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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 16, 2005
J. C. PENNEY COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-15274 26-0037077
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation ) Identification No.)
6501 Legacy Drive
Plano, Texas 75024-3698
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (972) 431-1000
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13d-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
J. C. Penney Company, Inc. issued a news release on August 16, 2005,
announcing its second quarter results of operations and financial condition.
This information is attached as Exhibit 99.1.
The news release referred to above contains the non-GAAP financial measure
of free cash flow. Although it is not a generally accepted accounting principle
(GAAP) measure, it is derived from components of the Company's consolidated GAAP
cash flow statement. Free cash flow from continuing operations is defined as
cash provided by operating activities less dividends and capital expenditures,
net of proceeds from the sale of assets.
Although free cash flow is a non-GAAP financial measure, management
believes it is important in evaluating the Company's financial performance and
measuring the ability to generate cash without incurring additional external
financing. Positive free cash flow generated by a company indicates the amount
of cash available for reinvestment in the business, or cash that can be returned
to investors through increased dividends, stock repurchase programs, debt
retirements, or a combination of these. Conversely, negative free cash flow
indicates the amount of cash that must be raised from investors through new debt
or equity issues, reduction in available cash balances or a combination of
these. Free cash flow should be considered in addition to, rather than as a
substitute for, cash provided by operating activities. The Company's calculation
of free cash flow may differ from that used by other companies and therefore
comparability may be limited.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
J. C. PENNEY COMPANY, INC.
By: /s/ Robert B. Cavanaugh
--------------------------------
Robert B. Cavanaugh
Executive Vice President,
Chief Financial Officer
Date: August 16, 2005
EXHIBIT INDEX
Exhibit Number Description
99.1 J. C. Penney Company, Inc.
News Release issued August 16, 2005
Exhibit 99.1
JCPENNEY REPORTS SECOND QUARTER EARNINGS OF $0.46 PER SHARE
Operating Profit Increases 43 Percent to 5.4 Percent of Sales
PLANO, Texas, August 16, 2005 -- J. C. Penney Company, Inc. (NYSE: JCP) second
quarter earnings from continuing operations rose to $0.46 per share from $0.22
per share in last year's second quarter. On a dollar basis, income from
continuing operations increased to $122 million from $68 million last year.
Earnings per share increased primarily as a result of strong operating
performance, coupled with the impact of the company's ongoing common stock
buyback program. Including the effects of discontinued operations, net income
for the quarter was $0.50 per share compared to a loss of $0.02 per share last
year.
Myron E. (Mike) Ullman, III, Chairman and Chief Executive Officer said, "Our
operating performance in the second quarter reflects the continued progress we
are making in offering merchandise assortments that fit our customers'
lifestyles. We are pleased with progress made to date and are committed to
strengthening the customer relationship. We will accomplish this by building our
private brands, as well as offering national brands, that our customers the
middle American consumer want, making it both exciting and convenient to shop
with JCPenney. We are entering the third quarter and the Back-to-School selling
season with momentum and early results have been encouraging."
Ullman added, "Even as we seek to build and enhance our brand-building and
marketing activities, we remain committed to increasing long-term profitability
by ensuring efficiency across our organization and continuing to strengthen our
financial position. Based on the confidence we have in our Long-Range Plan, we
announced a $400 million addition to our common stock repurchase program last
month, bringing our total repurchase authorizations to over $4 billion since
last August."
Operating Results
During the second quarter, total sales increased 5.4 percent. Department store
sales increased 5.1 percent, while comparable department store sales increased
4.2 percent on top of a 6.9 percent increase in last year's second quarter. All
merchandise divisions and all regions of the country contributed sales
increases. For the quarter, Direct (catalog/Internet) sales increased 7.1
percent versus a 1.6 percent decrease last year, primarily as a result of
continued strength in the Internet. Sales for jcpenney.com increased over 30
percent in the quarter in both the current and prior year.
Gross margin improved by 90 basis points to 38.1 percent of sales, reflecting
better management of both inventory flow and seasonal transition, as well as
continued strength in the performance of the company's private brand
merchandise. SG&A expense dollars increased with the higher sales volume but
were leveraged, improving by 60 basis points as a percent of sales.
Operating profit was $213 million, or 5.4 percent of sales, compared with $149
million, or 3.9 percent of sales last year. This represents an increase of 43
percent, or 150 basis points as a percent of sales.
