EX-12 3 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

EXHIBIT 12

PILGRIM’S PRIDE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

    2010     Transition Period     2009     2008     2007     2006  

Earnings:

    (In thousands)   

Income from continuing operations before income taxes

    $ 66,488         $ (68,446     $ (173,849)        $ (1,185,909)        $ 98,926         $ (26,063)   

Add: Total fixed charges (see below)

    132,905         48,899        181,094         158,414         146,919         65,584    

Less: Interest capitalized

    (1,296)        (1,082     (2,619)        (5,288)        (5,736)        (4,298)   
                                               

Total earnings

    $ 198,097         $ (20,629     $ 4,626         $ (1,032,783)        $ 240,109         $ 35,223    
                                               

Fixed charges:

           

Interest(a)

    $ 118,574         $ 45,756        $ 164,548         $ 139,508         $ 128,919         $ 53,311    

Portion of non-cancellable lease expense representative of the interest factor(b)

    14,331         3,143        16,546         18,906         18,000         12,273    
                                               

Total fixed charges

    $ 132,905         $ 48,899        $ 181,094         $ 158,414         $ 146,919         $ 65,584    
                                               

Ratio of earnings to fixed charges

    1.49        (f )      (e )      (d )      1.63        (c ) 

 

(a)

Interest includes amortization of capitalized financing fees.

(b)

One-third of non-cancellable lease expense is assumed to be representative of the interest factor.

(c)

Earnings were insufficient to cover fixed charges by $30.4 million.

(d)

Earnings were insufficient to cover fixed charges by $1,191.2 million.

(e)

Earnings were insufficient to cover fixed charges by $176.5 million.

(f)

Earnings were insufficient to cover fixed charges by $69.5 million.