EX-12 2 exhibit12-982018.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
 
  
9/8/2018

 
9/9/2017

Earnings:
  
 
 
 
Income before income taxes
  
$
7,254

 
$
7,271

Unconsolidated affiliates’ interests, net
  
(57
)
 
(50
)
Amortization of capitalized interest
  
4

 
5

Interest expense (a)
  
904

 
786

Interest portion of rent expense (b)
  
174

 
167

Earnings available for fixed charges
  
$
8,279

 
$
8,179

 
  
 
 
 
Fixed Charges:
  
 
Interest expense (a)
  
$
904

 
$
786

Capitalized interest
  
10

 
8

Interest portion of rent expense (b)
  
174

 
167

Total fixed charges
  
$
1,088

 
$
961

 
 
 
 
 
Ratio of Earnings to Fixed Charges (c)
  
7.61

 
8.51

(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.