EXHIBIT 12

J. C. Penney Company, Inc.

Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividends

(Unaudited)

($ in millions)	52 Weeks Ended 1/28/06			52 Weeks Ended 1/29/05			53 Weeks Ended 1/31/04			52 Weeks Ended 1/25/03			52 Weeks Ended 1/26/02
Income from continuing operations before income taxes	$	1,444		$	1,005		$	539		$	412		$	275
Plus: fixed charges
Interest expense, net		169			223			247			212			219
Add back: interest income included in net interest		111			63			30			41			50
Bond premiums and unamortized costs		18			47			—			—			—
Estimated interest within rental expense		65			55			54			66			72
Capitalized interest		2			1			—			—			2
Preferred stock dividend requirement		—			18			37			39			44
Total fixed charges		365			407			368			358			387
Less: capitalized interest		(2	)		(1	)		—			—			(2	)
Less: preferred stock dividend requirement		—			(18	)		(37	)		(39	)		(44	)
Total earnings available for fixed charges	$	1,807		$	1,393		$	870		$	731		$	616
Ratio of available income to fixed charges and preferred stock dividends		5.0			3.4			2.4			2.0			1.6