EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended December 25, 1999, December 26, 1998, December 27, 1997,
December 28, 1996 and December 30, 1995
(in millions except ratio amounts)
1999 1998 1997 1996 1995
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Earnings:
Income from continuing operations
before income taxes and cumulative
effect of accounting changes....... $3,656 $2,263 $2,309 $1,566 $2,091
Unconsolidated affiliates interests,
net................................... (68) 32 17 273 26
Amortization of capitalized interest.. 7 5 6 4 6
Interest expense ..................... 363 395 478 565 629
Interest portion of net rent expense
(a)................................... 50 46 43 48 41
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Earnings available for fixed charges.. $4,008 $2,741 $2,853 $2,456 $2,793
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Fixed Charges:
Interest expense...................... $ 363 $ 395 $ 478 $ 565 $ 629
Capitalized interest.................. 7 10 18 8 10
Interest portion of net rent expense
(a)................................... 50 46 43 48 41
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Total fixed charges.............. $ 420 $ 451 $ 539 $ 621 $ 680
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Ratio of Earnings to Fixed Charges(b). 9.54 6.08 5.29 3.95 4.11
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(a) One-third of net rent expense is the portion deemed representative of the
interest factor.
(b) Includes the impact of the 1999 gain on the bottling transactions of $1
billion (see Note 2) and asset impairment and restructuring charges of
$65 million in 1999, $288 million in 1998, $290 million in 1997, $576
million in 1996 and $66 million in 1995 (see Note 4). Excluding the gain in
1999 and the charges for all years, the ratio of earnings to fixed charges
would have been 7.32 in 1999, 6.72 in 1998, 5.83 in 1997, 4.88 in 1996 and
4.20 in 1995.