EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
36 Weeks Ended | |||||||||
9/8/2012 | 9/3/2011 | ||||||||
Earnings: | |||||||||
Income before income taxes | $6,335 | $6,835 | |||||||
Unconsolidated affiliates’ interests, net | (18 | ) | (66 | ) | |||||
Amortization of capitalized interest | 2 | 2 | |||||||
Interest expense (a) | 611 | 584 | |||||||
Interest portion of rent expense (b) | 144 | 129 | |||||||
Earnings available for fixed charges | $7,074 | $7,484 | |||||||
Fixed Charges: | |||||||||
Interest expense (a) | $611 | $584 | |||||||
Capitalized interest | 4 | 7 | |||||||
Interest portion of rent expense (b) | 144 | 129 | |||||||
Total fixed charges | $759 | $720 | |||||||
Ratio of Earnings to Fixed Charges (c) | 9.32 | 10.40 | |||||||
(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. |