2018-06-14T11:42:50-05:00 2017-07-31 PricewaterhouseCoopers LLP 2001 MARKET ST SUITE 1800 PHILADELPHIA PA 19103 990 2016-08-01 231353340 MILTON HERSHEY SCHOOL AND SCHOOL TRUST % GAYLA MOLINELLI HERSHEY TRU MILT 7175201100 PO BOX 445 HERSHEY PA 17033 GAYLA MOLINELLI VP, FINANCE 7175201100 2018-06-11 true ERIC M MCNEIL P00460263 2673303000 2016 2022-09-23 18:48:47Z PETER GURT PO BOX 445 HERSHEY PA 17033 1667508059 false X WWW.MHS-PA.ORG X SEE SCH O 1909 PA IN KEEPING WITH MILTON AND CATHERINE HERSHEY'S DEED OF TRUST, MILTON HERSHEY SCHOOL NURTURES AND EDUCATES CHILDREN IN SOCIAL AND FINANCIAL NEED. SEE SCHEDULE O. 9 0 2120 104 -4989546 -5300717 53573 43789 634199 462144 329884731 466382437 3080204 2926809 333652707 469815179 8559057 8438318 0 0 123274728 130475841 0 0 0 126394221 132723216 258228006 271637375 75424701 198177804 14001120037 14223590683 249660055 230777665 13751459982 13992813018 X SEE SCHEDULE O FOR FURTHER DETAILS. false false 209048923 8438318 462144 SEE SCHEDULE O FOR FURTHER DETAILS. 209048923 true true false true false false true false true true true false false false true true false true false true false false false false false false false true true false false false false false false false false false false false false true true true true false false true 309 0 true 2120 true true true false false false false false false false false false X 9 0 true false false false false true false true true false false true true true true true true true true false X GAYLA MOLINELLI HERSHEY TRU 7175201100 PO BOX 445 HERSHEY PA 17033 X ROBERT F CAVANAUGH BOARD OF MANAGERS TO 12/16 11.5 6.0 X 0 256200 135202 JAMES M MEAD BOARD OF MANAGERS 7.0 4.5 X 0 268000 135000 JAMES E NEVELS BOARD OF MANAGERS TO 12/16 4.5 6.0 X 0 337844 135000 VELMA A REDMOND ESQ BOARD OF MANAGERS 28.0 1.0 X 0 216000 0 JOSEPH M SENSER BOARD OF MANAGERS TO 12/16 3.5 2.0 X 0 197167 1711 ROBERT CONNOR HEIST BOARD OF MANAGERS 30.0 0.0 X 0 196000 0 DAVID SALTZMAN Board of Managers 5.5 0.0 X 0 114500 0 M Diane Koken Board of Managers 10.5 0.5 X 0 121000 0 James Brown Board of Managers 6.0 0.0 X 0 191000 0 Jan L Bergen Board of Managers began 4/17 5.0 0.0 X 0 0 0 Melissa L Fullmore board of Managers began 4/17 6.5 0.0 X 0 0 0 James Katzman Board of Managers began 4/17 5.0 0.0 X 0 0 0 HERSHEY TRUST COMPANY TRUSTEE 0.0 0.0 X 1000 0 0 ELLIOTT H ROBINSON VP ADMINISTRATION 48.0 0.0 X 261992 0 89226 JOAN K SINGLETON VP HUMAN RESOURCES 55.0 0.0 X 253262 0 82037 PETER G GURT PRESIDENT 60.0 0.0 X 465437 0 137384 LISA RASHID VP - COMMUNICATIONS 60.0 0.0 X 191936 0 69296 ERIC HENRY ACTING TREASURER 56.0 5.0 X 0 1350611 53085 ANDREW H CLINE VP LEGAL AFFRS/GEN COUNSEL 60.0 0.0 X 271250 0 88577 LINDA VETTORI ASSISTANT SECRETARY 48.0 2.0 X 0 104975 31911 FREDA F MARTINE VP OF EDU AND STUDENT LIFE 60.0 0.0 X 202485 0 96574 STEVEN SPARKS ESQ Secretary 48.0 2.0 X 0 222593 11702 ANNETTE K COLE GILL HEAD-ELEMENTARY DIVISION 47.0 0.0 X 199704 0 57634 BETH J SHAW EXEC DIRECTOR- STUDENT SUPPORT 57.0 0.0 X 202305 0 57578 WILLIAM H WEBER III HEAD OF SR DIVISION 53.0 0.0 X 155786 0 43997 TIMOTHY C FAKE SR DIRECTOR IT 54.0 0.0 X 170669 0 35971 JOHN J OSMOLINSKI SR DIR CONSTRUCTION/FAC 55.0 0.0 X 154449 0 50786 ERICA M WEILER-TIMMONS DIR PSYCHOLOGICAL SERVICE 50.0 0.0 X 149556 0 47129 DENISE L ALSTON DDS DIR DENTAL SERVICES 47.0 0.0 X 143430 0 34126 DAVID C MILLER JR SR DIR RISK MANAGEMENT 48.0 0.0 X 157434 0 39446 JOAN E STEEL BOARD OF MANAGERS TO 7/9/16 8.5 0.0 X 0 67000 0 Stephanie Bell-Rose BOARD OF MANAGERS to 3/26/16 4.5 0.0 X 0 27000 0 MARC A WOOLLEY ESQ SECRETARY TO 6/30/2016 48.0 2.0 X 0 201962 15990 JOHN ESTEY ESQ INTERIM PRESIDENT to 7/14 50.0 0.0 X 0 210976 24034 THOMAS A K QUEENAN CFO to 6/16 55.0 0.0 X 0 318898 34499 2980695 4401726 1507895 99 true true false KINSLEY CONSTRUCTION INC PO BOX 2886 YORK PA 174052886 Construction 9476494 HERSHEY TRUST COMPANY PO BOX 445 HERSHEY PA 17033 INVEST & SHARED SRVS 8335206 SODEXO INC AFFILIATES PO BOX 360170 PITTSBURGH PA 152516170 FOOD SERVICE/MGT 6001009 HANDWERK SITE CONTRACTORS PO BOX 55 SKIPPACK PA 19474 CONSTRUCTION 3089058 NRG BUILDING SERVICES INC 48 S HARRISBURG ST 2ND FLOOR HARRISBURG PA 17113 CONSTRUCTION 2171816 91 43789 9726 43789 Ag Milk & Crop Sales 900099 333123 333123 CONCESSION STAND SALES 900099 69223 69223 UTILITY REBATES 900099 49964 49964 MEMORABILIA SALES TO PUBLIC 900099 5168 5168 FOOD REBATES 900099 1188 1188 3478 3478 462144 307171604 -4964672 312136276 0 0 5485579 2558770 2926809 0 2926809 -24874 2951683 1354185315 159628 1195038108 96002 159147207 63626 159210833 159210833 0 0 0 0 0 0 0 0 0 0 469815179 462144 -4989546 474298792 X 0 8438318 8438318 0 0 2950455 1168046 1782409 0 79152347 74250336 4902011 18335640 16868789 1466851 23021461 21179744 1841717 7015938 6454663 561275 0 2120927 539321 1581606 242900 223468 19432 0 0 36805945 36805945 5797057 5169155 627902 2407141 1163857 1243284 1870286 1687044 183242 1509094 1464558 44536 0 5776916 5766663 10253 2255113 2158571 96542 0 206443 162263 44180 0 0 40844328 36932310 3912018 3582492 1076345 2506147 CONTRACTED SERVICES/CONSULTING 9752477 8374254 1378223 0 FOOD, CLOTHING & HOUSEHOLD 6976639 6811686 164953 EQUIP RENTAL & MAINTENANCE 4454797 4147274 307523 TRUST EXPENSES 2904528 0 2904528 5216133 5012258 203875 271637375 209048923 62588452 0 81571 26998 68749539 59382745 0 0 25815996 36599495 0 0 0 0 0 0 1592951 1857445 1205622 986723 1178119326 522130601 645925250 655988725 1510698766 1718389692 11747050342 11750358860 0 0 0 0 0 0 14001120037 14223590683 249660055 230777665 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 249660055 230777665 X 1195174875 1324137569 0 0 12556285107 12668675449 13751459982 13992813018 14001120037 14223590683 X 198177804 8781385 34393847 X X false true X true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 209048923 209048923 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 0 0 0 0 0 250000 250000 250000 250000 1000000 1500000 0 0 0 FORM 990, SCHEDULE C, PART II-A MHSST HAD NO LOBBYING EXPENSES FOR THE REPORTING PERIOD AND AS SUCH HAS REPORTED $0 FOR PART II-A, LINES 2C AND 2F. SCHEDULE C IS COMPLETED BECAUSE OF A PREVIOUSLY FILED 501(H) ELECTION THAT ALLOWS MHSST TO INCUR NONTAXABLE LOBBYING EXPENDITURES OF $1 MILLION AND NONTAXABLE GRASSROOTS LOBBYING EXPENDITURES OF $250,000. X X X false 12556285107 112390342 12668675449 11072259160 1484025947 12556285107 10695613308 376645852 11072259160 10710324026 -14710718 10695613308 8746048626 1964275400 10710324026 1.00000 false true true 64393293 64393293 103494000 927765355 469497500 561761855 82466678 52633101 29833577 655988725 SEE PART XIII 11750358860 F 11750358860 0 0 X 480681987 8781385 2085423 10866808 469815179 469815179 236770181 -473347 -473347 237243528 34393847 34393847 271637375 SCHEDULE D, PART