The Hershey Company (HSY) 10-Q 2017 Q3 Quarterly report

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
	October 1, 2017			October 2, 2016
Earnings:
Income before income taxes	$	850,279		$	900,862
Add (deduct):
Fixed charges	85,075			79,371
Amortization of capitalized interest	759			2,166
Capitalized interest	(2,892		)	(4,702		)
Adjustment to exclude noncontrolling interests in subsidiaries and income from equity investee	—			(798		)
Earnings as adjusted	$	933,221		$	976,899
Fixed Charges:
Interest expensed and capitalized	$	75,030		$	71,167
Amortization of deferred debt issuance costs	1,178			1,237
Portion of rents representative of the interest factor (a)	8,867			6,967
Total fixed charges	$	85,075		$	79,371
Ratio of earnings to fixed charges	10.97			12.31

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