EX-12 3 ppcexhibit12.htm RATIO OF EARNINGS TO FIXED CHARGES PPC Exhibit 12


EXHIBIT 12
PILGRIM'S PRIDE CORPORATION
COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES

 
2011
 
2010
 
Transition Period
 
2009
 
2008
 
2007
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes
$
(487,126
)
 
$
66,488

 
$
(68,446
)
 
$
(173,849
)
 
$
(1,185,909
)
 
$
98,926

Add: Total fixed charges (see below)
126,111

 
132,905

 
48,899

 
181,094

 
158,414

 
146,919

Less: Interest capitalized
(3,424
)
 
(1,296
)
 
(1,082
)
 
(2,619
)
 
(5,288
)
 
(5,736
)
Total earnings
(364,439
)
 
198,097

 
(20,629
)
 
4,626

 
(1,032,783
)
 
240,109

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest(a)
114,955

 
118,574

 
45,756

 
164,548

 
139,508

 
128,919

Portion of noncancelable lease expense representative of interest factor(b)
11,156

 
14,331

 
3,143

 
16,546

 
18,906

 
18,000

Total fixed charges
126,111

 
132,905

 
48,899

 
181,094

 
158,414

 
146,919

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
(c)

 
1.49

 
(d)

 
(e)

 
(f)

 
1.63


(a) Interest includes amortization of capitalized financing fees.
(b) One-third of noncancelable lease expense is assumed to representative of the interest factor.
(c) Earnings were insufficient to cover fixed charges by $490.6 million.
(d) Earnings were insufficient to cover fixed charges by $69.5 million.
(e) Earnings were insufficient to cover fixed charges by $176.5 million.
(f) Earnings were insufficient to cover fixed charges by $1,191.2 million.