EXHIBIT 12 HERSHEY FOODS CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS OF DOLLARS EXCEPT FOR RATIOS) (UNAUDITED) FOR THE NINE MONTHS ENDED ------------------------- OCTOBER 3, OCTOBER 4, 1999 1998 ----------- -------------- EARNINGS: Income before income taxes $ 567,207(a) $ 378,574 Add (deduct): Interest on indebtedness 58,034 68,443 Portion of rents representative of the interest factor (b) 10,269 9,265 Amortization of debt expense 364 340 Amortization of capitalized interest 2,825 2,652 ---------- ---------- Earnings as adjusted $ 638,699 $ 459,274 ========== ========== FIXED CHARGES: Interest on indebtedness $ 58,034 $ 68,443 Portion of rents representative of the interest factor (b) 10,269 9,265 Amortization of debt expense 364 340 Capitalized interest 1,214 1,795 ---------- ---------- Total fixed charges $ 69,881 $ 79,843 ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 9.14 5.75 ========== ========== NOTE: (a) Includes a gain of $243.8 million on the sale of the Corporation's pasta business. (b) Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.