-----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, k4M4H3ROL75onNLPi9bPeE08zAkWSSHUcKrXRhKiUIjOhz+AYBxEAoxv5sReZy7w 5vNBpf6ES76lbbquWx3lBg== 0000950131-94-001143.txt : 19941004 0000950131-94-001143.hdr.sgml : 19941004 ACCESSION NUMBER: 0000950131-94-001143 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940629 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PENNEY J C CO INC CENTRAL INDEX KEY: 0000077182 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94536874 BUSINESS ADDRESS: STREET 1: 6501 LEGACY DRIVE CITY: PLANO STATE: TX ZIP: 75024-3698 BUSINESS PHONE: 2144311000 11-K 1 FORM 11-K 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 [FEE REQUIRED] FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] 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, 1993 and 1992 (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, 1993 and 1992 Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 1993 and 1992 Notes to Financial Statements Schedule -------- Schedule of Assets Held for Investment Purposes as of December 31, 1993 1 Schedule of Reportable Transactions for the year ended December 31, 1993 2 [LETTERHEAD OF KPMG PEAT MARWICK] INDEPENDENT AUDITORS' REPORT ---------------------------- The J. C. Penney Company, Inc. Associate Benefits Committee, Benefit Plans Investment Committee, Retirement Plans 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 as of December 31, 1993 and 1992, 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, 1993 and 1992, 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 of assets held for investment purposes and 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 audit 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. /s/ KPMG Peat Marwick May 13, 1994 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Statements of Net Assets Available for Benefits December 31, 1993 and 1992
1993 1992 ---------------- -------------- Assets: Investments, at fair value (note 2): J. C. Penney Company, Inc. common stock - 29,746,648 shares in 1993 and 29,695,768 shares in 1992 (cost $723,528,412 and $612,556,660, respectively) $1,565,417,351 1,154,354,172 State Street Bank Index Fund - 926,099 units in 1993 and 980,137 units in 1992 (cost $27,361,218 and $25,967,927, respectively) 64,451,853 61,984,819 State Street Bank Liquidity Fund (cost approximates fair value) 19,280,009 24,607,232 Funds held under structured investment contracts: U.S. agency backed collateralized mortgage obligations (cost $312,345,761 in 1993 and $263,396,859 in 1992) 320,101,946 265,835,088 U.S. Government Trust Certificates (cost $18,281,851 in 1993) 18,305,319 -- Credit card backed obligations (cost $27,550,077 in 1993 and 1992) 27,399,260 27,656,720 Other bonds (cost $19,202,343 in 1993) 19,491,045 -- Wrap agreements (cost $2,337,850 in 1993 and $1,303,067 in 1992) (5,231,648) (1,142,891) Participants' loans (unpaid principal balance approximates fair value) 19,756,762 21,165,269 Funds with insurance companies, at contract value 373,848,131 464,798,843 -------------- ------------- Total investments 2,422,820,028 2,019,259,252 -------------- ------------- Receivables: Due from J. C. Penney Company, Inc. -- 358,112 Miscellaneous 20,032 23,088 Accrued interest and dividends 581,293 580,148 Due from broker 407,049 -- -------------- ------------- 1,008,374 961,348 -------------- ------------- Cash -- 30,616 -------------- ------------- Total assets 2,423,828,402 2,020,251,216 -------------- ------------- Liabilities: Cash overdraft 112,298 -- Due to J. C. Penney Company, Inc. 18,798 -- Due to broker -- 1,507,000 Accrued expenses and other 2,063,511 926,389 liabilities -------------- ------------- Total liabilities 2,194,607 2,433,389 -------------- ------------- Net assets available for benefits $2,421,633,795 2,017,817,827 ============== ============= 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, 1993 and 1992
