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 are before taxes, minority interest and cumulative effect
of change in accounting principle, plus fixed charges (excluding capitalized
interest) 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 which is the portion of
the rent deemed representative of the interest factor.
(dollars in millions)
FISCAL YEAR
2003 2002 2001 2000 1999
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NET INCOME BEFORE TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE $710 $700 $482 $397 $209
Undistributed (income) loss from equity
investments (1) -- -- -- --
Fixed charges excluding capitalize interest 270 221 217 222 227
---- ---- ---- ---- ----
EARNINGS AS ADJUSTED $979 $921 $699 $619 $436
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FIXED CHARGES:
Interest expense $247 $200 $204 $208 $209
Capital interest -- -- 1 1 1
Interest portion of rental expense 23 21 13 14 18
---- ---- ---- ---- ----
TOTAL FIXED CHARGES $270 $221 $218 $223 $228
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RATIO OF EARNINGS TO FIXED CHARGES 3.63 4.17 3.20 2.78 1.91