EX-12 2 y05532exv12.txt STATEMENT RE COMPUTATION OF RATIOS RATIO OF EARNINGS TO FIXED CHARGES. We have calculated PBG's ratio of earnings to fixed charges in the following table by dividing earnings by fixed charges. For this purpose, earnings are before taxes, minority interest and cumulative effect of change in accounting principle, plus fixed charges (excluding capitalized interest) and losses recognized from equity investments, reduced by undistributed income from equity investments. Fixed charges include interest expense, capitalized interest and one-third of net rent which is the portion of the rent deemed representative of the interest factor. RATIO OF EARNINGS TO FIXED CHARGES ($ in millions) Exhibit 12
FISCAL YEAR 2004 2003 2002 2001 2000 ---- ---- ---- ---- ---- NET INCOME BEFORE TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ 745 $ 710 $ 700 $ 482 $ 397 Undistributed (income) loss from equity investments (1) (1) - - - Fixed charges excluding capitalized interest $ 261 $ 270 221 217 222 ------- ------- ------- ------- ------- EARNINGS AS ADJUSTED $ 1,005 $ 979 $ 921 $ 699 $ 619 ======= ======= ======= ======= ======= FIXED CHARGES: Interest expense $ 236 $ 247 $ 200 $ 204 $ 208 Capitalized interest - - - 1 1 Interest portion of rental expense 25 23 21 13 14 ------- ------- ------- ------- ------- TOTAL FIXED CHARGES $ 261 $ 270 $ 221 $ 218 $ 223 ======= ======= ======= ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 3.85 3.63 4.17 3.20 2.78