1993 1992 ---------------- -------------- Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $ 422,513,532 361,145,961 Interest 55,420,612 60,612,323 Dividends 42,768,257 41,617,190 -------------- ------------- 520,702,401 463,375,474 Less investment expenses (231,446) (136,182) -------------- ------------- Total additions 520,470,955 463,239,292 -------------- ------------- Deductions from net assets attributed to: Deferral fees 116,849 72,486 Benefit payments 116,538,138 134,624,726 -------------- ------------- Total deductions 116,654,987 134,697,212 -------------- ------------- Change in net assets available for benefits 403,815,968 328,542,080 Beginning net assets available for benefits 2,017,817,827 1,689,275,747 -------------- ------------- Ending net assets available for benefits $2,421,633,795 2,017,817,827 ============== =============
See accompanying notes to financial statements. J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements December 31, 1993 and 1992 (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. Associate and Company contributions ceased for plan years after 1988 and participants became fully vested in all accounts. 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) 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. Prior to January 1, 1993, an additional investment program, PenSOP (Company) Account was utilized for Company contributions. This program consisted of investments in J. C. Penney Company, Inc. common stock. As of January 1, 1993, the assets and liabilities allocated to this program were merged into the Penney Stock Account. (Continued) 2 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements (c) 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. (d) Loans to Participants --------------------- Loans may be made available to 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. On March 10, 1993, the Company declared a two-for-one common stock split in the form of a stock dividend payable May 1, 1993 to shareholders of record on April 12, 1993. The shares of J. C. Penney Company, Inc. common stock held at December 31, 1992 which are disclosed in the financial statements and notes thereto have been adjusted for this stock split. (Continued) 3 J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Notes to Financial Statements The following table presents the values of investments that represent 5% or more of the Plan's net assets:
December 31, 1993 December 31, 1992 ------------------------------- ------------------------------ 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. common stock 29,746,648 $1,565,417,351 29,695,768 $1,154,354,172 Investment contracts with insurance companies, at contract value: Metropolitan Life Insurance Company 8.55% - matures evenly on 6/30 and 12/31 of 1994 and 1995 118,208,775 $ 118,208,775 146,364,682 $ 146,364,682 ============== ==============
The number of units and net asset value per unit at December 31, 1993 and 1992 follows:
December 31, 1993 December 31, 1992 ------------------------------- ------------------------ Net asset Net asset Units value Units value ----------- ------------ ----------- ---------- PenSOP (Company) Account -- $ -- 13,496,898 $ 4.364094 Penney Stock Account 93,158,712 16.814552 90,825,685 12.054612 S&P 500 Account 7,208,059 8.983400 7,620,016 8.164407 Interest Income Account* 89,424,379 8.626129 97,191,563 8.036103
* 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 ("Service") stated that the Plan, as then designed, was in compliance with the applicable qualification requirements of the Internal Revenue Code ("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. (Continued) 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, 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 U.S. Government Trust Certificates (cost $18,281,851) 18,305,319 -- -- 18,305,319 Credit card backed obligations (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)
