EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Years Ended
December 26, 1998, December 27, 1997, December 28, 1996,
December 30, 1995 and December 31, 1994
(in millions except ratio amounts)
52 Weeks 52 Weeks 52 Weeks 52 Weeks 53 Weeks
1998 1997 1996 1995 1994
Earnings:
Income from continuing
operations before income
taxes and cumulative
effect of accounting
changes .............. $2,263 $2,309 $1,566 $2,091 $1,991
Unconsolidated affiliates
interests, net .......... 32 17 273 26 (12)
Amortization of
capitalized interest..... 5 6 4 6 5
Interest expense ......... 395 478 565 629 596
Interest portion of net
rent expense (a)......... 46 43 48 41 38
------ ------ ------ ------ ------
Earnings available for
fixed charges............ $2,741 $2,853 $2,456 $2,793 $2,618
Fixed Charges:
Interest expense ......... $ 395 $ 478 $ 565 $ 629 $ 596
Capitalized interest...... 10 18 8 10 5
Interest portion of net
rent expense (a)......... 46 43 48 41 38
------ ------ ------ ------ ------
Total fixed charges.... $ 451 $ 539 $ 621 $ 680 $ 639
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Ratio of Earnings
to Fixed Charges(b)...... 6.08 5.29 3.95 4.11 4.10
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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 unusual items of $288, $290, $576 and $66 in 1998,
1997, 1996 and 1995, respectively (see Note 3). Excluding those charges,
the ratio of earnings to fixed charges for 1998, 1997, 1996 and 1995 would
have been 6.72, 5.83, 4.88 and 4.20, respectively.