EX-12 3 pepsico201510-kexhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
Years Ended December 26, 2015, December 27, 2014, December 28, 2013, December 29, 2012 and
December 31, 2011
(in millions except ratio amounts)
 
 
  
2015

 
2014

 
2013

 
2012

 
2011

Earnings:
  
 
 
 
 
 
 
 
 
 
Income before income taxes(a)
  
$
7,442

 
$
8,757

 
$
8,891

 
$
8,304

 
$
8,834

Unconsolidated affiliates’ interests, net
  
(71
)
 
(115
)
 
(25
)
 
(34
)
 
(30
)
Amortization of capitalized interest
  
6

 
6

 
5

 
2

 
3

Interest expense(b)
  
970

 
909

 
911

 
899

 
856

Interest portion of rent expense(c)
  
232

 
236

 
213

 
194

 
196

Earnings available for fixed charges
  
$
8,579

 
$
9,793

 
$
9,995

 
$
9,365

 
$
9,859

 
  
 

 
 

 
 
 
 
 
 
Fixed Charges:
  
 
 
 
 
 
 
 
Interest expense(a)
  
$
970

 
$
909

 
$
911

 
$
899

 
$
856

Capitalized interest
  
8

 
9

 
7

 
5

 
10

Interest portion of rent expense(c)
  
232

 
236

 
213

 
194

 
196

Total fixed charges
  
$
1,210

 
$
1,154

 
$
1,131

 
$
1,098

 
$
1,062

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges(d)
  
7.09

 
8.49

 
8.84

 
8.53

 
9.29

(a)
Income before income taxes for 2015 includes a pre-tax charge of $1.4 billion related to our change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and our beverage joint venture.
(b)
Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes and includes net amortization of debt premium/discount.
(c)
One-third of rent expense is the portion deemed representative of the interest factor.
(d)
Based on unrounded amounts.