-----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, Plj8850WRDmO2nuI+96JTWRsXqFWsye598PmLZZYTUewHgD7koEOJX9PYYIj+u0N rAMWNXi57rjN5/mo6RvbaA== 0000950131-94-001144.txt : 19941004 0000950131-94-001144.hdr.sgml : 19941004 ACCESSION NUMBER: 0000950131-94-001144 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: 94536887 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, PROFIT-SHARING AND STOCK OWNERSHIP 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, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Financial Statements and Schedules December 31, 1993 and 1992 (With Independent Auditors' Report Thereon) J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP 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, Profit-Sharing and Stock Ownership 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 plan benefits of the J. C. Penney Company, Inc. Savings, Profit-Sharing and Stock Ownership 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, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Statements of Net Assets Available for Benefits December 31, 1993 and 1992
1993 1992 ---------------- -------------- Assets: Investments, at fair value: J. C. Penney Company, Inc. common stock - 6,182,647 shares in 1993 and 4,682,294 shares in 1992 (cost $219,409,375 and $133,479,935, respectively) $ 325,361,798 181,976,674 J. C. Penney Company, Inc. preferred stock - 1,082,112 shares in 1993 and 1,110,952 shares in 1992 (cost $649,267,042 and $666,571,103, respectively) 1,138,922,612 863,615,633 State Street Bank Index Fund - 786,756 units in 1993 and 649,336 units in 1992 (cost $43,391,017 and $32,518,467, respectively) 54,754,297 41,064,629 State Street Bank Liquidity Fund (cost approximates fair value) 15,519,787 10,459,308 Funds held under structured investment contracts: U.S. agency backed collateralized mortgage obligations (cost $181,202,290 in 1993 and $121,951,055 in 1992) 185,852,394 122,888,630 Government trust certificates (cost $10,545,346 in 1993) 10,389,891 -- Wrap agreements (cost $1,449,420 in 1993 and $508,148 in 1992) (2,835,741) (264,038) Participants' loans (unpaid principal balance approximates fair value) 31,426,436 21,034,934 Funds with insurance companies, at contract value 109,223,830 146,124,378 -------------- ------------- Total investments 1,868,615,304 1,386,900,148 -------------- ------------- Receivables: Due from J. C. Penney Company, Inc. 600,034 432,403 Accrued interest and dividends 9,031 28,157 -------------- ------------- 609,065 460,560 -------------- ------------- Total assets 1,869,224,369 1,387,360,708 -------------- ------------- Liabilities: Cash overdraft 1,334 6,885 Loan payable 413,752,773 478,416,565 Accrued interest payable 16,901,801 19,543,316 Due to broker 2,861,912 3,473,000 Accounts payable and other liabilities 924,871 268,193 -------------- ------------- Total liabilities 434,442,691 501,707,959 -------------- ------------- Net assets available for benefits $1,434,781,678 885,652,749 ============== =============
See accompanying notes to financial statements. J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP 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 $ 383,304,270 251,709,113 Interest 22,418,814 20,115,919 Dividends 60,089,452 59,453,175 -------------- ----------- 465,812,536 331,278,207 Less investment expenses (108,768) (52,916) -------------- ----------- 465,703,768 331,225,291 -------------- ----------- Contributions: J. C. Penney Company, Inc. 50,136,087 48,731,483 Participants 149,384,249 137,291,537 -------------- ----------- 199,520,336 186,023,020 -------------- ----------- Total additions 665,224,104 517,248,311 -------------- ----------- Deductions from net assets attributed to: Benefit payments 80,885,198 74,753,224 Interest expense 35,150,796 40,330,157 Deferral fees 59,181 22,451 -------------- ----------- Total deductions 116,095,175 115,105,832 -------------- ----------- Change in net assets available for benefits 549,128,929 402,142,479 Beginning net assets available for benefits 885,652,749 483,510,270 -------------- ----------- Ending net assets available for benefits $1,434,781,678 885,652,749 ============== ===========
