EXHIBIT 12 PEPSICO, INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (page 1 of 2) (in millions except ratio amounts, unaudited) 36 Weeks Ended 9/9/95 9/3/94 Earnings: Income before income taxes and cumulative effect of accounting changes $2,132.8 $1,940.9 Joint ventures and minority interests, net (a) (11.7) (17.2) Amortization of capitalized interest 3.5 3.4 Interest expense 481.5 433.9 Amortization of debt discount 0.3 0.2 Interest portion of rent expense (b) 111.0 99.6 Earnings available for fixed charges $2,717.4 $2,460.8 Fixed Charges: Interest expense $ 481.5 $ 433.9 Capitalized interest 5.8 4.0 Amortization of debt discount 0.3 0.2 Interest portion of rent expense (b) 111.0 99.6 Total fixed charges $ 598.6 $ 537.7 Ratio of Earnings to Fixed Charges 4.54 4.58 (a) Prior year amounts have been restated to adjust for the effects of joint ventures and minority interests. The inclusion of these items did not have a material impact on the previously reported ratio of earnings to fixed charges. (b) One-third of net rent expense is the portion deemed representative of the interest factor. - -38- PEPSICO, INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (page 2 of 2) (in millions except ratio amounts, unaudited) 53 Weeks Ended 52 Weeks Ended 12/31/94 12/25/93 12/26/92 12/28/91 12/29/90 Earnings: (c) (c) Income from continuing operations before income taxes and cumulative effect of accounting changes $2,664.4 $2,422.5 $1,898.8 $1,659.7 $1,653.8 Joint ventures and minority interests, net (a) (19.6) (5.8) (0.6) (6.1) (17.9) Amortization of capitalized interest 5.2 5.0 5.0 4.5 5.3 Interest expense 645.0 572.7 586.1 613.7 686.0 Amortization of debt discount 0.3 0.2 0.3 0.3 0.3 Interest portion of net rent expense (b) 150.0 134.4 121.4 103.4 87.4 Earnings available for fixed charges $3,445.3 $3,129.0 $2,611.0 $2,375.5 $2,414.9 Fixed Charges: Interest expense $ 645.0 $ 572.7 $ 586.1 $ 613.7 $ 686.0 Capitalized interest 4.7 6.5 6.6 10.0 8.6 Amortization of debt discount 0.3 0.2 0.3 0.3 0.3 Interest portion of net rent expense (b) 150.0 134.4 121.4 103.4 87.4 Total fixed charges $ 800.0 $ 713.8 $ 714.4 $ 727.4 $ 782.3 Ratio of Earnings to Fixed Charges 4.31 4.38 3.65 3.27 3.09 (a) Prior year amounts have been restated to adjust for the effects of joint ventures and minority interests. The inclusion of these items did not have a material impact on the previously reported ratio of earnings to fixed charges. (b) One-third of net rent expense is the portion deemed representative of the interest factor. (c) To improve comparability, the 1991 and 1990 amounts have been restated to report, under the equity method of accounting, the the results of previously consolidated snack food businesses in Spain, Portugal and Greece, which were contributed to the Snack Ventures Europe joint venture with General Mills, Inc. in late 1992. - -39-