EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges (a)
(in millions except ratio amounts, unaudited)
12 Weeks Ended -------------------- 3/23/02 3/24/01 -------- -------- Earnings: Income before income taxes............................ $955 $838 Unconsolidated affiliates interests, net.............. (25) (10) Amortization of capitalized interest.................. 2 2 Interest expense...................................... 31 52 Interest portion of rent expense (b).................. 13 13 -------- -------- Earnings available for fixed charges................ $976 $895 ======== ======== Fixed Charges: Interest expense...................................... $31 $52 Capitalized interest.................................. 1 1 Interest portion of rent expense (b).................. 13 13 -------- -------- Total fixed charges................................. $45 $66 ======== ======== Ratio of Earnings to Fixed Charges (c)................ 21.46 13.61 ======== ======== (a) Includes merger-related costs of $36 million in 2002. In 2001, includes the impact of adoption of Statement of Financial Accounting Standard No. (SFAS) 142, Goodwill and Intangibles, the consolidation of our European snack joint venture and other impairment and restructuring charges. Excluding these items, the ratio of earnings to fixed charges for the 12 weeks ended March 23, 2002, would have been 22.25 and for the 12 weeks ended March 24, 2001, would have been 13.84. (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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