Exhibit 12
RATIO OF EARNINGS TO FIXED CHARGES We have calculated PBG's ratio of earnings to
fixed charges in the following table by dividing earnings by fixed charges. For
this purpose, earnings include pre-tax income plus fixed charges and losses
recognized from equity investments reduced by undistributed income from equity
investments. Fixed charges include interest expense, capitalized interest and
one-third of net rent expense, which is the portion of rent deemed
representative of the interest factor.
FISCAL YEAR
2001 2000 1999 (B) 1998 (B) 1997 1996 1995 1994
------- ------ ---------- ---------- ------ ------ ------ ------
Net income (loss) before taxes and minority
interest $ 482 $ 397 $ 209 $(192) $ 115 $ 138 $ 110 $ 63
Undistributed (income) loss from equity
investments - - - 5 12 1 (3) (1)
Fixed charges excluding capitalize interest 217 222 227 245 238 238 256 247
------- ------- ------- ------- ------- ------- ------- -------
Earnings as adjusted $ 699 $ 619 $ 436 $ 58 $ 365 $ 377 $ 363 $ 309
======= ======= ======= ======= ======= ======= ======= =======
Fixed charges:
Interest expense $ 204 $ 208 $ 209 $ 230 $ 226 $ 224 $ 243 $ 234
Capital interest 1 1 1 1 1 1 1 1
Interest portion of rental expense 13 14 18 15 12 14 13 13
------- ------- ------- ------ ------- ------- ------ -------
Total fixed charges $ 218 $ 223 $ 228 $ 246 $ 239 $ 239 $ 257 $ 248
======= ======= ======= ====== ======= ======= ====== =======
Ratio of earnings to fixed charges 3.20 2.78 1.91 (A) 1.53 1.58 1.41 1.25
(A) As a result of the losses incurred in the fiscal year ended
December 26, 1998 PBG was unable to fully cover the indicated fixed
charges. Earnings did not cover fixed charges by $188 million in 1998.
(B) Excluding the impact of unusual impairment and other charges and
credits of $16 million of income in 1999 and $222 million of expense
in 1998, the ratio of earnings of fixed charges would have been 1.85
and 1.14 in 1999 and 1998, respectively.