-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, IJeF07m3SuOyJMQ4scg6Q/wksy+6pmM5+bonNut8RZPK+NLSk2iuX9e0guU7gZqP OKnk1RRYwGE2jeiZrc153Q== 0000950109-95-002441.txt : 19950627 0000950109-95-002441.hdr.sgml : 19950627 ACCESSION NUMBER: 0000950109-95-002441 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950626 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENNEY J C CO INC CENTRAL INDEX KEY: 0000077182 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 135583779 STATE OF INCORPORATION: DE FISCAL YEAR END: 0126 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00777 FILM NUMBER: 95549032 BUSINESS ADDRESS: STREET 1: 6501 LEGACY DRIVE CITY: PLANO STATE: TX ZIP: 75024-3698 BUSINESS PHONE: 2144311000 11-K 1 FORM 11-K - SAVINGS & RETIREMENT PLAN SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------- FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 1-777 -------------------------- A. Full title of the plan and the address of the plan, if different from that of the issuer named below: J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan 12700 Park Central Place Dallas, Texas 75251 B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: J. C. Penney Company, Inc. 6501 Legacy Drive Plano, Texas 75024-3698 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Financial Statements and Schedules December 31, 1994 and 1993 (With Independent Auditors' Report Thereon) J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Table of Contents ----------------- Independent Auditors' Report Statements of Net Assets Available for Benefits as of December 31, 1994 and 1993 Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 1994 and 1993 Notes to Financial Statements Schedule -------- Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1994 1 Item 27d - Schedule of Reportable Transactions for the year ended December 31, 1994 2 [LETTERHEAD OF KPMG PEAT MARWICK LLP APPEARS HERE] INDEPENDENT AUDITORS' REPORT ---------------------------- The J. C. Penney Company, Inc. Benefit Administration Committee, Benefit Plans Investment Committee, and the Benefit Plans Review Committee: We have audited the accompanying statements of net assets available for benefits of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan (the Plan) as of December 31, 1994 and 1993, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan as of December 31, 1994 and 1993, and the changes in net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules, Item 27a - Schedule of Assets Held for Investment Purposes and Item 27d - Schedule of Reportable Transactions, are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Dallas, Texas /s/ KPMG Peat Marwick LLP May 12, 1995 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Statements of Net Assets Available for Benefits December 31, 1994 and 1993
1994 1993 ---- ---- Assets: Investments, at fair value (note 2): J. C. Penney Company, Inc. common stock - 30,911,521 shares in 1994 and 29,746,648 shares in 1993 (cost $853,782,375 and $723,528,412, respectively) $1,379,426,625 1,565,417,351 State Street Bank Index Fund - 788,395 units in 1994 and 926,099 units in 1993 (cost $25,284,138 and $27,361,218, respectively) 55,629,970 64,451,853 State Street Bank Liquidity Fund (cost approximates fair value) 17,219,546 19,280,009 Funds held under structured investment contracts: U.S. agency backed collateralized mortgage obligations (cost $239,764,664 in 1994 and $312,345,761 in 1993) 230,303,568 320,101,946 Other U.S. Government obligations (cost $24,955,249 in 1994 and $18,281,851 in 1993) 24,621,649 18,305,319 Corporate bonds and notes (cost $49,707,803 in 1994 and $27,550,077 in 1993) 47,470,763 27,399,260 Foreign government obligations (cost $6,009,117 in 1994) 5,834,218 -- Other bonds (cost $20,183,163 in 1994 and $19,202,343 in 1993) 19,771,241 19,491,045 Wrap agreements (cost $2,731,136 in 1994 and $2,337,850 in 1993) 16,937,687 (5,231,648) Participants' loans (unpaid principal balance approximates fair value) 20,245,297 19,756,762 Funds with insurance companies, at contract value 338,198,542 373,848,131 -------------- ------------- Total investments 2,155,659,106 2,422,820,028 -------------- ------------- Receivables: Miscellaneous 