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, 1992 ------------------------------------------------------------------------ PenSOP Interest Penney Stock (Company) S&P 500 Income Total Account Account Account Account ----- ------------ --------- ------- -------- Assets: Investments, at fair value: J. C. Penney Company, Inc. common stock - $1,154,354,172 1,095,597,175 58,756,997 -- -- 29,695,768 shares (cost $612,556,660) State Street Bank Index Fund - 980,137 units 61,984,819 -- -- 61,984,819 -- (cost $25,967,927) State Street Bank Liquidity Fund 24,607,232 2,213,000 203,000 -- 22,191,232 (cost approximates fair value) Funds held under structured investment contracts: U.S. agency backed collateralized mortgage 265,835,088 -- -- -- 265,835,088 obligations (cost $263,396,859) Credit card backed obligations 27,656,720 -- -- -- 27,656,720 (cost $27,550,077) Wrap agreements (cost $1,303,067) (1,142,891) -- -- -- (1,142,891) Participants' loans (unpaid principal balance 21,165,269 -- -- -- 21,165,269 approximates fair value) Funds with insurance companies, at 464,798,843 -- -- -- 464,798,843 contract value -------------- ------------- ---------- ---------- ----------- Total investments 2,019,259,252 1,097,810,175 58,959,997 61,984,819 800,504,261 -------------- ------------- ---------- ---------- ----------- Receivables: Due from J. C. Penney Company, Inc. 358,112 359,686 -- -- (1,574) Miscellaneous 23,088 10,611 1,450 -- 11,027 Accrued interest and dividends 580,148 2,769 1,531 -- 575,848 Inter-fund balances -- (1,717,103) -- 299,595 1,417,508 -------------- ------------- ---------- ---------- ----------- 961,348 (1,344,037) 2,981 299,595 2,002,809 -------------- ------------- ---------- ---------- ----------- Cash 30,616 28,523 932 1,161 -- -------------- ------------- ---------- ---------- ----------- Total assets 2,020,251,216 1,096,494,661 58,963,910 62,285,575 802,507,070 -------------- ------------- ---------- ---------- ----------- Liabilities: Due to broker 1,507,000 1,469,000 38,000 -- -- Accrued expenses and other liabilities 926,389 434,053 -- 54,219 438,117 -------------- ------------- ---------- ---------- ----------- Total liabilities 2,433,389 1,903,053 38,000 54,219 438,117 -------------- ------------- ---------- ---------- ----------- Net assets available for benefits $2,017,817,827 1,094,591,608 58,925,910 62,231,356 802,068,953 ============== ============= ========== ========== =========== (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. 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 $ 422,513,532 416,505,924 6,007,608 -- of investments 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 403,815,968 412,626,955 2,544,189 (11,355,176) benefits Beginning net assets available for 2,017,817,827 1,153,517,518 62,231,356 802,068,953 benefits -------------- ------------- ---------- ----------- Ending net assets available for benefits $2,421,633,795 1,566,144,473 64,775,545 790,713,777 ============== ============= ========== =========== (Continued)
7 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, Continued: -------------------
Year ended December 31, 1992 ------------------------------------------------------------------------------------------- PenSOP Interest Penney Stock (Company) S&P 500 Income Total Account Account Account Account -------------- ------------- ---------- ---------- ----------- Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $ 361,145,961 339,108,753 17,486,498 4,550,710 -- Interest 60,612,323 61,319 12,671 9,752 60,528,581 Dividends 41,617,190 39,581,073 2,036,117 -- -- -------------- ------------- ---------- ---------- ----------- 463,375,474 378,751,145 19,535,286 4,560,462 60,528,581 Less investment expenses (136,182) -- -- -- (136,182) -------------- ------------- ---------- ---------- ----------- Total additions 463,239,292 378,751,145 19,535,286 4,560,462 60,392,399 -------------- ------------- ---------- ---------- ----------- Deductions from net assets attributed to: Deferral fees 72,486 5,965 75 836 65,610 Participants' transfers -- 106,302,487 -- (8,236,203) (98,066,284) Benefit payments 134,624,726 47,713,194 4,198,333 4,242,199 78,471,000 -------------- ------------- ---------- ---------- ----------- Total deductions 134,697,212 154,021,646 4,198,408 (3,993,168) (19,529,674) -------------- ------------- ---------- ---------- ----------- Change in net assets available for benefits 328,542,080 224,729,499 15,336,878 8,553,630 79,922,073 Beginning net assets available for benefits 1,689,275,747 869,862,109 43,589,032 53,677,726 722,146,880 -------------- ------------- ---------- ---------- ----------- Ending net assets available for benefits $2,017,817,827 1,094,591,608 58,925,910 62,231,356 802,068,953 ============== ============= ========== ========== ===========
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, 1993
