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<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
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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, 1994 and 1993
(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, 1994 and 1993
Statements of Changes in Net Assets Available
for Benefits for the years ended December 31, 1994 and 1993
Notes to Financial Statements
Schedule
--------
Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1994 1
Item 27d - Schedule of Reportable Transactions for the
year ended December 31, 1994 2
<PAGE>
[LETTERHEAD OF KPMG PEAT MARWICK LLP APPEARS HERE]
INDEPENDENT AUDITORS' REPORT
----------------------------
The J. C. Penney Company, Inc.
Benefit Administration Committee,
Benefit Plans Investment 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
(the Plan) as of December 31, 1994 and 1993, 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, 1994
and 1993, 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, Item 27a -
Schedule of Assets Held for Investment Purposes and Item 27d - Schedule of
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 audits 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.
Dallas, Texas /s/ KPMG Peat Marwick LLP
May 12, 1995
<PAGE>
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Assets:
Investments, at fair value (note 2):
J. C. Penney Company, Inc. common stock - 30,911,521
shares in 1994 and 29,746,648 shares in 1993
(cost $853,782,375 and $723,528,412, respectively) $1,379,426,625 1,565,417,351
State Street Bank Index Fund - 788,395 units in 1994
and 926,099 units in 1993 (cost $25,284,138 and
$27,361,218, respectively) 55,629,970 64,451,853
State Street Bank Liquidity Fund (cost approximates
fair value) 17,219,546 19,280,009
Funds held under structured investment contracts:
U.S. agency backed collateralized mortgage obligations
(cost $239,764,664 in 1994 and $312,345,761 in 1993) 230,303,568 320,101,946
Other U.S. Government obligations (cost $24,955,249 in
1994 and $18,281,851 in 1993) 24,621,649 18,305,319
Corporate bonds and notes (cost $49,707,803 in
1994 and $27,550,077 in 1993) 47,470,763 27,399,260
Foreign government obligations (cost $6,009,117
in 1994) 5,834,218 --
Other bonds (cost $20,183,163 in 1994 and $19,202,343
in 1993) 19,771,241 19,491,045
Wrap agreements (cost $2,731,136 in 1994
and $2,337,850 in 1993) 16,937,687 (5,231,648)
Participants' loans (unpaid principal balance
approximates fair value) 20,245,297 19,756,762
Funds with insurance companies, at contract value 338,198,542 373,848,131
-------------- -------------
Total investments 2,155,659,106 2,422,820,028
-------------- -------------
Receivables:
Miscellaneous 19,387 20,032
Accrued interest and dividends 657,950 581,293
Due from broker for securities sold -- 407,049
-------------- -------------
677,337 1,008,374
-------------- -------------
Total assets 2,156,336,443 2,423,828,402
-------------- -------------
Liabilities:
Cash overdraft 10,911 112,298
Due to J. C. Penney Company, Inc. 2,748 18,798
Due to broker for securities purchased 699,981 --
Accrued expenses and other liabilities 846,404 2,063,511
-------------- -------------
Total liabilities 1,560,044 2,194,607
-------------- -------------
Net assets available for benefits $2,154,776,399 2,421,633,795
============== =============
</TABLE>
See accompanying notes to financial statements.
<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, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in fair value
of investments $ (240,198,876) 422,513,532
Interest 50,208,699 55,420,612
Dividends 48,597,291 42,768,257
-------------- -------------
(141,392,886) 520,702,401
Less investment expenses (319,418) (231,446)
-------------- -------------
(141,712,304) 520,470,955
-------------- -------------
Contributions - J. C. Penney Company, Inc. 1,036,593 --
-------------- -------------
Total additions (140,675,711) 520,470,955
-------------- -------------
Deductions from net assets attributed to:
Deferral fees 175,191 116,849
Benefit payments 126,006,494 116,538,138
-------------- -------------
Total deductions 126,181,685 116,654,987
-------------- -------------
Change in net assets available for benefits (266,857,396) 403,815,968
Beginning net assets available for benefits 2,421,633,795 2,017,817,827
-------------- -------------
Ending net assets available for benefits $2,154,776,399 2,421,633,795
============= =============
</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, 1994 and 1993
(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. 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) Contributions
-------------
Associate contributions ceased for plan years after 1988 and
participants became fully vested in all accounts.
