<DOCUMENT>
<TYPE>EX-12
<SEQUENCE>10
<FILENAME>k60961ex12.txt
<DESCRIPTION>STATEMENT REGARDING COMPUTAITON OF RATIOS
<TEXT>
<PAGE> 1
EXHIBIT 12
KMART CORPORATION
INFORMATION ON RATIO OF EARNINGS
TO FIXED CHARGES COMPUTATION
<TABLE>
<CAPTION>
Fiscal Year Ended
----------------------------------------------
($ Millions) January 31, January 26, January 27,
2001 2000 1999
----------------------------------------------
<S> <C> <C> <C>
Net income (loss) from continuing operations $ (244) $ 633 $ 518
Dividends on trust convertible preferred, net 46 50 50
Income taxes (134) 337 230
------- ------- -------
Pretax income (loss) from continuing operations (332) 1,020 798
Equity income from unconsolidated affiliated
retail companies that exceeds distributions (6) (44) (42)
Fixed charges per below 569 585 579
Less: Interest capitalized during the period (7) (16) (13)
Preferred dividends of wholly owned trust subsidiary
not deducted in the determination of pre-tax income (71) (78) (78)
------- ------- -------
Earnings from continuing operations plus fixed charges $ 153 $ 1,467 $ 1,244
======= ======= =======
Fixed charges:
Interest expense, net $ 287 $ 280 $ 293
Rent expense - portion of operating rentals representative
of the interest factor 186 189 173
Preferred dividends of wholly owned trust subsidiary 71 78 78
Interest income and capitalized interest 25 38 35
------- ------- -------
Total fixed charges $ 569 $ 585 $ 579
======= ======= =======
Ratio of earnings from continuing operations to fixed charges -- 2.5 2.1
======= ======= =======
</TABLE>
Note: Due to the loss from continuing operations for the fiscal year ended
January 31, 2001, the ratio of coverage was less than 1:1. Excluding the $728
million pre-tax charge for strategic initiatives, the ratio of earnings from
continuing operations to fixed charges was 1.5 for the fiscal year ended January
31, 2001.
</TEXT>
</DOCUMENT>