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
1/31/09
    52 Weeks
Ended
2/2/08
    53 Weeks
Ended
2/3/07
    52 Weeks
Ended
1/28/06
    52 Weeks
Ended
1/29/05
 

Income from continuing operations before income taxes

   $ 910     $ 1,723     $ 1,792     $ 1,444     $ 1,005  
                                        

Plus: fixed charges

          

Interest expense, net

     225       153       130       169       223  

Add back: interest income included in net interest

     32       108       136       111       63  

Bond premiums and unamortized costs

     -       12       -       18       47  

Estimated interest within rental expense

     89       75       69       65       55  

Capitalized interest

     10       10       5       6       4  

Preferred stock dividend requirement

     -       -       -       -       18  
                                        

Total fixed charges

     356       358       340       369       410  

Less: capitalized interest

     (10 )     (10 )     (5 )     (6 )     (4 )

Less: preferred stock dividend requirement

     -       -       -       -       (18 )
                                        

Total earnings available for fixed charges

   $ 1,256     $ 2,071     $ 2,127     $ 1,807     $ 1,393  
                                        

Ratio of available income to fixed charges and preferred stock dividends

     3.5       5.8       6.3       4.9       3.4