2017-06-15T08:46:21-05:00 2016-07-31 PricewaterhouseCoopers LLP 2001 MARKET ST SUITE 1800 PHILADELPHIA PA 19103 990 2015-08-01 231353340 MILTON HERSHEY SCHOOL AND SCHOOL TRUST % GAYLA MOLINELLI HERSHEY TRU MILT 7175201100 PO BOX 445 HERSHEY PA 17033 GAYLA MOLINELLI VP, CFO 7175201100 2017-06-12 true ERIC M MCNEIL P00460263 2673303000 2015 2021-01-29 14:40:06Z PETER GURT PO BOX 445 HERSHEY PA 17033 1077082726 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 2150 143 -3980739 -4333500 56453 53573 522230 634199 490525232 329884731 2800043 3080204 493903958 333652707 5790696 8559057 0 0 114256167 123274728 0 0 0 117565825 126394221 237612688 258228006 256291270 75424701 12477913147 14001120037 216541697 249660055 12261371450 13751459982 X SEE SCHEDULE O FOR FURTHER DETAILS. false false 204013685 8559057 669199 SEE SCHEDULE O FOR FURTHER DETAILS. 204013685 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 true false false false false true true true true false false true 231 0 true 2150 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 13.0 6.5 X 0 272500 135000 JAMES M MEAD BOARD OF MANAGERS 6.5 5.0 X 0 237500 135000 JAMES E NEVELS BOARD OF MANAGERS 5.5 8.5 X 0 383671 135000 VELMA A REDMOND ESQ BOARD OF MANAGERS 10.0 1.0 X 0 158250 0 JOSEPH M SENSER BOARD OF MANAGERS 6.0 4.0 X 0 246500 0 ROBERT CONNOR HEIST BOARD OF MANAGERS 17.5 0.0 X 0 140500 0 LT GEN RICHARD C ZILMER BOARD OF MANAGERS to 9/30/15 7.0 1.0 X 0 108098 0 JOAN E STEEL BOARD OF MANAGERS TO 7/9/16 7.0 0.0 X 0 147000 0 JOHN A FRY BOARD OF MANAGERS to 1/27/16 4.5 0.0 X 0 128750 0 DAVID SALTZMAN Board of Managers 5.0 0.0 X 0 121000 0 Stephanie Bell-Rose Board of Managers TO 3/26/16 4.5 0.0 X 0 0 0 James Brown Board of Managers on 2/7/16 6.0 0.0 X 0 0 0 M Diane Koken Board of Managers on 12/31/15 10.0 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 256544 0 83829 JOAN K SINGLETON VP HUMAN RESOURCES 55.0 0.0 X 245222 0 76728 PETER G GURT PRESIDENT 60.0 0.0 X 446722 0 133065 LISA RASHID VP - COMMUNICATIONS 60.0 0.0 X 169937 0 72359 MARC A WOOLLEY ESQ SECRETARY TO 6/30/2016 48.0 2.0 X 0 428565 22505 ERIC HENRY ACTING TREASURER 55.0 11.0 X 0 1350064 51973 ANDREW H CLINE VP LEGAL AFFRS/GEN COUNSL 60.0 0.0 X 259989 0 80501 THOMAS A K QUEENAN CHIEF FINANCIAL OFFICER to6/16 55.0 0.0 X 0 337276 39279 LINDA VETTORI ASSISTANT SECRETARY 48.0 2.0 X 0 96728 30158 FREDA F MARTINE VP OF EDU AND STUDENT LIFE 60.0 0.0 X 158582 0 89738 STEVEN SPARKS ESQ SECRETARY-BEGAN 7/11/16 48.0 2.0 X 0 0 0 ROBERT L FEHRS HEAD-MIDDLE DIVISION 55.0 0.0 X 172781 0 50875 ANNETTE K COLE GILL HEAD-ELEMENTARY DIVISION 47.0 0.0 X 194457 0 56492 BETH J SHAW EXEC DIRECTOR- STUDENT SUPPORT 57.0 0.0 X 197704 0 56858 WILLIAM H WEBER III HEAD OF SR DIVISION 53.0 0.0 X 150682 0 44207 TIMOTHY C FAKE SR DIRECTOR IT 54.0 0.0 X 167116 0 35683 JOHN J OSMOLINSKI SR DIR CONSTRUCTION/FAC 55.0 0.0 X 150368 0 49645 STEPHEN MARK SEYMOUR SR DIR ENROLL MGT/FAMIL 40.0 0.0 X 151024 0 51103 ERICA M WEILER-TIMMONS DIR PSYCHOLOGICAL SERVICE 50.0 0.0 X 153730 0 48632 DAVID C MILLER JR SR DIR RISK MANAGEMENT 48.0 0.0 X 153722 0 26362 GAYLA MOLINELLI TREASURER to 2/11 53.0 2.0 X 0 269155 50159 JOHN ESTEY