EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended December 28, 1996, December 30, 1995, December 31, 1994,
December 25, 1993 and December 26, 1992
(in millions except ratio amounts)
52 Weeks 53 Weeks 52 Weeks
---------------- -------- --------------
1996 1995 1994 1993 1992
Earnings:
Income from continuing
operations before income
taxes and cumulative
effect of accounting
changes .................. $2,047 $2,432 $2,664 $2,423 1,899
Unconsolidated affiliates
interests, net (a)........... 271 11 (19) (6) (1)
Amortization of
capitalized interest......... 4 6 5 5 5
Interest expense ............. 600 682 645 573 586
Interest portion of net
rent expense (b)............. 159 156 150 134 122
------ ------ ------ ------ ------
Earnings available for
fixed charges................ $3,081 $3,287 $3,445 $3,129 $2,611
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Fixed Charges:
Interest expense ............. $ 600 $ 682 $ 645 $ 573 $ 586
Capitalized interest.......... 8 10 5 7 7
Interest portion of net
rent expense (b)............. 159 156 150 134 122
------ ------ ------ ------ ------
Total fixed charges........ $ 767 $ 848 $ 800 $ 714 $ 715
====== ====== ======= ====== ======
Ratio of Earnings
to Fixed Charges(c).......... 4.02 3.88 4.31 4.38 3.65
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(a) 1994, 1993 and 1992 amounts have been restated to adjust for the
effects of unconsolidated affiliates 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) Included the impact of the unusual, disposal and other charges of $822
(or $716 after-tax) and $520 (or $384 after-tax) in 1996 and 1995,
respectively (see Note 3). Excluding those charges, the ratio of
earnings to fixed charges for 1996 and 1995 would have been 5.09 and
4.49, respectively.