See accompanying notes to financial statements. J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements December 31, 1993 and 1992 (1) Description of Plan ------------------- The following brief description of the provisions of the J. C. Penney Company, Inc. Savings, Profit-Sharing and Stock Ownership 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 available to all eligible employees ("Associates") of J. C. Penney Company, Inc. (the "Company") and certain subsidiaries. Associates who have completed at least 1,000 hours of service within a period of 12 consecutive months and have attained age 21 are eligible to participate in the Plan. 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 ------------- Participants that are classified as highly compensated (earning $20,000 or more annually) are permitted to contribute from 1% to 10% of their earnings with a maximum of 8% in Tax-deferred Deposits (subject to annual maximum of $8,994 in 1993 and $8,728 in 1992). Nonhighly compensated participants may contribute in 1% increments up to 16% of earnings in either Taxed or Tax-deferred Deposits or a combination of both. The Company contributes to the Plan an amount which when combined with the dividends earned on the J. C. Penney Company, Inc. Series B ESOP Convertible Preferred Stock ("Preferred Stock") will be sufficient to service the semiannual loan payments (see note 3). The Company's contribution amounted to $50.1 million in 1993 and $48.7 million in 1992. At the time of each loan payment shares of Preferred Stock are allocated to participants' accounts. In accordance with the terms of the Plan, 116,667 shares of Preferred Stock were allocated to participants in both 1993 and 1992, and will be allocated to participants each year thereafter until 1998. The year-end market value of the shares released during 1993 and 1992 was $98.3 million and $90.7 million, respectively. A portion of the 116,667 shares will be used to satisfy dividends on previously allocated Preferred Stock. The remaining shares will be allocated to each participant's Penney Preferred Stock Account in accordance with the ratio that each participant's deposits, not in excess of 6% of earnings ("matched deposits"), bear to all such deposits by participants for the applicable Plan year. The value of the 1993 allocation to participants was equal to 93% of matched deposits versus 74% in 1992. (Continued) 2 J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements If the total value of Preferred Stock released for allocation in any year is less than the sum of (i) 4-1/2% of available profits (as defined in the Plan document) and (ii) the dividends on previously allocated Preferred Stock, the Company is required to make an additional contribution in cash or shares of J. C. Penney Company, Inc. common stock ("Common Stock") to the Plan which will be deposited to the Penney Stock Company Account. The additional Company contribution, if any, is allocated to participants based on their matched deposits in the same manner as described above. (c) Participants' Accounts ---------------------- Participants' account balances are invested in the Plan's investment programs in accordance with their elections. These investment programs include the Penney Stock Account (consisting of investments in J. C. Penney, 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. (d) Vesting ------- Participants are immediately vested in their contributions and earnings thereon. Vesting in the Company Accounts is graduated at 20% per full year of service up to 100% after the earlier of 5 years of service, normal retirement age, death, or total disability. Participants who separate from service prior to full vesting of their rights forfeit the unvested balance of their Company Accounts. (e) 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 shares of Common Stock). In lieu of a lump sum settlement, a retiring participant who has attained age 55 with 15 years of Plan service or over age 65 may elect an indefinite deferral of their balances (if at least $3,500) or elect an optional annuity for life or installment payments for a specified period of time. Participants in deferred status may request periodic withdrawals, fixed monthly payments of at least $100 or a complete distribution. Minimum distributions will be made in the year the participant attains age 70 and each year thereafter to comply with Federal law. (f) 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. (Continued) 3 J.C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements (2) Investments ----------- Investments in securities are stated at fair value using quoted market prices. The fair value of the Preferred Stock, which is not publicly traded, is determined to be the greater of its issue price of $600 per share or the Common Stock price into which it can be converted. The Common Stock is widely traded. 