EX-12 3 ex12.htm COMPUTATION OF RATIO OF INCOME TO FIXED CHARGES  
Exhibit 12
                     
                     
COMPUTATION OF RATIO OF INCOME TO COMBINED FIXED CHARGES
SEARS, ROEBUCK AND CO. AND CONSOLIDATED SUBSIDIARIES
 
 
    Six
Months
Ended 
6/30/01		   Year Ended
(millions, except ratios)   (unaudited)
  2000
  1999
  1998
  1997
  1996
                         
Fixed Charges                        
Interest and amortization of debt discount                        
and expense on all indebtedness   $716    $1,248    $1,268    $1,423    $1,409    $1,365 
                         
Add interest element implicit in rentals   78
  136 
  133 
  144 
  147 
  121 
    794    1,384    1,401    1,567    1,556    1,486 
Interest capitalized   4 
  4 
  5 
  5 
  3 
  5
                         
Total fixed charges    $798 
  $1,388 
  $1,406 
  $1,572 
  $1,559 
  $1,491 
                         
Income                        
Income (loss) before income taxes,                        
minority interest and extraordinary loss   ($31)   $2,223    $2,419    $1,883    $2,138    $2,113 
Deduct undistributed net income (loss)                        
of unconsolidated companies   6 
  17 
  (5)
  11 
  13 
  8 
    (37)   2,206    2,424    1,872    2,125    2,105 
                         
Add                        
Fixed charges (excluding interest capitalized)   794 
  1,384 
  1,401 
  1,567 
  1,556 
  1,486 
Income before fixed charges and                        
income taxes   $757 
  $3,590 
  $3,825 
  $3,439 
  $3,681 
  $3,591 
                         
                         
Ratio of income to fixed charges    (A)
  2.59 
  2.72 
  2.19 
  2.36 
  2.41 
                         
                         
(A) As a result of the loss for the six months ended June 30, 2001, earnings did not cover fixed charges by $41 million.
                         
(B) Prior periods have been restated to conform to the current period computation and presentation.