In 1994, the Company, in accordance with Plan provisions, made a
contribution to the Plan to fund the reinstatement of forfeited
company accounts for associates who left employment of the Company
prior to January 1, 1989 and were rehired within five years.
Additional contributions to the Plan are not expected. No
contributions were made to the Plan by the Company between 1988 and
1993.
(c) 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.
(Continued)
<PAGE>
2
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
(d) 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.
(e) Loans to Participants
---------------------
Loans may be made available to active or nonretired 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.
(Continued)
<PAGE>
3
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
The following table presents the fair values of investments. Investments
that represent 5% or more of the Plan's net assets are separately identified:
<TABLE>
<CAPTION>
December 31, 1994 December 31, 1993
----------------- -----------------
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. 30,911,521 $ 1,379,426,625 29,746,648 $ 1,565,417,351
common stock
Other -- 776,232,481 -- 857,402,677
-------------- --------------
$ 2,155,659,106 $ 2,422,820,028
============== ==============
</TABLE>
The number of units and net asset value per unit are as follows:
<TABLE>
<CAPTION>
December 31, 1994 December 31, 1993
----------------- -----------------
Net asset Net asset
Units value Units value
----- ----- ----- -----
<S> <C> <C> <C> <C>
Penney Stock Account 93,952,059 $ 14.698732 93,158,712 16.814552
S&P 500 Account 6,062,619 9.119812 7,208,059 8.983400
Interest Income Account* 75,893,537 9.201917 89,424,379 8.626129
</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 stated that the Plan, as then designed,
was in compliance with the applicable qualification requirements of the
Internal Revenue 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.
<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, 1994
--------------------------------------------------------------
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
stocks - 30,911,521 shares
(cost $853,782,375) $1,379,426,625 1,379,426,625 -- --
State Street Bank Index Fund -
788,395 units (cost $25,284,138) 55,629,970 -- 55,629,970 --
State Street Bank Liquidity Fund
(cost approximates fair value) 17,219,546 1,467,585 -- 15,751,961
Funds held under structure investment
contracts:
U.S. agency backed collateralized
mortgage obligations (cost
$239,764,664) 230,303,568 -- -- 230,303,568
Other U.S. Government
obligations (cost $24,955,249) 24,621,649 -- -- 24,621,649
Corporate bonds and notes (cost
$49,707,803) 47,470,763 -- -- 47,470,763
Foreign government obligations
(cost $6,009,117) 5,834,218 -- -- 5,834,218
Other bonds (cost $20,183,163) 19,771,241 -- -- 19,771,241
Wrap agreements (cost
$2,731,136) 16,937,687 -- -- 16,937,687
Participants' loans (unpaid principal
balance approximates fair value) 20,245,297 -- -- 20,245,297
Funds with insurance companies, at
contract value 338,198,542 -- -- 338,198,542
------------- ------------- ---------- -----------
Total investments 2,155,659,106 1,380,894,210 55,629,970 719,134,926
------------- ------------- ---------- -----------
Receivables:
Miscellaneous 19,387 11,271 -- 8,116
Accrued interest and dividends 657,950 23,871 -- 634,079
Interfund balances -- 1,007,409 (265,359) (742,050)
------------- ------------- ---------- -----------
677,337 1,042,551 (265,359) (99,855)
------------- ------------- ---------- -----------
Total assets 2,156,336,443 1,381,936,761 55,364,611 719,035,071
