Keurig Dr Pepper (KDP) 10-Q 2017 Q2 Quarterly report

Exhibit 12.1

DR PEPPER SNAPPLE GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions, except ratio amounts)

	For the Six Months Ended June 30,		For the Years Ended December 31,
	2017		2016			2015			2014			2013
Calculation of fixed charges ratio:
Income before provision for income taxes, equity in earnings of unconsolidated subsidiaries and cumulative effect of change in accounting policy(2)	$	531	$	1,283		$	1,184		$	1,073		$	542
Add/(deduct):
Fixed charges	92		164			132			125			138
Amortization of capitalized interest	2		3			3			4			4
Capitalized interest	—		(3		)	(1		)	(2		)	(1		)
Total earnings available for fixed charges	$	625	$	1,447		$	1,318		$	1,200		$	683
Fixed charges:
Interest expense	$	84	$	147		$	117		$	109		$	123
Capitalized interest	—		3			1			2			1
Interest component of rental expense(1)	8		14			14			14			14
Total fixed charges	$	92	$	164		$	132		$	125		$	138
Ratio of earnings to fixed charges	6.8x		8.8x			10.0x			9.6x			4.9x

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(1) Represents a reasonable estimate of the interest component of rental expense incurred by us.

(2) Due to the completion of the IRS audit for our 2006-2008 federal income tax returns in August 2013, we recognized $430 million of other expense, net, as we no longer anticipate collecting amounts from Mondelēz. Additionally, in June 2013, a bill was enacted by the Canadian government, which reduced amounts amortized for income tax purposes. As a result, we recognized $38 million of indemnity income due to the reduction of our long-term liability to Mondelēz.