Other Charges and Credits
Net interest expense was $40 million in the quarter, lower than original
expectations, with interest income benefiting principally from higher short-term
interest rates on cash balances. In addition, the company incurred pre-tax
charges of $5 million related to the repurchase of debt in open market
transactions during the quarter. The company reported $14 million of income from
real estate and other, including $8 million in gains from the sale of previously
closed facilities. The effective income tax rate for continuing operations was
33.2 percent, reflecting a $5 million one-time credit related to changes in
state income taxes.
Discontinued Operations
On July 5, 2005, the company completed the sale of its interest in Lojas Renner
S.A. Historical financial statements and restated comparable store sales
percents reflecting Renner as a discontinued operation are included as part of
this release (Attachment 1). Discontinued operations contributed $0.04 per share
to net income in the second quarter, principally related to adjustments
associated with the earlier sales of the Eckerd drugstore operation and
international operations.
Financial Condition
As of July 30, 2005, the company had cash investments of $3.4 billion, which
will be reduced over the balance of the year as the capital structure
repositioning program is completed. Long-term debt totaled $3.5 billion and
reflects the payment at maturity of the $193 million aggregate principal amount
of 7.05% notes due May 23, 2005, as well as $56 million of open market debt
repurchases in the second quarter. Free cash flow is trending higher than
original guidance, principally as a result of strong operating performance in
the first half. The company now expects to generate free cash flow of
approximately $250 million for the fiscal year.
Capital Structure Repositioning
Since announcing the sale of Eckerd last year, the company's board of directors
has authorized common stock repurchases that aggregate $4.15 billion. During the
second quarter, the company repurchased 12.5 million shares of its common stock
under this program, which brings the total repurchases in the first half of 2005
to approximately 20 million shares for about $1 billion. Since initiating the
program in August 2004, the company has repurchased approximately 70 million
shares for about $3 billion. The remaining $1.15 billion share repurchase
authorization, which includes the additional $400 million authorized in
connection with the July sale of Renner, is expected to be completed by the end
of fiscal 2005.
Earnings Guidance
For the third and fourth quarters, both comparable store sales and Direct
(catalog/Internet) sales are expected to increase low-single digits. The company
currently expects earnings from continuing operations in the area of $0.82 per
share and $1.52 per share in the third and fourth quarters, respectively. This
would result in full year earnings from continuing operations of approximately
$3.35 per share, an increase of more than 50 percent from the $2.20 earned in
2004. This guidance reflects the impact of expensing stock options, as well as
the classification of Renner as a discontinued operation. Average diluted share
counts for EPS calculations are expected to be approximately 260 million shares,
245 million shares, and 260 million shares for the third quarter, fourth quarter
and full year, respectively.
Earnings per share guidance for the balance of the year reflects the expectation
for continued improvement in both gross margin and SG&A expense as a percent of
sales, coupled with benefits from the common stock buyback program. The company
currently expects full year operating profit of approximately 8 percent. With
higher short-term interest rates, net interest expense for the balance of the
year should benefit from higher levels of interest income on cash balances. The
company now expects interest expense to be in the range of $45 to $50 million
per quarter, based on the current interest rate environment.
Conference Call/Webcast Details
Senior management will host a live conference call and real-time webcast on
August 16, 2005, beginning at 9:30 a.m. ET. Access to the conference call is
open to the press and general public in a listen only mode. To access the
conference call, please dial 973-935-2035 and reference the JCPenney Quarterly
Earnings Conference Call. The telephone playback will be available for two days
beginning approximately two hours after the conclusion of the call by dialing
973-341-3080, pin code 5717198. The live webcast may be accessed via JCPenney's
Investor Relations page at www.jcpenney.net, or on www.streetevents.com (for
members) and www.fulldisclosure.com (for media and individual investors).
Replays of the webcast will be available for up to 90 days after the event.
For further information, contact:
Investor Relations
Bob Johnson; (972) 431-2217; rvjohnso@jcpenney.com
Ed Merritt; (972) 431-8167; emerritt@jcpenney.com
Public Relations
Quinton Crenshaw; (972) 431-5581; qcrensha@jcpenney.com
Tim Lyons; (972) 431-4834; tmlyons@jcpenney.com
About JCPenney
J. C. Penney Corporation, Inc., the wholly owned operating subsidiary of J. C.
Penney Company, Inc., is one of America's largest department store, catalog, and
e-commerce retailers, employing approximately 150,000 associates. As of July 30,
2005, J. C. Penney Corporation, Inc. operated 1,015 JCPenney department stores
throughout the United States and Puerto Rico. JCPenney is the nation's largest
catalog merchant of general merchandise, and jcpenney.com is one of the largest
apparel and home furnishings sites on the Internet.
