EX-12.1 2 hsy_20171231exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 2017, 2016, 2015, 2014, and 2013
(in thousands of dollars except for ratios)
 
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
$
1,110,668

 
$
1,099,481

 
$
901,847

 
$
1,306,043

 
$
1,251,319

 
 
 
 
 
 
 
 
 
 
Add (deduct):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
116,559

 
107,365

 
104,764

 
105,840

 
102,194

Amortization of capitalized interest
1,022

 
2,927

 
2,450

 
2,352

 
2,272

Capitalized interest
(4,166
)
 
(5,903
)
 
(12,537
)
 
(6,179
)
 
(1,744
)
Adjustment to exclude noncontrolling interests in subsidiaries and income from equity investee
—

 
3,970

 
(3,850
)
 
129

 
(2,324
)
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted
$
1,224,083

 
$
1,207,840

 
$
992,674

 
$
1,408,185

 
$
1,351,717

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
$
102,668

 
$
96,209

 
$
93,520

 
$
93,777

 
$
93,258

Amortization of deferred debt issuance costs
1,564

 
1,642

 
1,279

 
1,118

 
1,115

Portion of rents representative of the interest factor (a)
12,327

 
9,514

 
9,965

 
10,945

 
7,821

 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
116,559

 
$
107,365

 
$
104,764

 
$
105,840

 
$
102,194

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
10.50

 
11.25

 
9.48

 
13.30

 
13.23

(a)
Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.