EX-12 2 exhibit12-6162018.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
 
  
6/16/2018

 
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.