EX-12 8 pepsico201610-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 31, 2016, December 26, 2015, December 27, 2014, December 28, 2013, and December 29, 2012
(in millions except ratio amounts)
 
 
  
2016

 
2015

 
2014

 
2013

 
2012

Earnings:
  
 
 
 
 
 
 
 
 
 
Income before income taxes (a)
  
$
8,553

 
$
7,442

 
$
8,757

 
$
8,891

 
$
8,304

Unconsolidated affiliates’ interests, net
  
(99
)
 
(71
)
 
(115
)
 
(25
)
 
(34
)
Amortization of capitalized interest
  
6

 
6

 
6

 
5

 
2

Interest expense (b)
  
1,109

 
970

 
909

 
911

 
899

Interest portion of rent expense (c)
  
234

 
232

 
236

 
213

 
194

Earnings available for fixed charges
  
$
9,803

 
$
8,579

 
$
9,793

 
$
9,995

 
$
9,365

 
  
 

 
 

 
 
 
 
 
 
Fixed Charges:
  
 
 
 
 
 
 
 
Interest expense (b)
  
$
1,109

 
$
970

 
$
909

 
$
911

 
$
899

Capitalized interest
  
9

 
8

 
9

 
7

 
5

Interest portion of rent expense (c)
  
234

 
232

 
236

 
213

 
194

Total fixed charges
  
$
1,352

 
$
1,210

 
$
1,154

 
$
1,131

 
$
1,098

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges (d)
  
7.25

 
7.09

 
8.49

 
8.84

 
8.53

(a)
Income before income taxes for the year ended December 26, 2015 included a pre-tax charge of $1.4 billion related to our change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and 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. In the year ended December 31, 2016 pre-tax charges related to the debt redemption of $233 million were excluded from interest expense.
(c)
One-third of rent expense is the portion deemed representative of the interest factor.
(d)
Based on unrounded amounts.