EX-12 2 exhibit12-6172017.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)

|  | 24 Weeks Ended
|  | 6/17/2017 |  |  | 6/11/2016 |
Earnings: |  |  |  |
Income before income taxes |  | $ | 4,495 |  |  | $ | 4,118 |
Unconsolidated affiliates’ interests, net |  | (54 | ) |  | (78 | )
Amortization of capitalized interest |  | 3 |  |  | 3 |
Interest expense (a) |  | 517 |  |  | 501 |
Interest portion of rent expense (b) |  | 109 |  |  | 106 |
Earnings available for fixed charges |  | $ | 5,070 |  |  | $ | 4,650 |
Fixed Charges: |  |
Interest expense (a) |  | $ | 517 |  |  | $ | 501 |
Capitalized interest |  | 6 |  |  | 4 |
Interest portion of rent expense (b) |  | 109 |  |  | 106 |
Total fixed charges |  | $ | 632 |  |  | $ | 611 |
Ratio of Earnings to Fixed Charges (c) |  | 8.02 |  |  | 7.61 |

(a) | 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.

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

(c) | Based on unrounded amounts.