated as cash flow hedges. We account for the effective portion of mark-to-market gains and losses in other comprehensive income, to be recognized in cost of sales in the same period that we record the hedged raw material requirements in cost of sales. The ineffective portion of gains and losses is recorded currently in cost of sales.

Foreign Exchange Price Risk

We are exposed to foreign currency exchange rate risk related to our international operations, including non-functional currency intercompany debt and other non-functional currency transactions of certain subsidiaries. Principal currencies hedged include the euro, Canadian dollar, Malaysian ringgit, Swiss franc, Chinese renminbi, Japanese yen, and Brazilian real. We typically utilize foreign currency forward exchange contracts and options to hedge these exposures for periods ranging from 3 to 24 months. The contracts are either designated as cash flow hedges or are undesignated. The net notional amount of foreign exchange contracts accounted for as cash flow hedges was $25,586 at June 29, 2014 and $158,375 at December 31, 2013. The effective portion of the changes in fair value on these contracts is recorded in other comprehensive income and reclassified into earnings in the same period in which the hedged transactions affect earnings. The net notional amount of foreign exchange contracts that are not designated as accounting hedges was $498,213 at June 29, 2014 and $2,823 at December 31, 2013. The change in fair value on these instruments is recorded directly in cost of sales or selling, marketing and administrative expense, depending on the nature of the underlying exposure. At June 29, 2014, the net notional amount of foreign exchange contracts not designated as accounting hedges principally includes contracts used to cap the anticipated acquisition price of Shanghai Golden Monkey as denominated in U.S. dollars and contracts used to mitigate the foreign currency risk related to construction of the manufacturing facility in Johor, Malaysia.

Interest Rate Risk

In order to manage interest rate exposure, from time to time we enter into interest rate swap agreements, which are designated as cash flow hedges, with gains and losses deferred in other comprehensive income to be recognized as an adjustment to interest expense in the same period that the hedged interest payments affect earnings. The notional amount of interest rate derivative instruments outstanding was $250,000 at June 29, 2014 and December 31, 2013.

Equity Price Risk

We are exposed to market price changes in certain broad market indices related to our deferred compensation obligations to our employees. In the first quarter of 2014, we entered into equity swap contracts to hedge the portion of the exposure that is linked to market-level equity returns. These contracts are not designated as hedges for accounting purposes and are entered into for periods of 3 to 12 months. The change in fair value of these derivatives is recorded in selling, marketing and administrative expense, together with the change in the related liabilities. The notional amount of the contracts outstanding at June 29, 2014 was $24,902.

Fair Value of Derivative Instruments

The following table summarizes the fair value of the derivative instruments as recorded in the Consolidated Balance Sheets as of the dates below:



	Balance Sheet Caption	June 29, 2014		December 31, 2013
Derivative Assets
Derivatives designated as hedges:
Commodities futures and options (1)	Prepaid expenses and other current assets	$	9,012	$	4,306
Foreign exchange contracts (2)	Prepaid expenses and other current assets	35		2,227
Foreign exchange contracts (2)	Other long-term assets	—		586
Interest rate swap agreements (3)	Other long-term assets	7,407		22,745
Cross-currency swap agreement (4)	Other long-term assets	743		—
Total derivatives designated as hedges		$	17,197	$	29,864

Derivatives not designated as hedges:
Deferred compensation derivatives (5)	Prepaid expenses and other current assets	$	1,470	$	—
Foreign exchange contracts (2)	Prepaid expenses and other current assets	7,975		445
Foreign exchange contracts (2)	Other long-term assets	565		166
Total derivatives not designated as hedges		$	10,010	$	611

Derivative Liabilities
Derivatives designated as hedges:
Commodities futures and options (1)	Accrued liabilities	$	—	$	129
Foreign exchange contracts (2)	Accrued liabilities	1,429		—
Total derivatives designated as hedges		$	1,429	$	129

Derivatives not designated as hedges:
Foreign exchange contracts (2)	Accrued liabilities	$	1,693	$	—
Foreign exchange contracts (2)	Other long-term liabilities	—		198
Total derivatives not designated as hedges		$	1,693	$	198

(1)

The fair value of commodities futures and options contracts is based on quoted market prices and is, therefore, categorized as Level 1 within the fair value hierarchy. As of June 29, 2014, prepaid expenses and other current assets reflects the net of assets of $49,295 and accrued liabilities of $40,283 associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period. The comparable amounts reflected on a net basis in accrued liabilities at December 31, 2013 were assets of $23,780 and accrued liabilities of $23,909. At December 31, 2013, the amount reflected in prepaid expenses and other current assets related to the fair value of options contracts.

(2)

The fair value of foreign currency forward exchange contracts is the difference between the contract and current market foreign currency exchange rates at the end of the period. We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences. These contracts are classified as Level 2 within the fair value hierarchy.

(3)

The fair value of interest rate swap agreements represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Such contracts are categorized as Level 2 within the fair value hierarchy.


(4)	The fair value of the cross-currency swap agreement is categorized as Level 2 within the fair value hierarchy and is estimated based on the difference between the contract and current market foreign currency exchange rates at the end of the period.


(5)	The fair value of deferred compensation derivatives is based on quoted prices for market interest rates and a broad market equity index and is, therefore, categorized as Level 2 within the fair value hierarchy.

Fair Value of Other Financial Instruments

The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and short-term debt approximated fair value as of June 29, 2014 and December 31, 2013 because of the relatively short maturity of these instruments.

The carrying value of long-term debt, including the current portion, was $1,795,832 as of June 29, 2014, compared with a fair value of $1,979,386. The estimated fair value of long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy.

Income Statement Impact of Derivative Instruments

The effect of derivative instruments on the Consolidated Statements of Income for the three months ended June 29, 2014 and June 30, 2013 was as follows:



	Non-designated Hedges				Cash Flow Hedges
	Non-designated Hedges				Cash Flow Hedges
	Gains recognized in income (a)				Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion)						Gains (losses) reclassified from accumulated OCI into income (effective portion) (b)						Gains recognized in income (ineffective portion) (c)

	2014		2013		2014			2013			2014			2013			2014		2013
Commodities futures and options	$	—	$	—	$	19,312		$	(5,180	)	$	12,400		$	(3,700	)	$	320	$	155
Foreign exchange contracts	1,676		—		(825		)	1,722			3,754			1,057			—		—
Interest rate swap agreements	—		—		(6,689		)	12,582			(1,110		)	(832		)	—		—
Deferred compensation derivatives	1,401		—		—			—			—			—			—		—
Total	$	3,077	$	—	$	11,798		$	9,124		$	15,044		$	(3,475	)	$	320	$	155


(a)	Gains recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were recognized in selling, marketing and administrative expenses.

(b)

Gains (losses) reclassified from accumulated OCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains and losses for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the three months ended June 29, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from accumulated OCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period as originally designated or the subsequent two months thereafter. Losses reclassified from accumulated OCI into income for interest rate swap agreements were included in interest expense.


(c)	The gains representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts.