------------- ------------- ---------- -----------
Liabilities:
Cash overdraft 10,911 10,911 -- --
Due to J. C. Penney Company, Inc. 2,748 -- -- 2,748
Due to broker 699,981 699,981 -- --
Accrued expenses and other liabilities 846,404 74,457 11,415 760,532
------------- ------------- ---------- -----------
Total liabilities 1,560,044 785,349 11,415 763,280
------------- ------------- ---------- -----------
Net assets available for benefits $2,154,776,399 1,381,151,412 55,353,196 718,271,791
============= ============= ========== ===========
</TABLE>
(Continued)
<PAGE>
5
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,
-----------------------------------------------------------------
Continued:
- ---------
<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
Other U.S. Government obligations
(cost $18,281,851) 18,305,319 -- -- 18,305,319
Corporate bonds and notes (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
============= ============= ========== ===========
</TABLE>
(Continued)
<PAGE>
6
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:
<TABLE>
<CAPTION>
Year ended December 31, 1994
------------------------------------------------------------------------
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
(depreciation) in fair
value of investments $ (240,198,876) (240,845,290) 646,414 --
Interest 50,208,699 199,864 3,580 50,005,255
Dividends 48,597,291 48,597,291 -- --
------------- ------------- ---------- -----------
(141,392,886) (192,048,135) 649,994 50,005,255
Less investment expenses (319,418) -- -- (319,418)
------------- ------------- ---------- -----------
(141,712,304) (192,048,135) 649,994 49,685,837
------------- ------------- ---------- -----------
Contributions - J. C. Penney
Company, Inc. 1,036,593 1,036,593 -- --
------------- ------------- ---------- -----------
Total additions (140,675,711) (191,011,542) 649,994 49,685,837
------------- ------------- ---------- -----------
Deductions from net assets
attributed to:
Deferral fees 175,191 23,856 4,272 147,063
Participants' transfers -- (71,293,355) 6,233,244 65,060,111
Benefit payments 126,006,494 65,251,018 3,834,827 56,920,649
------------- ------------- ---------- -----------
Total deductions 126,181,685 (6,018,481) 10,072,343 122,127,823
------------- ------------- ---------- -----------
Change in net assets available
for benefits (266,857,396) (184,993,061) (9,422,349) (72,441,986)
Beginning net assets available
for benefits 2,421,633,795 1,566,144,473 64,775,545 790,713,777
------------- ------------- ---------- -----------
Ending net assets available for
benefits $2,154,776,399 1,381,151,412 55,353,196 718,271,791
============== ============= ========== ===========
</TABLE>
(Continued)
<PAGE>
7
J. C. PENNEY COMPANY, INC.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Notes to Financial Statements
<TABLE>
<CAPTION>
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 of investments $ 422,513,532 416,505,924 6,007,608 --
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 benefits 403,815,968 412,626,955 2,544,189 (11,355,176)
Beginning net assets available
for benefits 2,017,817,827 1,153,517,518 62,231,356 802,068,953
-------------- ------------- ---------- -----------
Ending net assets available for
benefits $2,421,633,795 1,566,144,473 64,775,545 790,713,777
============== ============= ========== ===========
</TABLE>
(6) Plan Amendment
--------------
Effective April 1, 1995, the JCPenney Financial Services Thrift and
Investment Retirement Plan (Thrift Plan) merged with the Plan. The net
assets and number of participants of the Thrift Plan are not material to
the Plan.
