<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
FORM 11-K
(MARK ONE)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM ___________ TO ___________
COMMISSION FILE NUMBER 1-777
--------------------------
A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT
OF THE ISSUER NAMED BELOW:
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
12700 PARK CENTRAL PLACE
DALLAS, TEXAS 75251
B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS
OF ITS PRINCIPAL EXECUTIVE OFFICE:
J. C. PENNEY COMPANY, INC.
6501 LEGACY DRIVE
PLANO, TEXAS 75024-3698
<PAGE>
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Financial Statements and Schedules
December 31, 1993 and 1992
(With Independent Auditors' Report Thereon)
<PAGE>
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Table of Contents
-----------------
Independent Auditors' Report
Statements of Net Assets Available for Benefits
as of December 31, 1993 and 1992
Statements of Changes in Net Assets Available
for Benefits for the years ended December 31, 1993 and 1992
Notes to Financial Statements
Schedule
--------
Schedule of Assets Held for Investment Purposes
as of December 31, 1993 1
Schedule of Reportable Transactions for the
year ended December 31, 1993 2
<PAGE>
[LETTERHEAD OF KPMG PEAT MARWICK]
INDEPENDENT AUDITORS' REPORT
----------------------------
The J. C. Penney Company, Inc.
Associate Benefits Committee,
Benefit Plans Investment Committee,
Retirement Plans Committee, and the
Benefit Plans Review Committee:
We have audited the accompanying statements of net assets available for benefits
of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan as
of December 31, 1993 and 1992, and the related statements of changes in net
assets available for benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the J. C. Penney
Company, Inc. Savings and Profit-Sharing Retirement Plan as of December 31, 1993
and 1992, and the changes in net assets available for benefits for the years
then ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
purposes of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ KPMG Peat Marwick
May 13, 1994
<PAGE>
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 1993 and 1992
<TABLE>
<CAPTION>
1993 1992
---------------- --------------
<S> <C> <C>
Assets:
Investments, at fair value (note 2):
J. C. Penney Company, Inc.
common stock - 29,746,648
shares in 1993 and 29,695,768
shares in 1992 (cost $723,528,412
and $612,556,660, respectively) $1,565,417,351 1,154,354,172
State Street Bank Index Fund -
926,099 units in 1993 and
980,137 units in 1992 (cost
$27,361,218 and $25,967,927,
respectively) 64,451,853 61,984,819
State Street Bank Liquidity Fund
(cost approximates fair value) 19,280,009 24,607,232
Funds held under structured
investment contracts:
U.S. agency backed
collateralized mortgage
obligations (cost $312,345,761
in 1993 and $263,396,859 in 1992) 320,101,946 265,835,088
U.S. Government Trust
Certificates (cost $18,281,851
in 1993) 18,305,319 --
Credit card backed obligations
(cost $27,550,077 in 1993 and 1992) 27,399,260 27,656,720
Other bonds (cost $19,202,343 in
1993) 19,491,045 --
Wrap agreements (cost $2,337,850
in 1993 and $1,303,067 in 1992) (5,231,648) (1,142,891)
Participants' loans (unpaid
principal balance
approximates fair value) 19,756,762 21,165,269
Funds with insurance companies,
at contract value 373,848,131 464,798,843
-------------- -------------
Total investments 2,422,820,028 2,019,259,252
-------------- -------------
Receivables:
Due from J. C. Penney Company,
Inc. -- 358,112
Miscellaneous 20,032 23,088
Accrued interest and dividends 581,293 580,148
Due from broker 407,049 --
-------------- -------------
1,008,374 961,348
-------------- -------------
Cash -- 30,616
-------------- -------------
Total assets 2,423,828,402 2,020,251,216
-------------- -------------
Liabilities:
Cash overdraft 112,298 --
Due to J. C. Penney Company, Inc. 18,798 --
Due to broker -- 1,507,000
Accrued expenses and other 2,063,511 926,389
liabilities -------------- -------------
Total liabilities 2,194,607 2,433,389
-------------- -------------
Net assets available for benefits $2,421,633,795 2,017,817,827
============== =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 1993 and 1992
<TABLE>
<CAPTION>
1993 1992
---------------- --------------
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value
of investments $ 422,513,532 361,145,961
Interest 55,420,612 60,612,323
Dividends 42,768,257 41,617,190
-------------- -------------
520,702,401 463,375,474
Less investment expenses (231,446) (136,182)
-------------- -------------
Total additions 520,470,955 463,239,292
-------------- -------------
Deductions from net assets attributed to:
Deferral fees 116,849 72,486
Benefit payments 116,538,138 134,624,726
-------------- -------------
Total deductions 116,654,987 134,697,212
-------------- -------------
Change in net assets available for benefits 403,815,968 328,542,080
Beginning net assets available for benefits 2,017,817,827 1,689,275,747
-------------- -------------
Ending net assets available for benefits $2,421,633,795 2,017,817,827
============== =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
December 31, 1993 and 1992
(1) Description of Plan
-------------------
The following brief description of the J. C. Penney Company, Inc. Savings
and Profit-Sharing Retirement Plan (the "Plan") is provided for general
informational purposes only. Participants should refer to the Plan summary
description for more complete information. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").