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. The Preferred Stock is convertible into Common Stock at a ratio of 1:20. Each 1/20 of a share of Preferred Stock has a minimum value of $30. The Company has the option of settling a participant's Penney Preferred Stock Account in cash or whole shares of the Common Stock derived from the conversion of the Preferred Stock to Common Stock, or any combination thereof, if the market price of Common Stock at the time of distribution is equal to or less than the conversion value of $600 per share of the Preferred Stock. However, if the participant requests settlement of such account in shares, the participant will receive shares of the Common Stock derived from the conversion of the Preferred Stock to Common Stock. A participant's Penney Preferred Stock Account will be settled with the Common Stock derived from the conversion of the Preferred Stock to Common Stock if the market price of Common Stock exceeds the conversion value of $600 per share of the Preferred Stock. The annual dividend on the Preferred Stock is 7.9%, payable semiannually on January 1 and July 1. 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 stockholders of record on April 12, 1993. The shares of Common Stock disclosed in the financial statements and notes thereto have been adjusted for this stock split, as has the Preferred Stock conversion ratio. (Continued) 4 J.C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP 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 Investments amount value amount value - - - --------------------------- ------------- ------------- ------------ ----------- Investments, at fair value: J. C. Penney Company, Inc. common stock 6,182,647 $ 325,361,798 4,682,294 $181,976,674 J. C. Penney Company, Inc. preferred stock 1,082,112 1,138,922,612 1,110,952 863,615,633 ============== ============
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 ----------- ---------- ----------- ----------- Penney Common Stock Account 135,838,744 $2.417959 105,141,324 $1.738746 Penney Preferred Stock Account 209,348,497 2.498093 182,451,333 1.743517 S & P 500 Account 28,333,109 1.943240 23,311,290 1.764814 Interest Income Account* 208,987,834 1.504741 195,919,574 1.403399
* Units are not assigned to participants' loans receivable. The net asset value for the Penney Preferred Stock Account is based on the value of the Penney Preferred Stock allocated to participants, excluding forfeitures, as of December 31, 1993 and 1992. (3) Loan Payable ------------ The Plan borrowed $700 million in August 1988, through a term loan agreement obtained by private placement with several financial institutions. The loan is guaranteed by the Company and the proceeds were used to purchase the Preferred Stock issued by the Company. The loan agreement specifies semiannual principal and interest payments of $51.2 million on January 1 and July 1, with the final installment due in 1998. The loan bears interest at 8.17%. (Continued) 5 J.C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements (4) Plan Termination ---------------- 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, Profit-Sharing and Stock Ownership Plan Trust (the "Trust") at any time subject to the provisions of ERISA. In the event of Plan termination, participants will become fully vested in amounts allocated to their Company accounts. (5) Tax Status ---------- The Plan obtained its 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 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) 6 J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements (6) Allocation of Plan Assets and Liabilities to Investment Programs: ----------------------------------------------------------------
