PepsiCo (PEP) 10-Q 2008 Q3 Quarterly report

EXHIBIT 12

PEPSICO, INC. AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(in millions except ratio amounts, unaudited)

	36 Weeks Ended
	9/6/08			9/8/07
Earnings:
Income before income taxes	$	6,009		$	5,834
Unconsolidated affiliates interests, net		(321	)		(320	)
Amortization of capitalized interest		3			3
Interest expense(a)		205			153
Interest portion of rent expense(b)		74			71
Earnings available for fixed charges	$	5,970		$	5,741
Fixed Charges:
Interest expense(a)	$	205		$	153
Capitalized interest		9			14
Interest portion of rent expense(b)		74			71
Total fixed charges	$	288		$	238
Ratio of Earnings to Fixed Charges(c)		20.70			24.10

(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.