(Continued)
<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, 1994
<TABLE>
<CAPTION>
Identity of issue Description of asset Cost Current value
----------------- -------------------- ---- -------------
<S> <C> <C> <C>
J. C. Penney Company, Inc.* Common stock, 30,911,521 shares $853,782,375 1,379,426,625
------------ -------------
State Street Bank* Index Fund, 788,395 units 25,284,138 55,629,970
------------ -------------
State Street Bank* Liquidity Fund, 17,219,546 units 17,219,546 17,219,546
------------ -------------
Bankers Trust (Delaware) FHLMC backed CMO 6.00% - matures 3/15/12 4,911,573 5,070,224
Peoples Security Life FHLMC backed CMO 6.25% - matures 10/15/13
Insurance 20,422,652 19,175,895
Peoples Security Life FHLMC backed CMO 5.50% - matures 7/15/03
Insurance 11,074,246 10,513,343
Peoples Security Life FHLMC backed CMO 6.35% - matures 11/15/14
Insurance 30,651,869 28,761,909
Bankers Trust (Delaware) FHLMC backed CMO 6.50% - matures 7/15/02 26,401,367 25,040,187
National Westminster Bank FHLMC backed CMO 4.00% - matures 1/15/13 13,461,694 12,949,016
Provident Life and FHLMC backed CMO 6.50% - matures 6/01/09
Accident Insurance Company 55,341 54,176
Provident Life and FHLMC backed CMO 6.50% - matures 7/01/09
Accident Insurance Company 1,104,379 1,081,153
Provident Life and FHLMC backed CMO 6.50% - matures 7/01/09
Accident Insurance Company 4,943,993 4,840,017
Provident Life and FHLMC backed CMO 6.50% - matures 2/01/09
Accident Insurance Company 2,708,417 2,651,457
Peoples Security Life FNMA backed CMO 6.75% - matures 1/25/13
Insurance 55,228,716 55,187,362
Peoples Security Life FNMA backed CMO 5.90% - matures 9/25/97
Insurance 23,416,614 23,287,440
Peoples Security Life FNMA backed CMO 6.50% - matures 8/25/03
Insurance 23,721,343 21,426,284
Peoples Security Life FNMA backed CMO 6.70% - matures 1/25/11
Insurance 9,863,128 9,400,115
National Westminster Bank FNMA backed CMO 5.50% - matures 1/25/12 11,799,332 10,864,990
----------- -------------
Total U.S. agency
backed collateral-
ized mortgage
obligations 239,764,664 230,303,568
------------ -------------
Bankers Trust (Delaware) Government trust certificate zero coupon -
matures 11/15/96 8,726,100 8,685,500
Bankers Trust (Delaware) Government trust certificate zero coupon -
matures 5/15/97 7,834,789 7,690,725
Bankers Trust (Delaware) Government trust certificate zero coupon -
matures 11/15/96 1,084,557 1,080,476
Bankers Trust (Delaware) Government trust certificate zero coupon -
matures 5/15/97 636,405 624,518
</TABLE>
(Continued)
<PAGE>
2 Schedule 1, Cont.
-----------------
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes, Continued
<TABLE>
<CAPTION>
Identity of issue Description of asset Cost Current value
----------------- -------------------- ---- -------------
<S> <C> <C> <C>
Provident Life and Government trust certificate zero coupon -
Accident Insurance Company matures 5/15/99 $ 3,271,500 3,200,400
Provident Life and Government trust certificate zero coupon -
Accident Insurance Company matures 11/15/99 1,752,250 1,720,500
Provident Life and Tennessee Valley Authority strip zero coupon -
Accident Insurance Company matures 10/15/98 1,649,648 1,619,530
------------ -------------
Total other U.S. Government obligations 24,955,249 24,621,649
------------ -------------
Bankers Trust (Delaware) MBNA credit card trust 8.25% - matures 6/30/98 10,488,499 10,009,300
Bankers Trust (Delaware) Standard credit card trust 9.00% - matures
3/10/95 17,061,577 16,040,000
Provident Life and Bank of Halifax 9.00% - matures 10/01/99
Accident Insurance Company 1,050,220 1,017,350
Provident Life and NBD Bancorp 8.10% - matures 3/01/02
Accident Insurance Company 1,004,760 974,340
Provident Life and National Westminster Bank PLC 9.45% - matures
Accident Insurance Company 5/01/01 1,076,170 1,051,910
Provident Life and Norwest Corporation 6.00% - matures 3/15/00
Accident Insurance Company 655,536 631,610
Provident Life and Republic NY Corporation 8.88% - matures 748,608 712,572
Accident Insurance Company 2/15/01