19,387 20,032 Accrued interest and dividends 657,950 581,293 Due from broker for securities sold -- 407,049 -------------- ------------- 677,337 1,008,374 -------------- ------------- Total assets 2,156,336,443 2,423,828,402 -------------- ------------- Liabilities: Cash overdraft 10,911 112,298 Due to J. C. Penney Company, Inc. 2,748 18,798 Due to broker for securities purchased 699,981 -- Accrued expenses and other liabilities 846,404 2,063,511 -------------- ------------- Total liabilities 1,560,044 2,194,607 -------------- ------------- Net assets available for benefits $2,154,776,399 2,421,633,795 ============== =============
See accompanying notes to financial statements. J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Statements of Changes in Net Assets Available for Benefits Years ended December 31, 1994 and 1993
1994 1993 ---- ---- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments $ (240,198,876) 422,513,532 Interest 50,208,699 55,420,612 Dividends 48,597,291 42,768,257 -------------- ------------- (141,392,886) 520,702,401 Less investment expenses (319,418) (231,446) -------------- ------------- (141,712,304) 520,470,955 -------------- ------------- Contributions - J. C. Penney Company, Inc. 1,036,593 -- -------------- ------------- Total additions (140,675,711) 520,470,955 -------------- ------------- Deductions from net assets attributed to: Deferral fees 175,191 116,849 Benefit payments 126,006,494 116,538,138 -------------- ------------- Total deductions 126,181,685 116,654,987 -------------- ------------- Change in net assets available for benefits (266,857,396) 403,815,968 Beginning net assets available for benefits 2,421,633,795 2,017,817,827 -------------- ------------- Ending net assets available for benefits $2,154,776,399 2,421,633,795 ============= =============
See accompanying notes to financial statements. J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements December 31, 1994 and 1993 (1) Description of Plan ------------------- The following brief description of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan (the "Plan") is provided for general informational purposes only. Participants should refer to the Plan summary description for more complete information. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). (a) General ------- The Plan is a defined contribution plan which is frozen. Prior to its discontinuation, the Plan covered substantially all eligible employees ("Associates") of J. C. Penney Company, Inc. (the "Company"). Associates who had completed 1,000 or more hours of service within a period of 12 consecutive months were eligible to participate in the Plan. Effective January 1, 1989, the J. C. Penney Company, Inc. Savings, Profit-Sharing and Stock Ownership Plan replaced the Plan. While the Company presently has no intention to do so, it reserves the right to terminate the Plan and the related J. C. Penney Company, Inc. Savings and Profit-Sharing Trust (the "Trust") at any time, subject to the provisions of ERISA. The financial statements include all of the funds which comprise the Plan. All administrative expenses of the Plan not paid by the Trust are paid by the Company. (b) Contributions ------------- Associate contributions ceased for plan years after 1988 and participants became fully vested in all accounts. In 1994, the Company, in accordance with Plan provisions, made a contribution to the Plan to fund the reinstatement of forfeited company accounts for associates who left employment of the Company prior to January 1, 1989 and were rehired within five years. Additional contributions to the Plan are not expected. No contributions were made to the Plan by the Company between 1988 and 1993. (c) Investment Programs ------------------- Participants' account balances are invested in the Plan's investment programs in accordance with their elections. The investment programs include the Penney Stock Account (consisting of investments in J. C. Penney Company, Inc. common stock), the S&P 500 Account (consisting of investments in commingled equity funds), and the Interest Income Account (consisting of contracts with insurance companies and structured investment contracts, which