(a) General
-------
The Plan is a defined contribution plan which is frozen. Prior to its
discontinuation, the Plan covered substantially all eligible employees
("Associates") of J. C. Penney Company, Inc. (the "Company"). Associates
who had completed 1,000 or more hours of service within a period of 12
consecutive months were eligible to participate in the Plan. Effective
January 1, 1989, the J. C. Penney Company, Inc. Savings, Profit-Sharing
and Stock Ownership Plan replaced the Plan. Associate and Company
contributions ceased for plan years after 1988 and participants became
fully vested in all accounts. While the Company presently has no
intention to do so, it reserves the right to terminate the Plan and the
related J. C. Penney Company, Inc. Savings and Profit-Sharing Trust (the
"Trust") at any time, subject to the provisions of ERISA.
The financial statements include all of the funds which comprise the Plan.
All administrative expenses of the Plan not paid by the Trust are paid by
the Company.
(b) Investment Programs
-------------------
Participants' account balances are invested in the Plan's investment
programs in accordance with their elections. The investment programs
include the Penney Stock Account (consisting of investments in J. C.
Penney Company, Inc. common stock), the S&P 500 Account (consisting of
investments in commingled equity funds), and the Interest Income Account
(consisting of contracts with insurance companies and structured
investment contracts, which provide a specific interest rate for a
specified period of time). Each of these funds are maintained on a unit
value basis and accordingly the actual earnings and appreciation or
depreciation in the underlying securities are reflected in the daily unit
value.
Prior to January 1, 1993, an additional investment program, PenSOP
(Company) Account was utilized for Company contributions. This program
consisted of investments in J. C. Penney Company, Inc. common stock. As
of January 1, 1993, the assets and liabilities allocated to this program
were merged into the Penney Stock Account.
(Continued)
<PAGE>
2
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
(c) Payment of Benefits
-------------------
Benefits remain in the Plan until the participant elects payment. The
normal form of payment is a lump sum settlement (cash and/or J. C. Penney
Company, Inc. common stock). In lieu of a lump sum settlement, a
participant who has attained retirement age may elect an optional annuity
for life or installment payments for a specified period of time.
(d) Loans to Participants
---------------------
Loans may be made available to participants upon their request. All loans
must be adequately secured and bear interest at a reasonable rate. Loan
amounts and the term of repayment are limited in accordance with Plan
provisions.
(2) Investments
-----------
Investments in securities are stated at fair value using quoted market
prices. Funds with insurance companies are recorded at contract value as
reported to the Plan by each insurance company. Each contract is credited
with earnings and charged for withdrawals. The Plan also invests in
structured investment contracts. Under these arrangements, the Plan enters
into a wrap agreement with a financial institution at a stated yield on fixed
income securities purchased by the Plan. The wrap agreements are stated at
fair value based on fluctuations in the fair value of the underlying fixed
income securities. The average cost method is used to calculate gains and
losses on the sale of investments on a trade date basis. Except for certain
funds with insurance companies, the Plan's investments are held by the
trustee, State Street Bank and Trust Company.
On March 10, 1993, the Company declared a two-for-one common stock split in
the form of a stock dividend payable May 1, 1993 to shareholders of record on
April 12, 1993. The shares of J. C. Penney Company, Inc. common stock held
at December 31, 1992 which are disclosed in the financial statements and
notes thereto have been adjusted for this stock split.
