Exhibit 12. (b) COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDENDS SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES Year Ended December 31 1994 1993 1992 1991 1990 (millions, except ratios) Fixed Charges Interest and amortization of debt discount and expense on all indebtedness $1,339 $1,400 $1,389 $1,568 $1,651 Add interest element implicit in rentals 208 200 256 244 233 1,547 1,600 1,645 1,812 1,884 Preferred dividend factor 175 159 120 4 - Interest capitalized 1 3 23 22 16 Total fixed charges $1,723 $1,762 $1,788 $1,838 $1,900 Income (loss) Income (loss) from continuing operations $1,244 $2,420 ($2,311) $883 $646 Add undistributed net loss of unconsolidated companies (17) (1) (24) (10) (10) 1,261 2,421 (2,287) 893 656 Add Fixed charges (excluding interest capitalized and preferred dividend factor) 1,547 1,600 1,645 1,812 1,884 Income taxes (benefit) 358 404 (1,965) (57) (402) Income (loss) before fixed charges and income taxes $3,166 $4,425 ($2,607) $2,648 $2,138 Ratio of income to combined fixed charges and preferred share dividends 1.84 2.51 (A) 1.44 1.13 <FN> (A) As a result of the loss for the year ended December 31, 1992, earnings did not cover fixed charges and preferred share dividends by $4,395 million.