EX-12.1 5 exh121.htm RATIO OF EARNINGS TO FIXED CHARGES exh121.htm

EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands of dollars except for ratios)
(Unaudited)

   
For the Six Months Ended
  
   
July 1,
2007
    
July 2,
2006
  
Earnings:
            
             
Income before income taxes (a)
   $
145,425
     $
341,441
  
                 
Add (deduct):
                
                 
   Interest on indebtedness
    
58,860
      
53,531
  
   Portion of rents representative of the
       interest factor (b)
    
4,096
      
3,837
  
   Amortization of debt expense
    
390
      
221
  
   Amortization of capitalized interest
    
1,343
      
1,441
  
   Adjustment to exclude minority interest and
       income (loss) from equity investee
     (265 )    
---
  
                 
           Earnings as adjusted
   $
209,849
     $
400,471
  
                 
Fixed Charges:
                
                 
   Interest on indebtedness
   $
58,860
     $
53,531
  
   Portion of rents representative of the
       interest factor (b)
    
4,096
      
3,837
  
   Amortization of debt expense
    
390
      
221
  
   Capitalized interest
    
65
      
21
  
                 
           Total fixed charges
   $
63,411
     $
57,610
  
                 
Ratio of earnings to fixed charges
    
3.31
      
6.95
  

NOTE:

(a)
Amounts for 2006 were adjusted for the impact of certain immaterial adjustments relating to the timing of the recognition of revenue, as permitted by Securities and Exchange Commission Staff Accounting Bulletin No. 108, Considering the Effects of Prior Misstatements When Quantifying Misstatements in Current Year Financial Statements, adopted in the fourth quarter of 2006.
   
(b)
Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.