EXHIBIT 12
J. C. Penney Company, Inc.
Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividends
(Unaudited)
| ($ in millions) |
52 Weeks 1/28/06 |
52 Weeks Ended 1/29/05 |
53 Weeks Ended 1/31/04 |
52 Weeks Ended 1/25/03 |
52 Weeks Ended 1/26/02 |
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| Income from continuing operations before income taxes |
$ | 1,444 | $ | 1,005 | $ | 539 | $ | 412 | $ | 275 | ||||||||||
| Plus: fixed charges |
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| Interest expense, net |
169 | 223 | 247 | 212 | 219 | |||||||||||||||
| Add back: interest income included in net interest |
111 | 63 | 30 | 41 | 50 | |||||||||||||||
| Bond premiums and unamortized costs |
18 | 47 | — | — | — | |||||||||||||||
| Estimated interest within rental expense |
65 | 55 | 54 | 66 | 72 | |||||||||||||||
| Capitalized interest |
2 | 1 | — | — | 2 | |||||||||||||||
| Preferred stock dividend requirement |
— | 18 | 37 | 39 | 44 | |||||||||||||||
| Total fixed charges |
365 | 407 | 368 | 358 | 387 | |||||||||||||||
| Less: capitalized interest |
(2 | ) | (1 | ) | — | — | (2 | ) | ||||||||||||
| Less: preferred stock dividend requirement |
— | (18 | ) | (37 | ) | (39 | ) | (44 | ) | |||||||||||
| Total earnings available for fixed charges |
$ | 1,807 | $ | 1,393 | $ | 870 | $ | 731 | $ | 616 | ||||||||||
| Ratio of available income to fixed charges and preferred stock dividends |
5.0 | 3.4 | 2.4 | 2.0 | 1.6 | |||||||||||||||