EX-12 2 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12

PEPSICO, INC. AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(in millions except ratio amounts, unaudited)

 

     12 Weeks Ended  
     3/24/07     3/25/06  

Earnings:

     

Income before income taxes

    $ 1,473     $ 1,315  

Unconsolidated affiliates interests, net

      (50 )     (41 )

Amortization of capitalized interest

      1       1  

Interest expense

      42       62  

Interest portion of rent expense (a)

      24       19  
                

Earnings available for fixed charges

    $ 1,490     $ 1,356  
                

Fixed Charges:

     

Interest expense

    $ 42     $ 62  

Capitalized interest

      4       3  

Interest portion of rent expense (a)

      24       19  
                

Total fixed charges

    $ 70     $ 84  
                

Ratio of Earnings to Fixed Charges (b)

      21.15       16.25  
                

 

(a)

One-third of net rent expense is the portion deemed representative of the interest factor.

 

(b)

Based on unrounded amounts.