EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
Years Ended December 29, 2012, December 31, 2011, December 25, 2010,
December 26, 2009 and December 27, 2008
(in millions except ratio amounts)
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes | $ | 8,304 | $ | 8,834 | $ | 8,232 | $ | 8,079 | $ | 7,045 | ||||||||||
Unconsolidated affiliates’ interests, net | (34 | ) | (30 | ) | 72 | (301 | ) | (189 | ) | |||||||||||
Amortization of capitalized interest | 2 | 3 | 3 | 4 | 4 | |||||||||||||||
Interest expense(a) | 899 | 856 | 903 | 397 | 329 | |||||||||||||||
Interest portion of rent expense(b) | 194 | 196 | 175 | 137 | 119 | |||||||||||||||
Earnings available for fixed charges | $ | 9,365 | $ | 9,859 | $ | 9,385 | $ | 8,316 | $ | 7,308 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense(a) | $ | 899 | $ | 856 | $ | 903 | $ | 397 | $ | 329 | ||||||||||
Capitalized interest | 5 | 10 | 6 | 3 | 14 | |||||||||||||||
Interest portion of rent expense(b) | 194 | 196 | 175 | 137 | 119 | |||||||||||||||
Total fixed charges | $ | 1,098 | $ | 1,062 | $ | 1,084 | $ | 537 | $ | 462 | ||||||||||
Ratio of Earnings to Fixed Charges(c) | 8.53 | 9.29 | 8.65 | 15.48 | 15.82 | |||||||||||||||
(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.