The effect of derivative instruments on the Consolidated Statements of Income for the six months ended June 29, 2014 and June 30, 2013 was as follows:



	Non-designated Hedges					Cash Flow Hedges
	Non-designated Hedges					Cash Flow Hedges
	Gains (losses) recognized in income (a)					Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion)						Gains (losses) reclassified from accumulated OCI into income (effective portion) (b)						Gains (losses) recognized in income (ineffective portion) (c)

	2014			2013		2014			2013			2014			2013			2014			2013
Commodities futures and options	$	2,339		$	—	$	59,267		$	(14,500	)	$	28,300		$	(9,500	)	$	(92	)	$	543
Foreign exchange contracts	(8,792		)	—		311			215			3,897			1,926			—			—
Interest rate swap agreements	—			—		(15,337		)	20,315			(2,237		)	(1,744		)	—			(428		)
Deferred compensation derivatives	1,470			—		—			—			—			—			—			—
Total	$	(4,983	)	$	—	$	44,241		$	6,030		$	29,960		$	(9,318	)	$	(92	)	$	115

(a)

Gains recognized in income for non-designated hedges were included in cost of sales for commodities futures and options contracts. Gains (losses) on non-designated foreign currency forward exchange contracts and deferred compensation derivatives were recognized in selling, marketing and administrative expenses. For the six months ended June 29, 2014, losses from non-designated foreign currency forward exchange contracts relate primarily to contracts used to cap the anticipated acquisition price of Shanghai Golden Monkey as denominated in U.S. dollars.

(b)

Gains (losses) reclassified from accumulated OCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains and losses for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the six months ended June 29, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from accumulated OCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period originally designated or the subsequent two months thereafter. Losses reclassified from accumulated OCI into income for interest rate swap agreements were included in interest expense.


(c)	Gains (losses) representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts and in interest expense for interest rate swap agreements.

The amount of net gains on cash flow hedging derivatives, including interest rate swap agreements, foreign currency forward exchange contracts, and commodities futures and options contracts, expected to be reclassified into income in the next twelve months was approximately $34,162 after tax as of June 29, 2014. This amount was primarily associated with commodities futures and options contracts.

COMPREHENSIVE INCOME

6 Months Ended

Jun. 29, 2014

Comprehensive Income Disclosure [Abstract]

COMPREHENSIVE INCOME

A summary of the components of comprehensive income is as follows:



	Three Months Ended
	June 29, 2014
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	168,168

Other comprehensive income:
Foreign currency translation adjustments	$	5,773		$	—		5,773
Pension and post-retirement benefit plans (a)	5,825			(2,225		)	3,600
Cash flow hedges:
Gains on cash flow hedging derivatives	11,798			(4,456		)	7,342
Reclassification adjustments (b)	(15,044		)	4,261			(10,783		)

Total other comprehensive income	$	8,352		$	(2,420	)	5,932

Comprehensive income							$	174,100



	Three Months Ended
	June 30, 2013
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	159,504

Other comprehensive income (loss):
Foreign currency translation adjustments	$	(19,104	)	$	—		(19,104		)
Pension and post-retirement benefit plans (a)	11,498			(4,646		)	6,852
Cash flow hedges:
Gains on cash flow hedging derivatives	9,124			(3,342		)	5,782
Reclassification adjustments (b)	3,475			(1,324		)	2,151

Total other comprehensive loss	$	4,993		$	(9,312	)	(4,319		)

Comprehensive income							$	155,185



	Six Months Ended
	June 29, 2014
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	420,663

Other comprehensive income:
Foreign currency translation adjustments	$	5,305		$	—		5,305
Pension and post-retirement benefit plans (a)	11,535			(4,375		)	7,160
Cash flow hedges:
Gains on cash flow hedging derivatives	44,241			(16,460		)	27,781
Reclassification adjustments (b)	(29,960		)	9,938			(20,022		)

Total other comprehensive income	$	31,121		$	(10,897	)	20,224

Comprehensive income							$	440,887



	Six Months Ended
	June 30, 2013
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	401,410

Other comprehensive income:
Foreign currency translation adjustments	$	(18,981	)	$	—		(18,981		)
Pension and post-retirement benefit plans (a)	22,301			(8,680		)	13,621
Cash flow hedges:
Gains on cash flow hedging derivatives	6,030			(2,020		)	4,010
Reclassification adjustments (b)	9,318			(3,550		)	5,768

Total other comprehensive income	$	18,668		$	(14,250	)	4,418

Comprehensive income							$	405,828


(a)	These amounts are included in the computation of net periodic benefit costs. For more information, see Note 12. Pension and Other Post-Retirement Benefit Plans.


(b)	For information on the presentation of reclassification adjustments for cash flow hedges on the Consolidated Statements of Income, see Note 7. Financial Instruments and Fair Value.

The components of accumulated other comprehensive loss as shown on the Consolidated Balance Sheets are as follows:



	June 29, 2014			December 31, 2013
Foreign currency translation adjustments	$	(11,525	)	$	(16,830	)
Pension and post-retirement benefit plans, net of tax	(192,474		)	(199,634		)
Cash flow hedges, net of tax	57,656			49,897
Total accumulated other comprehensive loss	$	(146,343	)	$	(166,567	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

INVENTORIES

6 Months Ended

Jun. 29, 2014

Inventory Disclosure [Abstract]

INVENTORIES

We value the majority of our inventories under the last-in, first-out (“LIFO”) method and the remaining inventories at the lower of first-in, first-out (“FIFO”) cost or market. Inventories were as follows:



	June 29, 2014			December 31, 2013
Raw materials	$	251,382		$	226,978
Goods in process	112,451			79,861
Finished goods	655,815			517,968
Inventories at FIFO	1,019,648			824,807
Adjustment to LIFO	(164,466		)	(165,266		)
Total inventories	$	855,182		$	659,541

The increase in raw materials inventory as of June 29, 2014 was primarily due to the timing of deliveries to meet manufacturing requirements as well as the inclusion of the raw materials inventory of LSFC, which was not included as of December 31, 2013. The increase in goods in process inventories as of June 29, 2014 was principally the result of higher levels of cocoa products needed to support manufacturing requirements as well as the goods in process inventory at LSFC. Finished goods inventories were higher as of June 29, 2014 primarily due to increases to support anticipated sales levels of seasonal and everyday items.

DEBT AND FINANCING ARRANGEMENTS

6 Months Ended

Jun. 29, 2014

Long-term Debt, Unclassified [Abstract]

DEBT AND FINANCING ARRANGEMENTS

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 $1.0 billion unsecured revolving credit facility, which expires in November 2018. The credit agreement contains certain financial and other covenants, customary representations, warranties and events of default. As of June 29, 2014, we were in compliance with all covenants pertaining to the credit agreement, and we had no significant compensating balance agreements that legally restricted these funds. For more information, refer to the consolidated financial statements and notes included in our 2013 Annual Report on Form 10-K.

In May 2012, we filed a Registration Statement on Form S-3 with the U.S. Securities and Exchange Commission that registered an indeterminate amount of debt securities. In April 2013, we repaid $250.0 million of 5.0% Notes due in 2013. In May 2013, we issued $250.0 million of 2.625% Notes due in 2023 under this Registration Statement.