Identity of issue Description of asset Cost Current value - - - - --------------------------- ---------------------- ------------- -------------- J. C. Penney Company, Inc. Common stock, 29,746,648 shares $723,528,412 1,565,417,351 ------------ ------------- State Street Bank Index Fund, 27,361,218 units 27,361,218 64,451,853 ------------ ------------- State Street Bank Liquidity Fund, 19,280,009 units 19,280,009 19,280,009 ------------ ------------- Bankers Trust (Delaware) FHLMC backed CMO 6.00% - matures 12/15/11 18,774,560 19,249,280 Bankers Trust (Delaware) FHLMC backed CMO 6.00% - matures 3/15/12 29,819,240 31,359,219 Peoples Security Life FHLMC backed CMO Insurance 6.35% - matures 12/15/10 34,918,346 35,612,500 Peoples Security Life FHLMC backed CMO Insurance 6.25% - matures 10/15/13 20,422,652 20,939,040 Peoples Security Life FHLMC backed CMO Insurance 5.50% - matures 7/15/03 11,074,246 11,502,028 Peoples Security Life FHLMC backed CMO Insurance 6.35% - matures 11/15/14 30,651,869 31,438,642 Bankers Trust (Delaware) FHLMC backed CMO 6.50% - matures 7/15/02 26,401,367 27,020,963 National Westminister Bank FHLMC backed CMO 4.00% - matures 1/15/13 13,461,694 13,307,429 Peoples Security Life FNMA backed CMO Insurance 6.75% - matures 1/25/13 59,481,728 61,462,200 Peoples Security Life FNMA backed CMO Insurance 5.90% - matures 9/25/97 23,416,614 24,307,440 Peoples Security Life FNMA backed CMO Insurance 6.50% - matures 8/25/03 22,260,985 22,071,153 Peoples Security FNMA backed CMO Life Insurance 6.70% -matures 1/25/11 9,863,128 10,148,204 National Westminister Bank FNMA backed CMO 5.50% - matures 1/25/12 11,799,332 11,683,848 ------------ ------------- Total U.S. agency-backed collateralized mortgage obligations 312,345,761 320,101,946 ------------ ------------- Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/96 8,726,100 8,751,500 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 5/15/97 7,834,789 7,829,357 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/96 1,084,557 1,088,687 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 5/15/97 636,405 635,775 ------------ ------------- Total government trust certificates 18,281,851 18,305,319 ------------ ------------- Bankers Trust (Delaware) MBNA credit card trust 8.25% - matures 6/30/98 10,488,450 10,534,300 Bankers Trust (Delaware) Standard credit card trust 9.00% - matures 3/10/95 17,061,577 16,864,960 ------------ ------------- Total credit card backed obligations 27,550,027 27,399,260 ------------ -------------
(Continued) 2 Schedule 1, Cont. ----------------- J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1993, Continued
Identity of issue Description of asset Cost Current value - - - - --------------------------- ---------------------- ------------- --------------- Bankers Trust (Delaware) Resolution Funding Corp. Strip zero coupon - matures 4/15/98 $19,202,343 19,491,045 ----------- ---------- Bankers Trust (Delaware) Wrap agreement 6.00% - matures 12/15/11 167,829 (280,960) Bankers Trust (Delaware) Wrap agreement 8.25% - matures 6/30/98 69,374 (263,638) Bankers Trust (Delaware) Wrap agreement 6.00% - matures 3/15/12 331,131 (964,788) Bankers Trust (Delaware) Wrap agreement 9.00% - matures 3/10/95 119,100 26,329 Bankers Trust (Delaware) Wrap agreement 6.50% - matures 7/15/02 296,328 (500,965) Bankers Trust (Delaware) Wrap agreement zero coupon - matures 11/15/96 34,225 160,392 Bankers Trust (Delaware) Wrap agreement zero coupon - matures 5/15/97 32,040 172,247 Bankers Trust (Delaware) Wrap agreement zero coupon - matures 11/15/96 4,369 18,962 Bankers Trust (Delaware) Wrap agreement zero coupon - matures 5/15/97 2,185 14,180 Bankers Trust (Delaware) Wrap agreement zero coupon - matures 4/15/98 104,630 398,323 National Westminister Bank Wrap agreement 4.00% - matures 1/15/13 131,350 216,340 National Westminister Bank Wrap agreement 5.50% - matures 1/25/12 179,431 185,358 Peoples Security Life Wrap agreement Insurance 6.35% - matures 12/15/10 110,326 (506,716) Peoples Security Life Wrap agreement Insurance 5.90% - matures 9/25/97 83,642 (654,611) Peoples Security Life Wrap agreement Insurance 5.50% - matures 7/15/03 39,446 (285,721) Peoples Security Life Wrap agreement Insurance 6.25% - matures 10/15/13 72,697 (400,792) Peoples Security Life Wrap agreement Insurance 6.35% - matures 11/15/14 83,866 (629,048) Peoples Security Life Wrap agreement Insurance 6.50% - matures 8/25/03 264,400 (130,129) Peoples Security Life Wrap agreement Insurance 6.75% - matures 1/25/13 189,320 (1,562,988) Peoples Security Life Wrap agreement Insurance 6.70% - matures 1/25/11 22,161 (243,423) ----------- ---------- Total wrap 2,337,850 (5,231,648) agreements ----------- ---------- Participants' loans Interest rates ranging from 9.25% to 12.50% 19,756,762 19,756,762 ----------- ---------- (Continued)
