Exhibit 12. (a) COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES Year Ended (millions, except ratios) 1996 1995 1994 1993 1992 Fixed Charges Interest and amortization of debt discount and expense on all indebtedness $1,365 $1,373 $1,279 $1,318 $1,389 Add interest element implicit in rentals 121 119 114 105 165 ------ ------ ------ ------ ------ 1,486 1,492 1,393 1,423 1,554 Interest capitalized 5 4 1 3 23 ------ ------ ------ ------ ------ Total fixed charges $1,491 $1,496 $1,394 $1,426 $1,577 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Income (loss) Income (loss) from continuing operations $1,271 $1,025 $857 $625 ($1,812) Deduct undistributed net income (loss) of unconsolidated companies 8 9 (7) 6 (4) ------ ------ ------ ----- -------- 1,263 1,016 864 619 (1,808) Add Fixed charges (excluding interest capitalized) 1,486 1,492 1,393 1,423 1,554 Income taxes (benefit) 834 703 614 329 (1,039) ------ ------ ------- ------ -------- Income (loss) before fixed charges and income taxes $3,583 $3,211 $2,871 $2,371 ($1,293) ------ ------ ------ ------ -------- ------ ------ ------ ------ -------- Ratio of income to fixed charges 2.40 2.15 2.06 1.66 (A) ------ ------ ------ ------ -------- ------ ------ ------ ------ -------- <FN> (A) As a result of the loss for the year ended December 31, 1992, earnings did not cover fixed charges by $2,870 million. </FN>