EXHIBIT 12 (a)
J. C. Penney Company, Inc.
and Consolidated Subsidiaries
Computation of Ratios of Available Income from Continuing Operations
to Combined Fixed Charges and Preferred Stock Dividend Requirement
| ($ in Millions) | 53 Weeks Ended 1/31/04 |
52 Weeks Ended 1/25/03 |
52 Weeks Ended 1/26/02 |
52 Weeks Ended 1/27/01 |
52 Weeks Ended 1/29/00 |
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| Income/(loss) from continuing operations (before income taxes, before capitalized interest, but after preferred stock dividend) |
$ | 521 | $ | 388 | $ | 243 | $ | (332 | ) | $ | 604 | |||||||||
| Fixed charges |
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| Interest (including capitalized interest) on: |
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| Operating leases |
65 | 78 | 74 | 88 | 91 | |||||||||||||||
| Short-term debt |
6 | 4 | — | 13 | 137 | |||||||||||||||
| Long-term debt |
429 | 403 | 426 | 464 | 538 | |||||||||||||||
| Capital leases |
— | — | 1 | 3 | — | |||||||||||||||
| Other, net |
21 | 22 | 11 | (2 | ) | (7 | ) | |||||||||||||
| Less: interest expense of discontinued operations |
(164 | ) | (162 | ) | (155 | ) | (214 | ) | (325 | ) | ||||||||||
| Total fixed charges |
357 | 345 | 357 | 352 | 434 | |||||||||||||||
| Preferred stock dividend, before taxes |
25 | 27 | 29 | 33 | 36 | |||||||||||||||
| Combined fixed charges and preferred stock dividend requirement |
382 | 372 | 386 | 385 | 470 | |||||||||||||||
| Total available income |
$ | 903 | $ | 760 | $ | 629 | $ | 53 | $ | 1,074 | ||||||||||
| Ratio of available income to combined fixed charges and preferred stock dividend requirement |
2.4 | 2.0 | 1.6 | 0.1 | 2.3 | |||||||||||||||
| * | Total available income from continuing operations (before income taxes and capitalized interest, but after preferred stock dividend) was not sufficient to cover combined fixed charges and preferred stock by $332 million. |