EX-12.1 6 hsy_20161231exhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.1
THE HERSHEY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Years Ended December 31, 2016, 2015, 2014, 2013, and 2012
(in thousands of dollars except for ratios)
 
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
$
1,099,481

 
$
901,847

 
$
1,306,043

 
$
1,251,319

 
$
1,015,579

 
 
 
 
 
 
 
 
 
 
Add (deduct):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
107,365

 
104,764

 
105,840

 
102,194

 
113,671

Amortization of capitalized interest
2,927

 
2,450

 
2,352

 
2,272

 
1,660

Capitalized interest
(5,903
)
 
(12,537
)
 
(6,179
)
 
(1,744
)
 
(5,778
)
Adjustment to exclude noncontrolling interests in subsidiaries and income from equity investee
3,970

 
(3,850
)
 
129

 
(2,324
)
 
(12,950
)
 
 
 
 
 
 
 
 
 
 
Earnings as adjusted
$
1,207,840

 
$
992,674

 
$
1,408,185

 
$
1,351,717

 
$
1,112,182

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
$
96,209

 
$
93,520

 
$
93,777

 
$
93,258

 
$
104,287

Amortization of deferred debt issuance costs
1,642

 
1,279

 
1,118

 
1,115

 
1,245

Portion of rents representative of the interest factor (a)
9,514

 
9,965

 
10,945

 
7,821

 
8,139

 
 
 
 
 
 
 
 
 
 
Total fixed charges
$
107,365

 
$
104,764

 
$
105,840

 
$
102,194

 
$
113,671

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
11.25

 
9.48

 
13.30

 
13.23

 
9.78

(a)
Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.