Provident Life and Wachovia Bank Corporation 7.00% - matures
Accident Insurance Company 12/15/99 691,026 664,573
Provident Life and American Express Card 6.13% - matures 6/15/00
Accident Insurance Company 925,050 907,810
Provident Life and American General Corporation 9.63% - matures
Accident Insurance Company 7/15/00 772,793 735,616
Provident Life and Associates Corporation NA 6.25% - matures
Accident Insurance Company 3/15/99 670,635 645,764
Provident Life and Commercial Credit 9.60% - matures 5/15/99
Accident Insurance Company 759,080 728,378
Provident Life and Premier Auto 6.65% - matures 11/02/98
Accident Insurance Company 699,125 672,000
Provident Life and Yamaha Motor 6.25% - matures 9/17/01
Accident Insurance Company 953,281 929,060
Provident Life and Discover Card 6.70% - matures 2/16/00
Accident Insurance Company 698,159 674,625
Provident Life and First Chicago 7.15% - matures 4/15/01
Accident Insurance Company 698,141 672,875
Provident Life and Sears 7.00% - matures 1/15/04
Accident Insurance Company 698,906 667,842
Provident Life and Signet 5.20% - matures 2/15/02
Accident Insurance Company 922,969 905,310
Provident Life and Standard Credit Card 8.88% - matures 9/07/99
Accident Insurance Company 1,043,281 1,020,310
Provident Life and Green Tree 7.30% - matures 12/15/19
Accident Insurance Company 698,906 668,717
Provident Life and Goldman Sachs 6.38% - matures 6/15/00
Accident Insurance Company 656,705 630,441
Provident Life and BP America Inc. 9.38% - matures 11/01/00
Accident Insurance Company 765,695 734,475
</TABLE>
(Continued)
<PAGE>
3 Schedule 1, Cont.
-----------------
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes, Continued
<TABLE>
<CAPTION>
Identity of issue Description of asset Cost Current value
----------------- -------------------- ---- -------------
<S> <C> <C> <C>
Provident Life and Mobil Corporation 8.38% - matures 2/12/01 $ 738,129 704,410
Accident Insurance Company
Provident Life and Shell Canada Ltd. 7.38% - matures 6/01/99
Accident Insurance Company 699,748 677,530
Provident Life and Soc Natl Elf Acquitaine 8.00% - matures 10/15/01
Accident Insurance Company 1,003,910 975,770
Provident Life and Wal-Mart Stores Inc. 6.13% - matures 10/01/99
Accident Insurance Company 668,220 643,384
Provident Life and Bell Atlantic Financial Services 5.43% - matures
Accident Insurance Company 8/15/99 909,370 903,330
Provident Life and Nippon Telephone & Telegraph Company 9.50% -
Accident Insurance Company matures 7/27/98 753,361 727,062
Provident Life and Pacific Bell 8.70% - matures 6/15/01
Accident Insurance Company 532,770 509,800
Provident Life and Southwestern Bell 6.38% - matures 4/01/01
Accident Insurance Company 663,173 634,599
------------ -------------
Total corporate
bonds and notes 49,707,803 47,470,763
------------ -------------
Provident Life and Province of Ontario 6.13% - matures 6/28/00
Accident Insurance Company 654,703 633,045
Provident Life and European Investment 9.13% - matures 6/01/02
Accident Insurance Company 1,073,580 1,049,290
Provident Life and Internation Bank for Reconstruction and
Accident Insurance Company Development 8.38% - matures 10/01/99 351,666 343,583
Provident Life and Government of Ireland 9.50% - matures 4/03/00
Accident Insurance Company 1,071,800 1,051,250
Provident Life and Japan Finance Corporation 9.13% - matures 3/13/00
Accident Insurance Company 1,065,620 1,026,210
Provident Life and KFW International Finance Inc. 9.13% - matures
Accident Insurance Company 5/15/01 760,228 728,210
Provident Life and Victorian Pub. Auth. Fin. 8.45% - matures 10/01/01
Accident Insurance Company 1,031,520 1,002,630
------------ -------------
Total foreign
government
obligations 6,009,117 5,834,218
------------ -------------
Provident Life and Waste Management Inc. 7.70% - matures 10/01/02
Accident Insurance Company 980,820 963,200
Bankers Trust (Delaware) Resolution Funding Corp. Strip zero coupon -
matures 4/15/98 19,202,343 18,808,041
------------ -------------
Total other bonds 20,183,163 19,771,241
------------ -------------
</TABLE>
(Continued)