December 31, 1993 ----------------------------------------------------------------------------------------- Penney Preferred Stock Account Interest Penney Common -------------------------- S & P 500 Income Total Stock Account Unallocated Allocated Account Account ------- ------------- ----------- --------- --------- --------- Assets: Investments, at fair value: J. C. Penney Company, Inc. common stock - 6,182,647 shares (cost $219,409,375) $ 325,361,798 325,361,798 -- -- -- -- J. C. Penney Company, Inc. preferred stock - 1,082,112 shares (cost $649,267,042) 1,138,922,612 -- 613,958,398 524,964,214 -- -- State Street Bank Index Fund - 786,756 units (cost $43,391,017) 54,754,297 -- -- -- 54,754,297 -- State Street Bank Liquidity Fund (cost approximates fair value) 15,519,787 5,046,421 -- 85,688 -- 10,387,679 Funds held under structured investment contracts: U.S. agency backed collateralized mortgage obligations (cost $181,202,290) 185,852,394 -- -- -- -- 185,852,394 Government trust certificates (cost $10,545,346) 10,389,891 -- -- -- -- 10,389,891 Wrap agreements (cost $1,449,420) (2,835,741) -- -- -- -- (2,835,741) Participants' loans (unpaid principal balance approximates fair value) 31,426,436 -- -- -- -- 31,426,436 Funds with insurance companies, at contract value 109,223,830 -- -- -- -- 109,223,829 -------------- ----------- ----------- ----------- ---------- ----------- Total investments 1,868,615,304 330,408,219 613,958,398 525,049,902 54,754,297 344,444,488 Receivables: Due from J. C. Penney Company, Inc. 600,034 104,765 -- 402,276 16,091 76,902 Accrued interest and dividends 9,031 4,045 -- 4,494 -- 492 -------------- ----------- ----------- ----------- ---------- ----------- Total assets 1,869,224,369 330,517,029 613,958,398 525,456,672 54,770,388 344,521,882 -------------- ----------- ----------- ----------- ---------- ----------- Liabilities: Cash overdraft 1,334 3,300 -- (1,725) (241) -- Loan payable 413,752,773 -- 413,752,773 -- -- -- Accrued interest payable 16,901,801 -- 16,901,801 -- -- -- Due to broker 2,861,912 2,861,912 -- -- -- -- Accounts payable and other liabilities 924,871 170,215 -- 196,904 68,775 488,977 Inter-fund balances -- 88,155 -- 130,597 (88,134) (130,618) -------------- ----------- ----------- ----------- ---------- ----------- Total liabilities 434,442,691 3,123,582 430,654,574 325,776 (19,600) 358,359 -------------- ----------- ----------- ----------- ---------- ----------- Net assets available for benefits $1,434,781,678 327,393,447 183,303,824 525,130,896 54,789,988 344,163,523 ============== =========== =========== =========== ========== =========== Figures Rounded
(Continued) 7 J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements
(6) Allocation of Plan Assets and Liabilities to Investment Programs, Continued: --------------------------------------------------------------------------- December 31, 1992 --------------------------------------------------------------------------------- Penney Preferred Stock Account Interest Penney Common ------------------------ S & P 500 Income Total Stock Account Unallocated Allocated Account Account ----- ------------- ----------- --------- ------- ------- Assets: Investments, at fair value: J. C. Penney Company, Inc. common stock - 4,682,294 shares (cost $133,479,935) $ 181,976,674 181,976,674 -- -- -- -- J. C. Penney Company, Inc. preferred stock - 1,110,952 shares (cost $666,571,103) 863,615,633 -- 544,250,043 319,365,590 -- -- State Street Bank Index Fund - 649,336 units (cost $32,518,467) 41,064,629 -- -- -- 41,064,629 -- State Street Bank Liquidity Fund (cost approximates fair value) 10,459,308 4,920,000 -- 106,000 -- 5,433,308 Funds held under structured investment contracts: U.S. agency backed collateralized mortgage obligations (cost $121,951,055) 122,888,630 -- -- -- -- 122,888,630 Wrap agreements (cost $508,148) (264,038) -- -- -- -- (264,038) Participants' loans (unpaid principal balance approximates fair value) 21,034,934 -- -- -- -- 21,034,934 Funds with insurance companies, 146,124,378 -- -- -- -- 146,124,378 at contract value -------------- ----------- ----------- ----------- ---------- ----------- Total investments 1,386,900,148 186,896,674 544,250,043 319,471,590 41,064,629 295,217,212 -------------- ----------- ----------- ----------- ---------- ----------- Receivables: Due from J. C. Penney Company, Inc. 432,403 116,024 -- 96,714 64,902 154,763 Accrued interest and dividends 28,157 8,139 -- 4,528 -- 15,490 -------------- ----------- ----------- ----------- ---------- ----------- 460,560 124,163 -- 101,242 64,902 170,253 -------------- ----------- ----------- ----------- ---------- ----------- Total assets 1,387,360,708 187,020,837 544,250,043 319,572,832 41,129,531 295,387,465 -------------- ----------- ----------- ----------- ---------- ----------- Liabilities: Cash overdraft 6,885 10,310 -- (1,951) (1,474) -- Loan payable 478,416,565 -- 478,416,565 -- -- -- Accrued interest payable 19,543,316 -- 19,543,316 -- -- -- Due to broker 3,473,000 3,473,000 -- -- -- -- Accounts payable and other liabilities 268,193 35,570 -- 19,442 26,454 186,727 Inter-fund balances -- 683,968 -- 125,160 (52,223) (756,905) -------------- ----------- ----------- ----------- ---------- ----------- Total liabilities 501,707,959 4,202,848 497,959,881 142,651 (27,243) (570,178) -------------- ----------- ----------- ----------- ---------- ----------- Net assets available for benefits $ 885,652,749 182,817,989 46,290,162 319,430,181 41,156,774 295,957,643 ============== =========== =========== =========== ========== =========== (Continued)
8 J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements (7) Allocation of Plan Income and Changes in Plan Equity to Investment Programs: --------------------------------------------------------------------------- December 31, 1993 ------------------------------------------------------------------------------------- Penney Preferred Stock Account Interest Penney Common ----------------------- S & P 500 Income Total Stock Account Unallocated Allocated Account Account -------------- ------------- ----------- --------- --------- -------- Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $ 383,304,270 77,339,508 139,706,254 161,766,384 4,492,124 -- Interest 22,418,814 113,124 -- 15,153 5,451 22,285,086 Dividends 60,089,452 7,769,435 52,320,017 -- -- -- -------------- ----------- ----------- ----------- ---------- ----------- 465,812,536 85,222,067 192,026,271 161,781,537 4,497,575 22,285,086 Less investment expenses (108,768) -- -- -- -- (108,768) -------------- ----------- ----------- ----------- ---------- ----------- 465,703,768 85,222,067 192,026,271 161,781,537 4,497,575 22,176,318 -------------- ----------- ----------- ----------- ---------- ----------- Contributions: J. C. Penney Company, Inc. 50,136,087 -- 50,136,087 -- -- -- Participants 149,384,249 60,206,320 -- -- 17,159,021 72,018,908 -------------- ----------- ----------- ----------- ---------- ----------- 199,520,336 60,206,320 50,136,087 -- 17,159,021 72,018,908 -------------- ----------- ----------- ----------- ---------- ----------- Total additions 665,224,104 145,428,387 242,162,358 161,781,537 21,656,596 94,195,226 -------------- ----------- ----------- ----------- ---------- ----------- Transfer of preferred stock at cost (116,667 shares) -- -- 70,000,000 (70,000,000) -- -- Deductions from net assets attributed to: Benefit payments 80,885,198 26,200,584 -- 22,093,777 6,307,652 26,283,185 Interest expense 35,150,796 -- 35,150,796 -- -- -- Deferral fees 59,181 5,385 -- 536 1,496 51,764 Participants' transfers -- (25,353,040) (2,100) 3,986,509 1,714,234 19,654,397 -------------- ----------- ----------- ----------- ---------- ----------- Total deductions 116,095,175 852,929 105,148,696 (43,919,178) 8,023,382 45,989,346 -------------- ----------- ----------- ----------- ---------- ----------- Change in net assets available for benefits 549,128,929 144,575,458 137,013,662 205,700,715 13,633,214 48,205,880 Beginning net assets available for benefits 885,652,749 182,817,989 46,290,162 319,430,181 41,156,774 295,957,643 -------------- ----------- ----------- ----------- ---------- ----------- Ending net assets available for benefits $1,434,781,678 327,393,447 183,303,824 525,130,896 54,789,988 344,163,523 ============== =========== =========== =========== ========== =========== (Continued)
