EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended December 30, 2000, December 25, 1999, December 26, 1998,
December 27, 1997 and December 28, 1996
(in millions except ratio amounts)
2000 1999 1998 1997 1996 ------- ------- ------- ------- ------- Earnings: Income from continuing operations before income taxes and cumulative effect of accounting changes............ $3,210 $3,656 $2,263 $2,309 $1,566 Unconsolidated affiliates interests, net.. (86) (68) 32 17 273 Amortization of capitalized interest...... 7 7 5 6 4 Interest expense ......................... 221 363 395 478 565 Interest portion of net rent expense (a).. 39 31 47 43 48 ------- ------- ------- ------- ------- Earnings available for fixed charges...... $3,391 $3,989 $2,742 $2,853 $2,456 ======= ======= ======= ======= ======= Fixed Charges: Interest expense.......................... $ 221 $ 363 $ 395 $ 478 $ 565 Capitalized interest...................... 2 7 10 18 8 Interest portion of net rent expense (a).. 39 30 47 43 48 ------- ------- ------- ------- ------- Total fixed charges.................... $ 262 $ 400 $ 452 $ 539 $ 621 ======= ======= ======= ======= ======= Ratio of Earnings to Fixed Charges(b)..... 12.94 9.97 6.07 5.29 3.95 ======= ======= ======= ======= ======= (a) One-third of net rent expense is the portion deemed representative of the interest factor. (b) Includes the impact of the 1999 gain on the bottling transactions of $1 billion and asset impairment and restructuring charges of $65 million in 1999, $288 million in 1998, $290 million in 1997 and $576 million in 1996. Excluding the gain in 1999 and the charges for all years, the ratio of earnings to fixed charges would have been 7.63 in 1999, 6.71 in 1998, 5.83 in 1997 and 4.88 in 1996.