EX-12 2 exhibit12-6162018.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
|  | 6/16/2018 |  |  | 6/17/2017 |
Earnings: |  |  |  |
Income before income taxes |  | $ | 4,557 |  |  | $ | 4,495 |
Unconsolidated affiliates’ interests, net |  | (82 | ) |  | (54 | )
Amortization of capitalized interest |  | 2 |  |  | 3 |
Interest expense (a) |  | 602 |  |  | 517 |
Interest portion of rent expense (b) |  | 114 |  |  | 109 |
Earnings available for fixed charges |  | $ | 5,193 |  |  | $ | 5,070 |
Fixed Charges: |  |
Interest expense (a) |  | $ | 602 |  |  | $ | 517 |
Capitalized interest |  | 7 |  |  | 6 |
Interest portion of rent expense (b) |  | 114 |  |  | 109 |
Total fixed charges |  | $ | 723 |  |  | $ | 632 |
Ratio of Earnings to Fixed Charges (c) |  | 7.18 |  |  | 8.02 |

(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.