EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
36 Weeks Ended | ||||||||
9/3/11 | 9/4/10 | |||||||
Earnings: | ||||||||
Income before income taxes | $ | 6,835 | $ | 6,360 | ||||
Unconsolidated affiliates interests, net | (66 | ) | 25 | |||||
Amortization of capitalized interest | 2 | 2 | ||||||
Interest expense(a) | 584 | 495 | ||||||
Interest portion of rent expense(b) | 129 | 101 | ||||||
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Earnings available for fixed charges | $ | 7,484 | $ | 6,983 | ||||
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Fixed Charges: | ||||||||
Interest expense(a) | $ | 584 | $ | 495 | ||||
Capitalized interest | 7 | 4 | ||||||
Interest portion of rent expense(b) | 129 | 101 | ||||||
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Total fixed charges | $ | 720 | $ | 600 | ||||
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Ratio of Earnings to Fixed Charges(c) | 10.40 | 11.64 | ||||||
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(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. |