Exhibit 12.1
Hormel Foods Corporation
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratio amounts)
|
| Fiscal Years Ended |
| Three |
| ||||||||
|
| October |
| October |
| October |
| October |
| October |
| January 30, |
|
Earnings: |
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Earnings before income taxes |
| 430,073 |
| 471,766 |
| 460,671 |
| 528,147 |
| 624,551 |
| 229,611 |
|
Less: Equity earnings of less than 50% owned equity investees |
| (4,083 | ) | (5,399 | ) | (7,370 | ) | (4,793 | ) | (13,126 | ) | (6,905 | ) |
Add: Distributed income of equity investees |
| 811 |
| 730 |
| 970 |
| — |
| — |
| 4,031 |
|
Add: Amortization of capitalized interest |
| 205 |
| 205 |
| 205 |
| 205 |
| 205 |
| 51 |
|
Less: Noncontrolling interest |
| — |
| (1,929 | ) | (3,135 | ) | (3,165 | ) | (4,189 | ) | (1,245 | ) |
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Total Earnings |
| 427,006 |
| 465,373 |
| 451,341 |
| 520,394 |
| 607,441 |
| 225,543 |
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Fixed charges: |
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Interest expense (1) |
| 25,636 |
| 27,707 |
| 28,023 |
| 27,995 |
| 26,589 |
| 6,579 |
|
Estimated interest portion of rental expense |
| 7,778 |
| 7,678 |
| 7,293 |
| 7,653 |
| 8,382 |
| 1,853 |
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Total Fixed Charges |
| 33,414 |
| 35,385 |
| 35,316 |
| 35,648 |
| 34,971 |
| 8,432 |
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Earnings Available for Fixed Charges |
| 460,420 |
| 500,758 |
| 486,657 |
| 556,042 |
| 642,412 |
| 233,975 |
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Ratio of Earnings to Fixed Charges |
| 13.8 | x | 14.2 | x | 13.8 | x | 15.6 | x | 18.4 | x | 27.7 | x |
(1) Includes interest on debt and amortization of debt issuance costs. Interest associated with income tax liabilities is excluded.