EX-12 4 exhibit12-3242018.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)

|  | 12 Weeks Ended
|  | 3/24/2018 |  |  | 3/25/2017 |
Earnings: |  |  |  |
Income before income taxes |  | $ | 1,657 |  |  | $ | 1,721 |
Unconsolidated affiliates’ interests, net |  | (40 | ) |  | (36 | )
Amortization of capitalized interest |  | 1 |  |  | 1 |
Interest expense (a) |  | 294 |  |  | 252 |
Interest portion of rent expense (b) |  | 54 |  |  | 50 |
Earnings available for fixed charges |  | $ | 1,966 |  |  | $ | 1,988 |
Fixed Charges: |  |
Interest expense (a) |  | $ | 294 |  |  | $ | 252 |
Capitalized interest |  | 3 |  |  | 3 |
Interest portion of rent expense (b) |  | 54 |  |  | 50 |
Total fixed charges |  | $ | 351 |  |  | $ | 305 |
Ratio of Earnings to Fixed Charges (c) |  | 5.60 |  |  | 6.52 |

(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.