III, LINE 1A & 4 MAINTAINING COLLECTIONS OF ART, HISTORICAL TREASURES, OR SIMILAR ASSETS THE ORGANIZATION ELECTED, AS PERMITTED UNDER ASC 958-360-25-1 and 958-605-25-19 (formerly SFAS 116), NOT TO REPORT IN ITS REVENUE STATEMENT AND BALANCE SHEET WORKS OF ART, HISTORICAL TREASURES, OR OTHER SIMILAR ASSETS HELD FOR PUBLIC EXHIBITION, EDUCATION OR RESEARCH IN FURTHERANCE OF PUBLIC SERVICE. THE DEPARTMENT OF SCHOOL HISTORY AND THE MHS HERITAGE CENTER AT KINDERHAUS PROVIDE FOR THE CARE AND MANAGEMENT OF THE HISTORICAL ASSETS OF THE MILTON HERSHEY SCHOOL COMMUNITY. THE HISTORICAL ASSETS (COLLECTION) CONSIST OF ARCHIVAL RECORDS AND DOCUMENTS, THREE DIMENSIONAL OBJECTS, INTERPRETIVE EXHIBITS, AND HISTORICAL CAMPUS BUILDINGS WHICH HELP TO DOCUMENT THE LIVES AND VALUES OF MILTON AND CATHERINE HERSHEY AS FOUNDERS OF OUR SCHOOL, THE HISTORY AND TRADITIONS OF THE SCHOOL AS AN INSTITUTION, AND THE STORIES OF THE STUDENTS, STAFF, AND ALUMNI WHO MAKE UP THE SCHOOL COMMUNITY. EXCLUDED FROM THIS MANDATE ARE LEGAL BOARD RECORDS, STUDENT RECORDS, AND ALUMNI RECORDS. SCHEDULE D, PART V, LINE 4 TRUST FUNDS AS MANDATED BY MILTON HERSHEY'S DEED OF TRUST, THE TRUST FUNDS ARE USED TO OPERATE THE MILTON HERSHEY SCHOOL AND MANAGE THE SCHOOL TRUST IN PERPETUITY. THE SCHOOL HAS MADE A POSITIVE DIFFERENCE IN THE LIVES OF ITS STUDENTS FOR OVER 100 YEARS. IN ORDER TO CONTINUE TO CHANGE LIVES FOR THE NEXT 100 YEARS AND BEYOND, THE TRUST FUNDS AND OTHER ASSETS OF THE MILTON HERSHEY SCHOOL TRUST (THE "ASSETS") ARE INVESTED FOR THE LONG TERM. DOING SO HELPS TO ENSURE FUNDS ARE AVAILABLE TO MEET CURRENT AND FUTURE OBLIGATIONS OF MILTON HERSHEY SCHOOL. THE BOARD AND THE TRUSTEE, WITH ASSISTANCE FROM THIRD-PARTY INVESTMENT CONSULTANTS, CONTINUALLY REVIEW THE PERFORMANCE OF THE ASSETS AND INVESTMENT DECISIONS. STRICT INVESTMENT GUIDELINES GOVERN A DISCIPLINED PROCESS FOR ASSET ALLOCATION, MANAGER SELECTION AND REVIEW OF MANAGEMENT FEES. SCHEDULE D, PART X, LINE 2 FIN 48 FOOTNOTE TAX POSITIONS ARE RECOGNIZED OR DERECOGNIZED BASED ON A "MORE-LIKELY THAN-NOT" THRESHOLD FOR POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S ACCOUNTING POLICY FOR EVALUATING UNCERTAIN TAX POSITIONS IS THAT RECOGNIZED INCOME TAX POSITIONS ARE MEASURED AT THE LARGEST AMOUNT THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST DOES NOT BELIEVE THERE ARE ANY UNRECOGNIZED TAX BENEFITS OR LIABILITIES THAT SHOULD BE RECORDED. SCHEDULE D, PART XI, LINE 2D RECONCILIATION OF REVENUE PER AUDITED FIN STMTS WITH REVENUE PER RETURN RENTAL INCOME (RECLASS) (11,203) PROGRAM SERVICE REVENUE (RECLASS) (462,144) RENTAL EXPENSES 2,558,770 ________ 2,085,423 SCHEDULE D, PART XII, LINE 2D RECONCILIATION OF EXPENSES PER AUDITED FIN STMTS WITH EXPENSES PER RETURN RENTAL INCOME (RECLASS) (11,203) PROGRAM SERVICE REVENUE (RECLASS) (462,144) _________ (473,347) SCHEDULE D, PART XII, LINE 4B RECONCILIATION OF EXPENSES PER AUDITED FIN STMTS WITH EXPENSES PER RETURN UNRECOGNIZED PENSION & POST RETIREMENT GAIN 34,393,847 SUPPLEMENTAL INFORMATION FORM 990, PARTS VIII AND IX: DETAIL OF REVENUE AND EXPENSES PART VIII, STATEMENT OF REVENUE MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 1F CONTRIBUTIONS 43,789 - 43,789 2 PROGRAM SERVICE REV - 462,144 462,144 3 INVESTMENT INCOME 307,171,604 - 307,171,604 6 NET RENTAL INCOME 2,915,606 11,203 2,926,809 7(I) GAIN ON SALE-SECURITIES 159,147,207 - 159,147,207 7(II) GAIN ON SALE-OTHER 83,444 (19,818) 63,626 11A OTHER INCOME - - - _________ ________ _________ 12 TOTAL REVENUE 469,361,651 453,528 469,815,179 PART IX, STATEMENT OF FUNCTIONAL EXPENSES MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 2 GRANTS TO INDIVIDUALS - 8,438,318 8,438,318 5 COMPENSATION OF OFFICERS 1,000 2,949,455 2,950,455 7 OTHER SALARIES & WAGES - 79,152,347 79,152,347 8 PENSION PLAN CONTRIBUTIONS - 18,335,640 18,335,640 9 OTHER EMPLOYEE BENEFITS - 23,021,461 23,021,461 10 PAYROLL TAXES - 7,015,938 7,015,938 11B LEGAL FEES - 2,120,927 2,120,927 11C ACCOUNTING FEES - 242,900 242,900 11F INVEST MGMT FEES 36,805,945 - 36,805,945 11G OTHER FEES FOR SERVICES - 5,797,057 5,797,057 12 ADVERTISING - 2,407,141 2,407,141 13 OFFICE EXPENSES - 1,870,286 1,870,286 14 INFORMATION TECHNOLOGY - 1,509,094 1,509,094 16 OCCUPANCY - 5,776,916 5,776,916 17 TRAVEL - 2,255,113 2,255,113 19 CONFERENCES - 206,443 206,443 22 DEPRECIATION 700,513 40,143,815 40,844,328 23 INSURANCE - 3,582,492 3,582,492 24A CONTRACTED SERV/CONSULTING - 9,752,477 9,752,477 24B FOOD/CLOTHING/HOUSEHOLD - 6,976,639 6,976,639 24C EQUIP RENTAL & MAINTENANCE - 4,454,797 4,454,797 24D TRUST EXPENSES (*) 2,904,528 - 2,904,528 24E ALL OTHER EXPENSES - 5,216,133 5,216,133 _________ _________ _________ 26 TOTAL FUNCTIONAL EXPENSES 40,411,986 231,225,079 271,637,375 (*) TRUST EXPENSES INCLUDE LEGAL, CONSULTING AND OTHER EXPENSES RELATED TO MANAGEMENT OF THE TRUST. SUPPLEMENTAL INFORMATION FORM 990, PART X, LINE 27: UNRESTRICTED NET ASSETS (INCOME FUND) MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 1 CASH 3 26,995 26,998 2 SAVINGS & TEMP INVEST 14,684,294 - 14,684,294 4 ACCOUNTS RECEIVABLE 20,662,018 1,326,423 21,988,441 8 INVENTORIES FOR SALE/USE - 1,857,445 1,857,445 9 PREPAID EXPENSES - 986,723 986,723 10A PROPERTY EQPMT, AT COST 992,001,763 82,466,679 1,074,468,442 10B LESS: ACCUMULATED DEP. (469,497,500) (52,633,101) (522,130,601) 11 INVEST: PUBLICLY TRADED 451,599,917 - 451,599,917 12 INVEST: OTHER 497,665,477 - 497,665,477 17 LIABILITIES (10,505,724) (206,503,843) (217,009,567) ___________ ___________ _________ NET UNRESTRICTED ASSETS 1,496,610,248 (172,472,679) 1,324,137,569 OF THE $1,324,137,569 IN NET UNRESTRICTED ASSETS, $953,304,310 IS AVAILABLE IN MARKETABLE INVESTMENTS. THE REMAINDER OF THE NET UNRESTRICTED ASSETS IS IN NON-LIQUID REAL ESTATE, INCLUDING CAMPUS BUILDINGS, AND INVESTMENTS. FORM 990, PART X BALANCE SHEET DETAIL PART X, LINE 11 PUBLICLY TRADED SECURITIES U.S. GOVERNMENT OBLIGATIONS $ 484,272,460 FMV AGENCY BONDS 88,725,185 FMV CORPORATE BONDS 365,515,772 FMV BOND FUNDS 174,589,823 FMV COMMON STOCKS-OTHER 605,286,452 FMV ________________ TOTAL PART X, LINE 11 $1,718,389,692 PART X, LINE 12/SCHEDULE D, PART VII CLOSELY HELD EQUITY INTERESTS THE HERSHEY COMPANY - COMMON SHARES $1,343,073,297 FMV HERSHEY ENTERTAINMENT & RESORTS 725,000,000 FMV HERSHEY TRUST COMPANY 38,077,595 FMV THE HERSHEY CO - CLASS B SHARES 6,383,050,984 FMV ________________ SUB-TOTAL CLOSELY-HELD INTERESTS $8,489,201,876 PART X, LINE 12 (CONTINUED) OTHER STOCK FUNDS - OTHER $1,966,580,297 FMV OTHER BOND FUNDS 459,221,127 FMV MARKETABLE ALTERNATIVES 57,079,850 FMV ALTERNATIVE ASSETS-NON MARKETABLE 778,275,710 FMV _____________ SUB-TOTAL OTHER $3,261,156,984 _____________ TOTAL PART X, LINE 12 $11,750,358,860 TOTAL PART X, LINE 12 $11,750,358,860 true true true true true true true false