Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
3-May-14 | 30-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'J C PENNEY CO INC | ' |
Entity Central Index Key | '0001166126 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 3-May-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 304,777,527 |
Trading Symbol | 'jcp | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Income Statement [Abstract] | ' | ' |
Total net sales | $2,801 | $2,635 |
Cost of goods sold | 1,875 | 1,823 |
Gross margin | 926 | 812 |
Operating expenses/(income): | ' | ' |
Selling, general and administrative (SG&A) | 1,009 | 1,078 |
Pension | 1 | 34 |
Depreciation and amortization | 158 | 136 |
Real estate and other, net | -17 | -22 |
Restructuring and management transition | 22 | 72 |
Total operating expenses | 1,173 | 1,298 |
Operating income/(loss) | -247 | -486 |
Net interest expense | 97 | 61 |
Income/(loss) before income taxes | -344 | -547 |
Income tax expense/(benefit) | 8 | -199 |
Net income/(loss) | ($352) | ($348) |
Earnings/(loss) per share: | ' | ' |
Basic (in dollars per share) | ($1.15) | ($1.58) |
Diluted (in dollars per share) | ($1.15) | ($1.58) |
Weighted average shares – basic | 305 | 219.9 |
Weighted average shares – diluted | 305 | 219.9 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income/(loss) | ($352) | ($348) |
Other comprehensive income/(loss), net of tax: | ' | ' |
Unrealized gain/(loss) | 0 | 3 |
Reclassification for amortization of net actuarial (gain)/loss | 11 | 28 |
Reclassification for amortization of prior service (credit)/cost | -1 | -1 |
Total other comprehensive income/(loss), net of tax | 10 | 30 |
Total comprehensive income/(loss), net of tax | ($342) | ($318) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | |||
In Millions, unless otherwise specified | ||||||
Current assets: | ' | ' | ' | |||
Cash in banks and in transit | $176 | $113 | $163 | |||
Cash short-term investments | 994 | 1,402 | 658 | |||
Cash and cash equivalents | 1,170 | 1,515 | 821 | |||
Merchandise inventory | 2,835 | 2,935 | 2,798 | |||
Deferred taxes | 178 | 193 | 113 | |||
Prepaid expenses and other | 212 | 190 | 200 | |||
Total current assets | 4,395 | 4,833 | 3,932 | |||
Property and equipment (net of accumulated depreciation of $3,439, $3,104 and $3,315) | 5,510 | 5,619 | 5,690 | |||
Prepaid pension | 682 | 663 | 7 | |||
Other assets | 705 | 686 | 743 | |||
Total Assets | 11,292 | 11,801 | 10,372 | |||
Current liabilities: | ' | ' | ' | |||
Merchandise accounts payable | 841 | 948 | 1,248 | |||
Other accounts payable and accrued expenses | 1,167 | 1,198 | 1,524 | |||
Short-term borrowings | 650 | 650 | 850 | |||
Current portion of capital leases and note payable | 30 | 27 | 26 | |||
Current maturities of long-term debt | 23 | 23 | 0 | |||
Total current liabilities | 2,711 | 2,846 | 3,648 | |||
Long-term capital leases and note payable | 57 | 62 | 82 | |||
Long-term debt | 4,834 | 4,839 | 2,868 | |||
Deferred taxes | 365 | 335 | 250 | |||
Other liabilities | 572 | 632 | 658 | |||
Total Liabilities | 8,539 | 8,714 | 7,506 | |||
Stockholders’ Equity | ' | ' | ' | |||
Common stock | 152 | [1] | 152 | [1] | 110 | [1] |
Additional paid-in capital | 4,579 | 4,571 | 3,812 | |||
Reinvested earnings/(accumulated deficit) | -1,360 | -1,008 | 32 | |||
Accumulated other comprehensive income/(loss) | -618 | -628 | -1,088 | |||
Total Stockholders’ Equity | 2,753 | 3,087 | 2,866 | |||
Total Liabilities and Stockholders’ Equity | $11,292 | $11,801 | $10,372 | |||
[1] | 1,250 million shares of common stock are authorized with a par value of $0.50 per share. The total shares issued and outstanding were 304.8 million, 219.9 million and 304.6 million as of May 3, 2014, May 4, 2013 and February 1, 2014, respectively. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Accumulated depreciation | ($3,439) | ($3,315) | ($3,104) |
Common stock, shares authorized | 1,250,000,000 | 1,250,000,000 | 1,250,000,000 |
Common stock, par value per share | $0.50 | $0.50 | $0.50 |
Common stock, shares issued | 304,800,000 | 304,600,000 | 219,900,000 |
Common stock, shares outstanding | 304,800,000 | 304,600,000 | 219,900,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Cash flows from operating activities | ' | ' |
Net income/(loss) | ($352) | ($348) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' |
Restructuring and management transition | 2 | 37 |
Asset impairments and other charges | 2 | 2 |
Net gain on sale of non-operating assets | -12 | 0 |
Net gain on sale of operating assets | -1 | -16 |
Depreciation and amortization | 158 | 136 |
Benefit plans | -9 | 17 |
Stock-based compensation | 7 | 5 |
Deferred taxes | -5 | -164 |
Change in cash from: | ' | ' |
Inventory | 100 | -457 |
Prepaid expenses and other assets | -27 | 50 |
Merchandise accounts payable | -107 | 85 |
Current income taxes | 10 | 55 |
Accrued expenses and other | -37 | -154 |
Net cash provided by/(used in) operating activities | -271 | -752 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -80 | -214 |
Net proceeds from sale of non-operating assets | 15 | 0 |
Net proceeds from sale of operating assets | 2 | 18 |
Net cash provided by/(used in) investing activities | -63 | -196 |
Cash flows from financing activities | ' | ' |
Proceeds from short-term borrowings | 0 | 850 |
Payments of capital leases and note payable | -5 | -5 |
Payments of long-term debt | -5 | 0 |
Financing costs | 0 | -8 |
Proceeds from stock options exercised | 0 | 5 |
Tax withholding payments for vested restricted stock | -1 | -3 |
Net cash provided by/(used in) financing activities | -11 | 839 |
Net increase/(decrease) in cash and cash equivalents | -345 | -109 |
Cash and cash equivalents at beginning of period | 1,515 | 930 |
Cash and cash equivalents at end of period | 1,170 | 821 |
Supplemental cash flow information | ' | ' |
Income taxes received/(paid), net | -3 | 90 |
Interest received/(paid), net | -126 | -84 |
Supplemental non-cash investing and financing activity | ' | ' |
Property contributed to joint venture | 30 | 0 |
Increase/(decrease) in other accounts payable related to purchases of property and equipment | $1 | $280 |
Basis_of_Presentation_and_Cons
Basis of Presentation and Consolidation | 3 Months Ended |
3-May-14 | |
Basis of Presentation and Consolidation [Abstract] | ' |
Basis of Presentation and Consolidation | ' |
Basis of Presentation and Consolidation | |
Basis of Presentation | |
J. C. Penney Company, Inc. is a holding company whose principal operating subsidiary is J. C. Penney Corporation, Inc. (JCP). JCP was incorporated in Delaware in 1924, and J. C. Penney Company, Inc. was incorporated in Delaware in 2002, when the holding company structure was implemented. The holding company has no independent assets or operations, and no direct subsidiaries other than JCP. The holding company and its consolidated subsidiaries, including JCP, are collectively referred to in this quarterly report as “we,” “us,” “our,” “ourselves” or the “Company,” unless otherwise indicated. | |
J. C. Penney Company, Inc. is a co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. The guarantee of certain of JCP’s outstanding debt securities by J. C. Penney Company, Inc. is full and unconditional. | |
These unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying unaudited Interim Consolidated Financial Statements, in our opinion, include all material adjustments necessary for a fair presentation and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended February 1, 2014 (2013 Form 10-K). We follow substantially the same accounting policies to prepare quarterly financial statements as are followed in preparing annual financial statements. A description of such significant accounting policies is included in the 2013 Form 10-K. The February 1, 2014 financial information was derived from the audited Consolidated Financial Statements, with related footnotes, included in the 2013 Form 10-K. Because of the seasonal nature of the retail business, operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. | |
Fiscal Year | |
Our fiscal year ends on the Saturday closest to January 31. As used herein, “three months ended May 3, 2014” and “three months ended May 4, 2013” refer to the 13-week periods ended May 3, 2014 and May 4, 2013, respectively. Fiscal years 2014 and 2013 contain 52 weeks. | |
Basis of Consolidation | |
All significant intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income/(loss) in any period. | |
Use of Estimates and Assumptions | |
The preparation of unaudited Interim Consolidated Financial Statements, in conformity with GAAP, requires us to make assumptions and use estimates that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to: inventory valuation under the retail method, specifically permanent reductions to retail prices (markdowns), permanent devaluation of inventory (markdown accruals) and adjustments for shortages (shrinkage); valuation of long-lived assets and indefinite-lived intangible assets for impairments; reserves for closed stores, workers’ compensation and general liability (insurance), environmental contingencies, income taxes and litigation; and pension and other postretirement benefits accounting. Such estimates and assumptions are subject to inherent uncertainties, which may result in actual amounts differing from reported amounts. |
EarningsLoss_per_Share
Earnings/(Loss) per Share | 3 Months Ended | |||||||
3-May-14 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings/(Loss) per Share | ' | |||||||
Earnings/(Loss) per Share | ||||||||
Net income/(loss) and shares used to compute basic and diluted earnings/(loss) per share (EPS) are reconciled below: | ||||||||
Three Months Ended | ||||||||
(in millions, except per share data) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Earnings/(loss) | ||||||||
Net income/(loss) | $ | (352 | ) | $ | (348 | ) | ||
Shares | ||||||||
Weighted average common shares outstanding (basic shares) | 305 | 219.9 | ||||||
Adjustment for assumed dilution: | ||||||||
Stock options, restricted stock awards and warrant | — | — | ||||||
Weighted average shares assuming dilution (diluted shares) | 305 | 219.9 | ||||||
EPS | ||||||||
Basic | $ | (1.15 | ) | $ | (1.58 | ) | ||
Diluted | $ | (1.15 | ) | $ | (1.58 | ) | ||
