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EXHIBIT 12
KMART CORPORATION
INFORMATION ON RATIO OF EARNINGS
TO FIXED CHARGES COMPUTATION
Fiscal Year Ended
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($ Millions) January 29, January 31, January 25,
1997 1996* 1995*
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Net income (loss) from continuing retail operations before
extraordinary items and the effect of accounting changes $ 231 $ (230) $ 96
Dividends on Convertible Preferred, Net 31 $ - $ -
Income taxes 68 (83) 6
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Pretax income (loss) from continuing retail operations $ 330 $ (313) $ 102
Distributions from unconsolidated affiliated
retail companies that exceed equity income 28 14 (14)
Fixed charges per below 733 641 651
Less: Interest capitalized during the period (9) (6) (14)
Preferred Dividends of Majority owned subsidiaries
not deducted in the determination of pre-tax income (47) - -
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Earnings (loss) from continuing retail operations $1,035 $ 336 $ 725
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Fixed Charges:
Interest expense 498 483 504
Rent expense - portion of operating rentals representative
of the interest factor 146 151 131
Preferred Dividend requirements of Majority owned subsidiaries 47 - -
Other 42 7 16
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Total Fixed Charges $ 733 $ 641 $ 651
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Ratio of income to fixed charges (1) 1.4 - 1.1
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* Prior year amounts have been restated for the effect of discontinued
operations.
(1) The deficiency of earnings from continuing retail operations versus fixed
charges was $305 million for the fiscal year ended January 31, 1996.