false false false false false false false false false true SCHEDULE E, LINE 3 THE MILTON HERSHEY SCHOOL ANNUALLY PUBLISHES ITS NON-DISCRIMINATION POLICY IN NEWSPAPERS OF ITS GENERAL COMMUNITY. THE CURRENT ADVERTISEMENT WAS PUBLISHED IN THE PHILADELPHIA INQUIRER, THE HARRISBURG PATRIOT NEWS, THE NEW YORK TIMES AND THE PITTSBURGH POST-GAZETTE. THE ADVERTISEMENT READS AS FOLLOWS: QUALIFIED STUDENTS ARE ELIGIBLE FOR ADMISSION REGARDLESS OF RACE, COLOR, NATIONAL OR ETHNIC ORIGIN, ANCESTRY, SEX, RELIGIOUS CREED OR DISABILITY. MILTON HERSHEY SCHOOL DOES NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, NATIONAL OR ETHNIC ORIGIN, ANCESTRY, SEX, RELIGIOUS CREED OR DISABILITY IN THE ADMINISTRATION OF ITS EDUCATIONAL POLICIES, ADMISSIONS POLICIES, SCHOLARSHIP AND LOAN PROGRAMS, AND ATHLETIC AND OTHER SCHOOL-ADMINISTERED PROGRAMS. Europe (Including Iceland and Greenland) Investments 153662362 Central America and the Caribbean Investments 346529384 Sub-Saharan Africa Investments 19295042 North America Investments 12811971 532298759 532298759 true false true true true false true Continuing Education Scholarships 582 8438318 SCHEDULE I, PART I, QUESTION 2 MONITORING THE USE OF GRANT FUNDS THE CONTINUING EDUCATION SCHOLARSHIP (CES) HAS BEEN ESTABLISHED TO PROVIDE POST-SECONDARY SCHOLARSHIP ASSISTANCE TO ELIGIBLE MILTON HERSHEY SCHOOL GRADUATES PURSUING FULL-TIME STUDY IN AN ACCREDITED UNDERGRADUATE PROGRAM WITH THE INTENTION TO EARN A DIPLOMA, CERTIFICATE, OR DEGREE. THE CES EASES - AND OFTEN ELIMINATES - THE BURDEN OF STUDENTS' POST-SECONDARY COSTS BY HELPING TO PAY FOR STANDARD FULL-TIME TUITION, FEES, ROOM AND BOARD, AND POSSIBLY HEALTH INSURANCE NOT COVERED BY AID FROM POSTSECONDARY SCHOOLS. THE CES COVERS COSTS FOR RECENT GRADUATES UP TO $87,500. THESE FUNDS ARE AVAILABLE TO ALUMNI WHO PURSUE THEIR POSTGRADUATE STUDIES WITHIN FIVE YEARS OF GRADUATION. CES STAFF AND RESOURCES ARE DEVOTED TO FOLLOWING UP WITH ALUMNI TO ENSURE THEY HAVE THE SUPPORT THEY NEED AS THEY NAVIGATE THE POSTGRADUATE YEARS. 80% OF GRADUATES WILL IMMEDIATELY CONTINUE THEIR STUDIES AFTER LEAVING MHS. THE MILTON HERSHEY SCHOOL, THROUGH CES OFFICE STAFF, UTILIZES A COMBINATION OF THE FOLLOWING DOCUMENTS TO VALIDATE SCHOLARSHIP ELIGIBILITY AND COLLEGE COST & FINANCIAL AID DATA: COLLEGE ACADEMIC TRANSCRIPTS/GRADES, A STANDARDIZED COST AND AID ASSESSMENT FORM THAT IS COMPLETED BY THE INSTITUTION'S FINANCIAL AID OFFICE (RELEASE FORM), COLLEGE BILLS, SIGNED COPIES OF LEASES/RENTAL AGREEMENTS, RECEIPTS, DEGREE COMPLETION EVALUATIONS, AND OTHER DOCUMENTATION AS NEEDED. SCHEDULE I, PART III GRANTS & ASSISTANCE TO INDIVIDUALS IN THE U.S. THE MILTON HERSHEY SCHOOL OFFERS A CONTINUING EDUCATION SCHOLARSHIP PROGRAM FOR STUDENTS GRADUATING AFTER THE SPRING OF 2004, WHERE SCHOLARSHIP CREDITS ARE EARNED GRADUALLY EACH YEAR OF HIGH SCHOOL. THE MAXIMUM AWARD FOR THE GRADUATING CLASS OF 2017 WILL BE $87,500. THE MAXIMUM AWARD MAY BE INCREASED EVERY YEAR TO MATCH THE AVERAGE U.S. COLLEGE INFLATION RATE. THE EARNING OF THE SCHOLARSHIP AWARD IS DEPENDENT ON THE STUDENTS' ANNUAL ACADEMIC PERFORMANCE AND CERTAIN OTHER CONDITIONS. UPON INCEPTION OF THIS PROGRAM, CURRENT HIGH SCHOOL STUDENTS WERE AWARDED THE SCHOLARSHIP CREDIT FOR GRADES PREVIOUSLY COMPLETED. STUDENTS WHO HAD GRADUATED IN OR PRIOR TO THE SPRING OF 2004 WERE NOT AFFECTED BY THE NEW POLICY. SIGNIFICANT ASSUMPTIONS IN DETERMINING THE LIABILITY FOR THIS PROGRAM INCLUDE PARTICIPATION AND DISCOUNT RATES. THE EXPENSE RECOGNIZED FOR THE CONTINUING EDUCATION PROGRAMS DESCRIBED ABOVE WAS $8,438,318 AND $8,559,057 DURING THE YEARS ENDED JULY 31, 2017 AND 2016 RESPECTIVELY, AND IS INCLUDED IN CONTINUING EDUCATION PROGRAMS ON THE STATEMENT OF ACTIVITIES OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST FINANCIAL STATEMENTS. THE AMOUNT REPORTED COVERS THE 582 STUDENTS CURRENTLY RECEIVING CONTINUING EDUCATION SCHOLARSHIPS AS WELL AS THE 940 STUDENTS EARNING CREDITS TOWARD THEIR FUTURE SCHOLARSHIPS. SCHEDULE I, PART III, COLUMN (C): THE AMOUNT REPORTED IN COLUMN C "AMOUNT OF CASH GRANT" CONSISTS OF $6,936,894 OF CASH GRANTS PAID DURING THE YEAR AND $1,501,424 WHICH REPRESENTS AN INCREASE IN THE TUITION ACCRUAL FOR GRANTS TO BE PAID IN FUTURE YEARS. THE TOTAL OF THESE AMOUNTS IS $8,438,318. X X X true true X X X X X true false false false false false false false false ROBERT F CAVANAUGH BOARD OF MANAGERS TO 12/16 0 256000 0 0 0 200 0 135000 0 202 0 391402 0 0 JAMES M MEAD BOARD OF MANAGERS 0 268000 0 0 0 0 0 135000 0 0 0 403000 0 0 JAMES E NEVELS BOARD OF MANAGERS TO 12/16 0 196819 0 0 0 141025 0 135000 0 0 0 472844 0 135000 VELMA A REDMOND ESQ BOARD OF MANAGERS 0 216000 0 0 0 0 0 0 0 0 0 216000 0 0 JOSEPH M SENSER BOARD OF MANAGERS TO 12/16 0 197167 0 0 0 0 0 0 0 1711 0 198878 0 0 ROBERT CONNOR HEIST BOARD OF MANAGERS 0 196000 0 0 0 0 0 0 0 0 0 196000 0 0 ELLIOTT H ROBINSON VP ADMINISTRATION 228125 0 0 0 33867 0 56224 0 33002 0 351218 0 0 0 JOAN K SINGLETON VP HUMAN RESOURCES 220700 0 0 0 32562 0 53422 0 28615 0 335299 0 0 0 PETER G GURT PRESIDENT 344403 0 106051 0 14983 0 52715 0 84669 0 602821 0 0 0 LISA RASHID VP - COMMUNICATIONS 191303 0 0 0 633 0 39394 0 29902 0 261232 0 0 0 ANNETTE K COLE GILL HEAD-ELEMENTARY DIVISION 199286 0 0 0 418 0 30356 0 27278 0 257338 0 0 0 BETH J SHAW EXEC DIRECTOR- STUDENT SUPPORT 201514 0 0 0 791 0 30646 0 26932 0 259883 0 0 0 TIMOTHY C FAKE SR DIRECTOR IT 170285 0 0 0 384 0 25785 0 10186 0 206640 0 0 0 JOHN J OSMOLINSKI SR DIR CONSTRUCTION/FAC 152751 0 0 0 1698 0 23382 0 27404 0 205235 0 0 0 ERICA M WEILER-TIMMONS DIR PSYCHOLOGICAL SERVICE 149359 0 0 0 197 0 19887 0 27242 0 196685 0 0 0 MARC A WOOLLEY ESQ SECRETARY TO 6/30/2016 0 200687 0 0 0 1275 0 14111 0 1879 0 217952 0 0 JOHN ESTEY ESQ INTERIM PRESIDENT to 7/14 0 210102 0 0 0 874 0 14780 0 9254 0 235010 0 0 ERIC HENRY ACTING TREASURER 0 498146 0 850000 0 2465 0 35000 0 18085 0 1403696 0 0 JOAN E STEEL BOARD OF MANAGERS TO 7/9/16 0 67000 0 0 0 0 0 0 0 0 0 67000 0 0 ANDREW H CLINE VP LEGAL AFFRS/GEN COUNSEL 260005 0 0 0 11245 0 52281 0 36296 0 359827 0 0 0 THOMAS A K QUEENAN CFO to 6/16 0 131638 0 58911 0 128349 0 13626 0 20873 0 353397 0 0 DENISE L ALSTON DDS DIR DENTAL SERVICES 143316 0 0 0 114 0 16043 0 18083 0 177556 0 0 0 FREDA F MARTINE VP OF EDU AND STUDENT LIFE 200947 0 0 0 1538 0 68658 0 27916 0 299059 0 0 0 DAVID C MILLER JR SR DIR RISK MANAGEMENT 156455 0 0 0 979 0 20671 0 18775 0 196880 0 0 0 WILLIAM H WEBER III HEAD OF SR DIVISION 155595 0 0 0 191 0 17465 0 26532 0 199783 0 0 0 STEVEN SPARKS ESQ Secretary 0 201708 0 0 0 20885 0 0 0 11702 0 234295 0 0 Stephanie Bell-Rose BOARD OF MANAGERS to 3/26/16 0 27000 0 0 0 0 0 0 0 0 0 27000 0 0 James Brown Board of Managers 0 191000 0 0 0 0 0 0 0 0 0 191000 0 0 SCHEDULE J, PART I, LINE 1A TRAVEL FOR COMPANIONS SPOUSE/DEPENDENT TRAVEL: