EX-12 2 exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
PepsiCo, Inc. and Subsidiaries
(in millions except ratio amounts, unaudited)

|  | 36 Weeks Ended
|  | 9/6/2014 |  |  | 9/7/2013 |
Earnings: |  |  |  |
Income before income taxes |  | $ | 6,976 |  |  | $ | 6,727 |
Unconsolidated affiliates’ interests, net |  | (100 | ) |  | (30 | )
Amortization of capitalized interest |  | 4 |  |  | 4 |
Interest expense (a) |  | 625 |  |  | 642 |
Interest portion of rent expense (b) |  | 157 |  |  | 142 |
Earnings available for fixed charges |  | $ | 7,662 |  |  | $ | 7,485 |
Fixed Charges: |  |
Interest expense (a) |  | $ | 625 |  |  | $ | 642 |
Capitalized interest |  | 5 |  |  | 4 |
Interest portion of rent expense (b) |  | 157 |  |  | 142 |
Total fixed charges |  | $ | 787 |  |  | $ | 788 |
Ratio of Earnings to Fixed Charges (c) |  | 9.73 |  |  | 9.50 |

(a) Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes.
(b) One-third of rent expense is the portion deemed representative of the interest factor.
(c) Based on unrounded amounts.