EX-12 3 dex12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

PILGRIM’S PRIDE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

    Fiscal Year Ended    

Three

Months
Ended

   

Six

Months
Ended

   

Six

Months
Ended

 
    December 26,
2010
    September 26,
2009
    September 27,
2008
    September 29,
2007
    September 30,
2006
    December 27,
2009
    June 26,
2011
    June 27,
2010
 
    (In thousands)  

Earnings:

 

Income from continuing operations before income taxes

  $ 66,488      $ (173,849)      $ (1,185,909)      $ 98,926      $ (26,063)      $ (68,446)      $ (254,229)      $ (45,583)   

Add: Total fixed charges (see below)

    132,905        181,094        158,414        146,919        65,584        48,899        61,478        62,321   

Less: Interest capitalized

    (1,296)        (2,619)        (5,288)        (5,736)        (4,298)        (1,082)        1,701        (195)   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings

  $ 198,097      $ 4,626      $   (1,032,783)      $ 240,109      $ 35,223      $   (20,629)      $ (194,452)      $ 16,933   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges:

               

Interest (a)

  $ 118,574      $ 164,548      $ 139,508      $ 128,919      $ 53,311      $ 45,756      $ 55,646      $ 54,341   

Portion of non-cancellable lease expense representative of the interest factor (b)

    14,331        16,546        18,906        18,000        12,273        3,143        5,832        7,980   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

  $ 132,905      $ 181,094      $ 158,414      $ 146,919      $ 65,584      $ 48,899      $ 61,478      $ 62,321   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

    1.49x        (c     (d     1.63x        (e     (f     (g     (h

 

(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 $176.5 million.
(d) Earnings were insufficient to cover fixed charges by $1,191.2 million.
(e) Earnings were insufficient to cover fixed charges by $30.4 million.
(f) Earnings were insufficient to cover fixed charges by $69.5 million.
(g) Earnings were insufficient to cover fixed charges by $255.9 million.
(h) Earnings were insufficient to cover fixed charges by $45.4 million.