EX-12 2 exhibit12-982018.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
|  | 9/8/2018 |  |  | 9/9/2017 |
Earnings: |  |  |  |
Income before income taxes |  | $ | 7,254 |  |  | $ | 7,271 |
Unconsolidated affiliates’ interests, net |  | (57 | ) |  | (50 | )
Amortization of capitalized interest |  | 4 |  |  | 5 |
Interest expense (a) |  | 904 |  |  | 786 |
Interest portion of rent expense (b) |  | 174 |  |  | 167 |
Earnings available for fixed charges |  | $ | 8,279 |  |  | $ | 8,179 |
Fixed Charges: |  |
Interest expense (a) |  | $ | 904 |  |  | $ | 786 |
Capitalized interest |  | 10 |  |  | 8 |
Interest portion of rent expense (b) |  | 174 |  |  | 167 |
Total fixed charges |  | $ | 1,088 |  |  | $ | 961 |
Ratio of Earnings to Fixed Charges (c) |  | 7.61 |  |  | 8.51 |

(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.