EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
PepsiCo, Inc. and Subsidiaries
(in millions except ratio amounts, unaudited)
24 Weeks Ended | ||||||||
6/15/13 | 6/16/12 | |||||||
Earnings: | ||||||||
Income before income taxes | $ | 4,150 | $ | 3,716 | ||||
Unconsolidated affiliates’ interests, net | (44 | ) | (1 | ) | ||||
Amortization of capitalized interest | 2 | 1 | ||||||
Interest expense (a) | 422 | 407 | ||||||
Interest portion of rent expense (b) | 95 | 96 | ||||||
Earnings available for fixed charges | $ | 4,625 | $ | 4,219 | ||||
Fixed Charges: | ||||||||
Interest expense (a) | $ | 422 | $ | 407 | ||||
Capitalized interest | 2 | 2 | ||||||
Interest portion of rent expense (b) | 95 | 96 | ||||||
Total fixed charges | $ | 519 | $ | 505 | ||||
Ratio of Earnings to Fixed Charges (c) | 8.91 | 8.36 |
(a) Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes.
(b) One-third of net rent expense is the portion deemed representative of the interest factor.
(c) Based on unrounded amounts.