EX-12.1 4 hsy_20131231exhibit1211.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES STATEMENT HSY_2013.12.31 Exhibit 12.1 (1)


EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 2013, 2012, 2011, 2010 and 2009
(in thousands of dollars except for ratios)
(Unaudited)
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
1,251,319

(a) 
$
1,015,579

(b) 
$
962,845

(c) 
$
808,864

(d) 
$
671,131

(e) 
Add (Deduct):
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
91,514

 
98,509

 
94,780

 
97,704

 
91,336

 
Portion of rents representative of the interest factor (f)
7,821

 
8,139

 
7,734

 
7,472

 
8,294

 
Amortization of debt expense
1,115

 
1,245

 
1,149

 
1,139

 
970

 
Amortization of capitalized interest
2,272

 
1,660

 
1,835

 
1,478

 
1,354

 
Adjustment to exclude minority interest and income or loss from equity investees
(2,324
)
 
(12,950
)
 
(5,817
)
 
(8,183
)
 
(5,614
)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted
$
1,351,717

 
$
1,112,182

 
$
1,062,526

 
$
908,474

 
$
767,471

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
$
91,514

 
$
98,509

 
$
94,780

 
$
97,704

 
$
91,336

 
Portion of rents representative of the interest factor (f)
7,821

 
8,139

 
7,734

 
7,472

 
8,294

 
Amortization of debt expense
1,115

 
1,245

 
1,149

 
1,139

 
970

 
Capitalized interest
1,744

 
5,778

 
7,814

 
2,116

 
2,640

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
102,194

 
$
113,671

 
$
111,477

 
$
108,431

 
$
103,240

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
13.23

 
9.78

 
9.53

 
8.38

 
7.43

 
 
            
NOTES:
(a)
Includes total business realignment and impairment charges of $19.1 million before tax.
(b)
Includes total business realignment and impairment charges of $83.8 million before tax.
(c)
Includes total business realignment and impairment charges of $49.2 million before tax and a gain on sale of trademark licensing rights of $17.0 million before tax.
(d)
Includes total business realignment and impairment charges of $98.6 million before tax.
(e)
Includes total business realignment and impairment charges of $99.1 million before tax.
(f)
Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.