HERSHEY FOODS CORPORATION EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 1996, 1995, 1994, 1993, and 1992
(in thousands of dollars except for ratios)
(Unaudited)
1996 1995 1994 1993 1992
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Earnings:
Income from continuing operations before
income taxes and accounting changes .........................$479,737(a) $465,953(b) $333,138(c) $510,875(d) $400,988
Add (Deduct):
Interest on indebtedness..................................... 52,036 47,568 37,249 30,224 29,708
Portion of rents representative of the interest factor(e).... 8,618 8,176 8,556 8,175 7,987
Amortization of debt expense................................. 234 97 64 84 165
Amortization of capitalized interest......................... 3,359 3,183 2,958 2,684 1,988
Adjustment for equity companies(f)........................... -- -- -- -- 628
Adjustment for majority-owned subsidiary(g).................. -- -- -- -- 17
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Earnings as adjusted....................................$534,984 $524,977 $381,965 $552,042 $441,481
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Fixed Charges:
Interest on indebtedness.......................................... $52,036 $47,568 $37,249 $30,224 $29,708
Portion of rents representative of the interest factor(e)......... 8,618 8,176 8,556 8,175 7,987
Amortization of debt expense...................................... 234 97 64 84 165
Capitalized interest.............................................. 1,534 1,957 3,009 4,646 12,055
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Total fixed charges.......................................... $62,422 $57,798 $48,878 $43,129 $49,915
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Ratio of earnings to fixed charges.................................... 8.71 9.08 7.81 12.80 8.84
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NOTES:
(a) Includes a loss on the disposal of businesses of $35.4 million.
(b) Includes a restructuring credit of $.2 million.
(c) Includes a restructuring charge of $106.1 million.
(d) Includes a gain of $80.6 million on the sale of the Corporation's 18.6%
investment interest in Freia Marabou a.s.
(e) Portion of rents representative of the interest factor consists of
one-third of rental expense for operating leases.
(f) 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.
(g) In December 1992, the Corporation purchased the remaining shares of Hershey
Japan. Prior to the acquisition, the Corporation owned 51% of Hershey
Japan.