The following average potential shares of common stock were excluded from the diluted EPS calculation because their effect would have been anti-dilutive: | ||||||||
Three Months Ended | ||||||||
(Shares in millions) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Stock options, restricted stock awards and warrant | 24.7 | 25.4 | ||||||
Credit_Facility
Credit Facility | 3 Months Ended |
3-May-14 | |
Credit Facility [Abstract] | ' |
Credit Facility | ' |
Credit Facility | |
On February 8, 2013, J. C. Penney Company, Inc., JCP and J. C. Penney Purchasing Corporation (Purchasing) entered into an amended and restated revolving credit agreement in the amount up to $1,850 million (2013 Credit Facility), which replaced the Company’s prior credit agreement entered into in January 2012, with largely the same syndicate of lenders under the previous agreement, with JPMorgan Chase Bank, N.A., as administrative agent. The 2013 Credit Facility matures on April 29, 2016, increases the letter of credit sublimit to $750 million and provides an accordion feature that could potentially increase the size of the facility by an additional amount not to exceed $400 million. | |
The 2013 Credit Facility is an asset-based revolving credit facility and is secured by a perfected first-priority security interest in substantially all of our eligible credit card receivables, accounts receivable and inventory. The 2013 Credit Facility is available for general corporate purposes, including the issuance of letters of credit. Pricing under the 2013 Credit Facility is tiered based on JCP’s senior unsecured long-term credit ratings issued by Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services. JCP’s obligations under the 2013 Credit Facility are guaranteed by J. C. Penney Company, Inc. | |
Availability under the 2013 Credit Facility is limited to a borrowing base which allows us to borrow up to 85% of eligible accounts receivable, plus 90% of eligible credit card receivables, plus 85% of the liquidation value of our inventory, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. In the event that availability under the 2013 Credit Facility is at any time less than the greater of (1) $125 million or (2) 10% of the lesser of the total facility or the borrowing base then in effect, for a period of at least 30 days, the Company will be subject to a fixed charge coverage ratio covenant of 1.0 to 1.0 which is calculated as of the last day of the quarter and measured on a trailing four-quarter basis. | |
As of the end of the first quarter of 2014, we had $650 million of borrowings outstanding under the 2013 Credit Facility. The borrowing bears interest at a rate of LIBOR plus 3.0%. As of the end of the first quarter of 2014, we had $501 million in standby and import letters of credit outstanding under the 2013 Credit Facility, the majority of which were standby letters of credit that support our merchandise initiatives and workers’ compensation. None of the standby or import letters of credit have been drawn on. The applicable rate for standby and import letters of credit was 3.00% and 1.50%, respectively, while the required commitment fee was 0.50% for the unused portion of the 2013 Credit Facility. As of the end of the first quarter of 2014, we had $699 million available for future borrowing, of which $514 million was accessible due to the limitation of the fixed charge coverage ratio. |
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||||||||
Fair Value Disclosures | ||||||||||||||||||||||||
In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value, as follows: | ||||||||||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||
• | Level 2 — Significant observable inputs other than quoted prices in active markets for similar assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||||
• | Level 3 — Significant unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. | |||||||||||||||||||||||
REIT Assets Measured on a Recurring Basis | ||||||||||||||||||||||||
During 2013 and 2012, we sold all of our investments in public REIT assets. The market value of our investment in public REIT assets were accounted for as available-for-sale securities and were carried at fair value on an ongoing basis in Other assets in the unaudited Interim Consolidated Balance Sheets. We determined the fair value of our investments in REITs using quoted market prices. There were no transfers in or out of any levels during any period presented. Our REIT assets measured at fair value were as follows: | ||||||||||||||||||||||||
REIT Assets at Fair Value | ||||||||||||||||||||||||
($ in millions) | Cost | Quoted Prices in Active | Significant Other | Significant | ||||||||||||||||||||
Basis | Markets of Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
May 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
May 4, 2013 | 7 | 37 | — | — | ||||||||||||||||||||
February 1, 2014 | — | — | — | — | ||||||||||||||||||||
Other Financial Instruments | ||||||||||||||||||||||||
Carrying values and fair values of financial instruments that are not carried at fair value in the unaudited Interim Consolidated Balance Sheets are as follows: | ||||||||||||||||||||||||
May 3, 2014 | May 4, 2013 | February 1, 2014 | ||||||||||||||||||||||
($ in millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||
Long-term debt, including current maturities | $ | 4,857 | $ | 4,363 | $ | 2,868 | $ | 2,670 | $ | 4,862 | $ | 4,209 | ||||||||||||
Cost investment | — | — | 36 | — | — | — | ||||||||||||||||||
The fair value of long-term debt was estimated by obtaining quotes from brokers or was based on current rates offered for similar debt. The cost investment was for equity securities that were not registered and freely tradable shares and their fair values were not readily determinable; however, we believe the carrying value approximated or was less than the fair value. | ||||||||||||||||||||||||
As of May 3, 2014, May 4, 2013 and February 1, 2014, the fair values of cash and cash equivalents, accounts payable and short-term borrowings approximated their carrying values due to the short-term nature of these instruments. In addition, the fair values of capital lease commitments and the note payable approximated their carrying values. These items have been excluded from the table above. | ||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||
We have no significant concentrations of credit risk. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||
The following table shows the change in the components of stockholders’ equity for the three months ended May 3, 2014: | ||||||||||||||||||||||||
(in millions) | Number | Common | Additional | Reinvested | Accumulated | Total | ||||||||||||||||||
of | Stock | Paid-in | Earnings/ | Other | Stockholders’ | |||||||||||||||||||
Common | Capital | (Accumulated | Comprehensive | Equity | ||||||||||||||||||||
Shares | Deficit) | Income/(Loss) | ||||||||||||||||||||||
February 1, 2014 | 304.6 | $ | 152 | $ | 4,571 | $ | (1,008 | ) | $ | (628 | ) | $ | 3,087 | |||||||||||
Net income/(loss) | — | — | — | (352 | ) | — | (352 | ) | ||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | 10 | 10 | ||||||||||||||||||
Stock-based compensation | 0.2 | — | 8 | — | — | 8 | ||||||||||||||||||
May 3, 2014 | 304.8 | $ | 152 | $ | 4,579 | $ | (1,360 | ) | $ | (618 | ) | $ | 2,753 | |||||||||||
Comprehensive Income | ||||||||||||||||||||||||
The tax effects allocated to each component of other comprehensive income/(loss) are as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
May 3, 2014 | May 4, 2013 | |||||||||||||||||||||||
($ in millions) | Gross | Income | Net | Gross | Income | Net | ||||||||||||||||||
Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||||
(Expense)/ | (Expense)/ | |||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||
REITs | ||||||||||||||||||||||||
Unrealized gain/(loss) | $ | — | $ | — | $ | — | $ | 4 | $ | (1 | ) | $ | 3 | |||||||||||
Retirement benefit plans | ||||||||||||||||||||||||
Reclassification for amortization of net actuarial (gain)/loss | 17 | (6 | ) | 11 | 44 | (16 | ) | 28 | ||||||||||||||||
Reclassification for amortization of prior service (credit)/cost | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | ||||||||||||||
Total | $ | 16 | $ | (6 | ) | $ | 10 | $ | 47 | $ | (17 | ) | $ | 30 | ||||||||||
The following table shows the changes in accumulated other comprehensive income/(loss) balances for the three months ended May 3, 2014: | ||||||||||||||||||||||||
($ in millions) | Net Actuarial | Prior Service | Accumulated | |||||||||||||||||||||
Gain/(Loss) | Credit/(Cost) | Other | ||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||
Income/(Loss) | ||||||||||||||||||||||||
February 1, 2014 | $ | (609 | ) | $ | (19 | ) | $ | (628 | ) | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | — | — | — | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 11 | (1 | ) | 10 | ||||||||||||||||||||
Net current-period other comprehensive income | 11 | (1 | ) | 10 | ||||||||||||||||||||
May 3, 2014 | $ | (598 | ) | $ | (20 | ) | $ | (618 | ) | |||||||||||||||
Reclassifications out of accumulated other comprehensive income/(loss) are as follows: | ||||||||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) | Line Item in the | |||||||||||||||||||||||
Three Months Ended | Unaudited Interim Consolidated | |||||||||||||||||||||||
($ in millions) | May 3, | May 4, | Statements of Operations | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Amortization of retirement benefit plans | ||||||||||||||||||||||||
Actuarial loss/(gain)(1) | 17 | 44 | Pension | |||||||||||||||||||||
Prior service cost/(credit)(1) | 1 | 1 | Pension | |||||||||||||||||||||
Prior service cost/(credit)(1) | (2 | ) | (2 | ) | SG&A | |||||||||||||||||||
Tax (expense)/benefit | (6 | ) | (16 | ) | Income tax expense/(benefit) | |||||||||||||||||||
Total, net of tax | 10 | 27 | ||||||||||||||||||||||
Total reclassifications | $ | 10 | $ | 27 | ||||||||||||||||||||
-1 | These accumulated other comprehensive components are included in the computation of net periodic benefits expense/(income). See Note 7 for additional details. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||||||||
3-May-14 | ||||||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
