EX-12 8 ex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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. |