EX-12 2 exhibit12-992017.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges
PepsiCo, Inc. and Subsidiaries
(in millions except ratio amounts, unaudited)
 
 
36 Weeks Ended
 
  
9/9/2017

 
9/3/2016

Earnings:
  
 
 
 
Income before income taxes
  
$
7,271

 
$
6,722

Unconsolidated affiliates’ interests, net
  
(50
)
 
(69
)
Amortization of capitalized interest
  
5

 
4

Interest expense (a)
  
786

 
748

Interest portion of rent expense (b)
  
167

 
161

Earnings available for fixed charges
  
$
8,179

 
$
7,566

 
  
 
 
 
Fixed Charges:
  
 
Interest expense (a)
  
$
786

 
$
748

Capitalized interest
  
8

 
6

Interest portion of rent expense (b)
  
167

 
161

Total fixed charges
  
$
961

 
$
915

 
 
 
 
 
Ratio of Earnings to Fixed Charges (c)
  
8.51

 
8.27

(a)
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.
(b)
One-third of rent expense is the portion deemed representative of the interest factor.
(c)
Based on unrounded amounts.