9 J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Notes to Financial Statements
(7) Allocation of Plan Income and Changes in Plan Equity to Investment Programs, Continued: -------------------------------------------------------------------------------------- Year ended December 31, 1992 ------------------------------------------------------------------------------------------- Penney Preferred Stock Account Interest Penney Common ----------------------------- S & P 500 Income Total Stock Account Unallocated Allocated Account Account ------------- ------------- ----------------- ------------ ----------- ------------ Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $251,709,113 49,221,538 124,249,774 75,383,167 2,854,634 -- Interest 20,115,919 53,871 -- 18,937 9,030 20,034,081 Dividends 59,453,175 5,728,441 53,724,734 -- -- -- ------------ ----------- ----------- ----------- ---------- ----------- 331,278,207 55,003,850 177,974,508 75,402,104 2,863,664 20,034,081 Less investment expenses (52,916) -- -- -- -- (52,916) ------------ ----------- ----------- ----------- ---------- ----------- 331,225,291 55,003,850 177,974,508 75,402,104 2,863,664 19,981,165 ------------ ----------- ----------- ----------- ---------- ----------- Contributions: J. C. Penney Company, Inc. 48,731,483 -- 48,731,483 -- -- -- Participants 137,291,537 46,572,318 -- -- 14,332,937 76,386,282 ------------ ----------- ----------- ----------- ---------- ----------- 186,023,020 46,572,318 48,731,483 -- 14,332,937 76,386,282 ------------ ----------- ----------- ----------- ---------- ----------- Total additions 517,248,311 101,576,168 226,705,991 75,402,104 17,196,601 96,367,447 ------------ ----------- ----------- ----------- ---------- ----------- Transfer of preferred stock at cost (116,667 shares) -- -- 70,000,000 (70,000,000) -- -- Deductions from net assets attributed to: Benefit payments 74,753,224 20,971,119 -- 16,792,767 5,295,604 31,693,734 Interest expense 40,330,157 -- 40,330,157 -- -- -- Deferral fees 22,451 1,265 -- 357 165 20,664 Participants' transfers -- 12,163,960 -- 3,993,424 (1,571,266) (14,586,118) ------------ ----------- ----------- ----------- ---------- ----------- Total deductions 115,105,832 33,136,344 110,330,157 (49,213,452) 3,724,503 17,128,280 ------------ ----------- ----------- ----------- ---------- ----------- Change in net assets available for benefits 402,142,479 68,439,824 116,375,834 124,615,556 13,472,098 79,239,167 Beginning net assets available for benefits 483,510,270 114,378,165 (70,085,672) 194,814,625 27,684,676 216,718,476 ------------ ----------- ----------- ----------- ---------- ----------- Ending net assets available for benefits $885,652,749 182,817,989 46,290,162 319,430,181 41,156,774 295,957,643 ============ =========== =========== =========== ========== ===========
Schedule 1 ---------- J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1993
Description of Identity of issue asset Cost Current value ----------------- -------------- ---- ------------- J. C. Penney Company, Inc. Common stock, $219,409,375 325,361,798 6,182,647 shares ------------ ------------- J. C. Penney Company, Inc. Preferred stock, 649,267,042 1,138,922,612 1,082,112 shares ------------ ------------- State Street Bank Index Fund, 43,391,017 54,754,297 786,756 units ------------ ------------- State Street Bank Liquidity Fund, 15,519,787 15,519,787 15,519,787 units ------------ ------------- Bankers Trust (Delaware) FHLMC backed CMO 30,614,332 31,406,720 6.00% - matures 12/15/11 Union Bank of Switzerland FHLMC backed CMO 35,682,829 36,268,750 7.00% - matures 7/15/04 Union Bank of Switzerland FHLMC backed CMO 13,725,538 13,436,494 5.20% - matures 1/15/11 Union Bank of Switzerland FHLMC backed CMO 5,065,039 4,951,550 5.10% - matures 11/15/01 Peoples Security Life FHLMC backed CMO 24,900,333 26,008,060 Insurance 5.50% - matures 3/15/15 Bankers Trust (Delaware) FNMA backed CMO 21,857,632 22,171,820 5.90% - matures 12/25/99 Peoples Security Life FNMA backed CMO 49,356,587 51,609,000 Insurance 7.00% - matures ------------ ------------- 11/25/14 Total U.S. agency backed CMO's 181,202,290 185,852,394 ------------ ------------- Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/97 2,907,997 2,865,128 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/97 3,018,079 2,973,588 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/97 2,084,884 2,054,150 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/97 2,189,129 2,156,858 Bankers Trust (Delaware) Government trust certificate zero coupon - matures 11/15/97 345,257 340,167 ------------ ------------- Total government trust certificates 10,545,346 10,389,891 ------------ ------------- (Continued)