SPOUSES AND CHILDREN OF BOARD MEMBERS MAY BE INVITED TO ATTEND GRADUATION AND THE ANNUAL BOARD RETREAT AT THE DISCRETION OF THE SCHOOL OR TRUST COMPANY. IF A SPOUSE OR DEPENDENT ACCOMPANIES A BOARD MANAGER/DIRECTOR TO THE ANNUAL RETREAT, ALL CHARGES RELATED TO THE SPOUSE OR CHILD ARE THE RESPONSIBILITY OF THE MANAGER/DIRECTOR. IF A SPOUSE OR DEPENDENT ATTENDS GRADUATION WEEKEND EVENTS, THE COST OF MEALS, LODGING AND TRAVEL WILL BE PAID BY THE TRUST COMPANY AND REPORTED AS TAXABLE INCOME TO THE MANAGER/DIRECTOR. ORDINARILY, TRUST COMPANY STAFF WILL MAKE ALL TRAVEL AND LODGING ARRANGEMENTS. REIMBURSEMENT WILL ONLY BE MADE FOR THE COST OF COACH AIRFARE. ALL REQUESTS FOR EXPENSE REIMBURSEMENT MUST BE ACCOMPANIED BY ORIGINAL RECEIPTS AND MUST BE SUBMITTED WITHIN 60 DAYS OF THE DATE ON WHICH THE EXPENSES WERE INCURRED. ADEQUATE DESCRIPTIONS INCLUDING THE DATE, PURPOSE, AND INDIVIDUALS ENTERTAINED MUST ALSO BE INCLUDED. SCHEDULE J, PART I, LINE 1A HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE THE PRESIDENT OF MILTON HERSHEY SCHOOL IS PROVIDED WITH A RESIDENCE ON CAMPUS FOR BOTH PUBLIC AND PERSONAL USE. THE PRESIDENTS EMPLOYMENT CONTRACT INCLUDES PROVISIONS WHICH REQUIRE HOSTING BOTH INTERNAL AND EXTERNAL EVENTS ON BEHALF OF THE SCHOOL AT THE PROVIDED HOME. THE VALUE OF THESE BENEFITS (FAIR MARKET VALUE OF RENTAL) PLUS OPERATING COSTS ARE NONTAXABLE BENEFITS. CERTAIN MILTON HERSHEY SCHOOL EXECUTIVES, WHO SERVE ON THE SCHOOLS CRISIS RESPONSE COMMAND AND PROVIDE LEADERSHIP TO BOTH SCHOOL OPERATIONS AND WITHIN THE COMMUNITY OF HERSHEY, ARE ASKED TO LIVE WITHIN 5 MILES OF THE SCHOOL AND ARE PROVIDED WITH A HOUSING ALLOWANCE OF $15,457 PER YEAR, WHICH IS INCLUDED IN REPORTABLE COMPENSATION AND IS TAXABLE TO THE EMPLOYEE. SCHEDULE J, PART I, LINE 1A HEALTH CLUB DUES ALL EMPLOYEES OF THE MILTON HERSHEY SCHOOL ARE ELIGIBLE FOR REIMBURSEMENT OF HEALTH CLUB DUES NOT TO EXCEED $120 PER ANNUM FOR A SINGLE MEMBERSHIP AND $240 FOR A FAMILY MEMBERSHIP. SCHEDULE J, PART I, LINE 4A SEVERANCE AND CHANGE OF CONTROL PAYMENTS THOMAS A.K. QUEENAN RECEIVED SEVERANCE PAYMENTS OF $126,414 FORM THE HERSHEY TRUST COMPANY (EIN: 23-0692150), A FOR-PROFIT RELATED CORPORATION. MR. QUEENAN SERVED AS CHIEF FINANCIAL OFFICER OF THE MILTON HERSHEY SCHOOL UNTIL JUNE 2016. SCHEDULE J REPORTABLE COMPENSATION MR. AND MRS. HERSHEY ORGANIZED THE MILTON HERSHEY SCHOOL ("THE SCHOOL") IN THE FORM OF A TRUST ("SCHOOL TRUST") CREATED UNDER AN ORIGINAL 1909 DEED OF TRUST THAT, AS AMENDED, STILL GOVERNS THE OPERATION OF THE SCHOOL. THE DEED OF TRUST SETS FORTH THE RESPECTIVE POWERS AND AUTHORITIES OF THE TRUSTEE AND MANAGERS OF THE SCHOOL, NAMES THE HERSHEY TRUST COMPANY, A STATE-CHARTERED TRUST COMPANY, AS TRUSTEE FOR COMPENSATION OF NO MORE THAN $1,000 PER YEAR AND PROVIDES FOR THE TRUSTEE TO APPOINT THE INDIVIDUAL MANAGERS OF THE SCHOOL FROM ITS OWN BOARD OF DIRECTORS. THE MANAGERS SUBSEQUENTLY INCORPORATED. THAT CORPORATION, ACTING AS MANAGER UNDER THE DEED OF TRUST, TOGETHER WITH THE SCHOOL TRUST ARE THE COMPONENTS OF THE INTEGRATED TAX-EXEMPT ORGANIZATION, THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST (EIN: 23-1353340). MR. HERSHEY CREATED THE SAME STRUCTURE FOR HIS OTHER CHARITY, THE M.S. HERSHEY FOUNDATION (EIN: 23-6242734). AS A RESULT OF THE STRUCTURE CREATED BY MR. HERSHEY, HERSHEY TRUST COMPANY: (A) SERVES AS TRUSTEE FOR THE MILTON HERSHEY SCHOOL & SCHOOL TRUST AND (B) SERVES AS TRUSTEE FOR THE M.S. HERSHEY FOUNDATION TRUST. THE COMPENSATION OF BOARD MEMBERS SERVING ON THE BOARDS OF ANY OF THE RELATED FOR-PROFIT ENTITIES (HERSHEY TRUST COMPANY, HERSHEY ENTERTAINMENT & RESORTS COMPANY AND THE HERSHEY COMPANY) IS COMMENSURATE WITH THEIR RESPONSIBILITIES WITH RESPECT TO THE RELEVANT FOR-PROFIT ENTITY. THE FOLLOWING INFORMATION DETAILS THE COMPENSATION ARRANGEMENTS OF THE BOARD OF MANAGERS WHO ARE COMPENSATED BY RELATED FOR-PROFIT ENTITIES. (SCHEDULE J, PART II, LINE (II)) NONE OF THE COMPENSATION WAS PAID DIRECTLY BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST (EIN 23-1353340). (SCHEDULE J, PART II, LINE (I)) STEPHANIE BELL-ROSE MS. BELL-ROSE JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN DECEMBER 2015 and resigned from the Board in March 2016. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). JAN L. BERGEN MS. BERGEN JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN APRIL 2017. NO COMPENSATION IS REPORTED SINCE 2016 COMPENSATION IS REPORTED ON THE FORM 990. JAMES BROWN ESQ. MR. BROWN JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN FEBRUARY 2016. MR. BROWN JOINED THE HERSHEY COMPANY BOARD ON MAY 3, 2017. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). ROBERT F. CAVANAUGH COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANIES, HERSHEY TRUST COMPANY (EIN 23-0692150) AND THE HERSHEY COMPANY (EIN 23-0691590). MELISSA L. FULLMORE MS. FULLMORE JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN APRIL 2017. NO COMPENSATION IS REPORTED SINCE 2016 COMPENSATION IS REPORTED ON THE FORM 990. ROBERT C. HEIST, ESQ. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM A RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). JAMES KATZMAN MR. KATZMAN JOINED THE BOARDS OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY IN APRIL 2017. NO COMPENSATION IS REPORTED SINCE 2016 COMPENSATION IS REPORTED ON THE FORM 990. M. DIANE KOKEN COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). MS. KOKEN JOINED THE HERSHEY COMPANY BOARD ON MAY 3, 2017. JAMES M. MEAD COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANIES, HERSHEY TRUST COMPANY (EIN 23-0692150) AND THE HERSHEY COMPANY (EIN 23-0691590). MR. MEAD SERVES AS PRESIDENT OF HERSHEY TRUST COMPANY; HOWEVER, HE IS NOT COMPENSATED FOR THIS POSITION. JAMES E. NEVELS COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANIES, HERSHEY TRUST COMPANY (EIN 23-0692150) AND THE HERSHEY COMPANY (EIN 23-0691590). THIS REPORT ALSO INCLUDES APPROXIMATELY $135,000 OF PAYMENT OF COMPENSATION REPORTED ON THE PRIOR YEAR'S FORM 990. THIS COMPENSATION, RECEIVED IN 2016, WAS EARNED IN 2015, AND WAS PREVIOUSLY REPORTED AS DEFERRED COMPENSATION. VELMA A. REDMOND, ESQ. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM A RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). DAVID SALTZMAN COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM A RELATED FOR-PROFIT COMPANY, HERSHEY TRUST COMPANY (EIN 23-0692150). JOSEPH M. SENSER COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM RELATED FOR-PROFIT COMPANIES, HERSHEY TRUST COMPANY (EIN 23-0692150) AND HERSHEY ENTERTAINMENT & RESORTS CO (EIN 23-0691815). JOAN E. STEEL Ms. Steel resigned from the Board in July 2016. COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED FOR-PROFIT ENTITY HERSHEY TRUST COMPANY (EIN: 23-0692150). THE FOLLOWING INFORMATION DETAILS THE COMPENSATION ARRANGEMENTS OF CERTAIN OFFICERS AND KEY EMPLOYEES OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THEY ARE COMPENSATED BY RELATED FOR-PROFIT ENTITIES. THEIR COMPENSATION IS ESTABLISHED BASED UPON DATA PROVIDED BY INDEPENDENT COMPENSATION CONSULTANTS. THIS PROCESS IS BASED ON POSITION COMPARABLES TAKING INTO ACCOUNT RESPONSIBILITIES AND DUTIES, AUTHORITY, AND OBJECTIVES. NONE OF THEIR COMPENSATION, EMPLOYEE BENEFIT CONTRIBUTIONS OR NON-TAXABLE BENEFITS WAS PAID DIRECTLY BY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST DURING THE REPORTING PERIOD. JOHN ESTEY, ESQ. MR. ESTEY SERVED AS SECRETARY OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY FROM JANUARY 2012 TO FEBRUARY 2012. HE SERVED AS INTERIM PRESIDENT OF MILTON HERSHEY SCHOOL FROM AUGUST 2013 THROUGH JULY 2014. HE SERVED AS EXECUTIVE VICE PRESIDENT OF HERSHEY TRUST COMPANY THROUGH APRIL 2016. A PORTION OF HIS 2016 COMPENSATION AND BENEFITS REPORTED BY HERSHEY TRUST COMPANY WAS REIMBURSED BY MILTON HERSHEY SCHOOL. ERIC HENRY MR. HENRY WAS APPOINTED ACTING TREASURER OF MILTON HERSHEY SCHOOL AND HERSHEY TRUST COMPANY (EIN: 23-0692150) IN AUGUST 2012. HE ALSO SERVES AS THE CHIEF EXECUTIVE OFFICER AND CHIEF INVESTMENT OFFICER OF HERSHEY TRUST COMPANY. HE ALSO SERVES as Chairman of THE BOARD OF HERSHEY ENTERTAINMENT & RESORT CO (EIN: 23-0691815) AND RECEIVES NO COMPENSATION FOR THIS SERVICE. NONE OF HIS COMPENSATION, EMPLOYEE BENEFIT CONTRIBUTIONS OR NON-TAXABLE BENEFITS WAS PAID BY MILTON HERSHEY SCHOOL & SCHOOL TRUST. THOMAS A.K. QUEENAN MR. QUEENAN SERVED AS CHIEF FINANCIAL OFFICER OF MILTON HERSHEY SCHOOL AND SCHOOL TRUST, AN OFFICER OF MILTON HERSHEY SCHOOL, FROM MARCH 2013 THROUGH MAY 2016. A PORTIO FORM 990, PART I, LINE 1 & FORM 990, PART III, LINE 1 MILTON HERSHEY SCHOOL & SCHOOL TRUST MISSION UNABLE TO HAVE CHILDREN OF THEIR OWN, MILTON AND CATHERINE HERSHEY SIGNED THE DEED OF TRUST ESTABLISHING MILTON HERSHEY SCHOOL IN 1909. FOR MORE THAN 100 YEARS, THE MISSION OF THE SCHOOL HAS REMAINED THE SAME-TO PROVIDE A NURTURING HOME AND SCHOOL TO CHILDREN IN NEED. MILTON HERSHEY SCHOOL SERVES AS A HOME AND SCHOOL FOR APPROXIMATELY 2,018 STUDENTS IN GRADES PRE-K THROUGH 12. THE SCHOOL AIMS TO PROVIDE EACH OF THEM WITH AMAZING OPPORTUNITIES FOR LEARNING AND DEVELOPMENT INSIDE AND OUTSIDE THE CLASSROOM. OUR PROGRAMS TAKE A WHOLE CHILD APPROACH AND REMAIN TRUE TO OUR DEED OF TRUST, AS WE WORK EVERY DAY TO NURTURE AND EDUCATE CHILDREN SO THEY CAN LEAD FULFILLING AND PRODUCTIVE LIVES. STUDENTS LIVE IN 173 HOMES ACROSS CAMPUS. THESE STUDENT HOMES ARE DESIGNED TO PROVIDE SAFE AND SUPPORTIVE ENVIRONMENTS FOR 8-12 STUDENTS OF SIMILAR AGES AND THE SAME GENDER, UP UNTIL THEIR SENIOR YEAR. HEALTHY LIVING AND PERSONAL WELLNESS ARE AN IMPORTANT PART OF THE CURRICULUM AT ALL GRADE LEVELS, AND STUDENTS RECEIVE MEDICAL AND DENTAL CARE AT NO COST TO THEIR FAMILIES. STUDENT GROWTH AND LEARNING IS FORTIFIED BY FOCUSING NOT ONLY ON INTELLECTUAL DEVELOPMENT, BUT ALSO ON EMOTIONAL, SOCIAL, AND SPIRITUAL ENRICHMENT. CHILDREN AT MILTON HERSHEY SCHOOL RECEIVE A PREMIER EDUCATION, WITH SMALL CLASS SIZES AVERAGING 15 STUDENTS. THEY ALSO HAVE ACCESS TO CAREER/TECHNICAL AND EXTRACURRICULAR OPPORTUNITIES UNOBTAINABLE IN THEIR HOME COMMUNITIES. THE SCHOOL PROVIDES CHILDREN WITH VALUABLE NURTURING RELATIONSHIPS AND THE CRITICAL TOOLS THEY NEED NOT ONLY TO OVERCOME THE CIRCUMSTANCES OF POVERTY, BUT TO GUIDE THEM TOWARD SUCCESS IN TODAY'S COMPETITIVE AND CHALLENGING WORLD. STUDENT TEST SCORES ARE JUST ONE INDICATOR OF STUDENT SUCCESS AT MHS. MILTON HERSHEY STUDENTS PERFORM WELL ACADEMICALLY, OFTEN SCORING BETTER THAN STATE AVERAGES ON STANDARDIZED TESTING AND RANKING EXCEPTIONALLY HIGHER THAN STUDENTS FROM SIMILAR SOCIO-ECONOMIC STATUS. MHS SETS ITS SIGHTS HIGH BY ADOPTING THE STATE TARGETS AS A MINIMUM GOAL AND HAS OUT-PERFORMED STATE AVERAGES AND SCORES OF SOME PREMIER SCHOOL DISTRICTS. EIGHTY ONE PERCENT OF MILTON HERSHEY SCHOOL GRADUATES WILL IMMEDIATELY CONTINUE THEIR EDUCATION AT A TWO- OR FOUR-YEAR COLLEGE OR TRADE SCHOOL. FOR STUDENTS WHO WILL GO ON TO HIGHER EDUCATION, MHS OFFERS SCHOLARSHIP CREDITS TO COVER MOST OF THE TUITION, FEES AND ROOM AND BOARD. ONE OF THE PROGRAMS CONTRIBUTING TO SUCCESS FOR OUR GRADUATES IS THE TRANSITIONAL LIVING PROGRAM. DURING THEIR FINAL YEAR OF RESIDENCE AT MHS, SENIORS ARE PLACED IN A SEMI-INDEPENDENT ENVIRONMENT UNDER ADULT LIVE-IN SUPERVISION. THIS COLLEGE/DORMITORY LIFESTYLE AND ITS ACCOMPANYING RESPONSIBILITIES ARE AN IMPORTANT PART OF THE SENIOR-YEAR LEARNING EXPERIENCE. EVERYTHING FROM PERSONAL FINANCE TO PERSONAL SAFETY TO HEALTHY SLEEPING AND EATING HABITS ARE COVERED AS PART OF THE TRANSITIONAL LIVING CURRICULUM. SURVEYED STUDENTS INDICATE THE EXPERIENCE ENHANCES THEIR KNOWLEDGE AND BUILDS THEIR CONFIDENCE. THE SCHOOL CARES FOR ITS STUDENTS 24 HOURS A DAY AND OPERATES YEAR ROUND, INCLUDING HOLIDAYS AND THE SUMMER MONTHS. WHILE MANY SCHOOLS CLOSE DOWN FOR THE SUMMER, STUDENTS AT MILTON HERSHEY SCHOOL CONTINUE TO LEARN THROUGH THE SCHOOL'S OPTIONAL YEAR ROUND EXPERIENCE (YRE) PROGRAM. STUDENTS WHO CHOOSE TO STAY ON CAMPUS DURING SUMMER BREAK ARE PROVIDED WITH A NUMBER OF ENRICHMENT LEARNING OPPORTUNITIES. FROM A SUZUKI FESTIVAL FEATURING ART, MUSIC, AND DANCE TO OPPORTUNITIES TO WORK ALONGSIDE VOLUNTEER FIREFIGHTERS IN NON-EMERGENCY ENVIRONMENTS, A WIDE RANGE OF PROGRAMS TO SUIT ALL INTERESTS ARE OFFERED ON AND OFF CAMPUS. SIX WEEKS ARE PACKED FULL OF LEARNING EXPERIENCES AND ADVENTURES. IF YOU ASK THE CHILDREN, MANY SAY THE TIME GOES BY VERY QUICKLY. SEVENTY-ONE PERCENT OF STUDENTS PARTICIPATED IN YRE PROGRAMMING IN THE 2016-2017 SCHOOL YEAR. THE MAJORITY OF STUDENTS WHO ENROLL AT MHS REQUIRE MORE INTENSIVE SUPPORT IN ALL AREAS OF THEIR LIVES, AND THESE SUPPORTS REQUIRE SIGNIFICANT RESOURCES. THE SCHOOL PROVIDES ALL "WRAP-AROUND" SERVICES (MEDICAL, DENTAL, PSYCHOLOGICAL; FAMILY-LIKE ENVIRONMENT; LODGING, FOOD, CLOTHING, TRANSPORTATION; ETC.) AT NO COST TO FAMILIES. THE MAIN GOAL FOR ALL OF OUR STUDENTS IS THAT THEY LEAVE THE SCHOOL WELL-PREPARED TO ENTER SOCIETY AS PRODUCTIVE CITIZENS. WE WANT ALL ENROLLED AT MHS TO BE GOOD STUDENTS, BUT WE ALSO WANT THEM TO BE GOOD PEOPLE, GOOD EMPLOYEES AND RESPONSIBLE MEMBERS OF THEIR COMMUNITIES. FORM OF ORGANIZATION MILTON HERSHEY SCHOOL AND SCHOOL TRUST IS AN INTEGRATED TAX-EXEMPT ORGANIZATION COMPOSED OF THE NOT-FOR-PROFIT CORPORATION, MILTON HERSHEY SCHOOL, ACTING AS MANAGER UNDER THE DEED OF TRUST, AND THE TRUST ITSELF. THIS INFORMATIONAL RETURN IS REQUIRED TO INCLUDE THE EXPENSES OF THE ORGANIZATION AS A WHOLE, WITH DETAIL AS REQUIRED BY THE FORM INSTRUCTIONS. AS A RESULT, THIS RETURN INCLUDES ALL EXPENSES OF SERVING THE STUDENTS ENROLLED IN THE SCHOOL AND SCHOLARSHIP COSTS FOR ALUMNI PURSUING CONTINUING EDUCATION, AS WELL