We grant stock-based compensation awards to employees and non-employee directors under our equity compensation plan. On May 18, 2012, our stockholders approved the J. C. Penney Company, Inc. 2012 Long-Term Incentive Plan (2012 Plan), reserving 7 million shares for future grants (1.5 million newly authorized shares plus up to 5.5 million reserved but unissued shares from our prior 2009 Long-Term Incentive Plan (2009 Plan)). In addition, shares underlying any outstanding stock award or stock option grant canceled prior to vesting or exercise become available for use under the 2012 Plan. The 2009 Plan terminated on May 18, 2012, except for outstanding awards, and all subsequent awards have been granted under the 2012 Plan. As of May 3, 2014, there were approximately 3.1 million shares of stock available for future grant under the 2012 Plan. | ||||||||||||||||||
On May 16, 2014, our stockholders approved the J. C. Penney Company, Inc. 2014 Long-Term Incentive Plan (2014 Plan), which has a fungible share design in which each stock option will count as one share issued and each stock award will count as two shares issued. The 2014 Plan reserves 16 million shares or 32 million options for future grants. | ||||||||||||||||||
Stock-based compensation expense for the three months ended May 3, 2014 and May 4, 2013 was $10 million and $14 million, respectively. During the first quarter of 2014, the Company granted the following stock-based compensation awards: | ||||||||||||||||||
Restricted Stock Units (RSU) | Stock Options | Weighted Average Grant Date Fair Value | ||||||||||||||||
Grant Date | Time-based | Performance-based | Performance-based | Weighted Average Exercise Price | ||||||||||||||
3-Mar-14 | 25,000 | — | — | $ | — | $ | 7.96 | |||||||||||
20-Mar-14 | 2,328,000 | 329,000 | 2,322,000 | 8.36 | 6.09 | |||||||||||||
27-Mar-14 | 84,000 | — | 185,000 | 8.97 | 5.59 | |||||||||||||
Total | 2,437,000 | 329,000 | 2,507,000 | 8.41 | 6.07 | |||||||||||||
Performance-based stock options and awards that ultimately vest are dependent on market performance targets measured by either the performance of the Company’s common stock (market condition) or on the achievement of a 2014 internal profitability target (performance condition). | ||||||||||||||||||
In addition, on March 20, 2014, we granted approximately 2.3 million phantom units as part of our management incentive compensation plan, which are similar to RSUs in that the number of units granted was based on the price of our stock, but the units will be settled in cash based on the value of our stock on the vesting date, limited to $16.72 per phantom unit. The fair value of the awards is remeasured at each reporting period and was $8.58 per share as of May 3, 2014. Compensation expense, which is variable, is recognized over the vesting period with a corresponding liability, which is recorded in Other accounts payable and accrued expenses in our unaudited Interim Consolidated Balance Sheets. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 3 Months Ended | |||||||
3-May-14 | ||||||||
Retirement Benefit Plans [Abstract] | ' | |||||||
Retirement Benefit Plans | ' | |||||||
Retirement Benefit Plans | ||||||||
The components of net periodic benefit expense/(income) for our non-contributory qualified defined benefit pension plan (Primary Pension Plan), non-contributory supplemental pension plans and contributory postretirement health and welfare plan were as follows: | ||||||||
Three Months Ended | ||||||||
($ in millions) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Primary Pension Plan | ||||||||
Service cost | $ | 15 | $ | 20 | ||||
Interest cost | 53 | 51 | ||||||
Expected return on plan assets | (87 | ) | (85 | ) | ||||
Amortization of actuarial loss/(gain) | 13 | 38 | ||||||
Amortization of prior service cost/(credit) | 1 | 1 | ||||||
Net periodic benefit expense/(income) | $ | (5 | ) | $ | 25 | |||
Supplemental Pension Plans | ||||||||
Service cost | $ | — | $ | — | ||||
Interest cost | 2 | 3 | ||||||
Amortization of actuarial loss/(gain) | 4 | 6 | ||||||
Amortization of prior service cost/(credit) | — | — | ||||||
Net periodic benefit expense/(income) | $ | 6 | $ | 9 | ||||
Primary and Supplemental Pension Plans Total | ||||||||
Service cost | $ | 15 | $ | 20 | ||||
Interest cost | 55 | 54 | ||||||
Expected return on plan assets | (87 | ) | (85 | ) | ||||
Amortization of actuarial loss/(gain) | 17 | 44 | ||||||
Amortization of prior service cost/(credit) | 1 | 1 | ||||||
Net periodic benefit expense/(income) | $ | 1 | $ | 34 | ||||
Postretirement Health and Welfare Plan | ||||||||
Service cost | $ | — | $ | — | ||||
Interest cost | — | — | ||||||
Amortization of actuarial loss/(gain) | — | — | ||||||
Amortization of prior service cost/(credit) | (2 | ) | (2 | ) | ||||
Net periodic benefit expense/(income) | $ | (2 | ) | $ | (2 | ) | ||
Retirement Benefit Plans Total | ||||||||
Service cost | $ | 15 | $ | 20 | ||||
Interest cost | 55 | 54 | ||||||
Expected return on plan assets | (87 | ) | (85 | ) | ||||
Amortization of actuarial loss/(gain) | 17 | 44 | ||||||
Amortization of prior service cost/(credit) | (1 | ) | (1 | ) | ||||
Net periodic benefit expense/(income) | $ | (1 | ) | $ | 32 | |||
Net periodic benefit expense/(income) for our noncontributory postretirement health and welfare plan was predominantly included in SG&A expense in the unaudited Interim Consolidated Statements of Operations. | ||||||||
Defined Contribution Plans | ||||||||
Our defined contribution plans include a qualified Savings, Profit-Sharing and Stock Ownership Plan (401(k) plan), which includes a non-contributory retirement account, and a non-qualified contributory unfunded mirror savings plan offered to certain members of management. Total expense for our defined contribution plans for the first quarters of 2014 and 2013 was $13 million and $14 million, respectively, and was predominantly included in SG&A expenses in the unaudited Interim Consolidated Statements of Operations. |
Restructuring_and_Management_T
Restructuring and Management Transition | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Management Transition | ' | |||||||||||||||
Restructuring and Management Transition | ||||||||||||||||
The composition of restructuring and management transition charges was as follows: | ||||||||||||||||
Three Months Ended | Cumulative | |||||||||||||||
Amount Through | ||||||||||||||||
($ in millions) | May 3, | May 4, | May 3, 2014 | |||||||||||||
2014 | 2013 | |||||||||||||||
Home office and stores | $ | 12 | $ | 28 | $ | 214 | ||||||||||
Store fixtures | — | 28 | 133 | |||||||||||||
Management transition | 7 | 16 | 215 | |||||||||||||
Other | 3 | — | 126 | |||||||||||||
Total | $ | 22 | $ | 72 | $ | 688 | ||||||||||
Home office and stores | ||||||||||||||||
During the three months ended May 3, 2014 and May 4, 2013, we recorded $12 million and $28 million, respectively, of charges for actions taken to reduce our store and home office expenses. In January 2014, we announced the closing of 33 department stores as part of our turnaround efforts. During the first quarter of 2014, we incurred charges of $12 million for employee termination benefits and lease termination costs associated with the closure of 31 of those stores. We expect to close the remaining two stores during the second and third quarters of 2014. The $28 million of charges in the first quarter of 2013 were associated with employee termination benefits. | ||||||||||||||||
Store fixtures | ||||||||||||||||
During the three months ended May 4, 2013, we recorded $9 million of charges for the impairment of certain store fixtures related to our former shops strategy that were used in our prototype department store, $6 million of charges for the write off of store fixtures related to the renovations in our home department and $13 million of increased depreciation as a result of shortening the useful lives of fixtures in our department stores that were replaced during 2013. | ||||||||||||||||
Management transition | ||||||||||||||||
During the three months ended May 3, 2014 and May 4, 2013, we implemented several changes within our management leadership team that resulted in management transition costs of $7 million and $16 million, respectively, for both incoming and outgoing members of management. | ||||||||||||||||
Other | ||||||||||||||||
During the three months ended May 3, 2014, we recorded $3 million of restructuring charges primarily related to contract termination costs associated with our former shops strategy. | ||||||||||||||||
Activity for the restructuring and management transition liability for the three months ended May 3, 2014 was as follows: | ||||||||||||||||
($ in millions) | Home Office | Management | Other | Total | ||||||||||||
and Stores | Transition | |||||||||||||||
February 1, 2014 | $ | — | $ | 3 | $ | 30 | $ | 33 | ||||||||
Charges | 12 | 7 | 3 | 22 | ||||||||||||
Cash payments | — | (7 | ) | (17 | ) | (24 | ) | |||||||||
Non-cash | — | (2 | ) | — | (2 | ) | ||||||||||
May 3, 2014 | $ | 12 | $ | 1 | $ | 16 | $ | 29 | ||||||||
The non-cash amount represents charges for stock-based compensation expense in conjunction with accelerated vesting related to terminations that did not result in cash expenditures. |
Real_Estate_and_Other_Net
Real Estate and Other, Net | 3 Months Ended |
3-May-14 | |
Real Estate and Other, Net [Abstract] | ' |
Real Estate and Other, Net | ' |
Real Estate and Other, Net | |
Real estate and other consists of ongoing operating income from our real estate subsidiaries. Real estate and other also includes net gains from the sale of facilities and equipment that are no longer used in operations, asset impairments and other non-operating charges and credits. In addition, during the first quarter of 2014, we entered into a joint venture agreement in which we contributed approximately 220 acres of excess property adjacent to our home office facility in Plano, Texas. The new joint venture was formed to develop the contributed property and our proportional share of the joint ventures activities will be recorded in Real estate and other, net. For the three months ended May 3, 2014 and May 4, 2013, real estate and other, net was income of $17 million and $22 million, respectively, and was comprised primarily of sales of non-operating and operating assets as detailed below. | |
