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.
RATIO OF EARNINGS TO FIXED CHARGES
($ in millions)
Exhibit 12
FISCAL YEAR
2004 2003 2002 2001 2000
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NET INCOME BEFORE TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $ 745 $ 710 $ 700 $ 482 $ 397
Undistributed (income) loss from equity
investments (1) (1) - - -
Fixed charges excluding capitalized interest $ 261 $ 270 221 217 222
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EARNINGS AS ADJUSTED $ 1,005 $ 979 $ 921 $ 699 $ 619
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FIXED CHARGES:
Interest expense $ 236 $ 247 $ 200 $ 204 $ 208
Capitalized interest - - - 1 1
Interest portion of rental expense 25 23 21 13 14
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TOTAL FIXED CHARGES $ 261 $ 270 $ 221 $ 218 $ 223
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RATIO OF EARNINGS TO FIXED CHARGES 3.85 3.63 4.17 3.20 2.78