ESQ INTERIM PRESIDENT to 7/14 50.0 0.0 X 0 653355 43130 3029580 5078912 1598281 69 true true false SODEXO INC AFFILIATES PO BOX 360170 PITTSBURGH PA 152516170 FOOD SERVICE/ MGT 6002333 CHERRYROAD TECHNOLOLOGIES INC 301 GIBRALTAR DRIVE SUITE 2C MORRIS PLAINS NJ 07950 TECH CONSULTANT 1559318 WINALL INC DBA MID-STATE O BOX 1864 HARRISBURG PA 17105 CONSTRUCTION 1540432 HERSHEY TRUST COMPANY PO BOX 445 HERSHEY PA 17033 SHARED SERVICES 1504887 Silchester 780 Third Avenue NEW YORK NY 10017 INVESTMENT MGMT 1693031 166 53573 8710 53573 AG MILK AND CROP SALES 900099 416997 416997 MEMORABILIA SALES TO PUBLIC 900099 8262 8262 CONCESSION STAND SALES 900099 53386 53386 UTILITIES REBATES 900099 108784 108784 FOOD REBATES 900099 9523 9523 37247 37247 634199 285598114 -3824909 289423023 0 0 5514536 2469332 3045204 0 3045204 -155830 3201034 784994265 253039 740919099 41588 44075166 211451 44286617 44286617 0 0 0 INSURANCE PROCEEDS/RECOVERIES 900099 35000 35000 35000 333652707 669199 -3980739 336910674 0 8559057 8559057 0 0 2581069 1168046 1413023 0 75881483 71586599 4294884 16969611 15612042 1357569 21232891 19534383 1698508 6609674 6080900 528774 0 2481385 1568753 912632 147350 58880 88470 0 0 26482893 26482893 5169155 5169155 2589407 1291590 1297817 1868618 1678786 189832 1528924 1371647 157277 0 0 5714622 5263148 451474 2009120 1901884 107236 0 266766 226694 40072 0 0 40473277 36439341 4033936 2714327 1191407 1522920 TRUST EXPENSES 5452089 5452089 FOOD, CLOTHING & HOUSEHOLD 7211290 7034669 176621 EQUIP RENTAL & MAINTENANCE 4776696 4426886 349810 CONTRACTED SERVICES/CONSULTING 10670508 8902533 1767975 6837794 4947285 1890509 258228006 204013685 54214321 0 48256 81571 77120149 68749539 0 0 28120398 25815996 0 0 0 0 0 0 1571152 1592951 1774220 1205622 1213858243 567932993 648849671 645925250 1467694377 1510698766 10252734924 11747050342 0 0 0 0 0 0 12477913147 14001120037 216541697 249660055 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 216541697 249660055 X 1189112290 1195174875 0 0 11072259160 12556285107 12261371450 13751459982 12477913147 14001120037 X 75424701 1439676845 -25013014 X false true X true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 204013685 204013685 1000000 250000 1000000 1000000 1000000 1000000 4000000 6000000 0 0 0 0 0 250000 250000 250000 250000 1000000 1500000 0 0 FORM 990, SCHEDULE C, PART II-A MHSST is required to complete this schedule since it previously filed a 501(h) election. MHSST had no lobbying expenses for the reporting period. X X X false 11072259160 1484025947 12556285107 10695613308 376645852 11072259160 10710324026 -14710718 10695613308 8746048626 1964275400 10710324026 7798674181 947374445 8746048626 1.00000 false true true 64493143 64493143 98379000 932220574 480728917 549870657 118765526 87204076 31561450 645925250 SEE PART XIII 11747050342 F 11747050342 0 0 X 1772685811 1439676846 -643742 1439033104 333652707 333652707 282597278 -643742 -643742 283241020 -25013014 -25013014 258228006 SCHEDULE D, PART III, LINE 1A & 4 MAINTAINING COLLECTIONS OF ART, HISTORICAL TREASURES, OR SIMILAR ASSETS THE ORGANIZATION ELECTED, AS PERMITTED UNDER 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) (13,840) PROGRAM