PepsiCo (PEP) 10-Q 2014 Q3 Quarterly report

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

PepsiCo, Inc. and Subsidiaries

(in millions except ratio amounts, unaudited)

	36 Weeks Ended
	9/6/2014			9/7/2013
Earnings:
Income before income taxes	$	6,976		$	6,727
Unconsolidated affiliates’ interests, net	(100		)	(30		)
Amortization of capitalized interest	4			4
Interest expense (a)	625			642
Interest portion of rent expense (b)	157			142
Earnings available for fixed charges	$	7,662		$	7,485
Fixed Charges:
Interest expense (a)	$	625		$	642
Capitalized interest	5			4
Interest portion of rent expense (b)	157			142
Total fixed charges	$	787		$	788
Ratio of Earnings to Fixed Charges (c)	9.73			9.50

(a)   Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes.

(b)   One-third of rent expense is the portion deemed representative of the interest factor.

(c)   Based on unrounded amounts.