EX-12 2 exhibit12.txt RATIO OF EARNINGS TO FIXED CHARGES
Exhibit 12 HERSHEY FOODS CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Years Ended December 31, 2003, 2002, 2001, 2000 and 1999 (in thousands of dollars except for ratios) (Unaudited) 2003 2002 2001 2000 1999 ---- ---- ---- ---- ---- Earnings: Income from continuing operations before income taxes............................. $732,827(a) $637,565(b) $343,541(c) $546,639 $727,874(d) Add (Deduct): Interest on indebtedness.................... 65,265 64,398 71,470 80,956 77,300 Portion of rents representative of the interest factor (e) .................... 12,742 15,467 15,451 13,585 15,162 Amortization of debt expense................ 446 457 464 489 486 Amortization of capitalized interest........ 3,880 4,018 4,228 325 3,884 -------- -------- -------- -------- -------- Earnings as adjusted...................... $815,160 $721,905 $435,154 $641,994 $824,706 ======== ======== ======== ======== ======== Fixed Charges: Interest on indebtedness...................... $65,265 64,398 $ 71,470 $ 80,956 $ 77,300 Portion of rents representative of the interest factor (e)..................... 12,742 15,467 15,451 13,585 15,162 Amortization of debt expense.................. 446 457 464 489 486 Capitalized interest.......................... 1,953 1,144 1,498 145 1,214 -------- -------- -------- -------- -------- Total fixed charges....................... $ 80,406 $ 81,466 $ 88,883 $ 95,175 $ 94,162 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges................ 10.14 8.86 4.90 6.75 8.76 ======== ======== ======== ======== ======== ----------------------------------- NOTES: (a) Includes total charges for business realignment initiatives of $25,477 and a gain on sale of business of ($8,330) (b) Includes total charges for business realignment initiatives of $34.0 million before tax and costs related to the potential sale of the Company of $17.2 million before tax. (c) Includes total charges for business realignment initiatives of $278.4 million before tax. (d) Includes a gain on the sale of the Company's pasta business of $243.8 million. (e) Portion of rents representative of the interest factor consists of all rental expense pertaining to off-balance sheet operating lease arrangements and one-third of rental expense for other operating leases.