EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
12 Weeks Ended
3/20/99 3/21/98
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Earnings: (b)
Income before income taxes................... $ 491 $ 546
Joint ventures and minority interests, net... 2 3
Amortization of capitalized interest......... 6 1
Interest expense............................. 124 76
Interest portion of rent expense (a)......... 11 11
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Earnings available for fixed charges....... $ 634 $ 637
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Fixed Charges:
Interest expense............................. $ 124 $ 76
Capitalized interest......................... 2 4
Interest portion of rent expense (a)......... 11 11
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Total fixed charges........................ $ 137 $ 91
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Ratio of Earnings to Fixed Charges........... 4.63 7.00
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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 an asset impairment and restructuring charge of $65.
Excluding the charge, the ratio of earnings to fixed charges would have
been 5.10.
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