This release may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, which reflect the company's current views of future events and
financial performance, involve known and unknown risks and uncertainties that
may cause the company's actual results to be materially different from planned
or expected results. Those risks and uncertainties include, but are not limited
to, competition, consumer demand, seasonality, economic conditions, including
oil prices, changes in management, retail industry consolidations, acts of
terrorism or war, and government activity. Please refer to the company's most
recent Form 10-K and subsequent filings for a further discussion of risks and
uncertainties. Investors should take such risks into account when making
investment decisions. In addition, non-GAAP terms referenced, such as EBITDA and
free cash flow, are defined and presented in the Company's 2004 Annual Report on
Form 10-K. We do not undertake to update these forward-looking statements as of
any future date.
# # #
J. C. PENNEY COMPANY, INC. SUMMARY OF OPERATING RESULTS
(Unaudited) (Amounts in millions except per share data)
13 weeks ended 26 weeks ended
-------------------------------------- -----------------------------------
July 30, July 31, % Inc. July 30, July 31, % Inc.
2005 2004 (Dec.) 2005 2004 (Dec.)
------------- ----------- ---------- ------------- ---------- --------
SALES PERCENTAGES:
Comparable department store sales increase 4.2 % 6.9 % 3.5 % 8.0 %
Direct (Catalog/Internet) sales increase/(decrease) 7.1 % (1.6)% 6.2 % 2.5 %
STATEMENTS OF OPERATIONS:
Total net sales $ 3,981 $ 3,778 5.4% $ 8,099 $ 7,750 4.5%
Gross margin 1,516 1,407 7.7% 3,210 2,993 7.3%
Selling, general and administrative
(SG&A) expenses 1,303 1,258 3.6% 2,689 2,620 2.6%
------------- ----------- ------------- ----------
Operating profit 213 149 43.0% 521 373 39.7%
Net interest expense 40 48 (16.7)% 89 102 (12.7)%
Bond premiums and unamortized costs 5 - N/A 18 - N/A
Real estate and other (14) (5) N/A (36) (13) N/A
------------- ----------- ------------- ----------
Income from continuing operations
before income taxes 182 106 71.7% 450 284 58.5%
Income tax expense 60 38 57.9% 157 99 58.6%
------------- ----------- ------------- ----------
Income from continuing operations $ 122 $ 68 79.4% $ 293 $ 185 58.4%
------------- ----------- ------------- ----------
Discontinued operations, net of income tax
expense/(benefit) of $28, $(86), $28 and $(176) 9 (67) N/A 10 (143) N/A
------------- ----------- ------------- ----------
Net income $ 131 $ 1 100.0% + $ 303 $ 42 100.0%+
============= =========== ============= ==========
Earnings per share from continuing
operations - diluted $ 0.46 $ 0.22 100.0% + $ 1.09 $ 0.60 81.7%
Earnings/(loss) per share - diluted $ 0.50 $ (0.02) 100.0% + $ 1.13 $ 0.14 100.0% +
FINANCIAL DATA:
---------------
Ratios as a % of sales:
Gross margin 38.1% 37.2% 39.6% 38.6%
SG&A expenses 32.7% 33.3% 33.2% 33.8%
Operating profit 5.4% 3.9% 6.4% 4.8%
Depreciation and amortization $ 88 $ 83 $ 175 $ 168
Effective income tax rate for continuing operations 33.2% 35.5% 34.9% 34.9%
COMMON SHARES DATA:
Outstanding shares at end of period 255.6 283.8 255.6 283.8
Average shares outstanding (basic shares) 261.8 282.6 266.5 280.0
Average shares used for diluted EPS 264.5 287.4 269.2 307.9
Shares repurchased 12.5 - 20.2 -
Total cost of shares repurchased $ 666 $ - $ 1,026 $ -
1
J. C. Penney Company, Inc.
SUMMARY BALANCE SHEETS AND STATEMENTS OF CASH FLOWS
(Unaudited) (Amounts in millions)
July 30, July 31,
2005 2004
----------- -------------
SUMMARY BALANCE SHEETS:
Cash and short-term investments $ 3,385 $ 7,383
Merchandise inventory (net of LIFO reserves of $25 and $43) 3,445 3,408
Other current assets 406 348
Property and equipment, net 3,625 3,413
Other assets 2,051 1,762
Assets of discontinued operations - 227
----------- -------------
Total assets $ 12,912 $ 16,541
=========== =============
Accounts payable and accrued expenses $ 2,659 $ 2,699
Current maturities of long-term debt 15 1,165
Current income taxes, payable and deferred 36 889
Long-term debt 3,457 3,960
Long-term deferred taxes 1,320 1,140
Other liabilities 1,031 991
Liabilities of discontinued operations - 95
----------- -------------
Total liabilities 8,518 10,939
Stockholders' equity 4,394 5,602
----------- -------------
Total liabilities and stockholders' equity $ 12,912 $ 16,541
=========== =============
26 weeks ended
-----------------------------------------
July 30, July 31,
2005 2004
----------- -------------
SUMMARY STATEMENTS OF CASH FLOWS:
---------------------------------
Net cash provided by/(used in):
Total operating activities $ 213 $ 218
----------- -------------
Investing activities
Capital expenditures (233) (179)
Proceeds from sale of assets 27 28
Proceeds from the sale of discontinued operations 283 4,666
----------- -------------
Total investing activities 77 4,515
----------- -------------
Financing activities
Change in debt (466) (238)
Stock repurchase program (1,018) -
Other changes in stock 158 169
Dividends paid, preferred and common (69) (81)
----------- -------------
Total financing activities (1,395) (150)
----------- -------------
Cash (paid) for discontinued operations (159) (164)
----------- -------------
Net (decrease)/ increase in cash and short-term investments (1,264) 4,419
Cash and short-term investments at beginning of period 4,649 2,964
----------- -------------
Cash and short-term investments at end of period $ 3,385 $ 7,383
=========== =============
2
JCPenney Company, Inc.
Attachment 1
Income/(Loss) from Continuing Operations
(Unaudited)
Fiscal Fiscal
(in millions, except per share data) 2001 2002
------------ -------------
Retail sales, net
Department stores $14,491 $14,771
Direct (Catalog/Internet) 3,349 2,613
------------ -------------
Total 17,840 17,384
Gross margin 5,974 6,224
Selling, general and administrative expenses 5,434 5,541
------------ -------------
Operating profit 540 683
Net interest expense 219 212
Bond premiums and unamortized costs - -
Real estate and other (income)/expense 46 59
------------ -------------
Income/(loss) from continuing operations before income taxes 275 412
Income taxes 92 129
------------ -------------
Income/(loss) from continuing operations 183 283
============ =============
Diluted earnings per share from continuing operations $ 0.58 $ 0.95
Average shares used for diluted EPS calculation 267 270
Ratios as a % of sales
Gross margin 33.5% 35.8%
SG&A expenses 30.5% 31.9%
Operating profit 3.0% 3.9%
Depreciation and amortization $ 360 $ 362
JCPenney Company, Inc.
Attachment 1
Income/(Loss) from Continuing Operations
(Unaudited)
Q1 Q2 Q3 Q4 Fiscal
(in millions, except per share data) 2003 2003 2003 2003 2003
---------- ------------ ------------- ------------ ------------
Retail sales, net
Department stores $ 3,082 $ 3,017 $ 3,603 $ 5,113 $ 14,815
Direct (Catalog/Internet) 587 561 665 885 2,698
---------- ------------ ------------- ------------ ------------
Total 3,669 3,578 4,268 5,998 17,513
Gross margin 1,436 1,280 1,639 2,143 6,498
Selling, general and administrative expenses 1,353 1,232 1,433 1,711 5,729
---------- ------------ ------------- ------------ ------------
Operating profit 83 48 206 432 769
Net interest expense 61 67 62 57 247
Bond premiums and unamortized costs - - - - -
Real estate and other (income)/expense (9) (12) 4 - (17)
---------- ------------ ------------- ------------ ------------
Income/(loss) from continuing operations before income taxes 31 (7) 140 375 539
Income taxes 9 (3) 47 126 179
---------- ------------ ------------- ------------ ------------
Income/(loss) from continuing operations 22 (4) 93 249 360
========== ============ ============= ============ ============
Diluted earnings per share from continuing operations $ 0.06 $ (0.04) $ 0.32 $ 0.81 $ 1.20
Average shares used for diluted EPS calculation 273 272 298 311 297
Ratios as a % of sales
Gross margin 39.1% 35.8% 38.4% 35.7% 37.1%
SG&A expenses 36.8% 34.5% 33.6% 28.5% 32.7%
Operating profit 2.3% 1.3% 4.8% 7.2% 4.4%
Depreciation and amortization $ 87 $ 86 $ 90 $ 101 $ 364
JCPenney Company, Inc.