provide a specific interest rate for a specified period of time). Each of these funds are maintained on a unit value basis and, accordingly, the actual earnings and appreciation or depreciation in the underlying securities are reflected in the daily unit value. (Continued) 2 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements (d) Payment of Benefits ------------------- Benefits remain in the Plan until the participant elects payment. The normal form of payment is a lump sum settlement (cash and/or J. C. Penney Company, Inc. common stock). In lieu of a lump sum settlement, a participant who has attained retirement age may elect an optional annuity for life or installment payments for a specified period of time. (e) Loans to Participants --------------------- Loans may be made available to active or nonretired participants upon their request. All loans must be adequately secured and bear interest at a reasonable rate. Loan amounts and the term of repayment are limited in accordance with Plan provisions. (2) Investments ----------- Investments in securities are stated at fair value using quoted market prices. Funds with insurance companies are recorded at contract value as reported to the Plan by each insurance company. Each contract is credited with earnings and charged for withdrawals. The Plan also invests in structured investment contracts. Under these arrangements, the Plan enters into a wrap agreement with a financial institution at a stated yield on fixed income securities purchased by the Plan. The wrap agreements are stated at fair value based on fluctuations in the fair value of the underlying fixed income securities. The average cost method is used to calculate gains and losses on the sale of investments on a trade date basis. Except for certain funds with insurance companies, the Plan's investments are held by the trustee, State Street Bank and Trust Company. (Continued) 3 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements The following table presents the fair values of investments. Investments that represent 5% or more of the Plan's net assets are separately identified:
December 31, 1994 December 31, 1993 ----------------- ----------------- Shares, units Fair value/ Shares, units Fair value/ or principal contract or principal contract Investment amount value amount value --------- ------ ----- ------ ----- Investments, at fair value: J. C. Penney Company, Inc. 30,911,521 $ 1,379,426,625 29,746,648 $ 1,565,417,351 common stock Other -- 776,232,481 -- 857,402,677 -------------- -------------- $ 2,155,659,106 $ 2,422,820,028 ============== ==============
The number of units and net asset value per unit are as follows:
December 31, 1994 December 31, 1993 ----------------- ----------------- Net asset Net asset Units value Units value ----- ----- ----- ----- Penney Stock Account 93,952,059 $ 14.698732 93,158,712 16.814552 S&P 500 Account 6,062,619 9.119812 7,208,059 8.983400 Interest Income Account* 75,893,537 9.201917 89,424,379 8.626129
* Units are not assigned to participants' loans receivable. (3) Tax Status ---------- The Plan obtained its latest determination letter on August 23, 1993 in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable qualification requirements of the Internal Revenue Code. The Plan has been amended subsequent to receiving the determination letter; however, the Plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, the Plan administrator believes that the Plan was qualified and the related trust was tax-exempt as of the date of the financial statements. 4 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements (4) Allocation of Plan Assets and Liabilities to Investment Programs: ----------------------------------------------------------------