(Continued)
<PAGE>
3
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
The following table presents the values of investments that represent 5% or
more of the Plan's net assets:
<TABLE>
<CAPTION>
December 31, 1993 December 31, 1992
------------------------------- ------------------------------
Shares, units Fair value/ Shares, units Fair value/
or principal contract or principal contract
Investment amount value amount value
---------- ------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at fair value:
J. C. Penney Company, Inc.
common stock 29,746,648 $1,565,417,351 29,695,768 $1,154,354,172
Investment contracts
with insurance companies,
at contract value:
Metropolitan Life
Insurance Company
8.55% - matures evenly
on 6/30 and 12/31 of
1994 and 1995 118,208,775 $ 118,208,775 146,364,682 $ 146,364,682
============== ==============
</TABLE>
The number of units and net asset value per unit at December 31, 1993 and 1992
follows:
<TABLE>
<CAPTION>
December 31, 1993 December 31, 1992
------------------------------- ------------------------
Net asset Net asset
Units value Units value
----------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
PenSOP (Company) Account -- $ -- 13,496,898 $ 4.364094
Penney Stock Account 93,158,712 16.814552 90,825,685 12.054612
S&P 500 Account 7,208,059 8.983400 7,620,016 8.164407
Interest Income Account* 89,424,379 8.626129 97,191,563 8.036103
</TABLE>
* Units are not assigned to participants' loans receivable.
(3) Tax Status
----------
The Plan obtained its latest determination letter on August 23, 1993 in
which the Internal Revenue Service ("Service") stated that the Plan, as
then designed, was in compliance with the applicable qualification
requirements of the Internal Revenue Code ("Code"). The Plan has been
amended subsequent to receiving the determination letter; however, the Plan
administrator believes that the Plan is currently designed and being
operated in compliance with the applicable requirements of the Internal
Revenue Code. Therefore, the Plan administrator believes that the Plan was
qualified and the related trust was tax-exempt as of the date of the
financial statements.
(Continued)
<PAGE>
4
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
(4) Allocation of Plan Assets and Liabilities to Investment Programs:
----------------------------------------------------------------
<TABLE>
<CAPTION>
December 31, 1993
-----------------------------------------------------------------
Interest
Penney Stock S&P 500 Income
Total Account Account Account
--------------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value:
J. C. Penney Company, Inc.
common stock - 29,746,648 shares
(cost $723,528,412) $1,565,417,351 1,565,417,351 -- --
State Street Bank Index Fund -
926,099 units (cost $27,361,218) 64,451,853 -- 64,451,853 --
State Street Bank Liquidity Fund
(cost approximates fair value) 19,280,009 134,837 -- 19,145,172
Funds held under structured
investment contracts:
U.S. agency backed
collateralized mortgage
obligations (cost $312,345,761) 320,101,946 -- -- 320,101,946
U.S. Government Trust
Certificates (cost $18,281,851) 18,305,319 -- -- 18,305,319
Credit card backed obligations
(cost $27,550,077) 27,399,260 -- -- 27,399,260
Other bonds (cost $19,202,343) 19,491,045 -- -- 19,491,045
Wrap agreements (cost $2,337,850) (5,231,648) -- -- (5,231,648)
Participants' loans (unpaid
principal balance approximates
fair value) 19,756,762 -- -- 19,756,762
Funds with insurance companies,
at contract value 373,848,131 -- -- 373,848,131
------------- ------------- ---------- -----------
Total investments 2,422,820,028 1,565,552,188 64,451,853 792,815,987
Receivables:
Miscellaneous 20,032 11,059 -- 8,973
Accrued interest and dividends 581,293 381 -- 580,912
Due from broker 407,049 407,049 -- --
Inter-fund balances -- 904,972 380,479 (1,285,451)
-------------- ------------- ---------- -----------
1,008,374 1,323,461 380,479 (695,566)
-------------- ------------- ---------- -----------
Total assets 2,423,828,402 1,566,875,649 64,832,332 792,120,421
Liabilities:
Cash overdraft 112,298 112,453 (155) --
Due to J. C. Penney Company, Inc. 18,798 -- -- 18,798
Accrued expenses and other
