Exhibit 12(b)
J. C. Penney Company, Inc.
and Consolidated Subsidiaries
Computation of Ratios of Available Income to Fixed Charges
52 Weeks 52 Weeks 52 Weeks 52 Weeks 53 Weeks
Ended Ended Ended Ended Ended
($ Millions) 01/26/02 01/27/01 01/29/00 01/30/99 01/31/98
-------- -------- -------- -------- --------
Income/(loss) from continuing operations $ 201 $ (887) $ 273 $ 711 $ 687
(before income taxes and
capitalized interest)
Fixed charges
Interest (including capitalized
interest) on:
Operating leases 305 320 272 225 180
Short-term debt - 13 137 106 121
Long-term debt 426 464 538 557 527
Capital leases 5 3 2 4 7
Other, net 8 2 (5) 1 (5)
-------- -------- -------- -------- --------
Total fixed charges 744 802 944 893 830
-------- -------- -------- -------- --------
Total available income/(loss) $ 945 $ (85) $ 1,217 $ 1,604 $ 1,517
======== ======== ======== ======== ========
Ratio of available income to combined
fixed charges 1.3 -0.1* 1.3 1.8 1.8
======== ======== ======== ======== ========
The interest cost of the LESOP notes guaranteed by the Company is not included
in fixed charges above. The LESOP notes were repaid in July 1998.
* Income from continuing operations (before income taxes and capitalized
interest) was not sufficient to cover fixed charges by $887 million.