EX-12.1 2 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES STATEMENT Computation of ratio of earnings to fixed charges statement

EXHIBIT 12.1

THE HERSHEY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

For the Years Ended December 31, 2010, 2009, 2008, 2007 and 2006

(in thousands of dollars except for ratios)

(Unaudited)

 

     2010     2009     2008     2007     2006  

Earnings:

           

Income from continuing operations before income taxes

    $ 808,864 (a)    $ 671,131 (b)    $ 492,022 (c)    $ 340,242 (d)    $ 876,502 (e) 

Add (Deduct):

           

Interest on indebtedness

      97,704        91,336        99,678        121,066        117,738  

Portion of rents representative of the interest factor (f)

      7,472        8,294        9,372        8,147        7,647  

Amortization of debt expense

      1,139        970        922        756        574  

Amortization of capitalized interest

      1,478        1,354        1,637        2,392        2,850  

Adjustment to exclude minority interest and income or loss from equity investee

      (8,183 )      (5,614 )      (3,465 )     (503 )      —     
                                        

Earnings as adjusted

    $ 908,474      $ 767,471      $ 600,166      $ 472,100     $ 1,005,311   
                                        

Fixed Charges:

           

Interest on indebtedness

    $ 97,704      $ 91,336      $ 99,678      $ 121,066     $ 117,738  

Portion of rents representative of the interest factor (f)

      7,472        8,294        9,372        8,147       7,647  

Amortization of debt expense

      1,139        970        922        756       574  

Capitalized interest

      2,116        2,640        5,779        2,770       77  
                                        

Total fixed charges

    $ 108,431      $ 103,240      $ 115,751      $ 132,739     $ 126,036  
                                        

Ratio of earnings to fixed charges

      8.38        7.43        5.18        3.56       7.98  
                                        

 

NOTES:

 

(a) Includes total business realignment and impairment charges of $98.6 million before tax.
(b) Includes total business realignment and impairment charges of $99.1 million before tax.
(c) Includes total business realignment and impairment charges of $180.7 million before tax.
(d) Includes total business realignment and impairment charges of $412.6 million before tax.
(e) Includes total business realignment and impairment charges of $11.6 million before tax.
(f) Portion of rents representative of the interest factor consists of one-third of rental expense for operating leases.