Interest Expense

Net interest expense consisted of the following:



	Three Months Ended						Six Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Interest expense	$	23,085		$	22,123		$	46,399		$	46,781
Interest income	(1,138		)	(705		)	(2,084		)	(1,413		)
Capitalized interest	(1,213		)	(324		)	(2,296		)	(641		)
Interest expense, net	$	20,734		$	21,094		$	42,019		$	44,727

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 29, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions include the United States (federal and state), Canada and Mexico. U.S., Canadian and Mexican federal audit issues typically involve the timing of deductions and transfer pricing adjustments. During the first quarter of 2013, the U.S. Internal Revenue Service (“IRS”) commenced its audit of our U.S. income tax returns for 2009 through 2011. The audit was concluded in the second quarter of 2014. Tax examinations by various state taxing authorities could be conducted for years beginning in 2010. We are no longer subject to Canadian federal income tax examinations by the Canada Revenue Agency (“CRA”) for years before 2007. The CRA commenced its audit of our Canadian income tax returns for 2010 through 2012 in the second quarter of 2014. During the fourth quarter of 2013, the CRA concluded its audit for 2007 through 2009 and issued a letter to us indicating proposed adjustments primarily associated with business realignment charges and transfer pricing. As of June 29, 2014, we recorded accrued income taxes, interest and penalties of approximately $74.4 million related to the proposed adjustments. We provided notice to the U.S. Competent Authority and the CRA provided notice to the Canada Competent Authority of the likely need for their assistance to resolve the proposed adjustments. Accordingly, as of June 29, 2014, we recorded a non-current receivable of approximately $66.7 million associated with the anticipated resolution of the proposed adjustments by the Competent Authority of each country. We are no longer subject to Mexican federal income tax examinations by the Servicio de Administracion Tributaria (“SAT”) for years before 2009. We work with the IRS, the CRA, and the SAT to resolve proposed audit adjustments and to minimize the amount of adjustments. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations. We reasonably expect reductions in the liability for unrecognized tax benefits of approximately $63.3 million within the next 12 months because of the expiration of statutes of limitations and settlements of tax audits.

PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 29, 2014

Compensation and Retirement Disclosure [Abstract]

PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS

Components of net periodic benefit cost consisted of the following:



	Pension Benefits						Other Benefits
	Three Months Ended						Three Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Service cost	$	6,448		$	7,730		$	176		$	258
Interest cost	12,200			10,928			2,961			2,592
Expected return on plan assets	(18,432		)	(18,201		)	—			—
Amortization of prior service cost	(167		)	105			154			99
Recognized net actuarial loss	5,935			10,060			(45		)	23
Administrative expenses	216			155			45			36
Net periodic benefit cost	$	6,200		$	10,777		$	3,291		$	3,008

We made contributions of $422 and $5,532 to the pension plans and other benefits plans, respectively, during the second quarter of 2014. In the second quarter of 2013, we made contributions of $814 and $6,270 to our pension plans and other benefits plans, respectively. The contributions in 2014 and 2013 also included benefit payments from our non-qualified pension plans and post-retirement benefit plans.

Components of net periodic benefit cost consisted of the following:



	Pension Benefits						Other Benefits
	Six Months Ended						Six Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Service cost	$	13,333		$	15,698		$	353		$	547
Interest cost	24,425			22,002			5,851			5,377
Expected return on plan assets	(37,018		)	(36,585		)	—			—
Amortization of prior service cost	(334		)	211			308			254
Recognized net actuarial loss	11,673			20,218			(71		)	18
Administrative expenses	393			267			55			50
Net periodic benefit cost	$	12,472		$	21,811		$	6,496		$	6,246

We made contributions of $1,973 and $10,672 to the pension plans and other benefits plans, respectively, during the first six months of 2014. In the first six months of 2013, we made contributions of $1,228 and $12,021 to our pension plans and other benefits plans, respectively. The contributions in 2014 and 2013 also included benefit payments from our non-qualified pension plans and post-retirement benefit plans.

TREASURY STOCK ACTIVITY

6 Months Ended

Jun. 29, 2014

Stockholders' Equity Note [Abstract]

TREASURY STOCK ACTIVITY

A summary of our treasury stock activity is as follows:



	Six Months Ended June 29, 2014
	Shares		Dollars
			In thousands
Shares repurchased in the open market under pre-approved share repurchase programs	1,272,118		$	125,069
Shares repurchased to replace Treasury Stock issued for stock options and incentive compensation	3,006,513		311,187
Total share repurchases	4,278,631		436,256
Shares issued for stock options and incentive compensation	(2,239,082	)	(93,169		)
Net change	2,039,549		$	343,087

As of June 29, 2014, the $250 million share repurchase program approved by our Board of Directors in April 2011 was completed. In February 2014, our Board of Directors approved an additional $250 million authorization to repurchase shares of our Common Stock. As of June 29, 2014, $250 million remained available for repurchases of our Common Stock under this program. We are authorized to purchase our outstanding shares in open market and privately negotiated transactions. The program has no expiration date and acquired shares of Common Stock will be held as treasury shares. Similar to prior programs, approved share repurchase authorizations are in addition to our practice of buying back shares sufficient to offset those issued under incentive compensation plans.

CONTINGENCIES	6 Months Ended
CONTINGENCIES	Jun. 29, 2014
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES In 2007, the Competition Bureau of Canada began an inquiry into alleged violations of the Canadian Competition Act in the sale and supply of chocolate products sold in Canada between 2002 and 2008 by members of the confectionery industry, including Hershey Canada, Inc. The U.S. Department of Justice also notified the Company in 2007 that it had opened an inquiry, but has not requested any information or documents. Subsequently, 13 civil lawsuits were filed in Canada and 91 civil lawsuits were filed in the United States against the Company. The lawsuits were instituted on behalf of direct purchasers of our products as well as indirect purchasers that purchase our products for use or for resale. Several other chocolate and confectionery companies were named as defendants in these lawsuits as they also were the subject of investigations and/or inquiries by the government entities referenced above. The cases sought recovery for losses suffered as a result of alleged conspiracies in restraint of trade in connection with the pricing practices of the defendants. The Canadian civil cases were settled in 2012. Hershey Canada, Inc. reached a settlement agreement with the Competition Bureau of Canada through their Leniency Program with regard to an inquiry into alleged violations of the Canadian Competition Act in the sale and supply of chocolate products sold in Canada by members of the confectionery industry. On June 21, 2013, Hershey Canada, Inc. pleaded guilty to one count of price fixing related to communications with competitors in Canada in 2007 and paid a fine of approximately $4.0 million. Hershey Canada, Inc. had promptly reported the conduct to the Competition Bureau, cooperated fully with its investigation and did not implement the planned price increase that was the subject of the 2007 communications. With regard to the U.S. lawsuits, the Judicial Panel on Multidistrict Litigation assigned the cases to the U.S. District Court for the Middle District of Pennsylvania (the “District Court”). Plaintiffs sought actual and treble damages against the Company and other defendants based on an alleged overcharge for certain, or in some cases all, chocolate products sold in the U.S. between December 2002 and December 2007, and certain plaintiff groups alleged damages that extended beyond the alleged conspiracy period. The lawsuits had been proceeding on different scheduling tracks for different groups of plaintiffs. On February 26, 2014, the District Court granted summary judgment to the Company in the cases brought by the direct purchaser plaintiffs that had not sought class certification as well as those that had been certified as a class. The direct purchaser plaintiffs appealed the District Court's decision to the United States Court of Appeals for the Third Circuit ("Third Circuit") in May 2014. The remaining plaintiff groups - the putative class plaintiffs that purchased product indirectly for resale, the putative class plaintiffs that purchased product indirectly for use, and direct purchaser Associated Wholesale Grocers, Inc. - dismissed their cases with prejudice, subject to reinstatement if the Third Circuit were to reverse the District Court’s summary judgment decision. The District Court entered judgment closing the case on April 17, 2014. Competition and antitrust law investigations can be lengthy and violations are subject to civil and/or criminal fines and other sanctions. Class action civil antitrust lawsuits are expensive to defend and could result in significant judgments, including in some cases, payment of treble damages and/or attorneys' fees to the successful plaintiff. Additionally, negative publicity involving these proceedings could affect our Company's brands and reputation, possibly resulting in decreased demand for our products. These possible consequences, in our opinion, are currently not expected to materially impact our financial position or liquidity, but could materially impact our results of operations and cash flows in the period in which any fines, settlements or judgments are accrued or paid, respectively. We have no other material pending legal proceedings, other than ordinary routine litigation incidental to our business.