SERVICE REVENUE (RECLASS) (629,902) ________ (643,742) SCHEDULE D, PART XII, LINE 2D RECONCILIATION OF EXPENSES PER AUDITED FIN STMTS WITH EXPENSES PER RETURN RENTAL INCOME (RECLASS) (13,840) PROGRAM SERVICE REVENUE (RECLASS) (629,902) ________ (643,742) SCHEDULE D, PART XII, LINE 4B RECONCILIATION OF EXPENSES PER AUDITED FIN STMTS WITH EXPENSES PER RETURN UNRECOGNIZED PENSION & POST RETIREMENT COST (25,013,014) 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 53,573 - 53,573 2 PROGRAM SERVICE REV - 634,199 634,199 3 INVESTMENT INCOME 285,598,114 - 285,598,114 6 NET RENTAL INCOME 3,035,660 9,544 3,0452,204 7(I) GAIN ON SALE-SECURITIES 44,075,166 - 44,075,166 7(II) GAON ON SALE-OTHER 146,503 64,948 211,451 11A OTHER INCOME 35,000 - 35,000 _________ _________ _________ 12 TOTAL REVENUE 332,944,016 708,691 333,652,707 PART IX, STATEMENT OF FUNCTIONAL EXPENSES MILTON HERSHEY MILTON HERSHEY TOTAL LINE SCHOOL TRUST SCHOOL 2 GRANTS TO INDIVIDUALS - 8,559,057 8,559,057 5 COMPENSATION OF OFFICERS 1,000 2,580,069 2,581,069 7 OTHER SALARIES & WAGES - 75,881,483 75,881,483 8 PENSION PLAN CONTRIBUTIONS - 16,969,611 16,969,611 9 OTHER EMPLOYEE BENEFITS - 21,232,891 21,232,891 10 PAYROLL TAXES - 6,609,674 6,609,674 11B LEGAL FEES - 2,481,385 2,481,385 11C ACCOUNTING FEES - 147,350 147,350 11F INVEST MGMT FEES 26,482,893 - 26,482,893 11G OTHER FEES FOR SERVICES - 5,169,155 5,169,155 12 ADVERTISING - 2,589,407 2,589,407 13 OFFICE EXPENSES - 1,868,618 1,868,618 14 INFORMATION TECHNOLOGY - 1,528,924 1,528,924 16 OCCUPANCY - 5,714,622 5,714,622 17 TRAVEL - 2,009,120 2,009,120 19 CONFERENCES - 266,766 266,766 22 DEPRECIATION 865,298 39,607,979 40,473,277 23 INSURANCE - 2,714,327 2,714,327 24A TRUST EXPENSES (*) 5,452,089 - 5,452,089 24B FOOD/CLOTHING/HOUSEHOLD - 7,211,290 7,211,290 24C SUPPLIES - 4,776,696 4,776,696 24D CONTRACTED SERV/CONSULTING - 10,670,508 10,670,508 24E ALL OTHER EXPENSES - 6,837,794 6,837,794 _________ _________ _________ 26 TOTAL FUNCTIONAL EXPENSES 32,801,280 225,426,726 258,228,006 (*) 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 54,576 26,995 81,571 2 SAVINGS & TEMP INVEST 20,727,973 - 20,727,973 4 ACCOUNTS RECEIVABLE 17,499,180 204,301 17,703,481 8 INVENTORIES FOR SALE/USE - 1,592,951 1,592,951 9 PREPAID EXPENSES - 1,205,622 1,205,622 10A PROPERTY EQPMT, AT COST 996,556,833 118,765,526 1,115,322,359 10B LESS: ACCUMULATED DEP. (480,728,917) (87,204,076) (567,932,993) 11 INVEST: PUBLICLY TRADED 407,050,056 - 407,050,056 12 INVEST: OTHER 438,650,389 - 438,650,389 17 LIABILITIES (9,969,245) (229,257,289) (239,226,534) ___________ ___________ _________ NET UNRESTRICTED ASSETS 1,389,840,845 (194,665,970) 1,195,174,875 OF THE $1,195,174,875 IN NET UNRESTRICTED ASSETS, $851,392,018 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 $ 403,314,986 FMV AGENCY BONDS 107,267,299 FMV CORPORATE BONDS 291,410,734 FMV BOND FUNDS 152,756,706 FMV COMMON STOCKS-OTHER 555,949,041 FMV ________________ TOTAL PART X, LINE 11 $1,510,698,766 PART X, LINE 12/SCHEDULE D, PART VII CLOSELY HELD EQUITY INTERESTS THE HERSHEY COMPANY - COMMON SHARES $1,407,086,290 FMV HERSHEY ENTERTAINMENT & RESORTS 590,000,000 FMV HERSHEY TRUST COMPANY 39,637,747 FMV THE HERSHEY CO - CLASS B SHARES 6,713,386,449 FMV ________________ SUB-TOTAL CLOSELY-HELD INTERESTS $8,750,110,486 PART X, LINE 12 (CONTINUED) OTHER STOCK FUNDS - OTHER $1,883,015,903 FMV OTHER BOND FUNDS 371,196,084 FMV MARKETABLE ALTERNATIVES 58,812,034 FMV ALTERNATIVE ASSETS-NON MARKETABLE 683,915,835 FMV _____________ SUB-TOTAL OTHER $2,996,939,856 _____________ TOTAL PART X, LINE 12 $11,747,050,342 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 71951290 Central America and the Caribbean Investments 274265280 North America Investments 7623925 Sub-Saharan Africa Investments 17104993 370945488 370945488 true false false true true false true CONTINUING EDUCATION SCHOLARSHIPS 538 8559057 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 $80,000. 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 2016 WILL BE $84,000. 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 $8,559,057 AND $5,790,696 DURING THE YEARS ENDED JULY 31, 2016 AND 2015 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 538 STUDENTS CURRENTLY RECEIVING CONTINUING EDUCATION SCHOLARSHIPS AS WELL AS THE 760 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 $6,240,072 OF CASH GRANTS PAID DURING THE YEAR AND $2,318,985 WHICH REPRESENTS A INCREASE IN THE TUITION ACCRUAL FOR GRANTS TO BE PAID IN FUTURE YEARS. THE TOTAL OF THESE AMOUNTS IS $8,559,057. X X X true true X X X X X false false false false false false false false false ROBERT F CAVANAUGH BOARD OF MANAGERS 272500 0 0 0 135000 0 0 0 407500 0 0 JAMES M MEAD BOARD OF MANAGERS 237500 0 135000 0 0 0 372500 0 0 JAMES E NEVELS BOARD OF MANAGERS 247578 0 136093 0 135000 0 0 0 518671 0 135000 VELMA A REDMOND ESQ BOARD OF MANAGERS 158250 0 0 0 0 0 158250 0 0 JOSEPH M SENSER BOARD OF MANAGERS 246500 0 0 0 0 0 246500 0 0 ELLIOTT H ROBINSON VP ADMINISTRATION 220947 0 0 0 35597 0 55114 0 28715 0 340373 0 0 0 JOAN K SINGLETON VP HUMAN RESOURCES 213351 0 0 0 31871 0 49203 0 27525 0 321950 0 0 0 PETER G GURT PRESIDENT 332870 0 99000 0 14852 0 52715 0 80350 0 579787 0 0 0 GAYLA MOLINELLI TREASURER to 2/11 0 221824 0 42965 0 4366 0 39750 0 10409 0 319314 0 0 LISA RASHID VP - COMMUNICATIONS 169617 0 0 0 320 0 36965 0 35394 0 242296 0 0 0 ROBERT L FEHRS HEAD-MIDDLE DIVISION 155351 0 0 0 17430 0 25922 0 24953 0 223656 0 0 0 ANNETTE K COLE GILL HEAD-ELEMENTARY DIVISION 189213 0 0 0 5244 0 29535 0 26957 0 250949 0 0 0 BETH J SHAW EXEC DIRECTOR- STUDENT SUPPORT 197244 0 0 0 460 0 29971 0 26887 0 254562 0 0 0 TIMOTHY C FAKE SR DIRECTOR IT 166593 0 0 0 523 0 25218 0 10465 0 202799 0 0 0 JOHN J OSMOLINSKI SR DIR CONSTRUCTION/FAC 149464 0 0 0 904 0 22868 0 26777 0 200013 0 0 0 STEPHEN MARK SEYMOUR SR DIR ENROLL MGT/FAMIL 150740 0 0 0 284 0 23100 0 28003 0 202127 0 0 0 ERICA M WEILER-TIMMONS DIR PSYCHOLOGICAL SERVICE 153538 0 0 0 192 0 20433 0 28199 0 202362 0 0 0 MARC A WOOLLEY ESQ SECRETARY TO 6/30/2016 0 401015 0 25000 0 2550 0 18550 0 3955 0 451070 0 0 JOHN ESTEY ESQ INTERIM PRESIDENT to 7/14 0 630532 0 0 0 22823 0 18550 0 24580 0 696485 0 0 ERIC HENRY ACTING TREASURER 0 498345 0 850000 0 1719 0 35000 0 16973 0 1402037 0 0 ANDREW H