Exhibit 12
J. C. PENNEY COMPANY, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
Six Months Ended August 2, 2014 | ||||
($ in millions) | ||||
Income/(loss) from continuing operations before income taxes | $ | (520 | ) | |
Fixed charges: | ||||
Net interest expense | 203 | |||
Interest income included in net interest | — | |||
Loss on extinguishment of debt, bond premiums and unamortized costs | — | |||
Estimated interest within rental expense(1) | 49 | |||
Capitalized interest | — | |||
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Total fixed charges: | 252 | |||
Capitalized interest | — | |||
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Total earnings available for fixed charges | $ | (268 | ) | |
Ratio of earnings to fixed charges | (1.1 | ) | ||
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Deficiency of earnings to cover fixed charges | 520 | |||
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(1) | Estimate of interest within rental expense is calculated under the assumption that one-third of rent expense is representative of interest costs. |