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10-Q - FORM 10-Q - Keurig Dr Pepper Inc.dps-10qx093015.htm
EX-32.1 - CERTIFICATION OF OUR CEO PURSUANT TO SECTION 906 - Keurig Dr Pepper Inc.dps-ex321_20150930.htm
EX-31.1 - CERTIFICATION OF OUR CEO PURSUANT TO SECTION 302 - Keurig Dr Pepper Inc.dps-ex311_20150930.htm
EX-32.2 - CERTIFICATION OF OUR CFO PURSUANT TO SECTION 906 - Keurig Dr Pepper Inc.dps-ex322_20150930.htm
EX-31.2 - CERTIFICATION OF OUR CFO PURSUANT TO SECTION 302 - Keurig Dr Pepper Inc.dps-ex312_20150930.htm
Exhibit 12.1

DR PEPPER SNAPPLE GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratio amounts)
 
For the Nine Months Ended
 
 
 
 
 
 
 
 
 
September 30,
 
For the Fiscal Years
 
2015
 
2014
 
2013
 
2012
 
2011
Calculation of fixed charges ratio:
 
 
 
 
 
 
 
 
 
Income before provision for income taxes, equity in earnings of unconsolidated subsidiaries and cumulative effect of change in accounting policy(2)
$
893

 
$
1,073

 
$
542

 
$
978

 
$
925

 
 
 
 
 
 
 
 
 
 
Add/(deduct):
 
 
 
 
 
 
 
 
 
Fixed charges
95

 
125

 
138

 
142

 
131

Amortization of capitalized interest
3

 
4

 
4

 
3

 
2

Capitalized interest
(1
)
 
(2
)
 
(1
)
 
(2
)
 
(2
)
Total earnings available for fixed charges
$
990

 
$
1,200

 
$
683

 
$
1,121

 
$
1,056

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense
$
83

 
$
109

 
$
123

 
$
125

 
$
114

Capitalized interest
1

 
2

 
1

 
2

 
2

Interest component of rental expense(1)
11

 
14

 
14

 
15

 
15

Total fixed charges
$
95

 
$
125

 
$
138

 
$
142

 
$
131

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
10.5x

 
9.6x

 
4.9x

 
7.9x

 
8.1x

_________________________________
(1)
Represents a reasonable estimate of the interest component of rental expense incurred by us.

(2)
Due to the completion of the IRS audit for our 2006-2008 federal income tax returns in August 2013, we recognized $430 million of other expense, net, as we no longer anticipate collecting amounts from Mondelēz. Additionally, in June 2013, a bill was enacted by the Canadian government, which reduced amounts amortized for income tax purposes. As a result, we recognized $38 million of indemnity income due to the reduction of our long-term liability to Mondelēz.