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Jun. 29, 2014
Recent Accounting Pronouncements [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). ASU No. 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU No. 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU No. 2013-11 did not have a significant impact on our consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the effect that ASU No. 2014-09 will have on our consolidated financial statements and related disclosures. In June 2014, FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force), which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. We do not expect adoption of ASU No. 2014-12 to have a significant impact on our consolidated financial statements.

STOCK COMPENSATION PLAN (Tables)

6 Months Ended

Jun. 29, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Costs

The following table summarizes our stock compensation costs:



	Three Months Ended				Six Months Ended
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
Total compensation amount charged against income for stock options, performance stock units (“PSUs”) and restricted stock units (“RSUs”)	$	14,742	$	13,534	$	27,697	$	25,988
Total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation	$	5,056	$	4,786	$	9,500	$	9,070

Schedule of Share-based Compensation, Stock Options, Activity

A summary of the status of our stock options as of June 29, 2014 and the change during 2014 is presented below:



	Six Months Ended June 29, 2014
Stock Options	Shares		Weighted-Average Exercise Price (per share)	Weighted-Average Remaining Contractual Term
Outstanding at beginning of the period	8,660,336		$55.47	6.3 years
Granted	1,365,825		$105.92
Exercised	(1,832,346	)	$48.93
Forfeited	(96,699	)	$83.51
Outstanding as of June 29, 2014	8,097,116		$65.15	6.6 years
Options exercisable as of June 29, 2014	4,322,469		$50.21	5.0 years

Fair Value and Intrinsic Value of Options



	Six Months Ended
	June 29, 2014	June 30, 2013
Weighted-average fair value of options granted (per share)	$21.55	$14.40
Intrinsic value of options exercised	$99,645	$96,724

Fair Value of Each Stock Option Grant

We estimated the fair value of each stock option grant on the date of the grant using a Black-Scholes option-pricing model and the weighted-average assumptions set forth in the following table:



	Six Months Ended
	June 29, 2014		June 30, 2013
Dividend yields	2.0	%	2.2	%
Expected volatility	22.3	%	22.2	%
Risk-free interest rates	2.1	%	1.4	%
Expected lives in years	6.7		6.6

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

A summary of the status of our PSUs and RSUs as of June 29, 2014 and the change during 2014 is presented below:



Performance Stock Units and Restricted Stock Units	Six Months Ended June 29, 2014		Weighted-average grant date fair value for equity awards or market value for liability awards (per unit)
Outstanding at beginning of year	1,411,399		$72.43
Granted	301,282		$117.41
Performance assumption change	(163,632	)	$76.97
Vested	(520,250	)	$62.83
Forfeited	(27,798	)	$89.52
Outstanding as of June 29, 2014	1,001,001		$93.14

Schedule Of Share Based Payment Award Market Based Total Shareholder Return Valuation Assumptions



	Six Months Ended
	June 29, 2014		June 30, 2013
Units granted	301,282		353,776
Weighted-average fair value at date of grant (per unit)	$117.41		$87.89
Monte Carlo simulation assumptions:
Estimated values (per unit)	$80.95		$55.49
Dividend yields	1.8	%	2.0	%
Expected volatility	15.5	%	17.1	%

Share Based Compensation Arrangement By Share Based Payment Award Intrinsic Value Of Share Based Liabilities Paid Combined With Fair Value Of Shares Vested



	Six Months Ended
	June 29, 2014		June 30, 2013
Intrinsic value of share-based liabilities paid, combined with the fair value of shares vested	$	54,933	$	58,226

BUSINESS REALIGNMENT (Tables)

6 Months Ended

Jun. 29, 2014

Restructuring and Related Activities [Abstract]

Business Realignment

Business realignment charges recorded during the three-month and six-month periods ended June 29, 2014 and June 30, 2013 were as follows:



	Three Months Ended					Six Months Ended
	June 29, 2014			June 30, 2013		June 29, 2014		June 30, 2013
Cost of sales – Next Century program	$	(8	)	$	20	$	93	$	147
Selling, marketing and administrative – Next Century program	—			11		—		17
Business realignment charges, net
Next Century program
Plant closure expenses	1,247			3,587		4,172		10,438
Total business realignment charges, net	1,247			3,587		4,172		10,438
Total business realignment charges	$	1,239		$	3,618	$	4,265	$	10,602

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 29, 2014

Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]

Schedule of Earnings Per Share, Basic and Diluted

We compute Basic and Diluted Earnings Per Share based on the weighted-average number of shares of Common Stock and Class B Common Stock outstanding as follows:



	Three Months Ended				Six Months Ended
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
In thousands except per share data
Net income	$	168,168	$	159,504	$	420,663	$	401,410
Weighted-average shares - Basic
Common Stock	162,168		163,295		162,873		163,537
Class B Common Stock	60,620		60,629		60,620		60,629
Total weighted-average shares - Basic	222,788		223,924		223,493		224,166
Effect of dilutive securities:
Employee stock options	1,913		2,448		2,125		2,516
Performance and restricted stock units	280		468		388		592
Weighted-average shares - Diluted	224,981		226,840		226,006		227,274
Earnings Per Share - Basic
Common Stock	$	0.78	$	0.73	$	1.94	$	1.84
Class B Common Stock	$	0.70	$	0.66	$	1.74	$	1.67

Earnings Per Share - Diluted
Common Stock	$	0.75	$	0.70	$	1.86	$	1.77
Class B Common Stock	$	0.70	$	0.66	$	1.73	$	1.65

Antidilutive stock options



	Three Months Ended		Six Months Ended
	June 29, 2014	June 30, 2013	June 29, 2014	June 30, 2013
In thousands
Stock options excluded from diluted earnings per share calculations because the effect would have been antidilutive	1,363	1,699	1,365	1,757

FINANCIAL INSTRUMENTS AND FAIR VALUE (Tables)

6 Months Ended

Jun. 29, 2014

Derivative Instruments, Gain (Loss) [Line Items]

The fair value of derivative instruments

The following table summarizes the fair value of the derivative instruments as recorded in the Consolidated Balance Sheets as of the dates below:



	Balance Sheet Caption	June 29, 2014		December 31, 2013
Derivative Assets
Derivatives designated as hedges:
Commodities futures and options (1)	Prepaid expenses and other current assets	$	9,012	$	4,306
Foreign exchange contracts (2)	Prepaid expenses and other current assets	35		2,227
Foreign exchange contracts (2)	Other long-term assets	—		586
Interest rate swap agreements (3)	Other long-term assets	7,407		22,745
Cross-currency swap agreement (4)	Other long-term assets	743		—
Total derivatives designated as hedges		$	17,197	$	29,864

Derivatives not designated as hedges:
Deferred compensation derivatives (5)	Prepaid expenses and other current assets	$	1,470	$	—
Foreign exchange contracts (2)	Prepaid expenses and other current assets	7,975		445
Foreign exchange contracts (2)	Other long-term assets	565		166
Total derivatives not designated as hedges		$	10,010	$	611

Derivative Liabilities
Derivatives designated as hedges:
Commodities futures and options (1)	Accrued liabilities	$	—	$	129
Foreign exchange contracts (2)	Accrued liabilities	1,429		—
Total derivatives designated as hedges		$	1,429	$	129

Derivatives not designated as hedges:
Foreign exchange contracts (2)	Accrued liabilities	$	1,693	$	—
Foreign exchange contracts (2)	Other long-term liabilities	—		198
Total derivatives not designated as hedges		$	1,693	$	198

(1)

(2)

(3)


(4)	The fair value of the cross-currency swap agreement is categorized as Level 2 within the fair value hierarchy and is estimated based on the difference between the contract and current market foreign currency exchange rates at the end of the period.


