Exhibit 12
COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES
SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES
(Unaudited)
Six | |||||||||||||||||||||
Months | |||||||||||||||||||||
Ended | For the Fiscal Year Ended | ||||||||||||||||||||
7/3/04 | |||||||||||||||||||||
(millions, except ratios) | (unaudited) | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
Fixed Charges | |||||||||||||||||||||
Interest and amortization of debt discount and expense on all indebtedness | $ | 144 | $ | 1,816 | $ | 1,143 | $ | 1,415 | $ | 1,248 | |||||||||||
Add interest element implicit in rentals | 74 | 167 | 157 | 161 | 136 | ||||||||||||||||
218 | 1,983 | 1,300 | 1,576 | 1,384 | |||||||||||||||||
Interest capitalized | 0 | 1 | 4 | 11 | 4 | ||||||||||||||||
Total fixed charges | $ | 218 | $ | 1,984 | $ | 1,303 | $ | 1,587 | $ | 1,388 | |||||||||||
Income | |||||||||||||||||||||
Income before income taxes, minority interest and cumulative effect of change in accounting principle | $ | 64 | $ | 5,449 | $ | 2,453 | $ | 1,223 | $ | 2,223 | |||||||||||
Deduct undistributed net income of unconsolidated companies | 4 | 8 | 20 | 12 | 17 | ||||||||||||||||
60 | 5,441 | 2,433 | 1,211 | 2,206 | |||||||||||||||||
Add | |||||||||||||||||||||
Fixed charges (excluding interest capitalized) | 218 | 1,983 | 1,300 | 1,576 | 1,384 | ||||||||||||||||
Income before fixed charges and income taxes | $ | 278 | $ | 7,424 | $ | 3,733 | $ | 2,787 | $ | 3,590 | |||||||||||
Ratio of income to fixed charges | 1.27 | 3.74 | 2.86 | 1.76 | 2.59 | ||||||||||||||||