December 31, 1994 -------------------------------------------------------------- Interest Penney Stock S&P 500 Income Total Account Account Account ----- ------- ------- ------- Assets: Investments, at fair value: J. C. Penney Company, Inc. common stocks - 30,911,521 shares (cost $853,782,375) $1,379,426,625 1,379,426,625 -- -- State Street Bank Index Fund - 788,395 units (cost $25,284,138) 55,629,970 -- 55,629,970 -- State Street Bank Liquidity Fund (cost approximates fair value) 17,219,546 1,467,585 -- 15,751,961 Funds held under structure investment contracts: U.S. agency backed collateralized mortgage obligations (cost $239,764,664) 230,303,568 -- -- 230,303,568 Other U.S. Government obligations (cost $24,955,249) 24,621,649 -- -- 24,621,649 Corporate bonds and notes (cost $49,707,803) 47,470,763 -- -- 47,470,763 Foreign government obligations (cost $6,009,117) 5,834,218 -- -- 5,834,218 Other bonds (cost $20,183,163) 19,771,241 -- -- 19,771,241 Wrap agreements (cost $2,731,136) 16,937,687 -- -- 16,937,687 Participants' loans (unpaid principal balance approximates fair value) 20,245,297 -- -- 20,245,297 Funds with insurance companies, at contract value 338,198,542 -- -- 338,198,542 ------------- ------------- ---------- ----------- Total investments 2,155,659,106 1,380,894,210 55,629,970 719,134,926 ------------- ------------- ---------- ----------- Receivables: Miscellaneous 19,387 11,271 -- 8,116 Accrued interest and dividends 657,950 23,871 -- 634,079 Interfund balances -- 1,007,409 (265,359) (742,050) ------------- ------------- ---------- ----------- 677,337 1,042,551 (265,359) (99,855) ------------- ------------- ---------- ----------- Total assets 2,156,336,443 1,381,936,761 55,364,611 719,035,071 ------------- ------------- ---------- ----------- Liabilities: Cash overdraft 10,911 10,911 -- -- Due to J. C. Penney Company, Inc. 2,748 -- -- 2,748 Due to broker 699,981 699,981 -- -- Accrued expenses and other liabilities 846,404 74,457 11,415 760,532 ------------- ------------- ---------- ----------- Total liabilities 1,560,044 785,349 11,415 763,280 ------------- ------------- ---------- ----------- Net assets available for benefits $2,154,776,399 1,381,151,412 55,353,196 718,271,791 ============= ============= ========== ===========
(Continued) 5 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements (4) Allocation of Plan Assets and Liabilities to Investment Programs, ----------------------------------------------------------------- Continued: - ---------
December 31, 1993 -------------------------------------------------------------- Interest Penney Stock S&P 500 Income Total Account Account Account ----- ------- ------- ------- Assets: Investments, at fair value: J. C. Penney Company, Inc. common stock - 29,746,648 shares (cost $723,528,412) $1,565,417,351 1,565,417,351 -- -- State Street Bank Index Fund - 926,099 units (cost $27,361,218) 64,451,853 -- 64,451,853 -- State Street Bank Liquidity Fund (cost approximates fair value) 19,280,009 134,837 -- 19,145,172 Funds held under structured investment contracts: U.S. agency backed collateralized mortgage obligations (cost $312,345,761) 320,101,946 -- -- 320,101,946 Other U.S. Government obligations (cost $18,281,851) 18,305,319 -- -- 18,305,319 Corporate bonds and notes (cost $27,550,077) 27,399,260 -- -- 27,399,260 Other bonds (cost $19,202,343) 19,491,045 -- -- 19,491,045 Wrap agreements (cost $2,337,850) (5,231,648) -- -- (5,231,648) Participants' loans (unpaid principal balance approximates fair value) 19,756,762 -- -- 19,756,762 Funds with insurance companies, at contract value 373,848,131 -- -- 373,848,131 ------------- ------------- ---------- ----------- Total investments 2,422,820,028 1,565,552,188 64,451,853 792,815,987 ------------- ------------- ---------- ----------- Receivables: Miscellaneous 20,032 11,059 -- 8,973 Accrued interest and dividends 581,293 381 -- 580,912 Due from broker 407,049 407,049 -- -- Inter-fund balances -- 904,972 380,479 (1,285,451) ------------- ------------- ---------- ----------- 1,008,374 1,323,461 380,479 (695,566) ------------- ------------- ---------- ----------- Total assets 2,423,828,402 1,566,875,649 64,832,332 792,120,421 ------------- ------------- ---------- ----------- Liabilities: Cash overdraft 112,298 112,453 (155) -- Due to J. C. Penney Company, Inc. 18,798 -- -- 18,798 Accrued expenses and other liabilities 2,063,511 618,723 56,942 1,387,846 ------------- ------------- ---------- ----------- Total liabilities 2,194,607 731,176 56,787 1,406,644 ------------- ------------- ---------- ----------- Net assets available for benefits $2,421,633,795 1,566,144,473 64,775,545 790,713,777 ============= ============= ========== ===========
