EX-12 2 exhibit12-6112016.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges
PepsiCo, Inc. and Subsidiaries
(in millions except ratio amounts, unaudited)
 
 
24 Weeks Ended
 
  
6/11/2016

 
6/13/2015

Earnings:
  
 
 
 
Income before income taxes
  
$
4,118

 
$
4,298

Unconsolidated affiliates’ interests, net
  
(78
)
 
(37
)
Amortization of capitalized interest
  
3

 
3

Interest expense (a)
  
501

 
428

Interest portion of rent expense (b)
  
106

 
107

Earnings available for fixed charges
  
$
4,650

 
$
4,799

 
  
 

 
 

Fixed Charges:
  
 
Interest expense (a)
  
$
501

 
$
428

Capitalized interest
  
4

 
3

Interest portion of rent expense (b)
  
106

 
107

Total fixed charges
  
$
611

 
$
538

 
 
 
 
 
Ratio of Earnings to Fixed Charges (c)
  
7.61

 
8.92

(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.