EXHIBIT 12
THE PEPSI BOTTLING GROUP, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
12 Weeks Ended
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3/21/98 3/20/99
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Earnings:
Income (loss) before taxes and cumulative effect
of accounting changes and minority interest............ $ (13) $ (5)
Undistributed (income) loss from equity investments...... 4 --
Fixed charges excluding capitalized interest............. 57 50
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Earnings available for fixed charges.................. $ 48 $ 45
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Fixed Charges:
Interest expense......................................... $ 54 $ 47
Capitalized interest..................................... -- --
Interest portion of rent expense(A)...................... 3 3
Total fixed charges................................... $ 57 $ 50
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Ratio of Earnings to Fixed Charges....................... (B) (B)
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(A) One-third of net rent expense is the portion deemed representative of the
interest factor.
(B) As a result of the loss incurred in the 12 weeks ended March 21, 1998 and
March 20, 1999, PBG was unable to cover the indicated fixed charges by $9
million and $5 million, respectively.
THE PEPSI BOTTLING GROUP, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions except ratio amounts, unaudited)
Fiscal Year
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1994 1995 1996 1997 1998
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Earnings:
Income (loss) before taxes and cumulative effect
of accounting changes and minority interest............ $ 63 $ 110 $ 138 $ 115 $ (192)
Undistributed (income) loss from equity investments............... (1) (3) 1 12 5
Fixed charges excluding capitalized interest...................... 247 256 238 238 245
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Earnings available for fixed charges........................... $ 309 $ 363 $ 377 $ 365 $ 58
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Fixed Charges:
Interest expense.................................................. $ 234 $ 243 $ 224 $ 226 $ 230
Capitalized interest.............................................. 1 1 1 1 1
Interest portion of rent expense(A)............................... 13 13 14 12 15
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Total fixed charges............................................ $ 248 $ 257 $ 239 $ 239 $ 246
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Ratio of Earnings to Fixed Charges................................ 1.25 1.41 1.58 1.53 (B)
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(A) One-third of net rent expense is the portion deemed representative of the
interest factor.
(B) As a result of the loss incurred in fiscal year 1998, PBG was unable to
cover the indicated fixed charges by $188 million.
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