The Hershey Company (HSY) 10-K 2009 FY Annual report

EXHIBIT 12.1

THE HERSHEY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

For the Years Ended December 31, 2009, 2008, 2007, 2006 and 2005

(in thousands of dollars except for ratios)

(Unaudited)

	2009			2008			2007			2006			2005
Earnings:
Income from continuing operations before income taxes	$	671,131	(a)	$	492,022	(b)	$	340,242	(c)	$	876,502	(d)	$	765,637	(e)
Add (Deduct):
Interest on indebtedness		91,336			99,678			121,066			117,738			89,485
Portion of rents representative of the interest factor(f)		8,294			9,372			8,147			7,647			8,244
Amortization of debt expense		970			922			756			574			463
Amortization of capitalized interest		1,354			1,637			2,392			2,850			3,068
Adjustment to exclude minority interest and income or loss from equity investee		(5,614	)		(3,465	)		(503	)		—			—
Earnings as adjusted	$	767,471		$	600,166		$	472,100		$	1,005,311		$	866,897
Fixed Charges:
Interest on indebtedness	$	91,336		$	99,678		$	121,066		$	117,738		$	89,485
Portion of rents representative of the interest factor(f)		8,294			9,372			8,147			7,647			8,244
Amortization of debt expense		970			922			756			574			463
Capitalized interest		2,640			5,779			2,770			77			3
Total fixed charges	$	103,240		$	115,751		$	132,739		$	126,036		$	98,195
Ratio of earnings to fixed charges		7.43			5.18			3.56			7.98			8.83
										��

NOTES:

(a) Includes total business realignment and impairment charges of $99.1 million before tax.

(b) Includes total business realignment and impairment charges of $180.7 million before tax.

(c) Includes total business realignment and impairment charges of $412.6 million before tax.

(d) Includes total business realignment and impairment charges of $11.6 million before tax.

(e) Includes total business realignment and impairment charges of $119.0 million before tax.

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