The Hershey Company (HSY) 10-K 2010 FY Annual report

EXHIBIT 12.1

THE HERSHEY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

For the Years Ended December 31, 2010, 2009, 2008, 2007 and 2006

(in thousands of dollars except for ratios)

(Unaudited)

	2010			2009			2008			2007			2006
Earnings:
Income from continuing operations before income taxes	$	808,864	(a)	$	671,131	(b)	$	492,022	(c)	$	340,242	(d)	$	876,502	(e)
Add (Deduct):
Interest on indebtedness		97,704			91,336			99,678			121,066			117,738
Portion of rents representative of the interest factor(f)		7,472			8,294			9,372			8,147			7,647
Amortization of debt expense		1,139			970			922			756			574
Amortization of capitalized interest		1,478			1,354			1,637			2,392			2,850
Adjustment to exclude minority interest and income or loss from equity investee		(8,183	)		(5,614	)		(3,465	)		(503	)		—
Earnings as adjusted	$	908,474		$	767,471		$	600,166		$	472,100		$	1,005,311
Fixed Charges:
Interest on indebtedness	$	97,704		$	91,336		$	99,678		$	121,066		$	117,738
Portion of rents representative of the interest factor(f)		7,472			8,294			9,372			8,147			7,647
Amortization of debt expense		1,139			970			922			756			574
Capitalized interest		2,116			2,640			5,779			2,770			77
Total fixed charges	$	108,431		$	103,240		$	115,751		$	132,739		$	126,036
Ratio of earnings to fixed charges		8.38			7.43			5.18			3.56			7.98

NOTES:

(a) Includes total business realignment and impairment charges of $98.6 million before tax.

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

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

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

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

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