EX-12 2 exhibit12-932016.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
|  | 9/3/2016 |  |  | 9/5/2015 |
Earnings: |  |  |  |
Income before income taxes (a) |  | $ | 6,722 |  |  | $ | 5,491 |
Unconsolidated affiliates’ interests, net |  | (69 | ) |  | (76 | )
Amortization of capitalized interest |  | 4 |  |  | 5 |
Interest expense (b) |  | 748 |  |  | 653 |
Interest portion of rent expense (c) |  | 161 |  |  | 162 |
Earnings available for fixed charges |  | $ | 7,566 |  |  | $ | 6,235 |
Fixed Charges: |  |
Interest expense (b) |  | $ | 748 |  |  | $ | 653 |
Capitalized interest |  | 6 |  |  | 5 |
Interest portion of rent expense (c) |  | 161 |  |  | 162 |
Total fixed charges |  | $ | 915 |  |  | $ | 820 |
Ratio of Earnings to Fixed Charges (d) |  | 8.27 |  |  | 7.60 |

(a) | Income before income taxes for the 36 weeks ended September 5, 2015 included a pre-tax charge of $1.4 billion related to our change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture.

(b) | Excludes interest related to our reserves for income taxes as such interest is included in provision for income taxes and includes net amortization of debt premium/discount.

(c) | One-third of rent expense is the portion deemed representative of the interest factor.

(d) | Based on unrounded amounts.