liabilities 2,063,511 618,723 56,942 1,387,846
-------------- ------------- ---------- -----------
Total liabilities 2,194,607 731,176 56,787 1,406,644
-------------- ------------- ---------- -----------
Net assets available for benefits $2,421,633,795 1,566,144,473 64,775,545 790,713,777
============== ============= ========== ===========
(Continued)
</TABLE>
<PAGE>
5
J. C. PENNEY COMPANY. INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
(4) Allocation of Plan Assets and Liabilities to Investment Programs, Continued:
---------------------------------------------------------------------------
December 31, 1992
------------------------------------------------------------------------
PenSOP Interest
Penney Stock (Company) S&P 500 Income
Total Account Account Account Account
----- ------------ --------- ------- --------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
J. C. Penney Company, Inc. common stock - $1,154,354,172 1,095,597,175 58,756,997 -- --
29,695,768 shares (cost $612,556,660)
State Street Bank Index Fund - 980,137 units 61,984,819 -- -- 61,984,819 --
(cost $25,967,927)
State Street Bank Liquidity Fund 24,607,232 2,213,000 203,000 -- 22,191,232
(cost approximates fair value)
Funds held under structured investment contracts:
U.S. agency backed collateralized mortgage 265,835,088 -- -- -- 265,835,088
obligations (cost $263,396,859)
Credit card backed obligations 27,656,720 -- -- -- 27,656,720
(cost $27,550,077)
Wrap agreements (cost $1,303,067) (1,142,891) -- -- -- (1,142,891)
Participants' loans (unpaid principal balance 21,165,269 -- -- -- 21,165,269
approximates fair value)
Funds with insurance companies, at 464,798,843 -- -- -- 464,798,843
contract value -------------- ------------- ---------- ---------- -----------
Total investments 2,019,259,252 1,097,810,175 58,959,997 61,984,819 800,504,261
-------------- ------------- ---------- ---------- -----------
Receivables:
Due from J. C. Penney Company, Inc. 358,112 359,686 -- -- (1,574)
Miscellaneous 23,088 10,611 1,450 -- 11,027
Accrued interest and dividends 580,148 2,769 1,531 -- 575,848
Inter-fund balances -- (1,717,103) -- 299,595 1,417,508
-------------- ------------- ---------- ---------- -----------
961,348 (1,344,037) 2,981 299,595 2,002,809
-------------- ------------- ---------- ---------- -----------
Cash 30,616 28,523 932 1,161 --
-------------- ------------- ---------- ---------- -----------
Total assets 2,020,251,216 1,096,494,661 58,963,910 62,285,575 802,507,070
-------------- ------------- ---------- ---------- -----------
Liabilities:
Due to broker 1,507,000 1,469,000 38,000 -- --
Accrued expenses and other liabilities 926,389 434,053 -- 54,219 438,117
-------------- ------------- ---------- ---------- -----------
Total liabilities 2,433,389 1,903,053 38,000 54,219 438,117
-------------- ------------- ---------- ---------- -----------
Net assets available for benefits $2,017,817,827 1,094,591,608 58,925,910 62,231,356 802,068,953
============== ============= ========== ========== ===========
(Continued)
</TABLE>
<PAGE>
6
J.C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
(5) Allocation of Plan Income and Changes in Plan Equity to Investment Programs:
----------------------------------------------------------------------------
Year ended December 31. 1993
-----------------------------------------------------------------------------------
Interest
Penney Stock S&P 500 Income
Total Account Account Account
-------------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value $ 422,513,532 416,505,924 6,007,608 --
of investments
Interest 55,420,612 163,299 3,527 55,253,786
Dividends 42,768,257 42,768,257 -- --
-------------- ------------- ---------- -----------
520,702,401 459,437,480 6,011,135 55,253,786
Less investment expenses (231,446) -- -- (231,446)
-------------- ------------- ---------- -----------
Total additions 520,470,955 459,437,480 6,011,135 55,022,340
Deductions from net assets attributed
to:
Deferral fees 116,849 11,088 2,070 103,691
Participants' transfers -- (9,143,194) (106,364) 9,249,558
Benefit payments 116,538,138 55,942,631 3,571,240 57,024,267
-------------- ------------- ---------- -----------
Total deductions 116,654,987 46,810,525 3,466,946 66,377,516