CLINE VP LEGAL AFFRS/GEN COUNSL 254253 0 0 0 5736 0 51527 0 28974 0 340490 0 0 0 THOMAS A K QUEENAN CHIEF FINANCIAL OFFICER to6/16 0 289614 0 43105 0 4557 0 18550 0 20729 0 376555 0 0 FREDA F MARTINE VP OF EDU AND STUDENT LIFE 157855 0 0 0 727 0 61933 0 27805 0 248320 0 0 0 DAVID C MILLER JR SR DIR RISK MANAGEMENT 153134 0 0 0 588 0 7882 0 18480 0 180084 0 0 0 WILLIAM H WEBER III HEAD OF SR DIVISION 150447 0 0 0 235 0 16874 0 27333 0 194889 0 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. 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 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 (administration of which trust includes responsibility for (1) The Hershey Company, a Fortune 500 company; (2) Hershey Entertainment & Resorts Company, a $590 million resort and entertainment company; (3) an actively managed portfolio of approximately $4.7 billion in securities and other investments; and (4) approximately 10,000 acres of real estate); and (B) serves as trustee for the $31.4 million 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. She was not paid any fees in 2015 from the related for-profit company, Hershey Trust Company (EIN 23-0692150). James Brown ESQ. Mr. Brown joined the boards of Milton Hershey School and Hershey Trust Company in FEBRUARY 2016. He was not paid any fees in 2015 from the 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). John A. Fry COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE related for-profit company, Hershey Trust Company (EIN 23-0692150). Robert C. Heist, ESQ. Compensation reported consists only of director fees received from a related for-profit company, Hershey Trust Company (EIN 23-0692150). M. Diane Koken Ms. Koken joined the boards of Milton Hershey School and Hershey Trust Company in December 2015. She was not paid any fees in 2015 from the related for-profit company, Hershey Trust Company (EIN 23-0692150). 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 $136,000 of payment of compensation reported on the prior year's Form 990. This compensation, received in 2015, was earned in 2014, 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 COMPENSATION REPORTED CONSISTS ONLY OF DIRECTOR FEES RECEIVED FROM THE RELATED for-profit entity Hershey Trust Company (EIN: 23-0692150). Richard Zilmer Mr. Zilmer served on the boards of Hershey Trust Company and Milton Hershey School until September 2015. 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. Gayla Molinelli Ms. Molinelli served as the Treasurer of Hershey Trust Company and Milton Hershey School and School Trust until February 2011. She also serves as Vice President, Finance of Hershey Trust Company (EIN: 23-0692150), a for-profit related corporation. None of her compensation, employee benefit contributions or non-taxable benefits was paid by Milton Hershey School & School Trust. 