EX-12 2 exhibit12.htm RATIO OF EARNINGS TO FIXED CHARGES FOR THE YEARS ENDED DECEMBER 30, 2012

EXHIBIT 12
PILGRIM'S PRIDE CORPORATION
COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES

|  |  |  |  |  |  |  |  |  |  |  |  |  | Transition |  |  |  |  |  |  |  |
|  | 2012 |  | 2011 |  | 2010 |  | Period |  | 2009 |  | 2008
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
income taxes |  | $ | 153,062 |  |  | $ | (487,126 | ) |  | $ | 66,488 |  |  | $ | (68,446 | ) |  | $ | (173,849 | ) |  | $ | (1,185,909 | )
Add: Total fixed charges (see below) |  |  | 113,011 |  |  |  | 126,111 |  |  |  | 132,905 |  |  |  | 48,899 |  |  |  | 181,094 |  |  |  | 158,414 |
Less: Interest capitalized |  |  | (1,717 | ) |  |  | (3,424 | ) |  |  | (1,296 | ) |  |  | (1,082 | ) |  |  | (2,619 | ) |  |  | (5,288 | )
Total earnings |  |  | 264,356 |  |  |  | (364,439 | ) |  |  | 198,097 |  |  |  | (20,629 | ) |  |  | 4,626 |  |  |  | (1,032,783 | )
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest(a) |  |  | 106,643 |  |  |  | 114,955 |  |  |  | 118,574 |  |  |  | 45,756 |  |  |  | 164,548 |  |  |  | 139,508 |
Portion of noncancelable lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
representative of interest factor(b) |  |  | 6,368 |  |  |  | 11,156 |  |  |  | 14,331 |  |  |  | 3,143 |  |  |  | 16,546 |  |  |  | 18,906 |
Total fixed charges |  |  | 113,011 |  |  |  | 126,111 |  |  |  | 132,905 |  |  |  | 48,899 |  |  |  | 181,094 |  |  |  | 158,414 |
Ratio of earnings to fixed charges |  |  | 2.34 |  |  |  | (c | ) |  |  | 1.49 |  |  |  | (d | ) |  |  | (e | ) |  |  | (f | )

(a) |  | Interest includes amortization of capitalized financing fees.
(b) |  | One-third of noncancelable lease expense is assumed to representative of the interest factor.
(c) |  | Earnings were insufficient to cover fixed charges by $490.6 million.
(d) |  | Earnings were insufficient to cover fixed charges by $69.5 million.
(e) |  | Earnings were insufficient to cover fixed charges by $176.5 million.
(f) |  | Earnings were insufficient to cover fixed charges by $1,191.2 million.