2 Schedule 1, Cont. ----------------- J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Item 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1993, Continued
Description Identity of issue of asset Cost Current value ----------------- ----------- ---- ------------- Bankers Trust (Delaware) Wrap agreement $ 244,067 (479,859) 6.00% - matures 12/15/11 Bankers Trust (Delaware) Wrap agreement 13,611 117,898 zero coupon - matures 11/15/97 Bankers Trust (Delaware) Wrap agreement 14,104 117,519 zero coupon - matures 11/15/97 Bankers Trust (Delaware) Wrap agreement 9,765 85,847 zero coupon - matures 11/15/97 Bankers Trust (Delaware) Wrap agreement 10,258 91,220 zero coupon - matures 11/15/97 Bankers Trust (Delaware) Wrap agreement 1,578 5,691 zero coupon - matures 11/15/97 Bankers Trust (Delaware) Wrap agreement 166,375 (147,080) 5.90% - matures 12/25/99 Union Bank of Switzerland Wrap agreement 579,600 (451,436) 7.00% - matures 7/15/04 Union Bank of Switzerland Wrap agreement 133,418 333,524 5.20% - matures 1/15/11 Union Bank of Switzerland Wrap agreement 48,688 128,518 5.10% - matures 11/15/01 Peoples Security Life Wrap agreement 76,179 (776,928) Insurance 5.50% - matures 3/15/15 Peoples Security Life Wrap agreement 151,777 (1,860,655) Insurance 7.00% - matures -------------- ------------- 11/25/14 Total wrap agreements 1,449,420 (2,835,741) -------------- ------------- Participants' loans Interest rates 31,426,436 31,426,436 ranging from -------------- ------------- 9.25% to 12.5% Aetna Life Insurance 8.70% - matures on 7,193,036 7,193,036 Company 3/31, 6/30, 9/30, 12/31 of 1994 Allstate Life Insurance 8.75% - matures 26,258,166 26,258,166 Company 12/30/96 Metropolitan Life 8.55% - matures on 18,036,888 18,036,888 Insurance Company 6/30, 12/31 of 1994 and 1995 Provident Life & Accident 4.58% - matures 22,164,363 22,164,363 Insurance Company 3/27/97 Prudential Asset 7.86% - matures 27,251,081 27,251,081 Management Company 6/30/95 Southland Life 5.75% - matures 8,320,296 8,320,296 1/21/99 -------------- ------------- Total investment contracts with insurance companies 109,223,830 109,223,830 -------------- ------------- Total investments $1,261,435,543 1,868,615,304 ============== =============
See accompanying independent auditors' report.
Schedule 2 ---------- J. C. PENNEY COMPANY, INC. SAVINGS, PROFIT-SHARING AND STOCK OWNERSHIP PLAN Item 27d - Schedule of Reportable Transactions Year ended December 31, 1993 Expense Current value Aggregate incurred of asset on Net Identity Description number of Purchase Selling Lease with Cost of transaction gain of issue of asset transactions price price rental transactions asset date (loss) - - - ---------- ------------ ------------ ---------- -------- ------ -------------- ------- ------------ ------ Purchases: J. C. Penney Company, Inc. Common stock 368 $108,023,918 -- -- -- 108,023,918 108,023,918 -- J. C. Penney Company, Inc. Preferred stock 182 71,427,273 -- -- -- 71,427,273 71,427,273 -- Sales: J. C. Penney Company, Inc. Common stock 213 -- 36,833,715 -- -- 31,287,475 36,833,715 5,546,240 J. C. Penney Company, Inc. Preferred stock 294 -- 88,459,093 -- -- 82,985,445 88,459,093 5,473,648
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. 33-59666) 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, Inc. Savings, Profit-Sharing and Stock Ownership 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, Profit-Sharing and Stock Ownership 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, PROFIT-SHARING AND STOCK OWNERSHIP PLAN By: /s/ T. A. CLERKIN ----------------------------- T. A. Clerkin Member of Retirement Plans Committee Date: June 27, 1994 -----END PRIVACY-ENHANCED MESSAGE-----