Attachment 1
Income/(Loss) from Continuing Operations
(Unaudited)
Q1 Q2 Q3 Q4 Fiscal Q1
(in millions, except per share data) 2004 2004 2004 2004 2004 2005
--------- --------- -------- -------- -------- --------
Retail sales, net
Department stores $ 3,347 $ 3,226 $ 3,701 $ 5,083 $ 15,357 $ 3,459
Direct (Catalog/Internet) 625 552 690 872 2,739 659
--------- --------- -------- -------- -------- --------
Total 3,972 3,778 4,391 5,955 18,096 4,118
Gross margin 1,586 1,407 1,789 2,207 6,989 1,693
Selling, general and administrative expenses 1,362 1,258 1,447 1,635 5,702 1,386
--------- --------- -------- -------- -------- --------
Operating profit 224 149 342 572 1,287 307
Net interest expense 54 48 68 53 223 49
Bond premiums and unamortized costs - - 47 - 47 13
Real estate and other (income)/expense (8) (5) - 25 12 (22)
--------- --------- -------- -------- -------- --------
Income/(loss) from continuing operations before income taxes 178 106 227 494 1,005 267
Income taxes 61 38 79 170 348 97
--------- --------- -------- -------- -------- --------
Income/(loss) from continuing operations 117 68 148 324 657 170
========= ========= ======== ======== ======== ========
Diluted earnings per share from continuing operations $ 0.38 $ 0.22 $ 0.50 $ 1.14 $ 2.20 $ 0.62
Average shares used for diluted EPS calculation 306 287 309 285 307 274
Ratios as a % of sales
Gross margin 39.9% 37.2% 40.7% 37.1% 38.6% 41.1%
SG&A expenses 34.3% 33.3% 32.9% 27.5% 31.5% 33.6%
Operating profit 5.6% 3.9% 7.8% 9.6% 7.1% 7.5%
Depreciation and amortization $ 85 $ 83 $ 89 $ 102 $ 359 $ 87
JCPenney Company, Inc.
Attachment 1: Consolidated Balance Sheets - Continuing Operations (Unaudited)
($ in millions)
Fiscal Fiscal
2005 2004
---------- ---------------------------------------------
Apr. 30, May 1, Jul. 31, Oct. 30, Jan. 29,
2005 2004 2004 2004 2005
---------- ---------- ---------- --------- ----------
ASSETS
Current assets
Cash and short-term investments $ 4,115 $ 2,997 $ 7,383 $ 4,541 $ 4,649
Receivables 274 163 150 145 274
Merchandise inventory (1) 3,258 3,312 3,408 4,207 3,142
Prepaid expenses 172 202 198 249 167
---------- ---------- ---------- --------- ----------
Total current assets 7,819 6,674 11,139 9,142 8,232
Property and equipment, net 3,574 3,408 3,413 3,439 3,575
Prepaid pension 1,524 1,302 1,297 1,570 1,538
Other assets 493 461 465 488 473
Assets of discontinued operations 289 6,315 227 250 309
---------- ---------- ---------- --------- ----------
Total Assets $ 13,699 $ 18,160 $ 16,541 $ 14,889 $ 14,127
========== ========== ========== ========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 2,559 $ 2,343 $ 2,699 $ 3,091 $ 2,770
Short-term debt 72 - - - -
Current maturities of long-term debt 264 243 1,165 603 459
Current income taxes, payable and deferred 102 875 889 103 68
---------- ---------- ---------- --------- ----------
Total Current Liabilities 2,997 3,461 4,753 3,797 3,297
Long-term debt 3,461 5,113 3,960 3,955 3,464
Deferred taxes 1,320 1,205 1,140 1,291 1,319
Other liabilities 1,031 819 991 997 1,042
Liabilities of discontinued operations 128 1,964 95 106 149
---------- ---------- ---------- --------- ----------
Total Liabilities 8,937 12,562 10,939 10,146 9,271
Stockholders' Equity 4,762 5,598 5,602 4,743 4,856
---------- ---------- ---------- --------- ----------
Total Liabilities and Stockholders' Equity $ 13,699 $ 18,160 $ 16,541 $ 14,889 $ 14,127
========== ========== ========== ========= ==========
(1) Net of LIFO reserve (in millions) of $25, $43, $43, $43, $25, $49, $49, $49,
$43, $49, and $43, respectively.
