Exhibit 12
RATIO OF EARNINGS TO FIXED CHARGES. We have calculated PBG’s ratio of earnings to fixed charges in the following table by dividing earnings by fixed charges. For this purpose, earnings are before taxes, minority interest and cumulative effect of change in accounting principle, plus fixed charges (excluding capitalized interest) and losses recognized from equity investments, reduced by undistributed income from equity investments. Fixed charges include interest expense, capitalized interest and one-third of net rent which is the portion of the rent deemed representative of the interest factor.
Ratio of Earnings to Fixed Charges
($ in millions)
($ in millions)
Fiscal Year | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
Net income before taxes, minority interest and cumulative effect of change in accounting principle | $ | 740 | $ | 772 | $ | 745 | $ | 710 | $ | 700 | ||||||||||
Undistributed (income) loss from equity investments | 2 | — | (1 | ) | (1 | ) | — | |||||||||||||
Fixed charges excluding capitalized interest | $ | 331 | $ | 288 | $ | 261 | $ | 270 | 221 | |||||||||||
Earnings as adjusted | $ | 1,073 | $ | 1,060 | $ | 1,005 | $ | 979 | $ | 921 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 298 | $ | 258 | $ | 236 | $ | 247 | $ | 200 | ||||||||||
Capitalized interest | — | — | — | — | — | |||||||||||||||
Interest portion of rental expense | 33 | 30 | 25 | 23 | 21 | |||||||||||||||
Total fixed charges | $ | 331 | $ | 288 | $ | 261 | $ | 270 | $ | 221 | ||||||||||
Ratio of earnings to fixed charges | 3.24 | 3.68 | 3.85 | 3.63 | 4.17 |