(5)	The fair value of deferred compensation derivatives is based on quoted prices for market interest rates and a broad market equity index and is, therefore, categorized as Level 2 within the fair value hierarchy.

Gain (Loss) in Consolidates Statements of Income

The effect of derivative instruments on the Consolidated Statements of Income for the six months ended June 29, 2014 and June 30, 2013 was as follows:



	Non-designated Hedges					Cash Flow Hedges
	Non-designated Hedges					Cash Flow Hedges
	Gains (losses) recognized in income (a)					Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion)						Gains (losses) reclassified from accumulated OCI into income (effective portion) (b)						Gains (losses) recognized in income (ineffective portion) (c)

	2014			2013		2014			2013			2014			2013			2014			2013
Commodities futures and options	$	2,339		$	—	$	59,267		$	(14,500	)	$	28,300		$	(9,500	)	$	(92	)	$	543
Foreign exchange contracts	(8,792		)	—		311			215			3,897			1,926			—			—
Interest rate swap agreements	—			—		(15,337		)	20,315			(2,237		)	(1,744		)	—			(428		)
Deferred compensation derivatives	1,470			—		—			—			—			—			—			—
Total	$	(4,983	)	$	—	$	44,241		$	6,030		$	29,960		$	(9,318	)	$	(92	)	$	115

(a)

(b)

Gains (losses) reclassified from accumulated OCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains and losses for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the six months ended June 29, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from accumulated OCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period originally designated or the subsequent two months thereafter. Losses reclassified from accumulated OCI into income for interest rate swap agreements were included in interest expense.


(c)	Gains (losses) representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts and in interest expense for interest rate swap agreements.

The effect of derivative instruments on the Consolidated Statements of Income for the three months ended June 29, 2014 and June 30, 2013 was as follows:



	Non-designated Hedges				Cash Flow Hedges
	Non-designated Hedges				Cash Flow Hedges
	Gains recognized in income (a)				Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion)						Gains (losses) reclassified from accumulated OCI into income (effective portion) (b)						Gains recognized in income (ineffective portion) (c)

	2014		2013		2014			2013			2014			2013			2014		2013
Commodities futures and options	$	—	$	—	$	19,312		$	(5,180	)	$	12,400		$	(3,700	)	$	320	$	155
Foreign exchange contracts	1,676		—		(825		)	1,722			3,754			1,057			—		—
Interest rate swap agreements	—		—		(6,689		)	12,582			(1,110		)	(832		)	—		—
Deferred compensation derivatives	1,401		—		—			—			—			—			—		—
Total	$	3,077	$	—	$	11,798		$	9,124		$	15,044		$	(3,475	)	$	320	$	155


(a)	Gains recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were recognized in selling, marketing and administrative expenses.

(b)


(c)	The gains representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts.

COMPREHENSIVE INCOME (Tables)

6 Months Ended

Jun. 29, 2014

Comprehensive Income Disclosure [Abstract]

Schedule of Comprehensive Income (Loss)

A summary of the components of comprehensive income is as follows:



	Three Months Ended
	June 29, 2014
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	168,168

Other comprehensive income:
Foreign currency translation adjustments	$	5,773		$	—		5,773
Pension and post-retirement benefit plans (a)	5,825			(2,225		)	3,600
Cash flow hedges:
Gains on cash flow hedging derivatives	11,798			(4,456		)	7,342
Reclassification adjustments (b)	(15,044		)	4,261			(10,783		)

Total other comprehensive income	$	8,352		$	(2,420	)	5,932

Comprehensive income							$	174,100



	Three Months Ended
	June 30, 2013
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	159,504

Other comprehensive income (loss):
Foreign currency translation adjustments	$	(19,104	)	$	—		(19,104		)
Pension and post-retirement benefit plans (a)	11,498			(4,646		)	6,852
Cash flow hedges:
Gains on cash flow hedging derivatives	9,124			(3,342		)	5,782
Reclassification adjustments (b)	3,475			(1,324		)	2,151

Total other comprehensive loss	$	4,993		$	(9,312	)	(4,319		)

Comprehensive income							$	155,185



	Six Months Ended
	June 29, 2014
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	420,663

Other comprehensive income:
Foreign currency translation adjustments	$	5,305		$	—		5,305
Pension and post-retirement benefit plans (a)	11,535			(4,375		)	7,160
Cash flow hedges:
Gains on cash flow hedging derivatives	44,241			(16,460		)	27,781
Reclassification adjustments (b)	(29,960		)	9,938			(20,022		)

Total other comprehensive income	$	31,121		$	(10,897	)	20,224

Comprehensive income							$	440,887



	Six Months Ended
	June 30, 2013
	Pre-Tax Amount			Tax (Expense) Benefit			After-Tax Amount

Net income							$	401,410

Other comprehensive income:
Foreign currency translation adjustments	$	(18,981	)	$	—		(18,981		)
Pension and post-retirement benefit plans (a)	22,301			(8,680		)	13,621
Cash flow hedges:
Gains on cash flow hedging derivatives	6,030			(2,020		)	4,010
Reclassification adjustments (b)	9,318			(3,550		)	5,768

Total other comprehensive income	$	18,668		$	(14,250	)	4,418

Comprehensive income							$	405,828


(a)	These amounts are included in the computation of net periodic benefit costs. For more information, see Note 12. Pension and Other Post-Retirement Benefit Plans.


(b)	For information on the presentation of reclassification adjustments for cash flow hedges on the Consolidated Statements of Income, see Note 7. Financial Instruments and Fair Value.