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 2015 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 ON 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 MI RIVERBRIDGE PARTNERS LLC SUBSTANTIAL CONTRIBUTOR 500814 INVESTMENT MANAGEMENT FEES false JK MILNE ASSET MANAGEMENT LLC SUBSTANTIAL CONTRIBUTOR 781147 INVESTMENT MANAGEMENT FEES false 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 2,024 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 2015-2016 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 2015-2016 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 2014-15, THERE WERE 134,228 HEALTH SERVICE VISITS BY STUDENTS TO THE SCHOOLS MEDICAL PROFESSIONALS DURING THE REPORTING YEAR, IN ADDITION TO 45,176 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 $78,565 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 $100,797.) 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 7/31/16) 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 OPERATES UNDER A CONFLICT OF INTEREST POLICY WHICH REQUIRES DIRECTORS TO DISCLOSE "ALL ACTUAL OR POTENTIAL CONFLICTS OF INTEREST" WITH MILTON HERSHEY SCHOOL 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 CONFLICT OF INTEREST POLICY COVERING THE MANAGERS OF THE MILTON HERSHEY SCHOOL AND SCHOOL TRUST AND THE DIRECTORS OF HERSHEY TRUST IS DOCUMENTED IN THEIR GOVERNANCE GUIDELINES MANUAL AND IS ALSO POSTED ON THE MILTON HERSHEY SCHOOL WEBSITE. THE CONFLICT OF INTEREST POLICY COVERING OFFICERS AND OTHER KEY EMPLOYEES OF MILTON HERSHEY SCHOOL IS DOCUMENTED IN MILTON HERSHEY SCHOOL'S CONFLICT OF INTEREST POLICY AND CODE OF ETHICS. 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. POTENTIAL CONFLICTS OF INTEREST RELATED TO MANAGERS, DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE BROUGHT TO THE ATTENTION OF THE PRESIDENT OF MILTON HERSHEY SCHOOL OR THE CHIEF EXECUTIVE OFFICER OR COMPLIANCE OFFICER OF HERSHEY TRUST COMPANY. THE RELEVANT EXECUTIVE (OR HIS DESIGNEE) DETERMINES THE CORRECTIVE MEASURE, IF ANY, TO BE TAKEN TO RESOLVE THE CONFLICT, OR WILL IMPOSE APPROPRIATE RESTRICTIONS, IF ANY, ON THE PERSON WITH THE CONFLICT. FOR CONFLICTS OF INTEREST INVOLVING THE EXECUTIVES OR MANAGERS/DIRECTORS, THE MATTER WOULD BE DISCUSSED WITH THE NOMINATING AND GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS OF THE HERSHEY TRUST COMPANY AND THE BOARD OF MANAGERS OF THE MILTON HERSHEY SCHOOL. THE NOMINATING AND GOVERNANCE COMMITTEE, IN CONSULTATION WITH THE OTHER BOARD MEMBERS, EXCLUDING SUCH CONFLICTED PERSON, HAS THE FINAL APPROVAL OF ANY RECOMMENDED CORRECTIVE MEASURES OR IMPOSED RESTRICTIONS. FORM 990, PART VI, SECTION B, LINES 15A AND 15B COMPENSATION PROCESS AN INDEPENDENT COMPENSATION CONSULTANT EVALUATES AND COMPARES THE COMPENSATION OF THE OFFICERS AND SENIOR DIRECTORS OF MILTON HERSHEY SCHOOL AND SCHOOL TRUST TO SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS TO DETERMINE THAT IT IS FAIR AND REASONABLE. THIS PROCESS OCCURS AT THE INITIAL HIRE OF THE OFFICER/SENIOR DIRECTOR AND 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 SENIOR DIRECTORS. THE REVIEW OF THE COMPENSATION OF THE OFFICERS AND SENIOR DIRECTORS, 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 SENIOR DIRECTORS, 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 STATUTORY OFFICERS (PRESIDENT, SECRETARY, AND TREASURER) AND ALSO THE COMPLIANCE OFFICER IS FIXED BY THE BOARD OF DIRECTORS OF HERSHEY TRUST COMPANY IN ACCORDANCE WITH SECTION 5 OF 