EX-12.1 2 hsy_20141231exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES HSY_2014.12.31 Exhibit 12.1


EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 2014, 2013, 2012, 2011 and 2010
(in thousands of dollars except for ratios)
 

 
2014
 
2013
 
2012
 
2011
 
2010
 
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
1,306,043

 
$
1,251,319

 
$
1,015,579

 
$
962,845

 
$
808,864

 
Add (Deduct):
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
87,598

 
91,514

 
98,509

 
94,780

 
97,704

 
Portion of rents representative of the interest factor (1)
10,945

 
7,821

 
8,139

 
7,734

 
7,472

 
Amortization of debt expense
1,118

 
1,115

 
1,245

 
1,149

 
1,139

 
Amortization of capitalized interest
2,352

 
2,272

 
1,660

 
1,835

 
1,478

 
Adjustment to exclude minority interest and income or loss from equity investees
129

 
(2,324
)
 
(12,950
)
 
(5,817
)
 
(8,183
)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted
$
1,408,185

 
$
1,351,717

 
$
1,112,182

 
$
1,062,526

 
$
908,474

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness
$
87,598

 
$
91,514

 
$
98,509

 
$
94,780

 
$
97,704

 
Portion of rents representative of the interest factor (1)
10,945

 
7,821

 
8,139

 
7,734

 
7,472

 
Amortization of debt expense
1,118

 
1,115

 
1,245

 
1,149

 
1,139

 
Capitalized interest
6,179

 
1,744

 
5,778

 
7,814

 
2,116

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
105,840

 
$
102,194

 
$
113,671

 
$
111,477

 
$
108,431

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
13.30

 
13.23

 
9.78

 
9.53

 
8.38

 
 
            
NOTES:
(1)
Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.