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive loss as shown on the Consolidated Balance Sheets are as follows:



	June 29, 2014			December 31, 2013
Foreign currency translation adjustments	$	(11,525	)	$	(16,830	)
Pension and post-retirement benefit plans, net of tax	(192,474		)	(199,634		)
Cash flow hedges, net of tax	57,656			49,897
Total accumulated other comprehensive loss	$	(146,343	)	$	(166,567	)

INVENTORIES (Tables)

6 Months Ended

Jun. 29, 2014

Inventory Disclosure [Abstract]

Schedule Of Inventory

Inventories were as follows:



	June 29, 2014			December 31, 2013
Raw materials	$	251,382		$	226,978
Goods in process	112,451			79,861
Finished goods	655,815			517,968
Inventories at FIFO	1,019,648			824,807
Adjustment to LIFO	(164,466		)	(165,266		)
Total inventories	$	855,182		$	659,541

DEBT AND FINANCING ARRANGEMENTS (Tables)

6 Months Ended

Jun. 29, 2014

Long-term Debt, Unclassified [Abstract]

Schedule Of Net Interest Expense [Table Text Block]

Net interest expense consisted of the following:



	Three Months Ended						Six Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Interest expense	$	23,085		$	22,123		$	46,399		$	46,781
Interest income	(1,138		)	(705		)	(2,084		)	(1,413		)
Capitalized interest	(1,213		)	(324		)	(2,296		)	(641		)
Interest expense, net	$	20,734		$	21,094		$	42,019		$	44,727

PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Tables)

6 Months Ended

Jun. 29, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures

Components of net periodic benefit cost consisted of the following:



	Pension Benefits						Other Benefits
	Six Months Ended						Six Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Service cost	$	13,333		$	15,698		$	353		$	547
Interest cost	24,425			22,002			5,851			5,377
Expected return on plan assets	(37,018		)	(36,585		)	—			—
Amortization of prior service cost	(334		)	211			308			254
Recognized net actuarial loss	11,673			20,218			(71		)	18
Administrative expenses	393			267			55			50
Net periodic benefit cost	$	12,472		$	21,811		$	6,496		$	6,246

Components of net periodic benefit cost consisted of the following:



	Pension Benefits						Other Benefits
	Three Months Ended						Three Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
Service cost	$	6,448		$	7,730		$	176		$	258
Interest cost	12,200			10,928			2,961			2,592
Expected return on plan assets	(18,432		)	(18,201		)	—			—
Amortization of prior service cost	(167		)	105			154			99
Recognized net actuarial loss	5,935			10,060			(45		)	23
Administrative expenses	216			155			45			36
Net periodic benefit cost	$	6,200		$	10,777		$	3,291		$	3,008

TREASURY STOCK ACTIVITY (Tables)

6 Months Ended

Jun. 29, 2014

Stockholders' Equity Note [Abstract]

Cumulative Share Repurchases And Issuances

A summary of our treasury stock activity is as follows:



	Six Months Ended June 29, 2014
	Shares		Dollars
			In thousands
Shares repurchased in the open market under pre-approved share repurchase programs	1,272,118		$	125,069
Shares repurchased to replace Treasury Stock issued for stock options and incentive compensation	3,006,513		311,187
Total share repurchases	4,278,631		436,256
Shares issued for stock options and incentive compensation	(2,239,082	)	(93,169		)
Net change	2,039,549		$	343,087

SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 29, 2014
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Maturity of Time Deposits	3 months
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Maturity of Time Deposits	12 months

BUSINESS ACQUISITIONS AND DIVESTITURES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Dec. 31, 2013
Business Acquisition [Line Items]
Noncontrolling interests in subsidiaries	$ 63,293		$ 11,218
Business acquisitions, net of cash and cash equivalents acquired	10,035	$ 0
Lotte Shanghai Food Company [Member]
Business Acquisition [Line Items]
Business Acquisition, Cost of Acquired Entity, Cash Paid	5,580
Equity Method Investments	43,857
Noncontrolling interests in subsidiaries	49,724
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	99,449
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	106,253
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt	13,292
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	6,488
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain	$ 4,627
Equity Method Investment, Ownership Percentage	44.10%
Noncontrolling Interest, Ownership Percentage by Parent	50.00%
Business Combination, Consideration Transferred	$ 99,161
Additional Ownership Percentage Acquired	5.90%

NONCONTROLLING INTERESTS IN SUBSIDIARIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013	Dec. 31, 2013
Minority Interest [Line Items]
Noncontrolling interests in subsidiaries	$ 63,293		$ 63,293		$ 11,218
Contributions from noncontrolling interests			2,940	$ 1,470
Noncontrolling interests' share of losses in subsidiaries	$ 130	$ 1,054	$ 309	2,163
Hershey Do Brasil Subsidiary [Member]
Minority Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	51.00%		51.00%
Investments in and Advances to Affiliates, at Fair Value, Gross Additions			$ 3,060	1,530
Contributions from noncontrolling interests			$ 2,940	$ 1,470
Lotte Shanghai Food Company [Member]
Minority Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent	50.00%		50.00%

STOCK COMPENSATION PLAN (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
STOCK COMPENSATION PLAN (Details) - USD ($)	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013	Dec. 31, 2013
Stock Compensation Costs:
Total compensation amount charged against income for stock options, performance stock units (PSUs) and restricted stock units (RSUs)	$ 14,742,000	$ 13,534,000	$ 27,697,000	$ 25,988,000
Total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation	$ 5,056,000	$ 4,786,000	$ 9,500,000	$ 9,070,000
Stock Options:
Outstanding at beginning of period			8,660,336
Granted			1,365,825
Exercised			(1,832,346)
Forfeited			(96,699)
Outstanding as of end of period	8,097,116		8,097,116		8,660,336
Options exercisable as of end of period	4,322,469		4,322,469
Weighted-Average Exercise Price (per share) for Outstanding at beginning of the period			$ 55.47
Weighted-Average Exercise Price (per share) Granted			105.92
Weighted Average Exercise Price (per share) Exercised			48.93
Weighted Average Exercise Price (per share) Forfeited			83.51
Weighted-Average Exercise Price (per share) for Outstanding as of end of period	$ 65.15		65.15		$ 55.47
Weighted-Average Exercise Price (per share) Options Exercisable as of end of period	$ 50.21		$ 50.21
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2			6 years 7 months		6 years 3 months
Weighted-Average Remaining Contractual Term Options Exercisable as of end of period			5 years
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2			6 years 7 months		6 years 3 months
Weighted-average fair value of options granted (per share)			$ 21.55	$ 14.40
Intrinsic value of options exercised			$ 99,645,000	$ 96,724,000
Fair Value Of Stock Option Grant:
Dividend yields			2.00%	2.20%
Expected volatility			22.30%	22.20%
Risk-free interest rates			2.10%	1.40%
Expected lives in years			6 years 8 months	6 years 7 months
Aggregate intrinsic value of options outstanding	$ 273,315,000		$ 273,315,000
Aggregate intrinsic value of options exercisable	204,547,000		204,547,000
Total Unrecognized Compensation Cost Related to Non-Vested Stock Option Compensation Arrangements Granted Under Our Stock Option Plans	$ 36,970,000		$ 36,970,000
Weighted Average Period In Years That Total Unrecognized Compensation Cost is Expected To be Recognized			2 years 4 months
Status of Performance Stock Units and Restricted Stock Units:
Performance Stock Units and Restricted Stock Units Outstanding at beginning of period			1,411,399
Performance Stock Units and Restricted Stock Units Granted			301,282	353,776
Performance Stock Units and Restricted Stock Units Performance Assumption Change			(163,632)
Performance Stock Units and Restricted Stock Units Vested			(520,250)
Performance Stock Units and Restricted Stock Units Forfeited			(27,798)
Performance Stock Units and Restricted Stock Units Outstanding as of end of period	1,001,001		1,001,001		1,411,399
Performance stock units for which measurement date has not yet occurred for accounting purposes	26,396		26,396		29,596
Weighted-average grant date fair value for equity awards or market value for liability awards (per unit):
Outstanding at beginning of period			$ 72.43
Granted			117.41	$ 87.89
Performance Assumption Change			76.97
Vested			62.83
Forfeited			89.52
Outstanding as of end of period	$ 93.14		$ 93.14		$ 72.43
PSU Fair Value Monte Carlo Simulation Estimated Value (per unit)			$ 80.95	$ 55.49
PSU Fair Value Monte Carlo Simulation Dividend Yields			1.80%	2.00%
PSU Fair Value Monte Carlo Simulation Expected Volatility			15.50%	17.10%
Total Unrecognized Compensation Cost Related to Non-Vested PSUs and RSUs	$ 55,786,000		$ 55,786,000
Weighted-average period (in years) that total unrecognized compensation cost related to non-vested stock units and restricted stock units is expected to be recognized			2 years 2 months
Intrinsic value of share-based liabilities paid, combined with the fair value of shares vested			$ 54,933,000	$ 58,226,000
Deferred performance stock units, deferred restricted stock units representing directors' fees (units)			553,096
Number of shares of common stock into which another unit of deferred performance stock and restricted stock is converted			one

