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