EXHIBIT 12

J. C. Penney Company, Inc.
Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividends
(Unaudited)

	53 Weeks			52 Weeks			52 Weeks			53 Weeks			52 Weeks
	Ended			Ended			Ended			Ended			Ended
($ in millions)	2/3/07			1/28/06			1/29/05			1/31/04			1/25/03
Income from continuing operations before income taxes	$	1,792		$	1,444		$	1,005		$	539		$	412
Plus: fixed charges
Interest expense, net		130			169			223			247			212
Add back: interest income included in net interest		135			111			63			30			41
Bond premiums and unamortized costs		—			18			47			—			—
Estimated interest within rental expense		70			65			55			54			66
Capitalized interest		5			2			1			—			—
Preferred stock dividend requirement		—			—			18			37			39
Total fixed charges		340			365			407			368			358
Less: capitalized interest		(5	)		(2	)		(1	)		—			—
Less: preferred stock dividend requirement		—			—			(18	)		(37	)		(39	)
Total earnings available for fixed charges	$	2,127		$	1,807		$	1,393		$	870		$	731
Ratio of available income to fixed charges and preferred stock dividends		6.3			5.0			3.4			2.4			2.0