Non-Operating Assets | |
During the first quarter of 2014, we sold four properties used in our former auto center operations and excess property adjacent to our home office facility not contributed to the new joint venture for net proceeds of $15 million, resulting in net gains totaling $12 million. | |
Operating Assets | |
During the first quarter of 2014, we sold a former department store location with a net book value of $1 million for net proceeds of $2 million, realizing a gain of $1 million. During the first quarter of 2013, we sold our leasehold interest in a former department store location with a net book value of $2 million for net proceeds of $18 million, realizing a gain of $16 million. |
Income_Taxes
Income Taxes | 3 Months Ended |
3-May-14 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Income taxes for the three months ended May 3, 2014 was an expense of $8 million compared to a benefit of $199 million for the three months ended May 4, 2013. The effective tax rate for the three months ended May 3, 2014 was 2.3% as compared to (36.4)% for the three months ended May 4, 2013. Our effective tax rate for the three months ended May 3, 2014 was impacted by a net increase to the tax valuation allowance for deferred tax assets of $120 million. | |
In assessing the need for the valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets. As a result of our assessment, we concluded that, beginning in the second quarter of 2013, our estimate of the realization of deferred tax assets would be based solely on the future reversals of existing taxable temporary differences and tax planning strategies that we would make use of to accelerate taxable income to utilize expiring carryforwards. Accordingly, in the first quarter of 2014, the valuation allowance was increased to offset the net deferred tax assets created in the quarter relating primarily to the increase in net operating loss (NOL) carryforwards. A valuation allowance of $424 million has been recorded against our deferred tax assets as of May 3, 2014, which resulted in an increase to the valuation allowance during the quarter ended May 3, 2014 of $120 million. | |
The net tax expense of $8 million for the three months ended May 3, 2014 consists of a federal audit adjustment of $12 million, state and foreign tax expenses of $2 million and $2 million of expense related to the deferred tax asset change arising from the tax amortization of indefinite-lived intangible assets, offset by a $6 million non-cash benefit relating to other comprehensive income and a $2 million benefit on settlement of certain state audits. In accordance with accounting standards, we are required to allocate a portion of our tax provision between operating losses and accumulated other comprehensive income. Application of this guidance required the recognition of a non-cash income tax benefit of $6 million in operating results, offset by a $6 million charge to other comprehensive income for the quarter. | |
As of May 3, 2014, we have approximately $2.4 billion of net operating losses available for U.S. federal income tax purposes, which expire in 2032 through 2034 and $45 million of tax credit carryforwards that expire at various dates through 2034. For these NOL and tax credit carryforwards a net deferred tax asset of $545 million has been recorded, net of a valuation allowance of $282 million. A net deferred tax asset of $29 million, net of a valuation allowance of $142 million, has been recorded for state NOL carryforwards that expire at various dates through 2034. |
Litigation_Other_Contingencies
Litigation, Other Contingencies and Guarantees | 3 Months Ended |
3-May-14 | |
Litigation, Other Contingencies and Guarantees [Abstract] | ' |
Litigation, Other Contingencies and Guarantees | ' |
Litigation, Other Contingencies and Guarantees | |
Litigation | |
Macy’s Litigation | |
On August 16, 2012, Macy’s, Inc. and Macy’s Merchandising Group, Inc. (together the Plaintiffs) filed suit against J. C. Penney Corporation, Inc. in the Supreme Court of the State of New York, County of New York, alleging that the Company tortiously interfered with, and engaged in unfair competition relating to a 2006 agreement between Macy’s and Martha Stewart Living Omnimedia, Inc. (MSLO) by entering into a partnership agreement with MSLO in December 2011. The Plaintiffs seek primarily to prevent the Company from implementing our partnership agreement with MSLO as it relates to products in the bedding, bath, kitchen and cookware categories. The suit was consolidated with an already-existing breach of contract lawsuit by the Plaintiffs against MSLO, and a bench trial commenced on February 20, 2013. On March 7, 2013, the judge adjourned the trial until April 8, 2013, and ordered the parties into mediation. The parties did not reach a settlement, and the trial continued on April 8, 2013. The parties concluded their presentations of evidence on April 26, 2013, and completed post-trial briefs in late May, 2013. The court held closing arguments on August 1, 2013. The court has not yet issued a final decision in the case. On October 21, 2013, the Company and MSLO entered into an amendment of the partnership agreement, providing in part that the Company will not sell MSLO-designed merchandise in the bedding, bath, kitchen and cookware categories. On January 2, 2014, MSLO and Macy's announced that they had settled the case as to each other, and MSLO was subsequently dismissed as a defendant. While no assurance can be given as to the ultimate outcome of this matter, we currently believe that the final resolution of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources. | |
Other Legal Proceedings | |
We are subject to various other legal and governmental proceedings involving routine litigation incidental to our business. Reserves have been established based on our best estimates of our potential liability in certain of these matters. These estimates were developed in consultation with in-house and outside counsel. While no assurance can be given as to the ultimate outcome of these matters, management currently believes that the final resolution of these actions, individually or in the aggregate, will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources. | |
Contingencies | |
As of May 3, 2014, we estimated our total potential environmental liabilities to range from $17 million to $24 million and recorded our best estimate of $19 million in Other accounts payable and accrued expenses and Other liabilities in the unaudited Interim Consolidated Balance Sheet as of that date. This estimate covered potential liabilities primarily related to underground storage tanks, remediation of environmental conditions involving our former drugstore locations and asbestos removal in connection with approved plans to renovate or dispose of our facilities. We continue to assess required remediation and the adequacy of environmental reserves as new information becomes available and known conditions are further delineated. If we were to incur losses at the upper end of the estimated range, we do not believe that such losses would have a material adverse effect on our results of operations, financial position, liquidity or capital resources. | |
Guarantees | |
As of May 3, 2014, we had a guarantee totaling $20 million for the maximum exposure on insurance reserves established by a former subsidiary included in the sale of our Direct Marketing Services business. | |
In addition, in connection with the sale of the operations of our catalog outlet stores, we assigned leases on certain outlet store locations to the purchaser. In the event that the purchaser fails to make the required lease payments, we continue for a period of time to be liable for lease payments to the landlords of several of the leased stores. The purchaser's obligations under the lease are guaranteed to us by certain principals and affiliates of the purchaser. However, the purchaser has elected to exit the outlet business and is attempting to terminate the leases with the landlords. Consequently, we expect that our continuing obligations under each lease will be extinguished in connection with each termination. As of May 3, 2014, our maximum liability in connection with the assigned leases was $6 million. |
Effect_of_New_Accounting_Stand
Effect of New Accounting Standards | 3 Months Ended |
3-May-14 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Effect of New Accounting Standards | ' |
Effect of New Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification (ASC) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a Company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for us beginning in fiscal 2017 and can be adopted by the Company either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the effect that adopting this new accounting guidance will have on our consolidated results of operations, cash flows and financial position. | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, an amendment to FASB Accounting Standards Codification (ASC) Topic 205, Presentation of Financial Statements, and FASB ASC Topic 360, Property, Plant and Equipment. The update revises the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity's operations and financial results, removing the lack of continuing involvement criteria and requiring discontinued operations reporting for the disposal of an equity method investment that meets the definition of discontinued operations. The update also requires expanded disclosures for discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. This ASU is effective for us prospectively beginning in fiscal 2015, with early adoption permitted. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward or Tax Credit Carryforward Exists. This update provides that an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of this update were effective February 2, 2014 for the Company and were applied prospectively. The implementation of this guidance resulted in a reclassification of $45 million between Deferred taxes and Other liabilities and did not have a significant impact on the Company's results of operations, cash flows, financial position, or disclosures. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
