Exhibit 99.1

J. C. PENNEY COMPANY, INC.

(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Month Ended     Five Months Ended  
(In millions)    July 4,
2020
    July 6,
2019
    July 4,
2020
    July 6,
2019
 

Total net sales

   $ 582     $ 737     $ 1,930     $ 4,179  

Credit income and other

     40       38       161       186  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     622       775       2,091       4,365  

Costs and expenses/(income):

        

Cost of goods sold (exclusive of depreciation and amortization shown separately below)

     334       470       1,313       2,745  

Selling, general and administrative (SG&A)

     163       274       848       1,443  

Depreciation and amortization

     42       40       227       243  

Real estate and other, net

           (2     (5     (1

Restructuring and management transition

     3             165       22  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     542       782       2,548       4,452  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/(loss)

     80       (7     (457     (87

Other components of net periodic pension cost/(income)

     (8     (4     (39     (22

Gain on extinguishment of debt

           (1           (1

Net interest expense

     22       22       122       122  

Loss due to discontinuance of hedge accounting

                 77        

Reorganization items, net

     17             89        
  

 

 

   

 

 

   

 

 

   

 

 

 

Income/(loss) before income taxes

     49       (24     (706     (186

Income tax expense/(benefit)

     2       1       (59     4  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss)

   $ 47     $ (25   $ (647   $ (190
  

 

 

   

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements for an interim period within a fiscal quarter, do not include certain quarterly adjustments and other important explanatory notes, and have not been audited or reviewed by any independent public accounting firm. Quarterly financial statements are subject to internal controls over financial reporting performed only with respect to quarterly financial statements. Consequently, these monthly financial statements may be subject to future reconciliation or adjustments to conform to generally accepted accounting principles or reporting requirements of the SEC and may not be representative of our financial position or indicative of future operating results or cash flows.


J. C. PENNEY COMPANY, INC.

(Debtor-in-Possession)

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(In millions)    July 4,
2020
    July 6,
2019
    February 1,
2020
 

Assets

      

Current assets:

      

Cash in banks and in transit

   $ 209     $ 149     $ 108  

Cash short-term investments

     927       25       278  

Restricted cash

     127              
  

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash

     1,263       174       386  

Merchandise inventory

     2,016       2,333       2,166  

Prepaid expenses and other

     477       316       174  
  

 

 

   

 

 

   

 

 

 

Total current assets

     3,756       2,823       2,726  

Property and equipment, net

     3,275       3,609       3,488  

Operating lease assets

     923       917       998  

Prepaid pension

     150       162       120  

Other assets

     617       663       657  
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 8,721     $ 8,174     $ 7,989  
  

 

 

   

 

 

   

 

 

 

Liabilities and stockholders’ equity

      

Current liabilities:

      

Merchandise accounts payable

   $ 246     $ 744     $ 786  

Other accounts payable and accrued expenses

     828       886       931  

Current operating lease liabilities

     104       85       68  

Debtor-in-possession financing

     450              

Current portion of long-term debt, net

     1,202       92       147  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     2,830       1,807       1,932  

Noncurrent operating lease liabilities

     1,074       1,080       1,108  

Long-term debt

           3,819       3,574  

Deferred taxes

     49       120       116  

Other liabilities

     248       345       430  

Liabilities subject to compromise

     4,276              
  

 

 

   

 

 

   

 

 

 

Total liabilities

     8,477       7,171       7,160  

Stockholders’ equity

      

Common stock

     161       159       160  

Additional paid-in capital

     4,721       4,720       4,723  

Reinvested earnings/(accumulated deficit)

     (4,316     (3,590     (3,667

Accumulated other comprehensive income/(loss)

     (322     (286     (387

Total stockholders’ equity

     244       1,003       829  
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 8,721     $ 8,174     $ 7,989  
  

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements for an interim period within a fiscal quarter, do not include certain quarterly adjustments and other important explanatory notes, and have not been audited or reviewed by any independent public accounting firm. Quarterly financial statements are subject to internal controls over financial reporting performed only with respect to quarterly financial statements. Consequently, these monthly financial statements may be subject to future reconciliation or adjustments to conform to generally accepted accounting principles or reporting requirements of the SEC and may not be representative of our financial position or indicative of future operating results or cash flows.