(Continued) 6 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements (5) Allocation of Plan Income and Changes in Plan Equity to Investment ------------------------------------------------------------------ Programs:
Year ended December 31, 1994 ------------------------------------------------------------------------ Interest Penney Stock S&P 500 Income Total Account Account Account ----- ------------ ------- -------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments $ (240,198,876) (240,845,290) 646,414 -- Interest 50,208,699 199,864 3,580 50,005,255 Dividends 48,597,291 48,597,291 -- -- ------------- ------------- ---------- ----------- (141,392,886) (192,048,135) 649,994 50,005,255 Less investment expenses (319,418) -- -- (319,418) ------------- ------------- ---------- ----------- (141,712,304) (192,048,135) 649,994 49,685,837 ------------- ------------- ---------- ----------- Contributions - J. C. Penney Company, Inc. 1,036,593 1,036,593 -- -- ------------- ------------- ---------- ----------- Total additions (140,675,711) (191,011,542) 649,994 49,685,837 ------------- ------------- ---------- ----------- Deductions from net assets attributed to: Deferral fees 175,191 23,856 4,272 147,063 Participants' transfers -- (71,293,355) 6,233,244 65,060,111 Benefit payments 126,006,494 65,251,018 3,834,827 56,920,649 ------------- ------------- ---------- ----------- Total deductions 126,181,685 (6,018,481) 10,072,343 122,127,823 ------------- ------------- ---------- ----------- Change in net assets available for benefits (266,857,396) (184,993,061) (9,422,349) (72,441,986) Beginning net assets available for benefits 2,421,633,795 1,566,144,473 64,775,545 790,713,777 ------------- ------------- ---------- ----------- Ending net assets available for benefits $2,154,776,399 1,381,151,412 55,353,196 718,271,791 ============== ============= ========== ===========
(Continued) 7 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements
Year ended December 31, 1993 ------------------------------------------------------------------------ Interest Penney Stock S&P 500 Income Total Account Account Account ----- ------------ ------- ------- Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $ 422,513,532 416,505,924 6,007,608 -- Interest 55,420,612 163,299 3,527 55,253,786 Dividends 42,768,257 42,768,257 -- -- -------------- ------------- ---------- ----------- 520,702,401 459,437,480 6,011,135 55,253,786 Less investment expenses (231,446) -- -- (231,446) -------------- ------------- ---------- ----------- Total additions 520,470,955 459,437,480 6,011,135 55,022,340 -------------- ------------- ---------- ----------- Deductions from net assets attributed to: Deferral fees 116,849 11,088 2,070 103,691 Participants' transfers -- (9,143,194) (106,364) 9,249,558 Benefit payments 116,538,138 55,942,631 3,571,240 57,024,267 -------------- ------------- ---------- ----------- Total deductions 116,654,987 46,810,525 3,466,946 66,377,516 -------------- ------------- ---------- ----------- Change in net assets available for benefits 403,815,968 412,626,955 2,544,189 (11,355,176) Beginning net assets available for benefits 2,017,817,827 1,153,517,518 62,231,356 802,068,953 -------------- ------------- ---------- ----------- Ending net assets available for benefits $2,421,633,795 1,566,144,473 64,775,545 790,713,777 ============== ============= ========== ===========
(6) Plan Amendment -------------- Effective April 1, 1995, the JCPenney Financial Services Thrift and Investment Retirement Plan (Thrift Plan) merged with the Plan. The net assets and number of participants of the Thrift Plan are not material to the Plan. (Continued) Schedule 1 ---------- J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1994