JCPenney Company, Inc.
Attachment 1: Consolidated Balance Sheets - Continuing Operations (Unaudited)
($ in millions)
Fiscal Fiscal Fiscal
2003 2002 2001
--------------------------------------------- ---------- ----------
Apr. 26, Jul. 26, Oct. 25, Jan. 31, Jan. 25, Jan. 26,
2003 2003 2003 2004 2003 2002
---------- --------- ---------- ---------- ---------- ----------
ASSETS
Current assets
Cash and short-term investments $ 2,609 $ 2,588 $ 1,890 $ 2,964 $ 2,454 $ 2,814
Receivables 237 198 353 140 155 112
Merchandise inventory (1) 3,306 3,318 4,172 3,135 2,955 2,894
Prepaid expenses 100 104 140 207 90 96
---------- --------- ---------- ---------- ---------- ----------
Total current assets 6,252 6,208 6,555 6,446 5,654 5,916
Property and equipment, net 3,478 3,447 3,439 3,461 3,566 3,698
Prepaid pension 1,123 1,111 1,381 1,320 1,150 873
Other assets 497 515 511 472 485 485
Assets of discontinued operations 6,887 7,063 7,190 6,601 6,932 7,021
---------- --------- ---------- ---------- ---------- ----------
Total Assets $ 18,237 $ 18,344 $ 19,076 $ 18,300 $ 17,787 $ 17,993
========== ========= ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 1,995 $ 1,959 $ 2,598 $ 2,458 $ 2,209 $ 2,075
Short-term debt - - - - - -
Current maturities of long-term debt 278 626 485 242 276 920
Current income taxes, payable and deferred 22 21 106 943 - 162
---------- --------- ---------- ---------- ---------- ----------
Total Current Liabilities 2,295 2,606 3,189 3,643 2,485 3,157
Long-term debt 5,505 5,128 5,103 5,114 4,897 5,140
Deferred taxes 1,202 1,209 1,330 1,218 1,161 1,016
Other liabilities 779 778 779 804 782 786
Liabilities of discontinued operations 1,994 2,181 2,172 2,096 2,092 1,765
---------- --------- ---------- ---------- ---------- ----------
Total Liabilities 11,775 11,902 12,573 12,875 11,417 11,864
Stockholders' Equity 6,462 6,442 6,503 5,425 6,370 6,129
---------- --------- ---------- ---------- ---------- ----------
Total Liabilities and Stockholders' Equity $ 18,237 $ 18,344 $ 19,076 $ 18,300 $ 17,787 $ 17,993
========== ========= ========== ========== ========== ==========
(1) Net of LIFO reserve (in millions) of $25, $43, $43, $43, $25, $49, $49, $49,
$43, $49, and $43, respectively.
JCPenney Company, Inc.
Attachment 1
Comparable Store Sales - Continuing Operations
Fiscal Fiscal Fiscal
2003 2004 2005
------------- ------------- -------------
February (1.7)% 11.8% 5.9%
March (5.1)% 11.1% (0.4)%
April (6.5)% 4.6% 3.5%
---------------------------------------------------------------------
1st Quarter (4.6)% 9.1% 2.8%
---------------------------------------------------------------------
May 3.7% 9.2% 2.9%
June 0.5% 4.4% 7.4%
July 3.9% 8.1% 1.6%
---------------------------------------------------------------------
2nd Quarter 2.5% 6.9% 4.2%
---------------------------------------------------------------------
August 6.7% 4.1%
September 0.7% 1.8%
October (2.5)% 1.8%
---------------------------------------------------------------------
3rd Quarter 1.7% 2.6%
---------------------------------------------------------------------
November (1.1)% 12.2%
December 4.1% (1.3)%
January 5.1% 2.5%
---------------------------------------------------------------------
4th Quarter 2.8% 2.8%
---------------------------------------------------------------------
Full Year 0.8% 4.9%