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 AND SCHOOL TRUST DO NOT RECEIVE ANY DIRECT COMPENSATION FROM MILTON HERSHEY SCHOOL AND SCHOOL TRUST. THE MANAGERS RECEIVE COMPENSATION FROM HERSHEY TRUST COMPANY AS DIRECTORS OF THE TRUST COMPANY IN ACCORDANCE WITH SECTION 16 OF ITS BYLAWS. THE COMPENSATION IS REVIEWED AT LEAST EVERY TWO YEARS BY INDUSTRY-RECOGNIZED INDEPENDENT CONSULTING FIRMS APPROVED BY THE PA OAG. THE FIRM'S RECOMMENDATION MUST BE PROVIDED TO THE PA OAG BEFORE ACTING ON IT. INDEPENDENT COUNSEL OPINES ON THE COMPENSATION PROCESS FOR DETERMINING COMPENSATION OF OFFICERS, AS APPROPRIATE, THAT IS IN ACCORDANCE WITH THE "REBUTTABLE PRESUMPTION OF REASONABLENESS" PROCEDURES SET OUT IN THE REGULATIONS FOR SECTION 4958 OF THE INTERNAL REVENUE CODE. 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 $25,013,014 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 17033 271451942 RE RENTAL PA 719117 9850357 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) 9 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 EXCLUDED FROM TAX 396181 21801859 false 0 false 1.00000 BLKRK S&P 100 INDEX NON-LENDABLE FUND 400 HOWARD STREET SAN FRANCISCO CA 94105 800861106 INVESTMENTS CA MHS BLK TRUST EXCLUDED FROM TAX 11305067 188376243 false 0 false 0.98000 EATON VANCE TRUST CO HIGH YIELD CTF TWO INTERNATIONAL PLACE BOSTON MA 02110 INVESTMENTS MA MHS TRUST EXCLUDED FROM TAX 5035644 93450822 false 0 false 1.00000 HERSHEY TRUST COMPANY PO BOX 445 HERSHEY PA 17033 230692150 STATE TRUST C PA HTC TRUSTEE C CORP 23775383 47090133 1.00000 true HERSHEY ENTERTAINMENT & RESORTS CO 27 W CHOCOLATE HERSHEY PA 17033 230691815 ENTERTAINMENT PA HTC TRUSTEE C CORP 290066793 313455370 1.00000 true THE HERSHEY CO 100 CRYSTAL A DR HERSHEY PA 17033 230691590 CONFECTIONARY PA HTC TRUSTEE C CORP 1286648770 1816554107 0.81170 true MILTON HERSHEY SCHOOL BLK TRUST BLACKROCK INST TR TTE 400 HOWARD S SAN FRANCISCO CA 94105 306349039 INVESTMENTS CA MHS TRUST TRUST 67436035 1269235743 1.00000 true true false true false false true true true false false false false false false true true true false true HERSHEY ENTERTAINMENT & RESORTS CO A 345696 FMV HERSHEY TRUST COMPANY A 218642 FMV THE MS HERSHEY FOUNDATION A 11196 FMV HERSHEY ENTERTAINMENT & RESORTS CO p 919318 FMV HERSHEY TRUST COMPANY o 1335206 FMV HERSHEY ENTERTAINMENT & RESORTS CO c 378441 FMV HERSHEY ENTERTAINMENT & RESORTS CO f 9180906 FMV THE HERSHEY COMPANY f 158012123 FMV THE HERSHEY COMPANY A 3000 FMV THE MS HERSHEY FOUNDATION P 56510 FMV MILTON HERSHEY SCHOOL BLK TRUST A 817 FMV LEGATO INTERNATIONAL EQUITY FUND LP F 543244 FMV EATON VANCE TRUST CO HIGH YIELD CTF F 6206310 FMV MILTON HERSHEY SCHOOL BLK TRUST G 193465500 FMV MILTON HERSHEY SCHOOL BLK TRUST H 79100165 FMV 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 holds 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 33.82% 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 81.17% 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 33.82% 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, 2015) 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. 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 $378,441.