EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges (a)
(in millions except ratio amounts, unaudited)
36 Weeks Ended ------------------------- 9/8/01 9/2/00 ---------- ---------- Earnings: Income before income taxes........................................ $3,036 $2,724 Unconsolidated affiliates interest, net........................... (144) (117) Amortization of capitalized interest.............................. 7 6 Interest expense.................................................. 151 189 Interest portion of rent expense (b).............................. 43 35 ---------- ---------- Earnings available for fixed charges............................ $3,093 $2,837 ========== ========== Fixed Charges: Interest expense.................................................. $ 151 $ 189 Capitalized interest.............................................. 2 6 Interest portion of rent expense (b).............................. 43 35 ---------- ---------- Total fixed charges............................................. $ 196 $ 230 ========== ========== Ratio of Earnings to Fixed Charges (c)............................ 15.77 12.33 ========== ========== (a) Includes merger-related costs of $235 million in 2001, other asset impairment and restructuring costs of $21 million in 2001 and $178 million in 2000 and Quaker one-time items of $2 million of income in 2001 and $3 million of expense in 2000. Excluding these items, the ratio of earnings to fixed charges for the 36 weeks ended September 8, 2001 would have been 17.07 and September 2, 2000 would have been 13.12. (b) One-third of net rent expense is the portion deemed representative of the interest factor. (c) Based on unrounded amounts.
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