EXHIBIT 12 HERSHEY FOODS CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Years Ended December 31, 1999,1998, 1997, 1996 and 1995, (in thousands of dollars except for ratios) (Unaudited) 1999 1998 1997 1996 1995 Earnings: Income from continuing operations before income taxes and accounting changes ..................... $727,874(a) $ 557,006 $ 553,955 $ 479,737(b) $465,953(c) Add (Deduct): Interest on indebtedness................................. 77,300 88,648 79,138 52,036 47,568 Portion of rents representative of the interest factor(d) 15,162 13,197 10,592 8,618 8,176 Amortization of debt expense............................. 486 462 412 234 97 Amortization of capitalized interest..................... 3,884 3,856 3,496 3,359 3,183 Earnings as adjusted................................... $ 824,706 $ 663,169 $ 647,593 $ 543,984 $ 524,977 Fixed Charges: Interest on indebtedness................................... $77,300 $ 88,648 $ 79,138 $ 52,036 $ 47,568 Portion of rents representative of the interest factor(d).. 15,162 13,197 10,592 8,618 8,176 Amortization of debt expense............................... 486 462 412 234 97 Capitalized interest....................................... 1,214 2,547 1,883 1,534 1,957 Total fixed charges.................................... $ 94,162 $ 104,854 $ 92,025 $ 62,422 $ 57,798 Ratio of earnings to fixed charges.............................. 8.76 6.32 7.04 8.71 9.08 - ----------------------------------- NOTES: (a) Includes a gain on the disposal of pasta business of $243.8 million. (b) Includes a loss on the disposal of businesses of $35.4 million. (c) Includes a restructuring credit of $.2 million. (d) Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.