14 3 Schedule 1, Cont. ----------------- J. C. PENNEY COMPANY, INC. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1993, Continued
Identity of issue Description of assets Cost Current value - - - - --------------------------- ----------------------- ------------- -------------- Aetna Life Insurance 8.85% - matures Company evenly on 3/31, 6/30, 9/30, 12/31 of 1994 $ 27,824,864 $ 27,824,864 Aetna Life Insurance 6.35% - matures Company 1/1/96 1,969,295 1,969,295 Aetna Life Insurance 8.95% - matures 3,121,165 3,121,165 Company 1/1/96 Canada Life 4.97% - matures 3/26/97 20,000,000 20,000,000 CNA Insurance Companies 7.00% - matures 7/1/96 30,132,787 30,132,787 Massachusetts Mutual Life 4.50% - withdrawal Insurance Company available on demand, no fixed maturity 17,108,208 17,108,208 Metropolitan Life 8.55% - matures Insurance Company evenly on 6/30 and 12/31 of 1994, 1995 118,208,775 118,208,775 Principal Mutual Life 9.13% - matures Insurance Company evenly on 6/30 of 1995, 1996, 1997 15,967,261 15,967,261 Principal Mutual Life 9.20% - matures Insurance Company 6/30/94 6,325,258 6,325,258 Provident Life & Accident 4.39% - matures Insurance Company 3/28/96 15,141,918 15,141,918 Prudential Asset 7.95% - matures Management Company 12/31/94 33,386,534 33,386,534 Prudential Asset 8.72% - matures Management Company 12/31/93 16,140,917 16,140,917 Prudential Asset 5.05% - matures Management Company 12/29/97 22,190,869 22,190,869 Southland Life 5.12% - matures 6/28/98 15,167,138 15,167,138 Southland Life 5.75% - matures 12/21/98 11,043,894 11,043,894 Transamerica/Occidental 4.83% - matures Life 3/27/97 20,119,248 20,119,248 -------------- ------------- Total investment contracts with insurance companies 373,848,131 373,848,131 -------------- ------------- Total investments $1,543,492,364 2,422,820,028 ============== =============
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, 1993
Current Expense value Aggregate incurred of asset on Description number of Purchase Selling Lease with Cost transaction Net Identity of issue of asset transactions price price rental transaction of asset date gain (loss) ----------------- ----------- ------------ -------- ------- ------ ----------- -------- ----------- ----------- Purchases: Common stock: J. C. Penney Company, Inc. Common stock 75 $113,475,330 -- -- -- 113,475,330 113,475,330 -- Sales: Investment contract with insurance company: Aetna Life Insurance 9.25% due 104 -- 101,379,000 -- -- 101,379,070 101,379,070 -- 6/30/93 Common stock: J. C. Penney Company, Inc. Common stock 39 -- 96,615,642 -- -- 58,516,494 96,615,462 38,098,968
See accompanying independent auditors' report. INDEPENDENT AUDITORS' CONSENT ----------------------------- The J. C. Penney Company, Inc. Associate Benefits Committee, Benefit Plans Investment Committee, Retirement Plans Committee, and the Benefits Plans Review Committee: We consent to incorporation by reference in the registration statement (No. 33- 59668) on Form S-8 of J. C. Penney Company, Inc. of our report dated May 13, 1994 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, 1993 and 1992, 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, 1993 annual report on Form 11-K of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan. /s/ KPMG Peat Marwick --------------------- Dallas, Texas June 27, 1994 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 by the undersigned thereunto duly authorized. SAVINGS AND PROFIT-SHARING RETIREMENT PLAN By: /s/ T. A. Clerkin ------------------ T. A. Clerkin Member of Retirement Plans Committee Date: June 27, 1994 -----END PRIVACY-ENHANCED MESSAGE-----