PepsiCo (PEP) 10-Q 2007 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
	6/16/07			6/17/06
Earnings:
Income before income taxes	$	3,590		$	3,243
Unconsolidated affiliates interests, net		(158	)		(153	)
Amortization of capitalized interest		4			3
Interest expense(a)		96			121
Interest portion of rent expense(b)		47			37
Earnings available for fixed charges	$	3,579		$	3,251
Fixed Charges:
Interest expense(a)	$	96		$	121
Capitalized interest		9			6
Interest portion of rent expense(b)		47			37
Total fixed charges	$	152		$	164
Ratio of Earnings to Fixed Charges(c)		23.51			19.83

^(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.