Identity of issue Description of asset Cost Current value ----------------- -------------------- ---- ------------- J. C. Penney Company, Inc.* Common stock, 30,911,521 shares $853,782,375 1,379,426,625 ------------ ------------- State Street Bank* Index Fund, 788,395 units 25,284,138 55,629,970 ------------ ------------- State Street Bank* Liquidity Fund, 17,219,546 units 17,219,546 17,219,546 ------------ ------------- Bankers Trust (Delaware) FHLMC backed CMO 6.00% - matures 3/15/12 4,911,573 5,070,224 Peoples Security Life FHLMC backed CMO 6.25% - matures 10/15/13 Insurance 20,422,652 19,175,895 Peoples Security Life FHLMC backed CMO 5.50% - matures 7/15/03 Insurance 11,074,246 10,513,343 Peoples Security Life FHLMC backed CMO 6.35% - matures 11/15/14 Insurance 30,651,869 28,761,909 Bankers Trust (Delaware) FHLMC backed CMO 6.50% - matures 7/15/02 26,401,367 25,040,187 National Westminster Bank FHLMC backed CMO 4.00% - matures 1/15/13 13,461,694 12,949,016 Provident Life and FHLMC backed CMO 6.50% - matures 6/01/09 Accident Insurance Company 55,341 54,176 Provident Life and FHLMC backed CMO 6.50% - matures 7/01/09 Accident Insurance Company 1,104,379 1,081,153 Provident Life and FHLMC backed CMO 6.50% - matures 7/01/09 Accident Insurance Company 4,943,993 4,840,017 Provident Life and FHLMC backed CMO 6.50% - matures 2/01/09 Accident Insurance Company 2,708,417 2,651,457 Peoples Security Life FNMA backed CMO 6.75% - matures 1/25/13 Insurance 55,228,716 55,187,362 Peoples Security Life FNMA backed CMO 5.90% - matures 9/25/97 Insurance 23,416,614 23,287,440 Peoples Security Life FNMA backed CMO 6.50% - matures 8/25/03 Insurance 23,721,343 21,426,284 Peoples Security Life FNMA backed CMO 6.70% - matures 1/25/11 Insurance 9,863,128 9,400,115 National Westminster Bank FNMA backed CMO 5.50% - matures 1/25/12 11,799,332 10,864,990 ----------- ------------- Total U.S. agency backed collateral- ized mortgage obligations 239,764,664 230,303,568 ------------ ------------- Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/96 8,726,100 8,685,500 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 5/15/97 7,834,789 7,690,725 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/96 1,084,557 1,080,476 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 5/15/97 636,405 624,518
(Continued) 2 Schedule 1, Cont. ----------------- SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27a - Schedule of Assets Held for Investment Purposes, Continued
Identity of issue Description of asset Cost Current value ----------------- -------------------- ---- ------------- Provident Life and Government trust certificate zero coupon - Accident Insurance Company matures 5/15/99 $ 3,271,500 3,200,400 Provident Life and Government trust certificate zero coupon - Accident Insurance Company matures 11/15/99 1,752,250 1,720,500 Provident Life and Tennessee Valley Authority strip zero coupon - Accident Insurance Company matures 10/15/98 1,649,648 1,619,530 ------------ ------------- Total other U.S. Government obligations 24,955,249 24,621,649 ------------ ------------- Bankers Trust (Delaware) MBNA credit card trust 8.25% - matures 6/30/98 10,488,499 10,009,300 Bankers Trust (Delaware) Standard credit card trust 9.00% - matures 3/10/95 17,061,577 16,040,000 Provident Life and Bank of Halifax 9.00% - matures 10/01/99 Accident Insurance Company 1,050,220 1,017,350 Provident Life and NBD Bancorp 8.10% - matures 3/01/02 Accident Insurance Company 1,004,760 974,340 Provident Life and National Westminster Bank PLC 9.45% - matures Accident Insurance Company 5/01/01 1,076,170 1,051,910 Provident Life and Norwest Corporation 6.00% - matures 3/15/00 Accident Insurance Company 655,536 631,610 Provident Life and Republic NY Corporation 8.88% - matures 748,608 712,572 Accident Insurance Company 2/15/01 Provident Life and Wachovia Bank Corporation 7.00% - matures Accident Insurance Company 12/15/99 691,026 664,573 Provident Life and American Express Card 6.13% - matures 6/15/00 Accident Insurance Company 925,050 907,810 Provident Life and American General Corporation 9.63% - matures Accident Insurance Company 7/15/00 772,793 735,616 Provident Life and Associates Corporation NA 6.25% - matures Accident Insurance Company 3/15/99 670,635 645,764 Provident Life and Commercial Credit 9.60% - matures 5/15/99 Accident Insurance Company 759,080 728,378 Provident Life and Premier Auto 6.65% - matures 11/02/98 Accident Insurance Company 699,125 672,000 Provident Life and Yamaha Motor 6.25% - matures 9/17/01 Accident Insurance Company 953,281 929,060 Provident Life and Discover Card 6.70% - matures 2/16/00 Accident