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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 29, January 31,
1997 1997 1996*
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Net income (loss) from continuing retail operations before
extraordinary items and the effect of accounting changes $ 249 $ 231 $ (230)
Dividends on Convertible Preferred, Net 49 31 -
Income taxes 120 68 (83)
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Pretax income (loss) from continuing retail operations 418 330 (313)
Distributions from unconsolidated affiliated
retail companies that exceed equity income 1 28 14
Fixed charges per below 660 733 641
Less: interest capitalized during the period (8) (9) (6)
Preferred Dividends of Majority owned subsidiaries
not deducted in the determination of pre-tax (75) (47) -
income -----------------------------------
Earnings (loss) from continuing retail operations $ 996 $ 1,035 $ 336
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Fixed Charges:
Interest expense 378 498 483
Rent expense - portion of operating rentals representative
of the interest factor 159 146 151
Preferred Dividend requirements of Majority owned subsidiaries 75 47 -
Other 48 42 7
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Total Fixed Charges $ 660 $ 733 $ 641
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Ratio of income to fixed charges (1) 1.5 1.4 -
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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.
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