EX-12.1 3 hsy_20180930exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands of dollars except for ratios)
(unaudited)
 
 
Nine Months Ended
 
September 30, 2018
 
October 1, 2017
Earnings:
 
 
 
 
 
 
 
Income before income taxes
$
1,066,091

 
$
850,279

 
 
 
 
Add (deduct):
 
 
 
 
 
 
 
Fixed charges
122,523

 
85,075

Amortization of capitalized interest
853

 
759

Capitalized interest
(3,876
)
 
(2,892
)
 
 
 
 
Earnings as adjusted
$
1,185,591

 
$
933,221

 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
Interest expensed and capitalized
$
109,156

 
$
75,030

Amortization of deferred debt issuance costs
1,773

 
1,178

Portion of rents representative of the interest factor (a)
11,594

 
8,867

 
 
 
 
Total fixed charges
$
122,523

 
$
85,075

 
 
 
 
Ratio of earnings to fixed charges
9.68

 
10.97

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