BUSINESS REALIGNMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
BUSINESS REALIGNMENT (Details) - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Restructuring Cost and Reserve [Line Items]
Business realignment charges, net	$ 1,247	$ 3,587	$ 4,172	$ 10,438
Next Century Program
Restructuring Cost and Reserve [Line Items]
Restructuring Costs Incurred to Date			194,600
Plant closure expenses	1,247	3,587	4,172	10,438
Business realignment charges, net	1,247	3,587	4,172	10,438
Total business realignment charges	1,239	3,618	4,265	10,602
Next Century Program \| Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Next Century Pretax Charges And Nonrecurring Project Implementation Costs Range Minimum			190,000
Next Century Program \| Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Next Century Pretax Charges And Nonrecurring Project Implementation Costs Range Maximum			200,000
Next Century Program \| Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Costs	(8)	20	93	147
Next Century Program \| Selling, General and Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Costs	$ 0	$ 11	$ 0	$ 17

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Schedule of Earnings Per Share Basic And Diluted By Common Class [Line Items]
Net Income	$ 168,168	$ 159,504	$ 420,663	$ 401,410
Weighted -average shares - Basic	222,788	223,924	223,493	224,166
Weighted Average Number of Shares Outstanding, Diluted	224,981	226,840	226,006	227,274
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,363	1,699	1,365	1,757
Common Stock [Member]
Schedule of Earnings Per Share Basic And Diluted By Common Class [Line Items]
Weighted -average shares - Basic	162,168	163,295	162,873	163,537
Earnings Per Share - Basic	$ 0.78	$ 0.73	$ 1.94	$ 1.84
Earnings Per Share - Diluted	$ 0.75	$ 0.70	$ 1.86	$ 1.77
Common Class B [Member]
Schedule of Earnings Per Share Basic And Diluted By Common Class [Line Items]
Weighted -average shares - Basic	60,620	60,629	60,620	60,629
Earnings Per Share - Basic	$ 0.70	$ 0.66	$ 1.74	$ 1.67
Earnings Per Share - Diluted	$ 0.70	$ 0.66	$ 1.73	$ 1.65
Employee Stock Option [Member]
Schedule of Earnings Per Share Basic And Diluted By Common Class [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	1,913	2,448	2,125	2,516
Performance and restricted stock units
Schedule of Earnings Per Share Basic And Diluted By Common Class [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	280	468	388	592

FINANCIAL INSTRUMENTS AND FAIR VALUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Net notional amount of foreign exchange contracts accounted for as cash flow hedges	$ 25,586,000		$ 25,586,000		$ 158,375,000
Net notional amount of foreign exchange contracts that are not designated as accounting hedges	498,213,000		498,213,000		2,823,000
Balance Sheet Caption
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	1,429,000		1,429,000		129,000
Cash Flow Hedge Derivative Instrument Assets at Fair Value	17,197,000		17,197,000		29,864,000
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	10,010,000		10,010,000		611,000
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	1,693,000		1,693,000		198,000
Derivative Asset Current Commodity Last Day Activity	49,295,000		49,295,000		23,780,000
Derivative Liability Current Commodity Last Day Activity	40,283,000		40,283,000		23,909,000
Long-term Debt	1,795,832,000		1,795,832,000
Long-term Debt, Fair Value	1,979,386,000		1,979,386,000
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance [Abstract]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	3,077,000	$ 0	(4,983,000)	$ 0
Gains (losses) recognized in other comprehensive income (OCI)(effective portion)	11,798,000	9,124,000	44,241,000	6,030,000
Gains (losses) reclassified from accumulated OCI into income (effective portion)	15,044,000	(3,475,000)	29,960,000	(9,318,000)
Gains (losses) recognized in income (ineffective portion)	320,000	155,000	(92,000)	115,000
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months (after tax)			34,162,000
Commodities Futures and Options Contracts
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance [Abstract]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	0	0	2,339,000	0
Gains (losses) recognized in other comprehensive income (OCI)(effective portion)	19,312,000	(5,180,000)	59,267,000	(14,500,000)
Gains (losses) reclassified from accumulated OCI into income (effective portion)	12,400,000	(3,700,000)	28,300,000	(9,500,000)
Gains (losses) recognized in income (ineffective portion)	320,000	155,000	(92,000)	543,000
Foreign Exchange Forward Contracts
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance [Abstract]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	1,676,000	0	(8,792,000)	0
Gains (losses) recognized in other comprehensive income (OCI)(effective portion)	(825,000)	1,722,000	311,000	215,000
Gains (losses) reclassified from accumulated OCI into income (effective portion)	3,754,000	1,057,000	3,897,000	1,926,000
Gains (losses) recognized in income (ineffective portion)	0	0	0	0
Gain on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring	3,801,000		3,801,000
Interest Rate Swap Agreements
Derivatives, Fair Value [Line Items]
Notional amount of interest rate derivative instruments outstanding			250,000,000
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance [Abstract]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	0	0	0	0
Gains (losses) recognized in other comprehensive income (OCI)(effective portion)	(6,689,000)	12,582,000	(15,337,000)	20,315,000
Gains (losses) reclassified from accumulated OCI into income (effective portion)	(1,110,000)	(832,000)	(2,237,000)	(1,744,000)
Gains (losses) recognized in income (ineffective portion)	0	0	0	(428,000)
Equity Swap
Derivatives, Fair Value [Line Items]
Notional amount of the equity swap contracts outstanding			24,902,000
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance [Abstract]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	1,401,000	0	1,470,000	0
Gains (losses) recognized in other comprehensive income (OCI)(effective portion)	0	0	0	0
Gains (losses) reclassified from accumulated OCI into income (effective portion)	0	0	0	0
Gains (losses) recognized in income (ineffective portion)	0	$ 0	0	$ 0
Prepaid expenses and other current assets \| Fair Value, Inputs, Level 1 \| Commodities Futures and Options Contracts
Balance Sheet Caption
Derivative assets current	9,012,000		9,012,000		4,306,000
Prepaid expenses and other current assets \| Fair Value, Inputs, Level 2 \| Foreign Exchange Forward Contracts
Balance Sheet Caption
Derivative assets current	35,000		35,000		2,227,000
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	7,975,000		7,975,000		445,000
Prepaid expenses and other current assets \| Fair Value, Inputs, Level 2 \| Equity Swap
Balance Sheet Caption
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	1,470,000		1,470,000		0
Other long-term assets \| Fair Value, Inputs, Level 2 \| Foreign Exchange Forward Contracts
Balance Sheet Caption
Derivative Assets, Noncurrent	0		0		586,000
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	565,000		565,000		166,000
Other long-term assets \| Fair Value, Inputs, Level 2 \| Interest Rate Swap Agreements
Balance Sheet Caption
Derivative Assets, Noncurrent	7,407,000		7,407,000		22,745,000
Other long-term assets \| Fair Value, Inputs, Level 2 \| Cross Currency Swap
Balance Sheet Caption
Derivative Assets, Noncurrent	743,000		743,000		0
Accrued liabilities \| Fair Value, Inputs, Level 1 \| Commodities Futures and Options Contracts
Balance Sheet Caption
Derivative liabilities current	0		0		129,000
Accrued liabilities \| Fair Value, Inputs, Level 2 \| Foreign Exchange Forward Contracts
Balance Sheet Caption
Derivative liabilities current	1,429,000		1,429,000		0
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	1,693,000		1,693,000		0
Other long-term liabilities \| Fair Value, Inputs, Level 2 \| Foreign Exchange Forward Contracts
Balance Sheet Caption
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	$ 0		$ 0		$ 198,000

COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013	Dec. 31, 2013
Other comprehensive income (loss) Pre-Tax Amount:
Foreign currency translation adjustments	$ 5,773	$ (19,104)	$ 5,305	$ (18,981)
Pension and post-retirement benefit plans	5,825	11,498	11,535	22,301
Cash Flow Hedges:
Gains on cash flow hedging derivatives	11,798	9,124	44,241	6,030
Reclassification adjustments	(15,044)	3,475	(29,960)	9,318
Total Other Comprehensive Income	8,352	4,993	31,121	18,668
Other comprehensive income Tax (Expense) Benefit:
Foreign currency translation adjustments	0	0	0	0
Pension and post-retirement benefit plans	(2,225)	(4,646)	(4,375)	(8,680)
Cash Flow Hedges:
Gains on cash flow hedging derivatives	(4,456)	(3,342)	(16,460)	(2,020)
Reclassification adjustments	4,261	(1,324)	9,938	(3,550)
Total Other Comprehensive Income	(2,420)	(9,312)	(10,897)	(14,250)
Comprehensive income (loss) After-Tax Amount:
Net Income	168,168	159,504	420,663	401,410
Other Comprehensive Income (Loss) After-Tax Amount:
Foreign currency translation adjustments	5,773	(19,104)	5,305	(18,981)
Pension and postretirement benefit plans	3,600	6,852	7,160	13,621
Cash Flow Hedges:
Gains on cash flow hedging derivatives	7,342	5,782	27,781	4,010
Reclassification adjustments	(10,783)	2,151	(20,022)	5,768
Other comprehensive income	5,932	(4,319)	20,224	4,418
Comprehensive Income	174,100	$ 155,185	440,887	$ 405,828
Components of Accumulated Other Comprehensive (Loss) Abstract
Foreign currency translation adjustments	(11,525)		(11,525)		$ (16,830)
Pension and post-retirement benefit plans, net of tax	(192,474)		(192,474)		(199,634)
Cash flow hedges, net of tax	57,656		57,656		49,897
Total accumulated other comprehensive loss	$ (146,343)		$ (146,343)		$ (166,567)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 29, 2014	Dec. 31, 2013
Inventories Table
Raw materials	$ 251,382	$ 226,978
Goods in process	112,451	79,861
Finished goods	655,815	517,968
Inventories at FIFO	1,019,648	824,807
Adjustment to LIFO	(164,466)	(165,266)
Total inventories	$ 855,182	$ 659,541

DEBT AND FINANCING ARRANGEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Long-term debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000		$ 1,000,000
Long-term borrowings			78	$ 249,785
Interest expense	23,085	$ 22,123	46,399	46,781
Interest income	(1,138)	(705)	(2,084)	(1,413)
Capitalized interest	(1,213)	(324)	(2,296)	(641)
Interest expense, net	$ 20,734	21,094	$ 42,019	$ 44,727
Notes Due 2013 [Member]
Long-term debt [Line Items]
Repayments of Long-term Debt		$ 250,000
Debt Instrument, Interest Rate, Stated Percentage		5.00%		5.00%
Notes Due 2023 [Member]
Long-term debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		2.625%		2.625%
Long-term borrowings		$ 250,000

INCOME TAXES (Details) $ in Millions	Jun. 29, 2014 USD ($)
Income Tax Disclosure [Abstract]
Accrued Income Taxes, Interest and Penalties	$ 74.4
Income Taxes Receivable, Noncurrent	66.7
Reduction in liability for unrecognized tax benefits	$ 63.3

PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6,448	$ 7,730	$ 13,333	$ 15,698
Interest cost	12,200	10,928	24,425	22,002
Expected return on plan assets	(18,432)	(18,201)	(37,018)	(36,585)
Amortization of prior service cost	(167)	105	(334)	211
Recognized net actuarial loss	5,935	10,060	11,673	20,218
Administrative expenses	216	155	393	267
Net periodic benefit cost	6,200	10,777	12,472	21,811
Pension Contributions	422	814	1,973	1,228
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	176	258	353	547
Interest cost	2,961	2,592	5,851	5,377
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	154	99	308	254
Recognized net actuarial loss	(45)	23	(71)	18
Administrative expenses	45	36	55	50
Net periodic benefit cost	3,291	3,008	6,496	6,246
Pension Contributions	$ 5,532	$ 6,270	$ 10,672	$ 12,021

TREASURY STOCK ACTIVITY (Details) $ in Thousands	6 Months Ended
TREASURY STOCK ACTIVITY (Details) $ in Thousands	Jun. 29, 2014 USD ($) shares
Cumulative Share Repurchases and Issuances Abstract
Shares repurchased in the open market under pre-approved share repurchase programs \| shares	1,272,118
Shares repurchased to replace Treasury Stock issued for stock options and incentive compensation \| shares	3,006,513
Total share repurchases \| shares	4,278,631
Shares issued for stock options and incentive compensation \| shares	(2,239,082)
Net Change \| shares	2,039,549
Value of shares repurchased in the open market under pre-approved share repurchase programs	$ 125,069
Value of shares repurchased to replace Treasury Stock issued for stock options and incentive compensation	311,187
Total Share Repurchases	436,256
Value of shares issued for stock options and incentive compensation	(93,169)
Net Change In Value	343,087
2011 Share Repurchase Program [Member]
Accelerated Share Repurchases [Line Items]
Approved share repurchase program	250,000
2014 Share Repurchase Program [Member]
Accelerated Share Repurchases [Line Items]
Available for repurchase under approved share repurchase program	250,000
Approved share repurchase program	$ 250,000

CONTINGENCIES (Details) $ in Millions	6 Months Ended
CONTINGENCIES (Details) $ in Millions	Jun. 30, 2013 USD ($)	Jun. 29, 2014
Canada [Member]
Loss Contingencies [Line Items]
Loss Contingency, Pending Claims, Number		13
Litigation Settlement, Amount	$ 4.0
US [Member]
Loss Contingencies [Line Items]
Loss Contingency, Pending Claims, Number		91

Label	Element	Value
Interest Rate Contract [Member]
Derivative, Notional Amount	invest_DerivativeNotionalAmount	$ 250,000,000