EX-12 2 exhibit12.htm RATIO OF EARNINGS TO FIXED CHARGES FOR THE YEARS ENDED DECEMBER 30, 2012

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

Transition
   2012     2011     2010     Period     2009     2008
Earnings:
       Income from continuing operations before
       income taxes $   153,062 $   (487,126 )

$  

66,488 $     (68,446 )

$  

(173,849 ) $   (1,185,909 )
       Add: Total fixed charges (see below) 113,011 126,111 132,905 48,899 181,094 158,414
       Less: Interest capitalized (1,717 ) (3,424 ) (1,296 ) (1,082 ) (2,619 ) (5,288 )
              Total earnings 264,356 (364,439 ) 198,097 (20,629 ) 4,626 (1,032,783 )
  
Fixed charges:
       Interest(a) 106,643 114,955 118,574 45,756 164,548 139,508
       Portion of noncancelable lease expense  
       representative of interest factor(b) 6,368 11,156 14,331 3,143 16,546 18,906
              Total fixed charges 113,011 126,111 132,905 48,899 181,094 158,414
  
Ratio of earnings to fixed charges 2.34 (c ) 1.49 (d ) (e ) (f )

(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.