J. C. PENNEY COMPANY, INC.

(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

(In millions)    Number of
Common
Shares
     Common
Stock
     Additional
Paid-in Capital
    Reinvested
Earnings/
(Accumulated
Deficit)
    Accumulated
Other
Comprehensive
Income/(Loss)
    Total
Stockholders’
Equity
 

February 1, 2020

     320.5      $ 160      $ 4,723     $ (3,667   $ (387   $ 829  

Net income/(loss)

                         (694           (694

Discontinuance of hedge accounting

                               63       63  

Other comprehensive income/(loss)

                               2       2  

Stock-based compensation and other

     1.4        1        (2     (2           (3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

June 6, 2020

     321.9        161        4,721       (4,363     (322     197  

Net income/(loss)

                         47             47  

Stock-based compensation and other

     0.5                                  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

July 4, 2020

     322.4      $ 161      $ 4,721     $ (4,316   $ (322   $ 244  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
(In millions)    Number of
Common
Shares
     Common
Stock
     Additional
Paid-in Capital
    Reinvested
Earnings/
(Accumulated
Deficit)
    Accumulated
Other
Comprehensive
Income/(Loss)
    Total
Stockholders’
Equity
 

February 2, 2019

     316.1      $ 158      $ 4,713     $ (3,373   $ (328   $ 1,170  

ASC 842 (Leases) and ASU 2018-02 (Stranded Taxes) adoption

                         (26     53       27  

Net income/(loss)

                         (165           (165

Other comprehensive income/(loss)

                               (11     (11

Stock-based compensation and other

     1.0        1        6       (2           5  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

June 8, 2019

     317.1        159        4,719       (3,566     (286     1,026  

Net income/(loss)

                         (25           (25

Stock-based compensation and other

     0.5               1       1             2  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

July 6, 2019

     317.6      $ 159      $ 4,720     $ (3,590   $ (286   $ 1,003  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements for an interim period within a fiscal quarter, do not include certain quarterly adjustments and other important explanatory notes, and have not been audited or reviewed by any independent public accounting firm. Quarterly financial statements are subject to internal controls over financial reporting performed only with respect to quarterly financial statements. Consequently, these monthly financial statements may be subject to future reconciliation or adjustments to conform to generally accepted accounting principles or reporting requirements of the SEC and may not be representative of our financial position or indicative of future operating results or cash flows.


J. C. PENNEY COMPANY, INC.

(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Month Ended     Five Months Ended  
(In millions)    July 4,
2020
    July 6,
2019
    July 4,
2020
    July 6,
2019
 

Cash flows from operating activities:

        

Net income/(loss)

   $ 47     $ (25   $ (647   $ (190

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

        

Restructuring and management transition

                 139       15  

Net gain on sale of non-operating assets

           (1           (1

Net gain on sale of operating assets

                       3  

Discontinuance of hedge accounting

                 77        

Gain loss on extinguishment of debt

           (1           (1

Depreciation and amortization

     42       40       227       243  

Benefit plans

     (5     (4     (32     (27

Stock-based compensation

                 (3     5  

Deferred taxes

           1       (60     (2

Change in cash from:

        

Inventory

     108       65       150       104  

Prepaid expenses and other assets

     (177     (19     (303     (127

Merchandise accounts payable

     170       (63     (33     (103

Income taxes

           1       (1      

Accrued expenses and other

     99       30       34       (68
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) operating activities

     284       24       (452     (149
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Capital expenditures

     (6     (33     (39     (122

Proceeds from sale of non-operating assets

           1             1  

Proceeds from sale of operating assets

                       12  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) investing activities

     (6     (32     (39     (109
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Proceeds from debtor-in-possession financing

     225             225        

Proceeds from borrowings under the credit facility

     23       268       1,984       897  

Payments of borrowings under the credit facility

           (227     (771     (772

Payments of finance leases and note payable

                 (1     (1

Payments of long-term debt

           (15     (19     (26

Debtor-in-possession financing costs

                 (50      

Proceeds from stock issued under stock plans

           1             1  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) financing activities

     248       27       1,368       99  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase/(decrease) in cash, cash equivalents and restricted cash

     526       19       877       (159

Cash and cash equivalents at beginning of period

     737       155       386       333  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ 1,263     $ 174     $ 1,263     $ 174  
  

 

 

   

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements for an interim period within a fiscal quarter, do not include certain quarterly adjustments and other important explanatory notes, and have not been audited or reviewed by any independent public accounting firm. Quarterly financial statements are subject to internal controls over financial reporting performed only with respect to quarterly financial statements. Consequently, these monthly financial statements may be subject to future reconciliation or adjustments to conform to generally accepted accounting principles or reporting requirements of the SEC and may not be representative of our financial position or indicative of future operating results or cash flows.


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