AS THE COSTS ASSOCIATED WITH ADMINISTERING THE INVESTMENTS HELD IN THE TRUST. FORM 990, PART I, LINE 5 THIS FIGURE INCLUDES W-2 FORMS FILED WITHIN THE TAX YEAR: ALL ANCILLARY ROLES, PART-TIME INTERNSHIPS AND WORK EXPERIENCE FOR STUDENTS ON CAMPUS, POSITIONS WHICH HAVE BEEN VACATED AND FILLED BY ANOTHER INDIVIDUAL WITHIN THE YEAR, AND ONE-TIME EVENT WORKERS, FOR EXAMPLE. MILTON HERSHEY SCHOOL EMPLOYS APPROXIMATELY 1,200 FULL-TIME STAFF. FORM 990, PART III PROGRAM SERVICE ACCOMPLISHMENTS MILTON HERSHEY SCHOOL SEEKS TO NURTURE AND EDUCATE THE "WHOLE CHILD" WHICH MEANS THE SCHOOL AND SCHOOL TRUST PROVIDE FOR EACH CHILD IN A COMPREHENSIVE MANNER - COVERING THE EXPENSES OF BUT NOT LIMITED TO THE FOLLOWING: -THE EDUCATION OF STUDENTS IN STATE-OF-THE-ART CLASSROOMS WITH SMALL CLASS SIZES AVERAGING 15 STUDENTS PER CLASSROOM -THE PHYSICAL, DENTAL, AND PSYCHOLOGICAL CARE OF ALL STUDENTS -CLOTHING, FOOD, AND ROOM AND BOARD -CAREER-TECHNICAL TRAINING, COLLEGE COURSES BEFORE GRADUATION, VISUAL AND PERFORMING ARTS, MUSICAL INSTRUCTION, ATHLETIC PROGRAMS AND CAMPS, AND ENVIRONMENTAL AND AGRICULTURAL EDUCATION. OFTEN STUDENTS WHO COME TO THE SCHOOL HAVE FALLEN AT LEAST ONE OR TWO GRADE LEVELS BEHIND BECAUSE OF FACTORS RELATED TO POVERTY, SUCH AS HOMELESSNESS, FAMILY DRUG AND ALCOHOL ADDICTION, OR MENTAL ILLNESS. FORTY-TWO PERCENT OF STUDENTS HAVE ATTENDED MORE THAN THREE DIFFERENT SCHOOLS BEFORE ARRIVING AT MHS. FIFTY PERCENT HAVE EXPERIENCED DRUG AND ALCOHOL ABUSE IN THEIR FAMILY, FORTY-THREE PERCENT HAD MENTAL HEALTH ISSUES IN THEIR FAMILIES, AND THIRTY-FIVE PERCENT HAVE EXPERIENCED NEIGHBORHOOD VIOLENCE. STUDENTS ARE GIVEN PSYCHOLOGICAL AND EMOTIONAL SUPPORT WHEN NEEDED, AND CLOSE TO EIGHTY-NINE PERCENT OF STUDENTS RECEIVE ANYWHERE FROM ONE TO NINE SPECIALTY SERVICES. ELEVEN PERCENT RECEIVE TEN OR MORE SERVICES, WHILE LESS THAN ONE PERCENT OF STUDENTS RECEIVE NONE. A RIGOROUS ACADEMIC PROGRAM HELPS TO BRING STUDENTS UP TO GRADE LEVEL, AND THE AGGRESSIVE ACADEMIC SUPPORTS BRING MEASURABLE RESULTS. STUDENTS OUTPERFORM PEERS IN MOST SUBJECT AREAS ON STATE STANDARDIZED TESTING. IN FACT, MHS TEST SCORES ARE COMPARABLE TO SOME OF PENNSYLVANIA'S TOP SCHOOL DISTRICTS. A STRONG FOCUS ON CAREER TECHNICAL EDUCATION, JOB SHADOWING, AND HANDS-ON LEARNING HELPS TO PREPARE STUDENTS FOR LIFE BEYOND MILTON HERSHEY SCHOOL. FOR THE PAST SEVEN YEARS, EVERY GRADUATING SENIOR EARNED AT LEAST ONE INDUSTRY CERTIFICATION BY PASSING AN INDUSTRY-APPROVED TEST IN THEIR AREA OF STUDY. DURING THE 2016-2017 SCHOOL YEAR EVERY GRADUATING SENIOR EARNED AT LEAST TWO INDUSTRY CERTIFICATIONS BY PASSING AN INDUSTRY-APPROVED TEST IN THEIR AREA OF STUDY. CURRENTLY, THERE ARE ELEVEN CAREER PATHWAYS STUDENTS ARE ABLE TO PURSUE, INCLUDING BUSINESS/FINANCIAL MANAGEMENT & ACCOUNTING, LAW, PUBLIC SAFETY, & SECURITY, AND HEALTH SCIENCE. THE SCHOOL OPERATES YEAR ROUND AND MORE THAN SEVENTY PERCENT OF STUDENTS ATTEND DURING HOLIDAY BREAKS OR SUMMER MONTHS. A COMPREHENSIVE LIST OF PROGRAMS FOR CONTINUED LEARNING ARE OFFERED FOR CHILDREN TO PARTICIPATE BOTH ON AND OFF CAMPUS, IN ADDITION TO MUSIC AND ATHLETIC CAMPS. THESE PROGRAMS OFFER BOTH ENRICHMENT AND ENJOYMENT TO STUDENTS. DURING THE SCHOOL YEAR, STUDENTS ARE ABLE TO PARTICIPATE IN MORE THAN ONE HUNDRED DIFFERENT EXTRACURRICULAR ACTIVITIES AND CLUBS. IN ADDITION TO LODGING, FOOD, AND CLOTHING, EACH STUDENT RECEIVES REGULAR PHYSICAL AND DENTAL CHECKUPS FROM THE SCHOOL, AS WELL AS ANY NECESSARY HEALTH SERVICE OR MEDICATION. DURING SCHOOL YEAR 2016-17, THERE WERE 106,673 HEALTH SERVICE VISITS BY STUDENTS TO THE SCHOOLS MEDICAL PROFESSIONALS DURING THE REPORTING YEAR, IN ADDITION TO 49,436 DENTAL PROCEDURES PERFORMED ON STUDENTS. IT IS NOT RARE TO HAVE A HIGH SCHOOL STUDENT ARRIVE AT MILTON HERSHEY AND HAVE THEIR FIRST TRIP TO THE DENTIST BE AT THE MHS CAMPUS CLINIC. THIS TUITION-FREE, COMPREHENSIVE PROGRAM, INCLUDING PHYSICAL CARE AS WELL AS EDUCATIONAL PROGRAMMING IN ACADEMIC, HOME LIFE AND COMMUNITY/CAREER SETTINGS, COSTS APPROXIMATELY $81,109 PER YEAR. (TOTAL PROGRAM EXPENSES LESS DEPRECIATION AND CONTINUING EDUCATION SCHOLARSHIP DIVIDED BY THE NUMBER OF STUDENTS). INCLUDING DEPRECIATION AND CONTINUING EDUCATION SCHOLARSHIP, THE COST IS $103,593. A PREMIER BOARDING SCHOOL LIKE MHS, OFFERING SIMILAR ACADEMIC PROGRAMMING AND SMALL CLASS SIZES, CHARGES APPROXIMATELY $60,000 PER YEAR WITHOUT PROVIDING PERSONAL EFFECTS LIKE CLOTHING, TECHNOLOGY, TRANSPORTATION, OR EXTRACURRICULAR ACTIVITIES LIKE SPORTS, VISUAL AND PERFORMING ARTS, AND INTERNSHIPS. ADDITIONALLY, MHS ASSUMES THE COST FOR MEDICAL PSYCHOLOGICAL, DENTAL, ORTHODONTIC, SOCIAL WORK, AND PRESCRIPTION CARE FOR EACH STUDENT. COSTS AT MOST PRIVATE COLLEGES ALSO EXCEED THIS FIGURE. FORM 990, PART VI, SECTION A, LINE 2 FAMILY/BUSINESS RELATIONSHIP SEVERAL OF THE BOARD OF MANAGERS MEMBERS AND OFFICERS OF THE FILING ORGANIZATION ALSO SERVE AS DIRECTORS AND OFFICERS OF BUSINESS ENTITIES THAT ARE RELATED TO THIS FILING ORGANIZATION. OTHER THAN THEIR OVERLAPPING SERVICE ON RELATED COMPANY BOARDS, THEY HAVE NO FAMILY OR BUSINESS RELATIONSHIPS WITH EACH OTHER. PLEASE SEE FORM 990, SCHEDULES J AND R FOR FURTHER INFORMATION. FORM 990, PART VI, SECTION A, LINE 7A ELECTION OF MEMBERS OF GOVERNING BODY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HAVE A UNIQUE, SELF-PERPETUATING, INTERLOCKING AND INTEGRATED GOVERNANCE STRUCTURE. MR. AND MRS. HERSHEY ORGANIZED THE SCHOOL IN THE FORM OF A TRUST (THE "SCHOOL TRUST") CREATED UNDER AN ORIGINAL 1909 DEED OF TRUST THAT, AS AMENDED, STILL GOVERNS THE OPERATION OF THE SCHOOL. THE DEED OF TRUST SETS FORTH THE RESPECTIVE POWERS AND AUTHORITIES OF THE TRUSTEE AND INDIVIDUAL MANAGERS OF THE SCHOOL AND NAMES THE HERSHEY TRUST COMPANY ("HTC"), A STATE CHARTERED TRUST COMPANY, AS TRUSTEE FOR COMPENSATION OF NO MORE THAN $1,000 PER YEAR. UNDER THE DEED OF TRUST, THE TRUSTEE IS DIRECTED TO HOLD TITLE TO ALL SCHOOL PROPERTY AND ALL INVESTMENTS AND ASSETS THAT SUPPORT THE SCHOOL. THE INDIVIDUAL MANAGERS, IN TURN, ARE NOT PERMITTED TO HOLD SCHOOL ASSETS, BUT ARE OTHERWISE GENERALLY RESPONSIBLE FOR MANAGING THE SCHOOL, INCLUDING WITH RESPECT TO ADMISSIONS, THE PROGRAM OF EDUCATING AND FULL-TIME CARING FOR THE CHILDREN, AND EMPLOYMENT DECISIONS. AS REQUIRED UNDER THE DEED OF TRUST, THE MEMBERS OF THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST ARE APPOINTED BY THE TRUSTEE FROM AMONG THE TRUSTEE'S OWN BOARD OF DIRECTORS. SINCE MR. HERSHEY'S DEATH IN 1945, ALL OF THE STOCK OF HTC HAS BEEN OWNED BY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S 100% OWNERSHIP OF THE STOCK OF HTC HAS ENSURED A SELF-PERPETUATING, INTERLOCKING GOVERNANCE STRUCTURE FOR THE SCHOOL BECAUSE THE HTC STOCK CARRIES THE RIGHT TO ELECT THE DIRECTORS OF HTC AND IN TURN TO APPOINT THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST