EX-12.1 2 hsy_20121231exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES STATEMENT HSY_2012.12.31 Exhibit 12.1

EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 2012, 2011, 2010, 2009 and 2008
(in thousands of dollars except for ratios)
(Unaudited)
 
 
2012
 
2011
 
2010
 
2009
 
2008
 
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
1,015,579

(a) 
$
962,845

(b) 
$
808,864

(c) 
$
671,131

(d) 
$
492,022

(e) 
Add (Deduct):
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
98,509

 
94,780

 
97,704

 
91,336

 
99,678

 
Portion of rents representative of the interest factor (f)
8,139

 
7,734

 
7,472

 
8,294

 
9,372

 
Amortization of debt expense
1,245

 
1,149

 
1,139

 
970

 
922

 
Amortization of capitalized interest
1,660

 
1,835

 
1,478

 
1,354

 
1,637

 
Adjustment to exclude minority interest and income or loss from equity investees
(12,950
)
 
(5,817
)
 
(8,183
)
 
(5,614
)
 
(3,465
)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted
$
1,112,182

 
$
1,062,526

 
$
908,474

 
$
767,471

 
$
600,166

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
$
98,509

 
$
94,780

 
$
97,704

 
$
91,336

 
$
99,678

 
Portion of rents representative of the interest factor (f)
8,139

 
7,734

 
7,472

 
8,294

 
9,372

 
Amortization of debt expense
1,245

 
1,149

 
1,139

 
970

 
922

 
Capitalized interest
5,778

 
7,814

 
2,116

 
2,640

 
5,779

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
113,671

 
$
111,477

 
$
108,431

 
$
103,240

 
$
115,751

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
9.78

 
9.53

 
8.38

 
7.43

 
5.18

 
 
            
NOTES:

(a)
Includes total business realignment and impairment charges of $83.8 million before tax.
(b)
Includes total business realignment and impairment charges of $49.2 million and a gain on sale of trademark licensing rights of $17.0 million before tax.
(c)
Includes total business realignment and impairment charges of $98.6 million before tax.
(d)
Includes total business realignment and impairment charges of $99.1 million before tax.
(e)
Includes total business realignment and impairment charges of $180.7 million before tax.
(f)
Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.