Exhibit 99.1
JCPenney Company, Inc.
2003 Quarterly Consolidated Balance Sheets
Reflecting Eckerd and Mexico as Discontinued Operations
($ in millions)
<table>
<c> <c> <c> <c> <c>
Apr 26, Jul 26, Oct 25, Jan 31,
2003 2003 2003 2004*
------ ------ ------ ------
ASSETS
Current Assets
Cash and Short-Term Investments $ 2,629 $ 2,617 $ 1,921 $ 2,994
Receivables (net of bad debt reserves of $4, $5, $4 and $5) 295 267 417 233
Inventory, (net of LIFO reserves of $49, $49, $49 and $43) 3,326 3,343 4,194 3,156
Prepaid Expenses 100 104 140 130
------ ------ ------ ------
Total Current Assets 6,350 6,331 6,672 6,513
Property and Equipment, Net 3,519 3,498 3,490 3,515
Prepaid Pension 1,123 1,111 1,381 1,320
Goodwill 36 42 41 42
Other Assets 503 522 519 556
Assets of Discontinued Operations 6,706 6,840 6,973 6,354
------ ------ ------ ------
Total Assets $ 18,237 $ 18,344 $ 19,076 $ 18,300
========== ========= ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Accrued Expenses $ 2,042 $ 2,026 $ 2,655 $ 2,551
Short-Term Debt 23 25 29 18
Current Maturities of Long-Term Debt 278 626 485 242
Deferred taxes 22 21 106 943
------ ------ ------ ------
Total Current Liabilities 2,365 2,698 3,275 3,754
Long-Term Debt 5,505 5,128 5,103 5,114
Deferred Taxes 1,201 1,207 1,330 1,217
Other Liabilities 779 778 779 804
Liabilities of Discontinued Operations 1,925 2,091 2,086 1,986
------ ------ ------ ------
Total Liabilities 11,775 11,902 12,573 12,875
Stockholders' Equity 6,462 6,442 6,503 5,425
------ ------ ------ ------
Total Liabilities & Stockholders' Equity $ 18,237 $ 18,344 $ 19,076 $ 18,300
========== ========= ======== ========
* As previously reported in the J. C. Penney Company, Inc. 2003 Annual Report on Form 10-K.
</table>
<page>
JCPenney Company, Inc.
2002 Quarterly Consolidated Balance Sheets
Reflecting Eckerd and Mexico as Discontinued Operations
($ in millions)
<table>
<c> <c> <c> <c> <c>
Apr 27, Jul 27, Oct 26, Jan 25,
2002 2002 2002 2003*
------ ------ ------ ------
ASSETS
Current Assets
Cash and Short-Term Investments $ 2,274 $ 2,004 $ 1,748 $ 2,474
Receivables (net of bad debt reserves of $5, $4, $3 and $4) 214 188 257 224
Inventory, (net of LIFO reserves of $43,$43, $43 and $49) 2,917 3,034 3,822 2,970
Prepaid Expenses 100 108 115 90
------ ------ ------ ------
Total Current Assets 5,505 5,334 5,942 5,758
Property and Equipment, Net 3,694 3,655 3,617 3,604
Prepaid Pension 874 865 860 1,150
Goodwill 51 43 32 35
Other Assets 466 498 490 491
Assets of Discontinued Operations 6,792 6,708 6,920 6,749
------ ------ ------ ------
Total Assets $ 17,382 $ 17,103 $ 17,861 $ 17,787
======= ======= ====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Accrued Expenses $ 1,929 $ 2,014 $ 2,418 $ 2,274
Short-Term Debt 30 17 15 13
Current Maturities of Long-Term Debt 224 14 28 276
Deferred taxes 33 25 98 -
Taxes Payable 122 - - -
------ ------ ------ ------
Total Current Liabilities 2,338 2,070 2,559 2,563
Long-Term Debt 5,136 5,139 5,135 4,897
Deferred Taxes 1,030 1,083 1,062 1,159
Other Liabilities 797 784 766 782
Liabilities of Discontinued Operations 1,836 1,864 2,121 2,016
Total Liabilities 11,137 10,940 11,643 11,417
------ ------ ------ ------
Stockholders' Equity 6,245 6,163 6,218 6,370
------ ------ ------ ------
Total Liabilities & Stockholders' Equity $ 17,382 $ 17,103 $ 17,861 $ 17,787
======= ======= ====== ======
* As previously reported in the J. C. Penney Company, Inc. 2003 Annual Report on Form 10-K.
</table>
<page>
JCPenney Company, Inc.