Insurance Company 698,159 674,625 Provident Life and First Chicago 7.15% - matures 4/15/01 Accident Insurance Company 698,141 672,875 Provident Life and Sears 7.00% - matures 1/15/04 Accident Insurance Company 698,906 667,842 Provident Life and Signet 5.20% - matures 2/15/02 Accident Insurance Company 922,969 905,310 Provident Life and Standard Credit Card 8.88% - matures 9/07/99 Accident Insurance Company 1,043,281 1,020,310 Provident Life and Green Tree 7.30% - matures 12/15/19 Accident Insurance Company 698,906 668,717 Provident Life and Goldman Sachs 6.38% - matures 6/15/00 Accident Insurance Company 656,705 630,441 Provident Life and BP America Inc. 9.38% - matures 11/01/00 Accident Insurance Company 765,695 734,475
(Continued) 3 Schedule 1, Cont. ----------------- SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27a - Schedule of Assets Held for Investment Purposes, Continued
Identity of issue Description of asset Cost Current value ----------------- -------------------- ---- ------------- Provident Life and Mobil Corporation 8.38% - matures 2/12/01 $ 738,129 704,410 Accident Insurance Company Provident Life and Shell Canada Ltd. 7.38% - matures 6/01/99 Accident Insurance Company 699,748 677,530 Provident Life and Soc Natl Elf Acquitaine 8.00% - matures 10/15/01 Accident Insurance Company 1,003,910 975,770 Provident Life and Wal-Mart Stores Inc. 6.13% - matures 10/01/99 Accident Insurance Company 668,220 643,384 Provident Life and Bell Atlantic Financial Services 5.43% - matures Accident Insurance Company 8/15/99 909,370 903,330 Provident Life and Nippon Telephone & Telegraph Company 9.50% - Accident Insurance Company matures 7/27/98 753,361 727,062 Provident Life and Pacific Bell 8.70% - matures 6/15/01 Accident Insurance Company 532,770 509,800 Provident Life and Southwestern Bell 6.38% - matures 4/01/01 Accident Insurance Company 663,173 634,599 ------------ ------------- Total corporate bonds and notes 49,707,803 47,470,763 ------------ ------------- Provident Life and Province of Ontario 6.13% - matures 6/28/00 Accident Insurance Company 654,703 633,045 Provident Life and European Investment 9.13% - matures 6/01/02 Accident Insurance Company 1,073,580 1,049,290 Provident Life and Internation Bank for Reconstruction and Accident Insurance Company Development 8.38% - matures 10/01/99 351,666 343,583 Provident Life and Government of Ireland 9.50% - matures 4/03/00 Accident Insurance Company 1,071,800 1,051,250 Provident Life and Japan Finance Corporation 9.13% - matures 3/13/00 Accident Insurance Company 1,065,620 1,026,210 Provident Life and KFW International Finance Inc. 9.13% - matures Accident Insurance Company 5/15/01 760,228 728,210 Provident Life and Victorian Pub. Auth. Fin. 8.45% - matures 10/01/01 Accident Insurance Company 1,031,520 1,002,630 ------------ ------------- Total foreign government obligations 6,009,117 5,834,218 ------------ ------------- Provident Life and Waste Management Inc. 7.70% - matures 10/01/02 Accident Insurance Company 980,820 963,200 Bankers Trust (Delaware) Resolution Funding Corp. Strip zero coupon - matures 4/15/98 19,202,343 18,808,041 ------------ ------------- Total other bonds 20,183,163 19,771,241 ------------ -------------
(Continued) 4 Schedule 1, Cont. ----------------- SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27a - Schedule of Assets Held for Investment Purposes, Continued
Identity of issue Description of asset Cost Current value ----------------- -------------------- ---- ------------- Bankers Trust (Delaware) Wrap agreement 8.25% - matures 6/30/98 $ 69,374 124,793 Bankers Trust (Delaware) Wrap agreement 6.00% - matures 3/15/12 331,131 49,271 Bankers Trust (Delaware) Wrap agreement 9.00% - matures 3/10/95 119,100 496,448 Bankers Trust (Delaware) Wrap agreement 6.50% - matures 7/15/02 296,328 1,425,829 Bankers Trust (Delaware) Wrap agreement zero coupon - maturities ranging from 11/15/96 to 5/15/97 240,648 1,378,159 Bankers Trust (Delaware) Wrap agreement zero coupon - matures 4/15/98 104,630 2,016,444 National Westminster Bank Wrap agreement 4.00% to 5.50% - maturities ranging from 1/25/12 to 1/15/13 310,781 1,662,688 Peoples Security Life Wrap agreement 5.50% to 6.75% - maturities