EX-12.(B) 9 dex12b.htm COMPUTATION OF RATIOS OF AVAILABLE INCOME TO FIXED CHARGES Computation of Ratios of Available Income to Fixed Charges

EXHIBIT 12 (b)

 

J. C. Penney Company, Inc.

and Consolidated Subsidiaries

Computation of Ratios of Available Income from

Continuing Operations to Fixed Charges

 

($ in Millions)    53 Weeks
Ended
1/31/04
     52 Weeks
Ended
1/25/03
     52 Weeks
Ended
1/26/02
     52 Weeks
Ended
1/27/01
     52 Weeks
Ended
1/29/00
  

Income/(loss) from continuing operations (before income taxes and capitalized interest)

    $ 546     $ 415     $ 273     $ (299 )   $ 640  

Fixed charges:

                                         

Interest (including capitalized interest) on:

                                         

Operating leases

      65       78       74       88       91  

Short-term debt

      6       4       —         13       137  

Long-term debt

      429       403       426       464       538  

Capital leases

      —         —         1       3       —    

Other, net

      21       22       11       (2 )     (7 )

Less: interest expense of discontinued operations

      (164 )     (162 )     (155 )     (214 )     (325 )
    
 
 
 
 

Total fixed charges

      357       345       355       352       434  
    
 
 
 
 

Total available income

    $ 903     $ 760     $ 628     $ 53     $ 1,074  
    
 
 
 
 

Ratio of available income to combined fixed charges

      2.5       2.2       1.8       0.2       2.5  
    
 
 
 
 

 

* Total available income from continuing operations (before income taxes and capitalized interest) was not sufficient to cover fixed charges by $299 million.