Change in net assets available for 403,815,968 412,626,955 2,544,189 (11,355,176)
benefits
Beginning net assets available for 2,017,817,827 1,153,517,518 62,231,356 802,068,953
benefits -------------- ------------- ---------- -----------
Ending net assets available for benefits $2,421,633,795 1,566,144,473 64,775,545 790,713,777
============== ============= ========== ===========
(Continued)
</TABLE>
<PAGE>
7
J.C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
(5) Allocation of Plan Income and Changes in Plan Equity to Investment
------------------------------------------------------------------
Programs, Continued:
-------------------
<TABLE>
<CAPTION>
Year ended December 31, 1992
-------------------------------------------------------------------------------------------
PenSOP Interest
Penney Stock (Company) S&P 500 Income
Total Account Account Account Account
-------------- ------------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation in fair
value of investments $ 361,145,961 339,108,753 17,486,498 4,550,710 --
Interest 60,612,323 61,319 12,671 9,752 60,528,581
Dividends 41,617,190 39,581,073 2,036,117 -- --
-------------- ------------- ---------- ---------- -----------
463,375,474 378,751,145 19,535,286 4,560,462 60,528,581
Less investment expenses (136,182) -- -- -- (136,182)
-------------- ------------- ---------- ---------- -----------
Total additions 463,239,292 378,751,145 19,535,286 4,560,462 60,392,399
-------------- ------------- ---------- ---------- -----------
Deductions from net assets
attributed to:
Deferral fees 72,486 5,965 75 836 65,610
Participants' transfers -- 106,302,487 -- (8,236,203) (98,066,284)
Benefit payments 134,624,726 47,713,194 4,198,333 4,242,199 78,471,000
-------------- ------------- ---------- ---------- -----------
Total deductions 134,697,212 154,021,646 4,198,408 (3,993,168) (19,529,674)
-------------- ------------- ---------- ---------- -----------
Change in net assets available
for benefits 328,542,080 224,729,499 15,336,878 8,553,630 79,922,073
Beginning net assets available
for benefits 1,689,275,747 869,862,109 43,589,032 53,677,726 722,146,880
-------------- ------------- ---------- ---------- -----------
Ending net assets available for
benefits $2,017,817,827 1,094,591,608 58,925,910 62,231,356 802,068,953
============== ============= ========== ========== ===========
</TABLE>
<PAGE>
Schedule 1
----------
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1993
<TABLE>
<CAPTION>
Identity of issue Description of asset Cost Current value
- - - - --------------------------- ---------------------- ------------- --------------
<S> <C> <C> <C>
J. C. Penney Company, Inc. Common stock,
29,746,648 shares $723,528,412 1,565,417,351
------------ -------------
State Street Bank Index Fund,
27,361,218 units 27,361,218 64,451,853
------------ -------------
State Street Bank Liquidity Fund,
19,280,009 units 19,280,009 19,280,009
------------ -------------
Bankers Trust (Delaware) FHLMC backed CMO
6.00% - matures 12/15/11 18,774,560 19,249,280
Bankers Trust (Delaware) FHLMC backed CMO
6.00% - matures 3/15/12 29,819,240 31,359,219
Peoples Security Life FHLMC backed CMO
Insurance 6.35% - matures 12/15/10 34,918,346 35,612,500
Peoples Security Life FHLMC backed CMO
Insurance 6.25% - matures 10/15/13 20,422,652 20,939,040
Peoples Security Life FHLMC backed CMO
Insurance 5.50% - matures 7/15/03 11,074,246 11,502,028
Peoples Security Life FHLMC backed CMO
Insurance 6.35% - matures 11/15/14 30,651,869 31,438,642
Bankers Trust (Delaware) FHLMC backed CMO
6.50% - matures 7/15/02 26,401,367 27,020,963
National Westminister Bank FHLMC backed CMO
4.00% - matures 1/15/13 13,461,694 13,307,429
Peoples Security Life FNMA backed CMO
Insurance 6.75% - matures 1/25/13 59,481,728 61,462,200
Peoples Security Life FNMA backed CMO
Insurance 5.90% - matures 9/25/97 23,416,614 24,307,440
Peoples Security Life FNMA backed CMO
Insurance 6.50% - matures 8/25/03 22,260,985 22,071,153
Peoples Security FNMA backed CMO
Life Insurance 6.70% -matures 1/25/11 9,863,128 10,148,204
National Westminister Bank FNMA backed CMO
5.50% - matures 1/25/12 11,799,332 11,683,848
------------ -------------
Total U.S.
