Exhibit 99.1

J. C. PENNEY COMPANY, INC.

(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Month Ended     Seven Months Ended  
(In millions)    September 5,
2020
    September 7,
2019
    September 5,
2020
    September 7,
2019
 

Total net sales

   $ 668     $ 968     $ 3,140     $ 5,916  

Credit income and other

     26       42       209       268  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     694       1,010       3,349       6,184  

Costs and expenses/(income):

        

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

     459       678       2,191       3,893  

Selling, general and administrative (SG&A)

     201       330       1,243       2,056  

Depreciation and amortization

     77       48       373       332  

Real estate and other, net

     (1     (1     (8     (3

Restructuring and management transition

     2       5       224       32  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     738       1,060       4,023       6,310  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/(loss)

     (44     (50     (674     (126

Other components of net periodic pension cost/(income)

     (9     (5     45       (31

(Gain) / loss on extinguishment of debt

                       (1

Net interest expense

     38       27       180       174  

Loss due to discontinuance of hedge accounting

                 77        

Reorganization items, net

     38             146        
  

 

 

   

 

 

   

 

 

   

 

 

 

Income/(loss) before income taxes

     (111     (72     (1,122     (268

Income tax expense/(benefit)

     1       1       (66     7  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss)

   $ (112   $ (73   $ (1,056   $ (275
  

 

 

   

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements 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)    September 5,
2020
    September 7,
2019
    February 1,
2020
 

Assets

      

Current assets:

      

Cash in banks and in transit

   $ 219     $ 144     $ 108  

Cash short-term investments

     663       8       278  

Restricted cash

     529              
  

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash

     1,411       152       386  

Merchandise inventory

     1,805       2,514       2,166  

Prepaid expenses and other

     533       304       174  
  

 

 

   

 

 

   

 

 

 

Total current assets

     3,749       2,970       2,726  

Property and equipment, net

     3,108       3,567       3,488  

Operating lease assets

     786       920       998  

Prepaid pension

     34       169       120  

Other assets

     640       661       657  
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 8,317     $ 8,287     $ 7,989  
  

 

 

   

 

 

   

 

 

 

Liabilities and stockholders’ equity

      

Current liabilities:

      

Merchandise accounts payable

   $ 189     $ 1,033     $ 786  

Other accounts payable and accrued expenses

     829       924       931  

Current operating lease liabilities

           84       68  

Debtor-in-possession financing

     900              

Current portion of long-term debt, net

     1,256       197       147  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     3,174       2,238       1,932  

Noncurrent operating lease liabilities

           1,083       1,108  

Long-term debt

           3,591       3,574  

Deferred taxes

     40       122       116  

Other liabilities

     251       362       430  
  

 

 

   

 

 

   

 

 

 

Total liabilities not subject to compromise

     3,465       7,396       7,160  
  

 

 

   

 

 

   

 

 

 

Liabilities subject to compromise

     5,053              

Stockholders’ (deficit) equity

      

Common stock

     161       159       160  

Additional paid-in capital

     4,721       4,721       4,723  

Reinvested earnings/(accumulated deficit)

     (4,725     (3,675     (3,667

Accumulated other comprehensive income/(loss)

     (358     (314     (387
  

 

 

   

 

 

   

 

 

 

Total stockholders’ (deficit) equity

     (201     891       829  
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ (deficit) equity

   $ 8,317     $ 8,287     $ 7,989  
  

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements 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’
(Deficit)/
Equity
 

February 1, 2020

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

Net income/(loss)

                         (944           (944

Discontinuance of hedge accounting

                               64       64  

Other comprehensive income/(loss)

                               (35     (35

Stock-based compensation and other

     1.9        1        (2     (2           (3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

August 1, 2020

     322.4        161        4,721       (4,613     (358     (89

Net income/(loss)

                         (112           (112

Stock-based compensation and other

     0.3                                  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

September 5, 2020

     322.7      $ 161      $ 4,721     $ (4,725   $ (358   $ (201
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(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)

                          (202           (202

Other comprehensive income/(loss)

                                (39     (39

Stock-based compensation and other

     1.6        1        6                    7  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

August 3, 2019

     317.7        159        4,719        (3,601     (314     963  

Net income/(loss)

                          (73           (73

Stock-based compensation and other

     0.1               2        (1           1  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

September 7, 2019

     317.8      $ 159      $ 4,721      $ (3,675   $ (314   $ 891  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements 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     Seven Months Ended  
(In millions)    September 5,
2020
    September 7,
2019
    September 5,
2020
    September 7,
2019
 

Cash flows from operating activities:

        

Net income/(loss)

   $ (112   $ (73   $ (1,056   $ (275

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

        

Restructuring and management transition

           3       162       20  

Reorganization items, net

                 17        

Net (gain)/loss on sale of non-operating assets

                       (1

Net (gain)/loss on sale of operating assets

           (1           2  

Discontinuance of hedge accounting

                 77        

(Gain)/loss on extinguishment of debt

                       (1

Depreciation and amortization

     77       48       373       332  

Benefit plans

     (7     (7     56       (36

Stock-based compensation

           2       (2     8  

Deferred taxes

     2             (67      

Change in cash from:

        

Inventory

     86       (43     361       (77

Prepaid expenses and other assets

     (71     (29     (357     (111

Merchandise accounts payable

     (54     155       (101     186  

Income taxes

                        

Accrued expenses and other

     (41     (51     (28     (42
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) operating activities

     (120     4       (565     5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Capital expenditures

     (6     (29     (49     (175

Proceeds from sale of non-operating assets

                       1  

Proceeds from sale of operating assets

     2       2       3       14  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) investing activities

     (4     (27     (46     (160
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Proceeds from debtor-in-possession financing

                 450        

Proceeds from borrowings under the credit facility

     52       15       2,727       961  

Payments of borrowings under the credit facility

           (15     (1,471     (961

Payments of finance leases and note payable

                 (1     (1

Payments of long-term debt

                 (19     (26

Debtor-in-possession financing fees

                 (50      

Proceeds from stock issued under stock plans

                       1  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by/(used in) financing activities

     52             1,636       (26
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     (72     (23     1,025       (181

Cash, cash equivalents and restricted cash at beginning of period

     1,483       175       386       333  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ 1,411     $ 152     $ 1,411     $ 152  
  

 

 

   

 

 

   

 

 

   

 

 

 

Note: The financial statements presented are internal monthly financial statements 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.


LOGO


LOGO


LOGO


LOGO


LOGO


LOGO


LOGO


LOGO