EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
24 Weeks Ended | ||||||||
6/16/12 | 6/11/11 | |||||||
Earnings: | ||||||||
Income before income taxes | $ | 3,716 | $ | 4,138 | ||||
Unconsolidated affiliates’ interests, net | (1 | ) | (35 | ) | ||||
Amortization of capitalized interest | 1 | 1 | ||||||
Interest expense(a) | 407 | 379 | ||||||
Interest portion of rent expense(b) | 96 | 86 | ||||||
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Earnings available for fixed charges | $ | 4,219 | $ | 4,569 | ||||
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Fixed Charges: | ||||||||
Interest expense(a) | $ | 407 | $ | 379 | ||||
Capitalized interest | 2 | 5 | ||||||
Interest portion of rent expense(b) | 96 | 86 | ||||||
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Total fixed charges | $ | 505 | $ | 470 | ||||
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Ratio of Earnings to Fixed Charges(c) | 8.36 | 9.73 | ||||||
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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. |