agency-backed
collateralized
mortgage
obligations 312,345,761 320,101,946
------------ -------------
Bankers Trust (Delaware) Government trust
certificate zero
coupon -
matures 11/15/96 8,726,100 8,751,500
Bankers Trust (Delaware) Government trust
certificate zero
coupon -
matures 5/15/97 7,834,789 7,829,357
Bankers Trust (Delaware) Government trust
certificate zero
coupon -
matures 11/15/96 1,084,557 1,088,687
Bankers Trust (Delaware) Government trust
certificate zero
coupon -
matures 5/15/97 636,405 635,775
------------ -------------
Total government
trust
certificates 18,281,851 18,305,319
------------ -------------
Bankers Trust (Delaware) MBNA credit card
trust 8.25% -
matures 6/30/98 10,488,450 10,534,300
Bankers Trust (Delaware) Standard credit
card trust 9.00%
- matures 3/10/95 17,061,577 16,864,960
------------ -------------
Total credit
card backed
obligations 27,550,027 27,399,260
------------ -------------
</TABLE>
(Continued)
<PAGE>
2 Schedule 1, Cont.
-----------------
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1993, Continued
<TABLE>
<CAPTION>
Identity of issue Description of asset Cost Current value
- - - - --------------------------- ---------------------- ------------- ---------------
<S> <C> <C> <C>
Bankers Trust (Delaware) Resolution
Funding Corp.
Strip zero
coupon -
matures 4/15/98 $19,202,343 19,491,045
----------- ----------
Bankers Trust (Delaware) Wrap agreement
6.00% - matures
12/15/11 167,829 (280,960)
Bankers Trust (Delaware) Wrap agreement
8.25% -
matures 6/30/98 69,374 (263,638)
Bankers Trust (Delaware) Wrap agreement
6.00% -
matures 3/15/12 331,131 (964,788)
Bankers Trust (Delaware) Wrap agreement
9.00% -
matures 3/10/95 119,100 26,329
Bankers Trust (Delaware) Wrap agreement
6.50% -
matures 7/15/02 296,328 (500,965)
Bankers Trust (Delaware) Wrap agreement
zero coupon -
matures 11/15/96 34,225 160,392
Bankers Trust (Delaware) Wrap agreement
zero coupon -
matures 5/15/97 32,040 172,247
Bankers Trust (Delaware) Wrap agreement
zero coupon -
matures 11/15/96 4,369 18,962
Bankers Trust (Delaware) Wrap agreement
zero coupon -
matures 5/15/97 2,185 14,180
Bankers Trust (Delaware) Wrap agreement
zero coupon -
matures 4/15/98 104,630 398,323
National Westminister Bank Wrap agreement
4.00% -
matures 1/15/13 131,350 216,340
National Westminister Bank Wrap agreement
5.50% -
matures 1/25/12 179,431 185,358
Peoples Security Life Wrap agreement
Insurance 6.35% -
matures 12/15/10 110,326 (506,716)
Peoples Security Life Wrap agreement
Insurance 5.90% -
matures 9/25/97 83,642 (654,611)
Peoples Security Life Wrap agreement
Insurance 5.50% -
matures 7/15/03 39,446 (285,721)
Peoples Security Life Wrap agreement
Insurance 6.25% -
matures 10/15/13 72,697 (400,792)
Peoples Security Life Wrap agreement
Insurance 6.35% -
matures 11/15/14 83,866 (629,048)
Peoples Security Life Wrap agreement
Insurance 6.50% -
matures 8/25/03 264,400 (130,129)
Peoples Security Life Wrap agreement
Insurance 6.75% -
matures 1/25/13 189,320 (1,562,988)
Peoples Security Life Wrap agreement
Insurance 6.70% -
matures 1/25/11 22,161 (243,423)
----------- ----------
Total wrap 2,337,850 (5,231,648)
agreements ----------- ----------
Participants' loans Interest rates
ranging from
9.25% to 12.50% 19,756,762 19,756,762
----------- ----------
(Continued)