3-May-14 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Subsequent Event | |
On May 14, 2014, JCP entered into a commitment letter (Commitment Letter) with Wells Fargo Securities, LLC, Wells Fargo Bank, National Association, Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, JPMorgan Chase Bank, N.A., Barclays Bank PLC and Goldman Sachs Bank USA (collectively, the Commitment Parties), under which the Commitment Parties have committed, subject to the terms and conditions set forth in the Commitment Letter, to provide JCP with a $2.35 billion senior secured asset-based revolving credit and term loan facility (2014 Credit Facility). The 2014 Credit Facility will replace the 2013 Credit Facility and is expected to mature five years from the closing date. As with the 2013 Credit Facility, borrowing availability under the 2014 Credit Facility will vary according to levels of inventory, credit card receivables and accounts receivable. The 2014 Credit Facility will be secured by collateral substantially similar to the 2013 Credit Facility. | |
All borrowings under the 2014 Credit Facility will accrue interest at a rate equal to, at the Company’s option, a base rate or an adjusted LIBOR rate plus a spread. The proceeds of the 2014 Credit Facility will be used (a) to repay or refinance all or a portion of the outstanding borrowings under the 2013 Credit Facility, (b) to pay costs, expenses and fees in connection with the 2014 Credit Facility and other related transactions, and (c) for working capital and general corporate purposes. The 2014 Credit Facility will be guaranteed by J. C. Penney Company, Inc., JCP, Purchasing and certain of JCP’s subsidiaries. | |
The commitment by the Commitment Parties to provide the 2014 Credit Facility is subject to, among other things, execution of a definitive loan agreement and other loan documentation and the satisfaction of other customary conditions precedent for financings of this type. |
Basis_of_Presentation_and_Cons1
Basis of Presentation and Consolidation (Policy) | 3 Months Ended |
3-May-14 | |
Basis of Presentation and Consolidation [Abstract] | ' |
Consolidation, Policy | ' |
J. C. Penney Company, Inc. is a holding company whose principal operating subsidiary is J. C. Penney Corporation, Inc. (JCP). JCP was incorporated in Delaware in 1924, and J. C. Penney Company, Inc. was incorporated in Delaware in 2002, when the holding company structure was implemented. The holding company has no independent assets or operations, and no direct subsidiaries other than JCP. The holding company and its consolidated subsidiaries, including JCP, are collectively referred to in this quarterly report as “we,” “us,” “our,” “ourselves” or the “Company,” unless otherwise indicated. | |
J. C. Penney Company, Inc. is a co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. The guarantee of certain of JCP’s outstanding debt securities by J. C. Penney Company, Inc. is full and unconditional. | |
These unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying unaudited Interim Consolidated Financial Statements, in our opinion, include all material adjustments necessary for a fair presentation and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended February 1, 2014 (2013 Form 10-K). We follow substantially the same accounting policies to prepare quarterly financial statements as are followed in preparing annual financial statements. A description of such significant accounting policies is included in the 2013 Form 10-K. The February 1, 2014 financial information was derived from the audited Consolidated Financial Statements, with related footnotes, included in the 2013 Form 10-K. Because of the seasonal nature of the retail business, operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. | |
Fiscal Period, Policy | ' |
Our fiscal year ends on the Saturday closest to January 31. As used herein, “three months ended May 3, 2014” and “three months ended May 4, 2013” refer to the 13-week periods ended May 3, 2014 and May 4, 2013, respectively. Fiscal years 2014 and 2013 contain 52 weeks | |
Reclassification, Policy | ' |
Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income/(loss) in any period. | |
Use of Estimates, Policy | ' |
The preparation of unaudited Interim Consolidated Financial Statements, in conformity with GAAP, requires us to make assumptions and use estimates that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. |
EarningsLoss_per_Share_Tables
Earnings/(Loss) per Share (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings/(Loss) per Share | ' | |||||||
Net income/(loss) and shares used to compute basic and diluted earnings/(loss) per share (EPS) are reconciled below: | ||||||||
Three Months Ended | ||||||||
(in millions, except per share data) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Earnings/(loss) | ||||||||
Net income/(loss) | $ | (352 | ) | $ | (348 | ) | ||
Shares | ||||||||
Weighted average common shares outstanding (basic shares) | 305 | 219.9 | ||||||
Adjustment for assumed dilution: | ||||||||
Stock options, restricted stock awards and warrant | — | — | ||||||
Weighted average shares assuming dilution (diluted shares) | 305 | 219.9 | ||||||
EPS | ||||||||
Basic | $ | (1.15 | ) | $ | (1.58 | ) | ||
Diluted | $ | (1.15 | ) | $ | (1.58 | ) | ||
Antidilutive common stock | ' | |||||||
The following average potential shares of common stock were excluded from the diluted EPS calculation because their effect would have been anti-dilutive: | ||||||||
Three Months Ended | ||||||||
(Shares in millions) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Stock options, restricted stock awards and warrant | 24.7 | 25.4 | ||||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||
Fair Value of REIT Assets, Measured on Recurring Basis | ' | |||||||||||||||||||||||
Our REIT assets measured at fair value were as follows: | ||||||||||||||||||||||||
REIT Assets at Fair Value | ||||||||||||||||||||||||
($ in millions) | Cost | Quoted Prices in Active | Significant Other | Significant | ||||||||||||||||||||
Basis | Markets of Identical Assets | Observable Inputs | Unobservable Inputs | |||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
May 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
May 4, 2013 | 7 | 37 | — | — | ||||||||||||||||||||
February 1, 2014 | — | — | — | — | ||||||||||||||||||||
Financial Instruments Not Carried at Fair Value, Carrying Value and Fair Value | ' | |||||||||||||||||||||||
Carrying values and fair values of financial instruments that are not carried at fair value in the unaudited Interim Consolidated Balance Sheets are as follows: | ||||||||||||||||||||||||
May 3, 2014 | May 4, 2013 | February 1, 2014 | ||||||||||||||||||||||
($ in millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | ||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||
Long-term debt, including current maturities | $ | 4,857 | $ | 4,363 | $ | 2,868 | $ | 2,670 | $ | 4,862 | $ | 4,209 | ||||||||||||
Cost investment | — | — | 36 | — | — | — | ||||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||||||
3-May-14 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||||||
Schedule of Components in Stockholders' Equity | ' | |||||||||||||||||||||||
The following table shows the change in the components of stockholders’ equity for the three months ended May 3, 2014: | ||||||||||||||||||||||||
(in millions) | Number | Common | Additional | Reinvested | Accumulated | Total | ||||||||||||||||||
of | Stock | Paid-in | Earnings/ | Other | Stockholders’ | |||||||||||||||||||
Common | Capital | (Accumulated | Comprehensive | Equity | ||||||||||||||||||||
Shares | Deficit) | Income/(Loss) | ||||||||||||||||||||||
February 1, 2014 | 304.6 | $ | 152 | $ | 4,571 | $ | (1,008 | ) | $ | (628 | ) | $ | 3,087 | |||||||||||
Net income/(loss) | — | — | — | (352 | ) | — | (352 | ) | ||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | 10 | 10 | ||||||||||||||||||
Stock-based compensation | 0.2 | — | 8 | — | — | 8 | ||||||||||||||||||
May 3, 2014 | 304.8 | $ | 152 | $ | 4,579 | $ | (1,360 | ) | $ | (618 | ) | $ | 2,753 | |||||||||||
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The tax effects allocated to each component of other comprehensive income/(loss) are as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
May 3, 2014 | May 4, 2013 | |||||||||||||||||||||||
($ in millions) | Gross | Income | Net | Gross | Income | Net | ||||||||||||||||||
Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||||
(Expense)/ | (Expense)/ | |||||||||||||||||||||||
Benefit | Benefit | |||||||||||||||||||||||
REITs | ||||||||||||||||||||||||
Unrealized gain/(loss) | $ | — | $ | — | $ | — | $ | 4 | $ | (1 | ) | $ | 3 | |||||||||||
Retirement benefit plans | ||||||||||||||||||||||||
Reclassification for amortization of net actuarial (gain)/loss | 17 | (6 | ) | 11 | 44 | (16 | ) | 28 | ||||||||||||||||
Reclassification for amortization of prior service (credit)/cost | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | ||||||||||||||
Total | $ | 16 | $ | (6 | ) | $ | 10 | $ | 47 | $ | (17 | ) | $ | 30 | ||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The following table shows the changes in accumulated other comprehensive income/(loss) balances for the three months ended May 3, 2014: | ||||||||||||||||||||||||
($ in millions) | Net Actuarial | Prior Service | Accumulated | |||||||||||||||||||||
Gain/(Loss) | Credit/(Cost) | Other | ||||||||||||||||||||||
Comprehensive | ||||||||||||||||||||||||
Income/(Loss) | ||||||||||||||||||||||||
February 1, 2014 | $ | (609 | ) | $ | (19 | ) | $ | (628 | ) | |||||||||||||||
Other comprehensive income/(loss) before reclassifications | — | — | — | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 11 | (1 | ) | 10 | ||||||||||||||||||||
Net current-period other comprehensive income | 11 | (1 | ) | 10 | ||||||||||||||||||||
May 3, 2014 | $ | (598 | ) | $ | (20 | ) | $ | (618 | ) | |||||||||||||||
Schedule Of Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Reclassifications out of accumulated other comprehensive income/(loss) are as follows: | ||||||||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) | Line Item in the | |||||||||||||||||||||||
Three Months Ended | Unaudited Interim Consolidated | |||||||||||||||||||||||
