The Hershey Company (HSY) 10-Q 2018 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
	September 30, 2018			October 1, 2017
Earnings:
Income before income taxes	$	1,066,091		$	850,279
Add (deduct):
Fixed charges	122,523			85,075
Amortization of capitalized interest	853			759
Capitalized interest	(3,876		)	(2,892		)
Earnings as adjusted	$	1,185,591		$	933,221
Fixed Charges:
Interest expensed and capitalized	$	109,156		$	75,030
Amortization of deferred debt issuance costs	1,773			1,178
Portion of rents representative of the interest factor (a)	11,594			8,867
Total fixed charges	$	122,523		$	85,075
Ratio of earnings to fixed charges	9.68			10.97

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