Insurance ranging from 9/25/97 to 11/15/14 1,173,644 7,701,148 Provident Life and Wrap agreement 5.20% to 9.63% - maturities Accident Insurance Company ranging from 7/27/98 to 1/15/04 85,500 2,082,907 -------------- ------------- Total wrap 2,731,136 16,937,687 agreements -------------- ------------- Interest rates ranging from 9.25% to 12.50% -- 20,245,297 Participants' loans * -------------- ------------- Aetna Life Insurance 6.35% - matures 1/1/96 Company 1,581,380 1,581,380 Aetna Life Insurance 8.95% - matures 1/1/96 Company 2,572,071 2,572,071 Canada Life 4.97% - matures 3/26/97 20,256,781 20,256,781 CNA Insurance Companies 8.69% - matures 7/1/96 24,704,999 24,704,999 Hartford Life Insurance 7.05% - matures 10/27/98 Company 10,475,718 10,475,718 Massachusetts Mutual Life 4.50% - withdrawal available on demand, no Insurance Company fixed maturity 18,437,341 18,437,341 Metropolitan Life 8.55% - matures 12/31/95 Insurance Company 72,519,381 72,519,381 New York Life Insurance 8.11% - matures 4/29/99 Company 6,061,845 6,061,845 Principal Mutual Life 9.13% - matures evenly on 6/30 of 1995, 1996, 1997 Insurance Company 13,147,156 13,147,156 Protective Life Insurance 7.35% - matures 6/30/99 Company 16,711,111 16,711,111 Provident Life & Accident 4.39% - matures 3/28/96 Insurance Company 15,806,649 15,806,649 Prudential Asset 6.41% - matures 10/28/97 Management Company 10,447,168 10,447,168 Prudential Asset 6.74% - matures 10/28/99 Management Company 10,455,013 10,455,013 Prudential Asset 5.05% - matures 12/29/97 Management Company 23,311,508 23,311,508 Prudential Asset 7.95% - matures 3/31/95 Management Company 13,578,324 13,578,324 Southland Life 5.12% - matures 6/28/98 15,943,695 15,943,695 Southland Life 5.75% - matures 12/21/98 11,678,918 11,678,918 Southland Life 5.40% - matures 2/18/98 10,526,341 10,526,341 Transamerica Occidental 4.83% - matures 3/27/97 Life Insurance Company 21,091,008 21,091,008 Transamerica Occidental 6.30% - matures 10/27/98 Life Insurance Company 18,892,135 18,892,135 -------------- ------------- Total investment contracts with insurance companies 338,198,542 338,198,542 -------------- ------------- Total investments $1,577,835,733 2,155,659,106 ============== =============
*Party in interest See accompanying independent auditors' report. Schedule 2 ---------- J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27d - Schedule of Reportable Transactions Year ended December 31, 1994
Current Expense value of Aggregate incurred asset on Net Identity of party Description number of Purchase Selling Lease with Cost transaction gain involved of asset transactions price price rental transaction of asset date (loss) -------- -------- ------------ -------- ----- ------ ----------- -------- ---- ------ Purchases: Common stock: J. C. Penney Common Company, Inc. stock 64 $121,380,644 -- -- -- 121,380,644 121,380,644 -- Sales: Investment contract with insurance company: Metropolitan Life Insurance Company 8.55% due 12/31/95 102 -- 125,776,607 -- -- 125,776,607 125,776,607 --
See accompanying independent auditors' report. [LETTERHEAD OF KPMG PEAT MARWICK LLP APPEARS HERE] INDEPENDENT AUDITORS' CONSENT ----------------------------- The J. C. Penney Company, Inc. Benefits Administration Committee, Benefit Plans Investment Committee, and Benefit Plans Review Committee: We consent to incorporation by reference in the registration statements (No. 33-56995 and No. 33-59668) on Form S-8 of J. C. Penney Company, Inc. of our report dated May 12, 1995 relating to the statements of net assets available for benefits of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan as of December 31, 1994 and 1993, and the related statements of changes in net assets available for benefits and related schedules for the years then ended, which report appears in the December 31, 1994 annual report on Form 11-K of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan. /s/ KPMG Peat Marwick LLP Dallas, Texas June 22, 1995 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN By: /s/ J. F. Hundley -------------------------------------------- J. F. Hundley Member of Benefits Administration Committee Date: June 22, 1995 -----END PRIVACY-ENHANCED MESSAGE-----