EXHIBIT 12
PEPSICO, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
24 Weeks Ended
-------------------
6/12/99 6/13/98
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Earnings: (a)
Income before income taxes......... $2,183 $1,263
Joint ventures and minority
interests, net..................... (13) 1
Amortization of capitalized
interest........................... 3 3
Interest expense................... 228 152
Interest portion of rent expense (b) 23 21
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Earnings available for fixed
charges............................ $2,424 $1,440
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Fixed Charges:
Interest expense................... $ 228 $ 152
Capitalized interest............... 4 6
Interest portion of rent expense (b) 23 21
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Total fixed charges.............. $ 255 $ 179
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Ratio of Earnings to Fixed Charges. 9.51 8.04
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(a) Includes a $65 impairment and restructuring charge and gain on bottling
transactions in 1999. Excluding the charge and the gain, the ratio of
earnings to fixed charges for the 24 weeks ended June 12, 1999 would have
been 5.84.
(b) One-third of net rent expense is the portion deemed representation of the
interest factor.
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