EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
PepsiCo, Inc. and Subsidiaries
(in millions except ratio amounts, unaudited)
24 Weeks Ended | ||||||||
6/13/15 | 6/14/14 | |||||||
Earnings: | ||||||||
Income before income taxes | $ | 4,298 | $ | 4,321 | ||||
Unconsolidated affiliates’ interests, net | (37 | ) | (75 | ) | ||||
Amortization of capitalized interest | 3 | 3 | ||||||
Interest expense (a) | 428 | 410 | ||||||
Interest portion of rent expense (b) | 107 | 104 | ||||||
Earnings available for fixed charges | $ | 4,799 | $ | 4,763 | ||||
Fixed Charges: | ||||||||
Interest expense (a) | $ | 428 | $ | 410 | ||||
Capitalized interest | 3 | 4 | ||||||
Interest portion of rent expense (b) | 107 | 104 | ||||||
Total fixed charges | $ | 538 | $ | 518 | ||||
Ratio of Earnings to Fixed Charges (c) | 8.92 | 9.19 |
(a) Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes and includes net amortization of debt premium/discount.
(b) One-third of rent expense is the portion deemed representative of the interest factor.
(c) Based on unrounded amounts.