EX-12 2 ppc-2017x12x31xexh12.htm EXHIBIT 12
EXHIBIT 12
PILGRIM'S PRIDE CORPORATION
COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES

| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes | $ | 982,066 |  |  | $ | 724,036 |  |  | $ | 1,001,324 |  |  | $ | 1,102,391 |  |  | $ | 573,940 |
Add: Total fixed charges (see below) | 120,362 |  |  | 91,767 |  |  | 52,856 |  |  | 91,775 |  |  | 88,660 |
Less: Interest capitalized | (6,487 | ) |  | (2,808 | ) |  | (4,383 | ) |  | (4,628 | ) |  | (586 | )
Total earnings | 1,095,941 |  |  | 812,995 |  |  | 1,049,797 |  |  | 1,189,538 |  |  | 662,014 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest(a) | 100,696 |  |  | 72,828 |  |  | 42,166 |  |  | 86,725 |  |  | 87,592 |
Portion of noncancelable lease expense representative of interest factor(b) | 19,666 |  |  | 18,939 |  |  | 10,690 |  |  | 5,050 |  |  | 1,068 |
Total fixed charges | 120,362 |  |  | 91,767 |  |  | 52,856 |  |  | 91,775 |  |  | 88,660 |
Ratio of earnings to fixed charges | 9.11 |  |  | 8.86 |  |  | 19.86 |  |  | 12.96 |  |  | 7.47 |

(a) Interest includes amortization of capitalized financing fees.
(b) One-third of noncancelable lease expense is assumed to be representative of the interest factor.