EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
36 Weeks Ended | |||||||
9/4/10 | 9/5/09 | ||||||
Earnings: | |||||||
Income before income taxes | $ | 6,360 | $ | 6,059 | |||
Unconsolidated affiliates interests, net | 25 | (322 | ) | ||||
Amortization of capitalized interest | 2 | 3 | |||||
Interest expense(a) | 495 | 285 | |||||
Interest portion of rent expense(b) | 101 | 88 | |||||
Earnings available for fixed charges | $ | 6,983 | $ | 6,113 | |||
Fixed Charges: | |||||||
Interest expense(a) | $ | 495 | $ | 285 | |||
Capitalized interest | 4 | 2 | |||||
Interest portion of rent expense(b) | 101 | 88 | |||||
Total fixed charges | $ | 600 | $ | 375 | |||
Ratio of Earnings to Fixed Charges(c) | 11.64 | 16.30 | |||||
(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. |