EXHIBIT 12 HERSHEY FOODS CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Years Ended December 31, 1995, 1994, 1993, 1992, and 1991 (in thousands of dollars except for ratios) (Unaudited) CAPTION 1995 1994 1993 1992 1991 Earnings: Income from continuing operations before income taxes and accounting changes. . . . . .$465,953(a) $333,138(b) $510,875(c) $400,988 $363,457 Add (Deduct): Interest on indebtedness. . . 47,568 37,249 30,224 29,708 29,269 Portion of rents representative of the interest factor(d). . . . . . 8,176 8,556 8,175 7,987 7,785 Amortization of debt expense . . . . . . . . . . . 97 64 84 165 284 Amortization of capitalized interest. . . . . 3,183 2,958 2,684 1,988 1,390 Adjustment for equity companies(e). . . . . . . . . - - - 628 262 Adjustment for majority- owned subsidiary(f) . . . . . - - - 17 (116) Earnings as adjusted. . . .$524,977 $381,965 $552,042 $441,481 $402,331 Fixed Charges: Interest on indebtedness . . . . $47,568 $37,249 $30,224 $29,708 $29,269 Portion of rents representative of the interest factor(d) . . . . . . . 8,176 8,556 8,175 7,987 7,785 Amortization of debt expense . . 97 64 84 165 284 Capitalized interest . . . . . . 1,957 3,009 4,646 12,055 10,386 Adjustment for 50% equity company(g) . . . . . . . . . . . - - - - 21 Total fixed charges . . . . . $57,798 $48,878 $43,129 $49,915 $47,745 Ratio of earnings to fixed charges. . . . . . . . . . . . . . 9.08 7.81 12.80 8.84 8.43 NOTES: (a) Includes a restructuring credit of $.2 million. (b) Includes a restructuring charge of $106.1 million. (c) Includes a gain of $80.6 million on the sale of the Corporation's 18.6% investment interest in Freia Marabou a.s. (d) Portion of rents representative of the interest factor consists of one- third of rental expense for operating leases. (e) Adjustment for equity companies includes the eliminations from income of both undistributed earnings and losses of companies in which at least 20% but less than 50% equity is owned. In April 1992, the Corporation sold its equity interest in its Brazilian joint venture. (f) In December 1992, the Corporation purchased the remaining shares of Hershey Japan. Prior to the acquisition, the Corporation owned 51% of Hershey Japan. (g) In October 1991, the Corporation purchased the shares of Nacional de Dulces, S.A. de C.V., subsequently renamed Hershey Mexico, S.A. de C.V. (Hershey Mexico), owned by its joint venture partner, Grupo Carso, S.A. de C.V. Prior to the acquisition, the Corporation owned 50% of the outstanding stock of Hershey Mexico.