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        52 Weeks
                                               Ended          Ended          Ended          Ended           Ended
($ in Millions)                              01/25/03        01/26/02       01/27/01       01/29/00        01/30/99
                                           --------------  -------------  -------------  -------------   -------------
                                                                                          
Income/(loss) from continuing operations          $  584          $ 201         $ (887)        $  273          $  711
      (before income taxes and
      capitalized interest)

Fixed charges:

Interest (including capitalized
interest) on:

      Operating leases                               349            305            320            272             225
      Short-term debt                                  4              -             13            137             106
      Long-term debt                                 403            426            464            538             557
      Capital leases                                   4              5              3              2               4
      Other, net                                      19              8              2             (5)              1
                                           --------------  -------------  -------------  -------------   -------------
Total fixed charges                                  779            744            802            944             893
                                           --------------  -------------  -------------  -------------   -------------
Total available income/(loss)                    $ 1,363          $ 945          $ (85)       $ 1,217         $ 1,604
                                           ==============  =============  =============  =============   =============
Ratio of available income to combined
      fixed charges                                  1.7            1.3           -0.1 *          1.3             1.8
                                           ==============  =============  =============  =============   =============




*  Income from continuing operations (before income taxes and capitalized interest) was not sufficient to cover fixed charges by
   $887 million.