J C PENNEY CO INC

CIK:0001166126|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Income Statement [Abstract]
Total net sales	$ 1,675	$ 2,384	$ 4,147	$ 7,332
Credit income and other	83	116	266	342
Total revenues	1,758	2,500	4,413	7,674
Cost of goods sold (exclusive of depreciation and amortization shown separately below)	1,178	1,541	2,909	4,756
Selling, general and administrative (SG&A)	579	854	1,621	2,580
Depreciation and amortization	167	131	462	415
Real estate and other, net	0	1	6	3
Restructuring and management transition	13	9	236	36
Total costs and expenses	1,937	2,534	5,222	7,784
Operating income/(loss)	(179)	(34)	(809)	(110)
Other components of net periodic pension cost/(income)	(10)	(13)	44	(39)
(Gain)/loss on extinguishment of debt	0	0	0	1
Net interest expense	96	73	238	220
Loss due to discontinuance of hedge accounting	0	0	(77)	0
Reorganization items, net	102	0	210	0
Income/(loss) before income taxes	(367)	(94)	(1,378)	(290)
Income tax expense/(benefit)	1	(1)	(66)	5
Net income/(loss)	$ (368)	$ (93)	$ (1,312)	$ (295)
Earnings Per Share, Basic	$ (1.13)	$ (0.29)	$ (4.04)	$ (0.92)
Earnings Per Share, Diluted	$ (1.13)	$ (0.29)	$ (4.04)	$ (0.92)
Weighted average shares – basic	325,100	320,900	324,600	319,300
Weighted average shares – diluted	325,100	320,900	324,600	319,300

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income/(loss)	$ (1,312)	$ (295)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Restructuring and management transition	163	20
Reorganization Items, Debtor-In Possession Finance Fee Adjustment	28	0
Write-off of pre-petition unamortized debt issuance costs	33
Reorganization items, net	210	0
Net (gain)/loss on sale of non-operating assets	0	(1)
Net (gain)/loss on sale of operating assets	0	2
(Gain)/loss on extinguishment of debt	0	(1)
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net	77	0
Depreciation and amortization	462	415
Benefit plans	59	(44)
Stock-based compensation	(2)	9
Deferred taxes	(67)	(5)
Change in cash from:
Inventory	259	(497)
Prepaid expenses and other	(428)	(109)
Merchandise accounts payable	(42)	258
Income taxes	(1)	3
Accrued expenses and other	6	(61)
Net cash provided by/(used in) operating activities	(798)	(306)
Cash flows from investing activities
Capital expenditures	(59)	(226)
Net proceeds from sale of non-operating assets	0	1
Net proceeds from sale of operating assets	12	14
Insurance proceeds received for damage to property and equipment	1	0
Net cash provided by/(used in) investing activities	(46)	(211)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from debtor-in-possession financing	450	0
Proceeds from borrowings under the credit facility	2,735	1,827
Payments of borrowings under the credit facility	(1,471)	(1,398)
Payments of finance leases and note payable	(1)	(2)
Payments of long-term debt	(19)	(86)
Debtor-in-possession financing fees	(50)	0
Proceeds from stock issued under stock plans	0	1
Payment, Tax Withholding, Share-based Payment Arrangement	0	(1)
Net cash provided by/(used in) financing activities	1,644	341
Net increase/(decrease) in cash, cash equivalents and restricted cash	800	(176)
Cash and cash equivalents at beginning of period	386	333
Cash, cash equivalents and restricted cash at end of period	1,186	157
Supplemental cash flow information
Income taxes received/(paid), net	(2)	(8)
Interest received/(paid), net	(233)	(230)
Supplemental non-cash investing and financing activity
Increase/(decrease) in other accounts payable related to purchases of property and equipment and software	1	(18)
Remeasurement of leased assets and lease obligations	$ (107)	$ 77

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions

Oct. 31, 2020

Feb. 01, 2020

Nov. 02, 2019

Current assets:

Cash in banks and in transit

$ 195

$ 108

$ 147

Cash short-term investments

476

278

Restricted cash

515

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total

1,186

386

157

Merchandise inventory

1,907

2,166

2,934

Prepaid expenses and other

610

174

285

Total current assets

3,703

2,726

3,376

Property and equipment (net of accumulated depreciation of $3,457, $3,268 and $3,095)

3,037

3,488

3,548

Operating lease assets

753

998

942

Prepaid pension

120

175

Other assets

625

657

658

Total Assets

8,134

7,989

8,699

Current liabilities:

Merchandise accounts payable

252

786

1,105

Other accounts payable and accrued expenses

805

931

899

Current operating lease liabilities

Debtor-in-possession financing

900

Current portion of long-term debt

1,264

147

Total current liabilities

3,221

1,932

2,229

Noncurrent operating lease liabilities

1,108

1,113

Long-term debt

3,574

4,011

Deferred taxes

116

117

Other liabilities

284

430

361

Total liabilities not subject to compromise

3,546

7,160

7,831

Liabilities subject to compromise

5,063

Stockholders’ (Deficit) Equity

Common stock (1)

161

^[1]

160

^[1]

Additional paid-in capital

4,719

4,723

4,720

Reinvested earnings/(accumulated deficit)

(4,981)

(3,667)

(3,694)

Accumulated other comprehensive income/(loss)

(374)

(387)

(318)

Total Stockholders’ (Deficit) Equity

(475)

829

868

Total Liabilities and Stockholders’ (Deficit) Equity

$ 8,134

$ 7,989

$ 8,699

[1]	1.25 billion shares of common stock are authorized with a par value of $0.50 per share. The total shares issued and outstanding were 322.8 million, 320.0 million and 320.5 million as of October 31, 2020, November 2, 2019, and February 1, 2020, respectively.