EXHIBIT 12
J. C. Penney Company, Inc.
Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividends
(Unaudited)
| ($ in millions) | 52 Weeks Ended 2/2/08 |
53 Weeks Ended 2/3/07 |
52 Weeks Ended 1/28/06 |
52 Weeks Ended 1/29/05 |
53 Weeks Ended 1/31/04 |
|||||||||||||||
| Income from continuing operations before income taxes |
$ | 1,723 | $ | 1,792 | $ | 1,444 | $ | 1,005 | $ | 539 | ||||||||||
| Plus: fixed charges |
||||||||||||||||||||
| Interest expense, net |
153 | 130 | 169 | 223 | 247 | |||||||||||||||
| Add back: interest income included in net interest |
108 | 135 | 111 | 63 | 30 | |||||||||||||||
| Bond premiums and unamortized costs |
12 | - | 18 | 47 | - | |||||||||||||||
| Estimated interest within rental expense |
75 | 70 | 65 | 55 | 54 | |||||||||||||||
| Capitalized interest |
10 | 5 | 2 | 1 | - | |||||||||||||||
| Preferred stock dividend requirement |
- | - | - | 18 | 37 | |||||||||||||||
| Total fixed charges |
358 | 340 | 365 | 407 | 368 | |||||||||||||||
| Less: capitalized interest |
(10 | ) | (5 | ) | (2 | ) | (1 | ) | - | |||||||||||
| Less: preferred stock dividend requirement |
- | - | - | (18 | ) | (37 | ) | |||||||||||||
| Total earnings available for fixed charges |
$ | 2,071 | $ | 2,127 | $ | 1,807 | $ | 1,393 | $ | 870 | ||||||||||
| Ratio of available income to fixed charges and preferred stock dividends |
5.8 | 6.3 | 5.0 | 3.4 | 2.4 | |||||||||||||||