EX-12 2 ppc-07012018xexhibit12.htm EXHIBIT 12
EXHIBIT 12
PILGRIM'S PRIDE CORPORATION
COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES

| Twenty-Six Weeks Ended
| July 1, 2018 |  | June 25, 2017
| (In thousands)
Earnings: |  |  |
Income before income taxes | $ | 301,087 |  |  | $ | 510,579 |
Add: Total fixed charges (see below) | 104,276 |  |  | 52,877 |
Less: Interest capitalized | 2,386 |  |  | 3,846 |
Total earnings | $ | 402,977 |  |  | $ | 559,610 |
Fixed charges: |  |  |
Interest(a) | $ | 92,953 |  |  | $ | 45,526 |
Portion of noncancelable lease expense representative of interest factor(b) | 11,323 |  |  | 7,351 |
Total fixed charges | $ | 104,276 |  |  | $ | 52,877 |
Ratio of earnings to fixed charges | 3.86 |  |  | 10.58 |

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