FROM AMONG HTC'S OWN BOARD OF DIRECTORS. THE SAME NINE INDIVIDUALS (AS OF 7/31/17) SERVE ON THE BOARD OF DIRECTORS OF HTC AND THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. FORM 990, PART VI, SECTION B, LINE 11 FORM 990 REVIEW PROCESS THE FORM 990 IS REVIEWED BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST MANAGEMENT AND BY MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S INDEPENDENT TAX ADVISOR, WHO SIGNS THE RETURN AS THE "PAID PREPARER." THE AUDIT COMMITTEE OF THE BOARD OF MANAGERS REVIEWS AND DISCUSSES THE FORM 990 AT ONE OF ITS SCHEDULED MEETINGS PRIOR TO FILING THE RETURN WITH THE IRS. ADDITIONALLY, THE FORM 990 IS PROVIDED TO THE FULL BOARD OF MANAGERS, NOTING KEY DISCLOSURES, PRIOR TO THE FILING OF THE FORM 990 WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST THE BOARD OF MANAGERS OF MILTON HERSHEY SCHOOL OPERATES UNDER A CONFLICT OF INTEREST POLICY WHICH REQUIRES DIRECTORS TO DISCLOSE "ALL ACTUAL OR POTENTIAL CONFLICTS OF INTEREST" WITH MILTON HERSHEY SCHOOL & SCHOOL TRUST OR HERSHEY TRUST COMPANY. THE CONFLICTS POLICY CANNOT BE MODIFIED OR AMENDED WITHOUT THE PRIOR WRITTEN APPROVAL OF THE PENNSYLVANIA OFFICE OF ATTORNEY GENERAL ("PA OAG"). THE MILTON HERESHEY SCHOOLS CONFLICT OF INTEREST POLICY IS APPLICABLE TO ALL SCHOOL EMPLOYEES AND REQUIRES THE SCHOOLS OFFICERS, MANAGERS AND SUPERVISORS TO RESPOND ANUALLY TO A CONFLICT DISCLOSURE SURVEY. ALL DISCLOSED CONFLICTS ARE REVIEWED BY THE SCHOOLS CONFLICT OF INTEREST COMMITTEE AND ANY CORRECTIVE ACTION REQUIRED AS A RESULT OF THE DISCLOSED CONFLICT IS ADDRESSED WITH THE EMPLOYEE WHO MADE THE DISCLOSURE AND THEIR SUPERVISOR. THE CONFLICT OF INTEREST POLICY COVERING OFFICERS AND OTHER KEY EMPLOYEES OF HERSHEY TRUST COMPANY, TRUSTEE FOR MILTON HERSHEY SCHOOL AND SCHOOL TRUST, IS DOCUMENTED IN HERSHEY TRUST COMPANY'S ETHICAL STANDARDS, CONFLICT OF INTEREST, AND CODE OF CONDUCT SECTIONS OF ITS POLICY MANUALS. EACH MANAGER, DIRECTOR, OFFICER AND KEY EMPLOYEE IS REQUIRED TO AVOID ALL ACTIVITY THAT COULD CREATE A CONFLICT OF INTEREST OR EVEN GIVE AN APPEARANCE OF A CONFLICT OF INTEREST. ANY CONFLICTS OF INTEREST ARE TO BE REPORTED AS SOON AS PRACTICAL AFTER THEY BECOME AWARE OF SUCH A CONFLICT. ANNUALLY EACH MANAGER, DIRECTOR, OFFICER AND KEY EMPLOYEE IS REQUIRED TO COMPLETE AN ANNUAL STATEMENT OF DISCLOSURE. THE FORMS IDENTIFY VENDORS, INVESTMENTS, OTHER BOARD MEMBERSHIPS, AND FAMILY MEMBERS THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. THE STATEMENTS ARE REVIEWED BY THE INTERIM COMPLIANCE DIRECTOR AND GENERAL COUNSEL OF HERSHEY TRUST COMPANY ALONG WITH THE CHAIR OF THE NOMINATING & GOVERNANCE COMMITTEE IN ORDER FOR THEM TO BE AWARE OF ACTIVITIES THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. THE RESULTS OF THIS REVIEW ARE THEN DOCUMENTED AND SHARED WITH THE NOMINATING & GOVERNANCE COMMITTEE AND THEN THE FULL BOARD. FORM 990, PART VI, SECTION B, LINES 15A & 15B COMPENSATION PROCESS AN INDEPENDENT COMPENSATION CONSULTANT EVALUATES AND COMPARES THE COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES OF MILTON HERSHEY SCHOOL TO SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS TO DETERMINE THAT IT IS FAIR AND REASONABLE. THIS PROCESS OCCURS AT REGULAR INTERVALS THEREAFTER, BUT NOT LESS FREQUENTLY THAN EVERY FIVE YEARS. THE COMPENSATION INFORMATION IS REVIEWED AND APPROVED BY THE BOARD OF MANAGERS, THE GOVERNING BODY OF THE MILTON HERSHEY SCHOOL, WHO DO NOT HAVE ANY CONFLICT OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENTS OF THE OFFICERS AND KEY EMPLOYEES. THE REVIEW OF THE COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES, INCLUDING DETAIL ON THE DELIBERATIONS AND DECISIONS, IS CONTEMPORANEOUSLY DOCUMENTED WITHIN THE MINUTES FROM THE BOARD MEETING. A FILE WITH POSITION DESCRIPTIONS, RESUMES OF OFFICERS AND KEY EMPLOYEES, THE REPORT OF THE INDEPENDENT COMPENSATION CONSULTANT AND A COPY OF THE APPLICABLE BOARD MINUTES IS MAINTAINED BY THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THE COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES OF HERSHEY TRUST COMPANY, TRUSTEE OF MILTON HERSHEY SCHOOL AND SCHOOL TRUST IS DETERMINED BY PERIODIC REVIEW (GENERALLY, AT LEAST EVERY 3 YEARS) BY THIRD PARTY COMPENSATION CONSULTANTS TO DETERMINE IT IS FAIR AND REASONABLE. THE COMPENSATION OF THE CHIEF EXECUTIVE OFFICER IS FIXED BY THE BOARD OF DIRECTORS OF HERSHEY TRUST COMPANY IN ACCORDANCE WITH ITS BYLAWS. THE CHIEF EXECUTIVE OFFICER OF HERSHEY TRUST COMPANY APPROVES COMPENSATION OF THE OTHER OFFICERS AND KEY EMPLOYEES AND REPORTS THIS COMPENSATION TO THE BOARD OF DIRECTORS OR A DESIGNATED COMMITTEE OF THE BOARD OF DIRECTORS AS ANY CHANGES ARE MADE. THE MEMBERS OF THE BOARD OF MANAGERS OF MILTON HERSHEY SCHOOL DO NOT RECEIVE ANY DIRECT COMPENSATION FROM MILTON HERSHEY SCHOOL. THE MANAGERS RECEIVE COMPENSATION FROM HERSHEY TRUST COMPANY AS DIRECTORS OF THE HERSHEY TRUST COMPANY IN ACCORDANCE WITH ITS BYLAWS AND THE PENNSYLVANIA OFFICE OF ATTORNEY GENERAL AGREEMENT. FORM 990, PART VI, SECTION C, LINE 17 STATE FILING OF FORM 990 THE FORM 990 IS NOT REQUIRED TO BE FILED IN THE STATE OF PENNSYLVANIA; HOWEVER, A COPY IS PROVIDED TO THE PENNSYLVANIA OFFICE OF THE ATTORNEY GENERAL FOR THEIR REVIEW. FORM 990, PART VI, SECTION C, LINE 19 PUBLIC AVAILABILITY OF GOVERNING DOCUMENTS THE DEED OF TRUST ESTABLISHING THE MILTON HERSHEY SCHOOL TRUST AND THE CONFLICT OF INTEREST POLICY ARE POSTED ON THE MILTON HERSHEY SCHOOL WEBSITE. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HAS ITS FORM 990 POSTED ON ANOTHER WEBSITE, GUIDESTAR. INCLUDED IN THE 990 ARE CERTAIN FINANCIAL STATEMENT COMPONENTS FOR REVIEW. THE FORM 990 AND TAX EXEMPTION LETTER ARE PROVIDED TO ANYONE WHO REQUESTS THEM IN ACCORDANCE WITH IRS REGULATIONS. FORM 990, PART IX, LINE 11G OTHER FEES FOR SERVICE THIS AMOUNT IS FOR HOSPITAL, MEDICAL, AND DENTAL SERVICES PROVIDED FOR THE STUDENTS. FORM 990, PART XI, LINE 9 RECONCILIATION OF NET ASSETS INCREASE IN UNRECOGNIZED PENSION SERVICE COST $34,393,847 FORM 990, PART VII, SECTION B HERSHEY TRUST COMPANY IS LISTED AS AN INDEPENDENT CONTRACTOR. MILTON HERSHEY SCHOOL REIMBURSES HERSHEY TRUST COMPANY FOR THE SHARED SERVICES (COMPENSATION AND BENEFITS) OF CERTAIN INDIVIDUALS WHO PERFORM SERVICES FOR BOTH HERSHEY TRUST COMPANY AND MILTON HERSHEY SCHOOL. MHST CORPUS LLC PO BOX 445 HERSHEY PA 18033 271451942 RE RENTAL PA 296328 0 MHS TRUST MHST INCOME LLC PO BOX 445 HERSHEY PA 17033 271451914 RE RENTAL PA 0 0 MHS TRUST THE MS HERSHEY FOUNDATION PO BOX 445 HERSHEY PA 17033 236242734 EDUCATION PA 501(c)(3) 10 HTC TRUSTEE false THE WILLIAM E DEARDEN ALUMNI CAMPUS INC PO BOX 830 HERSHEY PA 17033 202579678 SVCS TO ALUM PA 501(c)(3) 7 NA false HERSHEY CEMETERY COMPANY PO BOX 445 HERSHEY PA 17033 231973529 CEMETERY PA 501(c)(13) N/A NA false