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 2/2/08			53 Weeks Ended 2/3/07			52 Weeks Ended 1/28/06			52 Weeks Ended 1/29/05			53 Weeks Ended 1/31/04
Income from continuing operations before income taxes	$	1,723		$	1,792		$	1,444		$	1,005		$	539
Plus: fixed charges
Interest expense, net		153			130			169			223			247
Add back: interest income included in net interest		108			135			111			63			30
Bond premiums and unamortized costs		12			-			18			47			-
Estimated interest within rental expense		75			70			65			55			54
Capitalized interest		10			5			2			1			-
Preferred stock dividend requirement		-			-			-			18			37
Total fixed charges		358			340			365			407			368
Less: capitalized interest		(10	)		(5	)		(2	)		(1	)		-
Less: preferred stock dividend requirement		-			-			-			(18	)		(37	)
Total earnings available for fixed charges	$	2,071		$	2,127		$	1,807		$	1,393		$	870
Ratio of available income to fixed charges and preferred stock dividends		5.8			6.3			5.0			3.4			2.4