EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 2012, 2011, 2010, 2009 and 2008
(in thousands of dollars except for ratios)
(Unaudited)
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,015,579 | (a) | $ | 962,845 | (b) | $ | 808,864 | (c) | $ | 671,131 | (d) | $ | 492,022 | (e) | |||||
Add (Deduct): | ||||||||||||||||||||
Interest on indebtedness | 98,509 | 94,780 | 97,704 | 91,336 | 99,678 | |||||||||||||||
Portion of rents representative of the interest factor (f) | 8,139 | 7,734 | 7,472 | 8,294 | 9,372 | |||||||||||||||
Amortization of debt expense | 1,245 | 1,149 | 1,139 | 970 | 922 | |||||||||||||||
Amortization of capitalized interest | 1,660 | 1,835 | 1,478 | 1,354 | 1,637 | |||||||||||||||
Adjustment to exclude minority interest and income or loss from equity investees | (12,950 | ) | (5,817 | ) | (8,183 | ) | (5,614 | ) | (3,465 | ) | ||||||||||
Earnings as adjusted | $ | 1,112,182 | $ | 1,062,526 | $ | 908,474 | $ | 767,471 | $ | 600,166 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest on indebtedness | $ | 98,509 | $ | 94,780 | $ | 97,704 | $ | 91,336 | $ | 99,678 | ||||||||||
Portion of rents representative of the interest factor (f) | 8,139 | 7,734 | 7,472 | 8,294 | 9,372 | |||||||||||||||
Amortization of debt expense | 1,245 | 1,149 | 1,139 | 970 | 922 | |||||||||||||||
Capitalized interest | 5,778 | 7,814 | 2,116 | 2,640 | 5,779 | |||||||||||||||
Total fixed charges | $ | 113,671 | $ | 111,477 | $ | 108,431 | $ | 103,240 | $ | 115,751 | ||||||||||
Ratio of earnings to fixed charges | 9.78 | 9.53 | 8.38 | 7.43 | 5.18 |
NOTES:
(a) | Includes total business realignment and impairment charges of $83.8 million before tax. |
(b) | Includes total business realignment and impairment charges of $49.2 million and a gain on sale of trademark licensing rights of $17.0 million before tax. |
(c) | Includes total business realignment and impairment charges of $98.6 million before tax. |
(d) | Includes total business realignment and impairment charges of $99.1 million before tax. |
(e) | Includes total business realignment and impairment charges of $180.7 million before tax. |
(f) | Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases. |