($ in millions) | May 3, | May 4, | Statements of Operations | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Amortization of retirement benefit plans | ||||||||||||||||||||||||
Actuarial loss/(gain)(1) | 17 | 44 | Pension | |||||||||||||||||||||
Prior service cost/(credit)(1) | 1 | 1 | Pension | |||||||||||||||||||||
Prior service cost/(credit)(1) | (2 | ) | (2 | ) | SG&A | |||||||||||||||||||
Tax (expense)/benefit | (6 | ) | (16 | ) | Income tax expense/(benefit) | |||||||||||||||||||
Total, net of tax | 10 | 27 | ||||||||||||||||||||||
Total reclassifications | $ | 10 | $ | 27 | ||||||||||||||||||||
-1 | These accumulated other comprehensive components are included in the computation of net periodic benefits expense/(income). See Note 7 for additional details. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||||||
3-May-14 | ||||||||||||||||||
Share-based Compensation [Abstract] | ' | |||||||||||||||||
Schedule of Share-based Compensation Awards Granted | ' | |||||||||||||||||
During the first quarter of 2014, the Company granted the following stock-based compensation awards: | ||||||||||||||||||
Restricted Stock Units (RSU) | Stock Options | Weighted Average Grant Date Fair Value | ||||||||||||||||
Grant Date | Time-based | Performance-based | Performance-based | Weighted Average Exercise Price | ||||||||||||||
3-Mar-14 | 25,000 | — | — | $ | — | $ | 7.96 | |||||||||||
20-Mar-14 | 2,328,000 | 329,000 | 2,322,000 | 8.36 | 6.09 | |||||||||||||
27-Mar-14 | 84,000 | — | 185,000 | 8.97 | 5.59 | |||||||||||||
Total | 2,437,000 | 329,000 | 2,507,000 | 8.41 | 6.07 | |||||||||||||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 3 Months Ended | |||||||
3-May-14 | ||||||||
Retirement Benefit Plans [Abstract] | ' | |||||||
Schedule of Pension Plan Expense/(Income) | ' | |||||||
The components of net periodic benefit expense/(income) for our non-contributory qualified defined benefit pension plan (Primary Pension Plan), non-contributory supplemental pension plans and contributory postretirement health and welfare plan were as follows: | ||||||||
Three Months Ended | ||||||||
($ in millions) | May 3, | May 4, | ||||||
2014 | 2013 | |||||||
Primary Pension Plan | ||||||||
Service cost | $ | 15 | $ | 20 | ||||
Interest cost | 53 | 51 | ||||||
Expected return on plan assets | (87 | ) | (85 | ) | ||||
Amortization of actuarial loss/(gain) | 13 | 38 | ||||||
Amortization of prior service cost/(credit) | 1 | 1 | ||||||
Net periodic benefit expense/(income) | $ | (5 | ) | $ | 25 | |||
Supplemental Pension Plans | ||||||||
Service cost | $ | — | $ | — | ||||
Interest cost | 2 | 3 | ||||||
Amortization of actuarial loss/(gain) | 4 | 6 | ||||||
Amortization of prior service cost/(credit) | — | — | ||||||
Net periodic benefit expense/(income) | $ | 6 | $ | 9 | ||||
Primary and Supplemental Pension Plans Total | ||||||||
Service cost | $ | 15 | $ | 20 | ||||
Interest cost | 55 | 54 | ||||||
Expected return on plan assets | (87 | ) | (85 | ) | ||||
Amortization of actuarial loss/(gain) | 17 | 44 | ||||||
Amortization of prior service cost/(credit) | 1 | 1 | ||||||
Net periodic benefit expense/(income) | $ | 1 | $ | 34 | ||||
Postretirement Health and Welfare Plan | ||||||||
Service cost | $ | — | $ | — | ||||
Interest cost | — | — | ||||||
Amortization of actuarial loss/(gain) | — | — | ||||||
Amortization of prior service cost/(credit) | (2 | ) | (2 | ) | ||||
Net periodic benefit expense/(income) | $ | (2 | ) | $ | (2 | ) | ||
Retirement Benefit Plans Total | ||||||||
Service cost | $ | 15 | $ | 20 | ||||
Interest cost | 55 | 54 | ||||||
Expected return on plan assets | (87 | ) | (85 | ) | ||||
Amortization of actuarial loss/(gain) | 17 | 44 | ||||||
Amortization of prior service cost/(credit) | (1 | ) | (1 | ) | ||||
Net periodic benefit expense/(income) | $ | (1 | ) | $ | 32 | |||
Restructuring_and_Management_T1
Restructuring and Management Transition Charges (Tables) | 3 Months Ended | |||||||||||||||
3-May-14 | ||||||||||||||||
Restructuring Reserve [Abstract] | ' | |||||||||||||||
Composition of Restructuring and Management Transition Charges | ' | |||||||||||||||
The composition of restructuring and management transition charges was as follows: | ||||||||||||||||
Three Months Ended | Cumulative | |||||||||||||||
Amount Through | ||||||||||||||||
($ in millions) | May 3, | May 4, | May 3, 2014 | |||||||||||||
2014 | 2013 | |||||||||||||||
Home office and stores | $ | 12 | $ | 28 | $ | 214 | ||||||||||
Store fixtures | — | 28 | 133 | |||||||||||||
Management transition | 7 | 16 | 215 | |||||||||||||
Other | 3 | — | 126 | |||||||||||||
Total | $ | 22 | $ | 72 | $ | 688 | ||||||||||
Restructuring and Management Transition Charges | ' | |||||||||||||||
Activity for the restructuring and management transition liability for the three months ended May 3, 2014 was as follows: | ||||||||||||||||
($ in millions) | Home Office | Management | Other | Total | ||||||||||||
and Stores | Transition | |||||||||||||||
February 1, 2014 | $ | — | $ | 3 | $ | 30 | $ | 33 | ||||||||
Charges | 12 | 7 | 3 | 22 | ||||||||||||
Cash payments | — | (7 | ) | (17 | ) | (24 | ) | |||||||||
Non-cash | — | (2 | ) | — | (2 | ) | ||||||||||
May 3, 2014 | $ | 12 | $ | 1 | $ | 16 | $ | 29 | ||||||||
Basis_of_Presentation_and_Cons2
Basis of Presentation and Consolidation (Nature of Operations) (Details) | 3 Months Ended |
3-May-14 | |
Basis of Presentation and Consolidation [Abstract] | ' |
State of incorporation | 'Delaware |
Year founded | '1924 |
EarningsLoss_per_Share_Details
Earnings/(Loss) per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Earnings Per Share [Abstract] | ' | ' |
Net income/(loss) | ($352) | ($348) |
Weighted average common shares outstanding (basic shares) | 305 | 219.9 |
Weighted average shares assuming dilution (diluted shares) | 305 | 219.9 |
Basic (in dollars per share) | ($1.15) | ($1.58) |
Diluted (in dollars per share) | ($1.15) | ($1.58) |
Stock options, restricted stock awards and warrant | 24.7 | 25.4 |
Credit_Facility_Details
Credit Facility (Details) (USD $) | 3 Months Ended | |||
3-May-14 | Feb. 01, 2014 | 4-May-13 | Feb. 08, 2013 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, initiation date | 8-Feb-13 | ' | ' | ' |
2013 Credit facility, maximum borrowing capacity | ' | ' | ' | $1,850,000,000 |
2013 Credit Facility, maturity date | 29-Apr-16 | ' | ' | ' |
2013 Credit Facility, capacity available for letters of credit | ' | ' | ' | 750,000,000 |
2013 Credit Facility, maximum amount accordion feature can potentially increases credit facility size | ' | ' | ' | 400,000,000 |
2013 Credit Facility, debt covenant, fixed charge coverage ratio | 1 | ' | ' | ' |
Short-term borrowings under 2013 Credit Facility | 650,000,000 | 650,000,000 | 850,000,000 | ' |
2013 Credit Facility, total standby and import letters of credit outstanding | 501,000,000 | ' | ' | ' |
2013 Credit Facility, commitment fee interest rate on unused capacity | 0.50% | ' | ' | ' |
2013 Credit Facility, maximum borrowing capacity less amount outstanding | 699,000,000 | ' | ' | ' |
2013 Credit Facility, remaining borrowing capacity | 514,000,000 | ' | ' | ' |
2013 Credit Facility, description | 'On February 8, 2013, J. C. Penney Company, Inc., JCP and J. C. Penney Purchasing Corporation (Purchasing) entered into an amended and restated revolving credit agreement in the amount up to $1,850 million (2013 Credit Facility), which replaced the Company’s prior credit agreement entered into in January 2012, with largely the same syndicate of lenders under the previous agreement, with JPMorgan Chase Bank, N.A., as administrative agent. The 2013 Credit Facility matures on April 29, 2016, increases the letter of credit sublimit to $750 million and provides an accordion feature that could potentially increase the size of the facility by an additional amount not to exceed $400 million. The 2013 Credit Facility is an asset-based revolving credit facility and is secured by a perfected first-priority security interest in substantially all of our eligible credit card receivables, accounts receivable and inventory. The 2013 Credit Facility is available for general corporate purposes, including the issuance of letters of credit. Pricing under the 2013 Credit Facility is tiered based on JCP’s senior unsecured long-term credit ratings issued by Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services. JCP’s obligations under the 2013 Credit Facility are guaranteed by J. C. Penney Company, Inc. | ' | ' | ' |
2013 Credit Facility, borrowing capacity, description | 'Availability under the 2013 Credit Facility is limited to a borrowing base which allows us to borrow up to 85% of eligible accounts receivable, plus 90% of eligible credit card receivables, plus 85% of the liquidation value of our inventory, net of certain reserves. Letters of credit reduce the amount available to borrow by their face value. In the event that availability under the 2013 Credit Facility is at any time less than the greater of (1) $125 million or (2)Â 10% of the lesser of the total facility or the borrowing base then in effect, for a period of at least 30 days, the Company will be subject to a fixed charge coverage ratio covenant of 1.0 to 1.0 which is calculated as of the last day of the quarter and measured on a trailing four-quarter basis. | ' | ' | ' |
2013 Credit Facility, interest rate description | 'The borrowing bears interest at a rate of LIBOR plus 3.0% | ' | ' | ' |
Eligible accounts receivable [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, borrowing base components | 85.00% | ' | ' | ' |
Eligible credit card receivables [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, borrowing base components | 90.00% | ' | ' | ' |
Liquidation value of inventory, net of reserves [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, borrowing base components | 85.00% | ' | ' | ' |
Avaliability factor, dollars, threshold for fixed charge coverage ratio [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, availability component, dollars, threshold for fixed charge coverage ratio | $125,000,000 | ' | ' | ' |
Lesser of total facility or borrowing base, factor, threshold for fixed charge coverage ratio [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, availability component, percentage, threshold for fixed charge coverage ratio | 10.00% | ' | ' | ' |