2003 Quarterly Consolidated Statements of Cash Flows
Reflecting Eckerd and Mexico as Discontinued Operations
($ in millions)
<table>
<c> <c> <c> <c> <c>
13 weeks 26 weeks 39 weeks 53 weeks
ended ended ended ended
4/26/03 7/26/03 10/25/03 1/31/04*
Cash Flows from Operating Activities:
Income from Continuing Operations $ 20 $ 17 $ 111 $ 364
Adjustments to Reconcile Income from Continuing Operations
to Net Cash from Operating Activities:
Asset Impairments, PVOL and Other Unit Closing Costs 2 16 27 35
Depreciation and Amortization 101 199 291 394
Net Gains on Sale of Assets (21) (51) (51) (51)
Benefit Plans Expense 26 35 66 135
Pension Contribution - - (300) (300)
Stock-Based Compensation (1) 3 6 9
Deferred Taxes 75 80 288 137
Change in Cash from:
Receivables (18) (11) (3) 3
Inventory (356) (373) (1,224) (100)
Prepaid Expense and Other Assets 40 22 (23) (36)
Accounts Payable and Accrued Expenses 66 55 563 94
Current Income Taxes Payable (64) (43) (201) (17)
Other Liabilities (232) (243) (125) 145
------ ------ ------ ------
Net Cash (Used in)/Provided by Operating Activities (362) (294) (575) 812
------ ------ ------ ------
Cash Flows from Investing Activities:
Capital Expenditures (67) (150) (243) (373)
Proceeds from the Sale of Mexico - - - 20
Proceeds from the Sale of Assets 23 68 89 100
------ ------ ------ ------
Net Cash Used in Investing Activities (44) (82) (154) (253)
------ ------ ------ ------
Cash Flows from Financing Activities:
Change in Short-term Debt 10 12 16 5
Net Proceeds from the Issuance of Long-Term Debt 595 595 595 607
Payment of Long-Term Debt, including Capital Leases (2) (33) (202) (450)
Common Stock Issued, Net 7 13 29 52
Preferred Stock Redeemed (8) (16) (23) (29)
Dividends Paid, Preferred and Common (34) (80) (114) (160)
------ ------ ------ ------
Net Cash Provided by Financing Activities 568 491 301 25
------ ------ ------ ------
Cash (Paid to)/Received from Discontinued Operations (7) 28 (125) (64)
------ ------ ------ ------
Net Increase/(Decrease) in Cash and Short-Term Investments 155 143 (553) 520
------ ------ ------ ------
Cash and Short-term Investments at Beginning of Year 2,474 2,474 2,474 2,474
------ ------ ------ ------
Cash and Short-Term Investments at End of Period $ 2,629 $ 2,617 $ 1,921 $ 2,994
======= ======= ====== ======
* As previously reported in the J. C. Penney Company, Inc. 2003 Annual Report on Form 10-K.
</table>
<page>
JCPenney Company, Inc.
2002 Quarterly Consolidated Statements of Cash Flows
Reflecting Eckerd and Mexico as Discontinued Operations
($ in millions)
<table>
<c> <c> <c> <c> <c>
13 weeks 26 weeks 39 weeks 52 weeks
ended ended ended ended
4/27/02 7/27/02 10/26/02 1/25/03*
Cash Flows from Operating Activities:
Income from Continuing Operations $ 62 $ 42 $ 111 $ 285
Adjustments to Reconcile Income from Continuing Operations
to Net Cash from Operating Activities:
Asset Impairments, PVOL and Other Unit Closing Costs 19 28 30 77
Depreciation and Amortization 91 185 274 369
Net Gains on Sale of Assets (10) (10) (15) (18)
Company Contributions to Savings and Profit Sharing Plans - - - 47
Benefit Plans Expense - 4 8 30
Pension Contribution - - - (300)
Stock-Based Compensation 1 3 5 6
Deferred Taxes 11 56 108 96
Change in Cash from:
Receivables (20) 10 (2) (13)
Inventory (1) (118) (906) 43
Prepaid Expenses and Other Assets 26 (17) (15) (17)
Accounts Payable and Accrued Expenses 114 168 521 53
Current Income Taxes Payable (10) (82) (105) (102)
Other Liabilities (254) (235) (194) (34)
------ ------ ------ ------
Net Cash Provided by/(Used in) Operating Activities 29 34 (180) 522
------ ------ ------ ------
Cash Flows from Investing Activities:
Capital Expenditures (50) (129) (216) (315)
Proceeds from the Sale of Assets 12 18 32 38
------ ------ ------ ------
Net Cash Used in Investing Activities (38) (111) (184) (277)
------ ------ ------ ------
Cash Flows from Financing Activities:
Change in Short-term Debt 15 2 - (2)
Net Proceeds from the Issuance of Long-Term Debt - 9 18 27
Payment of Long-Term Debt, including Capital Leases (702) (923) (924) (926)
Common Stock Issued, Net 8 18 21 30
Preferred Stock Redeemed (10) (18) (24) (30)
Dividends Paid, Preferred and Common (33) (80) (114) (161)
------ ------ ------ ------
Net Cash Used in Financing Activities (722) (992) (1,023) (1,062)
------ ------ ------ ------
Cash Received from Discontinued Operations 165 233 295 451
------ ------ ------ ------
Net Decrease in Cash and Short-Term Investments (566) (836) (1,092) (366)
------ ------ ------ ------
Cash and Short-Term Investments at Beginning of Year 2,840 2,840 2,840 2,840
------ ------ ------ ------
Cash and Short-Term Investments at End of Period $ 2,274 $ 2,004 $ 1,748 $ 2,474
======= ======= ====== ======
* As previously reported in the J. C. Penney Company, Inc. 2003 Annual Report on Form 10-K.
</table>