PepsiCo (PEP) 10-Q 2004 Q2 Quarterly report

EXHIBIT 12

PEPSICO, INC. AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(in millions except ratio amounts, unaudited)

	24 Weeks Ended
	6/12/04		6/14/03
Earnings:
Income before income taxes	$2,643		$2,375
Unconsolidated affiliates interests, net	(131	)	(104	)
Amortization of capitalized interest	1		4
Interest expense	72		74
Interest portion of rent expense(a)	38		32
Earnings available for fixed charges	$2,623		$2,381
Fixed Charges:
Interest expense	$72		$74
Capitalized interest	—		3
Interest portion of rent expense(a)	38		32
Total fixed charges	$110		$109
Ratio of Earnings to Fixed Charges(b)	23.85		21.81

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

^(b) Based on unrounded amounts.