</TABLE>
14
<PAGE>
3 Schedule 1, Cont.
-----------------
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1993, Continued
<TABLE>
<CAPTION>
Identity of issue Description of assets Cost Current value
- - - - --------------------------- ----------------------- ------------- --------------
<S> <C> <C> <C>
Aetna Life Insurance 8.85% - matures
Company evenly on 3/31,
6/30, 9/30,
12/31 of 1994 $ 27,824,864 $ 27,824,864
Aetna Life Insurance 6.35% - matures
Company 1/1/96 1,969,295 1,969,295
Aetna Life Insurance 8.95% - matures 3,121,165 3,121,165
Company 1/1/96
Canada Life 4.97% - matures 3/26/97 20,000,000 20,000,000
CNA Insurance Companies 7.00% - matures 7/1/96 30,132,787 30,132,787
Massachusetts Mutual Life 4.50% - withdrawal
Insurance Company available on demand,
no fixed maturity 17,108,208 17,108,208
Metropolitan Life 8.55% - matures
Insurance Company evenly on 6/30 and
12/31 of 1994, 1995 118,208,775 118,208,775
Principal Mutual Life 9.13% - matures
Insurance Company evenly on 6/30 of
1995, 1996, 1997 15,967,261 15,967,261
Principal Mutual Life 9.20% - matures
Insurance Company 6/30/94 6,325,258 6,325,258
Provident Life & Accident 4.39% - matures
Insurance Company 3/28/96 15,141,918 15,141,918
Prudential Asset 7.95% - matures
Management Company 12/31/94 33,386,534 33,386,534
Prudential Asset 8.72% - matures
Management Company 12/31/93 16,140,917 16,140,917
Prudential Asset 5.05% - matures
Management Company 12/29/97 22,190,869 22,190,869
Southland Life 5.12% - matures 6/28/98 15,167,138 15,167,138
Southland Life 5.75% - matures 12/21/98 11,043,894 11,043,894
Transamerica/Occidental 4.83% - matures
Life 3/27/97 20,119,248 20,119,248
-------------- -------------
Total investment
contracts with
insurance companies 373,848,131 373,848,131
-------------- -------------
Total investments $1,543,492,364 2,422,820,028
============== =============
</TABLE>
See accompanying independent auditors' report.
<PAGE>
Schedule 2
----------
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1993
<TABLE>
<CAPTION>
Current
Expense value
Aggregate incurred of asset on
Description number of Purchase Selling Lease with Cost transaction Net
Identity of issue of asset transactions price price rental transaction of asset date gain (loss)
----------------- ----------- ------------ -------- ------- ------ ----------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases:
Common stock:
J. C. Penney Company,
Inc. Common stock 75 $113,475,330 -- -- -- 113,475,330 113,475,330 --
Sales:
Investment contract
with insurance company:
Aetna Life Insurance 9.25% due 104 -- 101,379,000 -- -- 101,379,070 101,379,070 --
6/30/93
Common stock:
J. C. Penney Company,
Inc. Common stock 39 -- 96,615,642 -- -- 58,516,494 96,615,462 38,098,968
</TABLE>
See accompanying independent auditors' report.
<PAGE>
INDEPENDENT AUDITORS' CONSENT
-----------------------------
The J. C. Penney Company, Inc.
Associate Benefits Committee,
Benefit Plans Investment Committee,
Retirement Plans Committee, and the
Benefits Plans Review Committee:
We consent to incorporation by reference in the registration statement (No. 33-
59668) on Form S-8 of J. C. Penney Company, Inc. of our report dated May 13,
1994 relating to the statements of net assets available for benefits of the
J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan as of
December 31, 1993 and 1992, and the related statements of changes in net assets
available for benefits and related schedules for the years then ended, which
report appears in the December 31, 1993 annual report on Form 11-K of the J. C.
Penney Company, Inc. Savings and Profit-Sharing Retirement Plan.
/s/ KPMG Peat Marwick
---------------------
Dallas, Texas
June 27, 1994
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this annual
report to be signed by the undersigned thereunto duly authorized.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
By: /s/ T. A. Clerkin
------------------
T. A. Clerkin
Member of Retirement Plans Committee
Date: June 27, 1994
