EX-12 3 d368585dex12.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)

 

     24 Weeks Ended  
     6/16/12     6/11/11  

Earnings:

  

Income before income taxes

   $ 3,716      $ 4,138   

Unconsolidated affiliates’ interests, net

     (1     (35

Amortization of capitalized interest

     1        1   

Interest expense (a)

     407        379   

Interest portion of rent expense (b)

     96        86   
  

 

 

   

 

 

 

Earnings available for fixed charges

   $ 4,219      $ 4,569   
  

 

 

   

 

 

 

Fixed Charges:

  

Interest expense (a)

   $ 407      $ 379   

Capitalized interest

     2        5   

Interest portion of rent expense (b)

     96        86   
  

 

 

   

 

 

 

Total fixed charges

   $ 505      $ 470   
  

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges (c)

     8.36        9.73   
  

 

 

   

 

 

 
(a) 

Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes.

(b) 

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

(c) 

Based on unrounded amounts.