Interest rate in addition to LIBOR [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, interest rate during period | 3.00% | ' | ' | ' |
Standby Letter of Credit [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, interest rate at period end | 3.00% | ' | ' | ' |
Foreign Letter of Credit [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
2013 Credit Facility, interest rate at period end | 1.50% | ' | ' | ' |
Fair_Value_Disclosures_REIT_As
Fair Value Disclosures (REIT Assets Measured on Recurring Basis) (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Millions, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' |
Cost basis of REITs | $0 | $0 | $7 |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' |
REIT assets | 0 | 0 | 37 |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' |
REIT assets | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' | ' |
REIT assets | $0 | $0 | $0 |
Fair_Value_Disclosures_Other_F
Fair Value Disclosures (Other Financial Instruments) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Long-term debt, including current maturities, Carrying Amount | $4,857 | $4,862 | $2,868 |
Long-term debt, including current maturities, Fair Value | 4,363 | 4,209 | 2,670 |
Cost investment, Carrying Amount | $0 | $0 | $36 |
Fair Value, Estimate Not Practicable, Reasons, Cost Method Investments | 'The cost investment was for equity securities that were not registered and freely tradable shares and their fair values were not readily determinable; however, we believe the carrying value approximated or was less than the fair value | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
February 1, 2014, shares | 304.6 | ' |
1-Feb-14 | $3,087 | ' |
Net income/(loss) | -352 | -348 |
Other comprehensive income/(loss) | 10 | 30 |
Stock-based compensation | 8 | ' |
May 3, 2014, shares | 304.8 | 219.9 |
3-May-14 | 2,753 | ' |
Common Stock [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
February 1, 2014, shares | 304.6 | ' |
1-Feb-14 | 152 | ' |
Stock-based compensation, shares | 0.2 | ' |
Stock-based compensation | 0 | ' |
May 3, 2014, shares | 304.8 | ' |
3-May-14 | 152 | ' |
Additional Paid-in Capital [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
1-Feb-14 | 4,571 | ' |
Stock-based compensation | 8 | ' |
3-May-14 | 4,579 | ' |
Reinvested Earnings/(Accumulated Deficit) [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
1-Feb-14 | -1,008 | ' |
Net income/(loss) | -352 | ' |
3-May-14 | -1,360 | ' |
Accumulated Other Comprehensive Income/(Loss) [Member] | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' |
1-Feb-14 | -628 | ' |
Other comprehensive income/(loss) | 10 | ' |
3-May-14 | ($618) | ' |
Stockholders_Equity_Components
Stockholders' Equity (Components of Other Comprehensive Income/ (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Stockholders' Equity Note [Abstract] | ' | ' |
Unrealized gain/(loss), gross amount | $0 | $4 |
Unrealized gain/(loss) on REITs, tax | 0 | -1 |
Unrealized gain/(loss), net amount | 0 | 3 |
Reclassification for amortization of net actuarial loss/(gain), gross amount | 17 | 44 |
Reclassification for amortization of net actuarial loss/(gain), tax | -6 | -16 |
Reclassification for amortization of net actuarial loss/(gain), net | 11 | 28 |
Reclassification for amortization of prior service cost/(credit), gross amount | -1 | -1 |
Reclassification for amortization of prior service cost/(credit), tax | 0 | 0 |
Reclassification for amortization of prior service cost/(credit), net amount | -1 | -1 |
Total, gross amount | 16 | 47 |
Total, tax | -6 | -17 |
Total other comprehensive income/(loss), net of tax | $10 | $30 |
Stockholders_Equity_Accumulate
Stockholders' Equity (Accumulated Other Comprehensive Income/ (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
1-Feb-14 | ($628) | ' |
Amounts reclassified from accumulated other comprehensive income, Net Actuarial Gain/(Loss) | 11 | 28 |
Amounts reclassified from accumulated other comprehensive income, Prior Service Credit/(Cost) | -1 | -1 |
Net current-period other comprehensive income | 10 | 30 |
3-May-14 | -618 | -1,088 |
Net Actuarial Gain/(Loss) [Member] | ' | ' |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
1-Feb-14 | -609 | ' |
Amounts reclassified from accumulated other comprehensive income, Net Actuarial Gain/(Loss) | 11 | ' |
Net current-period other comprehensive income | 11 | ' |
3-May-14 | -598 | ' |
Prior Service Credit/(Cost) [Member] | ' | ' |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
1-Feb-14 | -19 | ' |
Amounts reclassified from accumulated other comprehensive income, Prior Service Credit/(Cost) | -1 | ' |
Net current-period other comprehensive income | -1 | ' |
3-May-14 | -20 | ' |
Accumulated Other Comprehensive Income/(Loss) [Member] | ' | ' |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
1-Feb-14 | -628 | ' |
Amounts reclassified from accumulated other comprehensive income, Accumulated Other Comprehensive Income/(Loss) | 10 | ' |
Net current-period other comprehensive income | 10 | ' |
3-May-14 | ($618) | ' |
Stockholders_Equity_Reclassifi
Stockholders' Equity (Reclassifications Out of Accumulated Other Comprehensive Income/ (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Total, net of tax | $10 | $30 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Total reclassifications | 10 | 27 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Total Amortization Of Retirement Benefit Plans, Net Of Tax [Member] | ' | ' |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Total, net of tax | 10 | 27 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension [Member] | ' | ' |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Amortization of retirement benefit plans, Actuarial loss/(gain) | 17 | 44 |
Amortization of retirement benefit plans, Prior service cost/(credit) | 1 | 1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | SG&A [Member] | ' | ' |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Amortization of retirement benefit plans, Prior service cost/(credit) | -2 | -2 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Income Tax Expense/(Benefit) [Member] | ' | ' |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Amortization of retirement benefit plans, Tax (expense)/benefit | ($6) | ($16) |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Awards) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 27, 2014 | Mar. 20, 2014 | Mar. 03, 2014 | 3-May-14 | 4-May-13 | Mar. 27, 2014 | Mar. 20, 2014 | 3-May-14 | Mar. 27, 2014 | Mar. 20, 2014 | 3-May-14 | Mar. 27, 2014 | Mar. 20, 2014 | Mar. 03, 2014 | 3-May-14 | Mar. 27, 2014 | Mar. 20, 2014 | 3-May-14 | Mar. 20, 2014 | 3-May-14 | 3-May-14 | 18-May-12 | 18-May-12 | 18-May-12 | 18-May-12 | 18-May-12 |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSU) [Member] | Restricted Stock Units (RSU) [Member] | Restricted Stock Units (RSU) [Member] | Restricted Stock Units (RSU) [Member] | Restricted Stock Units (RSU) [Member] | Restricted Stock Units (RSU) [Member] | Restricted Stock Units (RSU) [Member] | Phantom Shares [Member] | Phantom Shares [Member] | 2012 Long-Term Incentive Plan [Member] | 2012 Long-Term Incentive Plan [Member] | 2012 Long-Term Incentive Plan [Member] | 2012 Long-Term Incentive Plan [Member] | 2014 Long-Term Incentive Plan [Member] | 2014 Long-Term Incentive Plan [Member] | ||||||
Performance-based [Member] | Performance-based [Member] | Performance-based [Member] | Time-based [Member] | Time-based [Member] | Time-based [Member] | Time-based [Member] | Performance-based [Member] | Performance-based [Member] | Performance-based [Member] | Newly Authorized Shares [Member] | Reserved But Unissued Shares [Member] | Stock Awards [Member] | Options [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock awards, number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | 1,500,000 | 5,500,000 | 16,000,000 | 32,000,000 |
Stock awards, number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | $10 | $14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, stock awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,000 | 2,328,000 | 25,000 | 2,437,000 | 0 | 329,000 | 329,000 | 2,300,000 | ' | ' | ' | ' | ' | ' | ' |
Granted, stock options | ' | ' | ' | ' | ' | ' | ' | ' | 185,000 | 2,322,000 | 2,507,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, weighted-average exercise price (in dollars per share) | ' | ' | ' | ' | ' | $8.97 | $8.36 | $8.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, weighted average grant date fair value (in dollars per share) | $5.59 | $6.09 | $7.96 | $6.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum award settlement (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16.72 | ' | ' | ' | ' | ' | ' | ' |
Stock awards, fair value remeasured at period end (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.58 | ' | ' | ' | ' | ' | ' |
Retirement_Benefit_Plans_Net_P
Retirement Benefit Plans (Net Periodic Expense) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Net periodic benefit expense/(income) | $1 | $34 |
Retirement Benefit Plans Total [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 15 | 20 |
Interest cost | 55 | 54 |
Expected return on plan assets | -87 | -85 |
Amortization of actuarial loss/(gain) | 17 | 44 |
Amortization of prior service cost/(credit) | -1 | -1 |
Net periodic benefit expense/(income) | -1 | 32 |
Primary and Supplemental Pension Plan Total [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 15 | 20 |
Interest cost | 55 | 54 |
Expected return on plan assets | -87 | -85 |
Amortization of actuarial loss/(gain) | 17 | 44 |
Amortization of prior service cost/(credit) | 1 | 1 |
Net periodic benefit expense/(income) | 1 | 34 |
Primary Pension Plan [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 15 | 20 |
Interest cost | 53 | 51 |
Expected return on plan assets | -87 | -85 |
Amortization of actuarial loss/(gain) | 13 | 38 |
Amortization of prior service cost/(credit) | 1 | 1 |
Net periodic benefit expense/(income) | -5 | 25 |
Supplemental Pension Plans [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 0 | 0 |
Interest cost | 2 | 3 |
Amortization of actuarial loss/(gain) | 4 | 6 |
Amortization of prior service cost/(credit) | 0 | 0 |
Net periodic benefit expense/(income) | 6 | 9 |