Hershey Cemetery Perpetual Maintenance PO Box 445 Hershey PA 17033 236629638 Cemetery PA 501(c)(13) N/A HTC Trustee false LEGATO INTERNATIONAL EQUITY FUND LP 111 PINE STREET SUITE 1700 SAN FRANCISCO CA 94111 463960133 INVESTMENTS CA MHS TRUST Excuded from tax -3151775 0 false 0 false 0.00000 BLKRK S&P 100 INDEX NON-LENDABLE FUND 400 HOWARD STREET SAN FRANCISCO CA 94105 800861106 INVESTMENTS CA MHS BLK TRUST Excluded from tax 6030759 0 false 0 false 0.00000 EATON VANCE TRUST CO HIGH YIELD CTF TWO INTERNATIONAL PLACE BOSTON MA 02110 320399219 INVESTMENTS MA MHS TRUST Excluded from Tax 4454679 100775119 false 0 false 1.00000 HERSHEY TRUST COMPANY PO BOX 445 HERSHEY PA 17033 230692150 STATE TRUST C PA HTC TRUSTEE C CORP 15470766 45971497 1.00000 true HERSHEY ENTERTAINMENT & RESORTS CO 27 W CHOCOLATE HERSHEY PA 17033 230691815 ENTERTAINMENT PA HTC TRUSTEE C CORP 298929075 321617508 1.00000 true THE HERSHEY CO 100 CRYSTAL A DR HERSHEY PA 17033 230691590 CONFECTIONARY PA HTC TRUSTEE C CORP 1325744236 2141743085 0.81660 true MILTON HERSHEY SCHOOL BLK TRUST BLACKROCK INST TR TTE 400 HOWARD S SAN FRANCISCO CA 94105 306349039 INVESTMENTS CA MHS TRUST TRUST 37603930 1227044487 1.00000 true true false true false false true true true false false false false true false true true true false true Hershey Entertainment & Resorts Co a 270443 market Hershey Trust Company a 222266 market The Hershey Company a 3025 market MS Hershey Foundation a 11422 market Hershey Entertainment & Resorts Co c 380896 market The Hershey Company f 167751792 market Hershey Entertainment & Resorts Co f 13884000 market Legato International Equity Fund LP f 177730 market Eaton Vance Trust Co High Yield CTF f 6225608 market Legato International Equity Fund LP g 21823728 market Milton Hershey School BLK Trust g 607656441 market Milton Hershey School BLK Trust h 383355058 market Hershey Trust Company o 1023514 cost Hershey Entertainment & Resorts Co p 839504 market MS Hershey Foundation p 53907 market Hershey Trust Company M 7401000 market SCHEDULE R, PART I Disregarded Entities The Milton Hershey School and School Trust owns 100% of MHST Corpus LLC and MHST Income LLC. Both are Pennsylvania single-member limited liability companies. The LLCs' principal activity are the acquisition, holding and development of rent-producing real estate, and their principal source of revenue is rent. They are disregarded single-member LLCs for tax purposes. MHST Corpus LLC held investment real estate; MHST Income LLC does not currently have any assets or income. All of MHST Corpus LLC's rental income and expenses are included in the Milton Hershey School and School Trust's financial statements. SCHEDULE R, PART II RELATED TAX-EXEMPT ORGANIZATIONS The M.S. Hershey Foundation (EIN 23-6242734) is a Pennsylvania nonprofit that is exempt from Federal income tax pursuant to Internal Revenue Code Section 501(c)(3). Milton Hershey funded the Foundation in 1935 and appointed Hershey Trust Company as its trustee. The Foundation has several operations in Hershey, Pennsylvania including the Hershey Story, Hershey Gardens, Hershey Community Archives and the Hershey Theatre. The members of the Board of Managers of the Foundation are appointed by the Hershey Trust Company, in its capacity as trustee, from among its own board of directors. Together the trustee and board of managers serve as the governing body of the Foundation. Hershey Cemetery Company (EIN 23-1973529) is a Pennsylvania cemetery company that is exempt from Federal income tax pursuant to INTERNAL REVENUE CODE Section 501(c)(13). Hershey Trust Company operates the Cemetery Company and is trustee of the Hershey Cemetery Perpetual Maintenance Fund Trust (EIN: 23-6629638) that was established to provide funding for perpetual maintenance for the Hershey Cemetery. Hershey Cemetery is the final resting place of Milton & Catherine Hershey. The Hershey Trust Company and the Hershey Cemetery Company are related to Milton Hershey School and School Trust.The WILLIAM E. DEARDEN ALUMNI CAMPUS, INC. (EIN 20-2579678) is a Pennsylvania nonprofit that is exempt from Federal income tax pursuant to Internal Revenue Code Section 501(c)(3). The nonprofit's mission is to promote and enhance the education and general welfare of the students and alumni of the School; to achieve closer cooperation between the School and alumni, in the interest of the education and general welfare of the students and alumni; to develop among teachers, administration, students, alumni and the general public such programs and activities as will secure for all students and alumni the highest advantages in physical, mental and social education and development; to serve as a clearing house for the gathering and dissemination of information and know-how in furtherance of the foregoing purposes; and to solicit and accept donations, gifts, grants, legacies and bequests to further the foregoing purposes. Per its governing instrument, several of the board members are selected from the officers of the Milton Hershey School and School Trust or are appointed by the President of the Milton Hershey School. SCHEDULE R, PART IV RELATED ORGANIZATIONS TAXABLE AS A CORPORATION OR TRUST THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HOLDS 34.56% OF THE OUTSTANDING COMBINED COMMON AND CLASS B SHARES OF THE HERSHEY COMPANY. EACH SHARE OF THE CLASS B COMMON STOCK ENTITLES ITS HOLDER TO 10 VOTES. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST HAS 81.66% OF ALL VOTES ENTITLED TO BE CAST ON MATTERS REQUIRING THE VOTE OF COMMON STOCK AND CLASS B COMMON STOCK VOTING TOGETHER. COLUMNS (F) AND (G) REFLECT THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S 34.56% SHARE OF THE HERSHEY COMPANY'S TOTAL INCOME AND END-OF-YEAR ASSETS. COLUMN (H) REFLECTS THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S TOTAL COMBINED VOTING POWER. (PERCENTAGES AS OF DECEMBER 31, 2016) SCHEDULE R, PARTS III AND IV, RELATED ORGANIZATIONS TAXED AS A PARTNERSHIP AND RELATED ORGANIZATIONS TAXED AS A CORPORATION OR TRUST. THE MILTON HERSHEY SCHOOL AND SCHOOL TRUSTS INVESTED IN THREE PARTNERSHIPS AND ONE TRUST THAT ARE INVESTMENT ENTITIES, IN WHICH THE SCHOOL AND SCHOOL TRUST OWN MORE THAN FIFTY PERCENT. THE MILTON HERSHEY SCHOOL BLK TRUST OWNS SEVERAL PARTNERSHIP INTERESTS. ONE OF THESE PARTNERSHIP INVESTMENTS, BLACKROCK S&P 100 INDEX NON-LENDABLE FUND B, IS REPORTED ON SCHEDULE R, PART III BECAUSE OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST'S INDIRECT OWNERSHIP IN THE PARTNERSHIP DURING THE YEAR. SCHEDULE R, PART V, LINE 2 (ITEM 6) HERSHEY ENTERTAINMENT & RESORTS CO. PROVIDED HERSHEYPARK AND GIANT CENTER TICKETS, PROJECT FELLOWSHIP ACTIVITIES AND OTHER BENEFITS TO MILTON HERSHEY SCHOOL STUDENTS AT NO COST. THE VALUE OF THESE BENEFITS WAS $380,896.