EX-12 8 ex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ex12.htm
EXHIBIT 12
PILGRIM'S PRIDE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


   
2008
   
2007
   
2006
   
2005
   
2004
 
   
(In thousands)
 
Earnings:
                             
Income from continuing operations before income taxes
  $ (1,187,093 )   $ 98,835     $ (26,626 )   $ 427,362     $ 332,899  
Add: Total fixed charges (see below)
    158,414       146,919       65,584       63,415       63,458  
Less: Interest capitalized
    (5,288 )     (5,736 )     (4,298 )     (2,821 )     (1,714 )
                                         
Total earnings
  $ (1,033,967 )   $ 240,018     $ 34,660     $ 487,956     $ 394,643  
                                         
Fixed charges:
                                       
Interest (a)
  $ 139,508     $ 128,919     $ 53,311     $ 51,106     $ 52,440  
Portion of non-cancellable lease expense representative of the interest factor (b)
    18,906         18,000         12,273         12,309         11,018  
                                         
Total fixed charges
  $ 158,414     $ 146,919     $ 65,584     $ 63,415     $ 63,458  
                                         
Ratio of earnings to fixed charges
 
(d)
      1.63    
(c)
      7.69       6.22  
   
 
(a)
Interest includes amortization of capitalized financing fees.
 
(b)
One-third of non-cancellable lease expense is assumed to be representative of the interest factor.
 
(c)
Earnings were insufficient to cover fixed charges by $30.9 million.
 
(d)
Earnings were insufficient to cover fixed charges by $1,192.4 million.