Postretirement Health and Welfare Plan [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Service cost | 0 | 0 |
Interest cost | 0 | 0 |
Amortization of actuarial loss/(gain) | 0 | 0 |
Amortization of prior service cost/(credit) | -2 | -2 |
Net periodic benefit expense/(income) | ($2) | ($2) |
Retirement_Benefit_Plans_Defin
Retirement Benefit Plans (Defined Contribution Plans) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Retirement Benefit Plans [Abstract] | ' | ' |
Defined contribution plan, total expense | $13 | $14 |
Restructuring_and_Management_T2
Restructuring and Management Transition Cumulative Charges (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 | Jan. 31, 2014 |
department_store | department_store | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | $22 | $72 | ' |
Number underperforming department stores, announced closing | ' | ' | 33 |
Number of stores closed | 31 | ' | ' |
Cumulative Amount | 688 | ' | ' |
Home Office And Stores [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 12 | 28 | ' |
Cumulative Amount | 214 | ' | ' |
Store Fixtures [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 0 | 28 | ' |
Cumulative Amount | 133 | ' | ' |
Termination Benefits and Lease Termination Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 12 | ' | ' |
Termination Benefits [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | ' | 28 | ' |
Impairment of Store Fixtures [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | ' | 9 | ' |
Write-off of Store Fixtures [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | ' | 6 | ' |
Depreciation [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | ' | 13 | ' |
Management Transition [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 7 | 16 | ' |
Cumulative Amount | 215 | ' | ' |
Other Restructuring And Management Transition [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Charges | 3 | 0 | ' |
Cumulative Amount | $126 | ' | ' |
Restructuring_and_Management_T3
Restructuring and Management Transition Charges (Liability Activity) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
Restructuring Reserve [Roll Forward] | ' | ' |
1-Feb-14 | $33 | ' |
Charges | 22 | 72 |
Cash payments | -24 | ' |
Non-cash | -2 | ' |
3-May-14 | 29 | ' |
Home Office And Stores [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
1-Feb-14 | 0 | ' |
Charges | 12 | 28 |
Cash payments | 0 | ' |
Non-cash | 0 | ' |
3-May-14 | 12 | ' |
Store Fixtures [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Charges | 0 | 28 |
Management Transition [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
1-Feb-14 | 3 | ' |
Charges | 7 | 16 |
Cash payments | -7 | ' |
Non-cash | -2 | ' |
3-May-14 | 1 | ' |
Other Restructuring And Management Transition [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
1-Feb-14 | 30 | ' |
Charges | 3 | 0 |
Cash payments | -17 | ' |
Non-cash | 0 | ' |
3-May-14 | $16 | ' |
Real_Estate_and_Other_Net_Deta
Real Estate and Other, Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 3-May-14 | 4-May-13 |
property | ||
acre | ||
Real Estate and Other, Net [Abstract] | ' | ' |
Land contributed to joint venture (in acres) | 220 | ' |
Real estate and other (income)/expense, net | $17 | $22 |
Number of properties used in our former auto center operations sold | 4 | ' |
Proceeds from sale of non-operating assets | 15 | ' |
Gains on sales of non-operating assets | 12 | ' |
Net book value of former department store location sold | 1 | ' |
Net proceeds from sale of a former department store location | 2 | 18 |
Gain on sale of operating assets | 1 | 16 |
Net book value of leasehold interest sold | ' | $2 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Income Tax Contingency [Line Items] | ' | ' |
Income tax expense/(benefit) | $8,000,000 | ($199,000,000) |
Effective tax rate | 2.30% | -36.40% |
Increase to tax valuation allowance for deferred tax assets | 120,000,000 | ' |
Valuation allowance | 424,000,000 | ' |
Valuation allowance, methodologies and assumptions | 'In assessing the need for the valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of the deferred tax assets. As a result of our assessment, we concluded that, beginning in the second quarter of 2013, our estimate of the realization of deferred tax assets would be based solely on the future reversals of existing taxable temporary differences and tax planning strategies that we would make use of to accelerate taxable income to utilize expiring carryforwards. Accordingly, in the first quarter of 2014, the valuation allowance was increased to offset the net deferred tax assets created in the quarter relating primarily to the increase in net operating loss (NOL) carryforwards. | ' |
Income tax expense (benefit), tax allocation | -6,000,000 | ' |
Net operating loss carryforwards | 2,400,000,000 | ' |
Other comprehensive income [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Income tax expense (benefit), tax allocation | 6,000,000 | ' |
Income from operations [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Income tax expense (benefit), tax allocation | -6,000,000 | ' |
Federal audit adjustment [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
State and foreign tax expenses | 12,000,000 | ' |
State and foreign [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
State and foreign tax expenses | 2,000,000 | ' |
Amortization of certain indefinite lived intangible assets [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
State and foreign tax expenses | 2,000,000 | ' |
State audit settlement [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
State and foreign tax expenses | -2,000,000 | ' |
Federal [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Tax credit carryforwards | 45,000,000 | ' |
Federal tax authority [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Valuation allowance | 282,000,000 | ' |
Net deferred tax asset, NOL and tax credit carryforwards | 545,000,000 | ' |
State Tax Authority [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Valuation allowance | 142,000,000 | ' |
Net deferred tax asset, NOL carryforwards | $29,000,000 | ' |
Litigation_Other_Contingencies1
Litigation, Other Contingencies and Guarantees (Narrative) (Details) (USD $) | 3 Months Ended |
3-May-14 | |
Loss Contingencies [Line Items] | ' |
Estimate Potential Environmental Liabilities Minimum | 17,000,000 |
Estimate Potential Environmental Liabilities Maximum | 24,000,000 |
Recorded Best Estimate | 19,000,000 |
Property Lease Guarantee [Member] | ' |
Loss Contingencies [Line Items] | ' |
Maximum Exposure of Guarantee | 6,000,000 |
Capital Contribution Guarantee [Member] | ' |
Loss Contingencies [Line Items] | ' |
Guarantor Obligations, Origin and Purpose | 'in connection with the sale of the operations of our catalog outlet stores, we assigned leases on certain outlet store locations to the purchaser |
Guarantor Obligations, Triggering Event | 'In the event that the purchaser fails to make the required lease payments, we continue for a period of time to be liable for lease payments to the landlords of several of the leased stores. |
J.C.Penney Direct Marketing Services, Inc. [Member] | ' |
Loss Contingencies [Line Items] | ' |
Maximum Exposure of Guarantee | 20,000,000 |
Effect_of_New_Accounting_Stand1
Effect of New Accounting Standards (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | 3-May-14 |
Accounting standards update 2014-08 [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
New accounting pronouncement or change in accounting principle, name | 'ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, an amendment to FASB Accounting Standards Codification (ASC) Topic 205, Presentation of Financial Statements, and FASB ASC Topic 360, Property, Plant and Equipment. |
New accounting pronouncement or change in accounting principle, description | 'The update revises the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity's operations and financial results, removing the lack of continuing involvement criteria and requiring discontinued operations reporting for the disposal of an equity method investment that meets the definition of discontinued operations. The update also requires expanded disclosures for discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. This ASU is effective for us prospectively beginning in fiscal 2015, with early adoption permitted. |
Accounting standards update 2013-11 [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
New accounting pronouncement or change in accounting principle, name | 'ASU 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward or Tax Credit Carryforward Exists. |
New accounting pronouncement or change in accounting principle, description | 'This update provides that an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of this update were effective February 2, 2014 for the Company and were applied prospectively. The implementation of this guidance resulted in a reclassification of $45 million between Deferred taxes and Other liabilities and did not have a significant impact on the Company's results of operations, cash flows, financial position, or disclosures. |
New accounting pronouncement or change in accounting principle, effect of adoption, quantification | 45 |
Accounting standards update 2014-09 [Member] | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' |
New accounting pronouncement or change in accounting principle, name | 'Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, issued as a new Topic, Accounting Standards Codification (ASC) Topic 606 |
New accounting pronouncement or change in accounting principle, description | 'The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a Company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for us beginning in fiscal 2017 and can be adopted by the Company either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the effect that adopting this new accounting guidance will have on our consolidated results of operations, cash flows or financial position. |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | Feb. 08, 2013 | 14-May-14 |
Subsequent event [Member] | ||
2014 Credit Facility [Member] | ||
Subsequent Event [Line Items] | ' | ' |
2014 Credit facility, maximum borrowing capacity | $1,850,000,000 | $2,350,000,000 |
2014 Credit facility, term | ' | '5 years |