<PAGE>
4 Schedule 1, Cont.
-----------------
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes, Continued
<TABLE>
<CAPTION>
Identity of issue Description of asset Cost Current value
----------------- -------------------- ---- -------------
<S> <C> <C> <C>
Bankers Trust (Delaware) Wrap agreement 8.25% - matures 6/30/98 $ 69,374 124,793
Bankers Trust (Delaware) Wrap agreement 6.00% - matures 3/15/12 331,131 49,271
Bankers Trust (Delaware) Wrap agreement 9.00% - matures 3/10/95 119,100 496,448
Bankers Trust (Delaware) Wrap agreement 6.50% - matures 7/15/02 296,328 1,425,829
Bankers Trust (Delaware) Wrap agreement zero coupon - maturities
ranging from 11/15/96 to 5/15/97 240,648 1,378,159
Bankers Trust (Delaware) Wrap agreement zero coupon - matures 4/15/98 104,630 2,016,444
National Westminster Bank Wrap agreement 4.00% to 5.50% - maturities
ranging from 1/25/12 to 1/15/13 310,781 1,662,688
Peoples Security Life Wrap agreement 5.50% to 6.75% - maturities
Insurance ranging from 9/25/97 to 11/15/14 1,173,644 7,701,148
Provident Life and Wrap agreement 5.20% to 9.63% - maturities
Accident Insurance Company ranging from 7/27/98 to 1/15/04 85,500 2,082,907
-------------- -------------
Total wrap 2,731,136 16,937,687
agreements -------------- -------------
Interest rates ranging from 9.25% to 12.50% -- 20,245,297
Participants' loans * -------------- -------------
Aetna Life Insurance 6.35% - matures 1/1/96
Company 1,581,380 1,581,380
Aetna Life Insurance 8.95% - matures 1/1/96
Company 2,572,071 2,572,071
Canada Life 4.97% - matures 3/26/97 20,256,781 20,256,781
CNA Insurance Companies 8.69% - matures 7/1/96 24,704,999 24,704,999
Hartford Life Insurance 7.05% - matures 10/27/98
Company 10,475,718 10,475,718
Massachusetts Mutual Life 4.50% - withdrawal available on demand, no
Insurance Company fixed maturity 18,437,341 18,437,341
Metropolitan Life 8.55% - matures 12/31/95
Insurance Company 72,519,381 72,519,381
New York Life Insurance 8.11% - matures 4/29/99
Company 6,061,845 6,061,845
Principal Mutual Life 9.13% - matures evenly on 6/30 of 1995, 1996, 1997
Insurance Company 13,147,156 13,147,156
Protective Life Insurance 7.35% - matures 6/30/99
Company 16,711,111 16,711,111
Provident Life & Accident 4.39% - matures 3/28/96
Insurance Company 15,806,649 15,806,649
Prudential Asset 6.41% - matures 10/28/97
Management Company 10,447,168 10,447,168
Prudential Asset 6.74% - matures 10/28/99
Management Company 10,455,013 10,455,013
Prudential Asset 5.05% - matures 12/29/97
Management Company 23,311,508 23,311,508
Prudential Asset 7.95% - matures 3/31/95
Management Company 13,578,324 13,578,324
Southland Life 5.12% - matures 6/28/98 15,943,695 15,943,695
Southland Life 5.75% - matures 12/21/98 11,678,918 11,678,918
Southland Life 5.40% - matures 2/18/98 10,526,341 10,526,341
Transamerica Occidental 4.83% - matures 3/27/97
Life Insurance Company 21,091,008 21,091,008
Transamerica Occidental 6.30% - matures 10/27/98
Life Insurance Company 18,892,135 18,892,135
-------------- -------------
Total investment
contracts with
insurance companies 338,198,542 338,198,542
-------------- -------------
Total investments $1,577,835,733 2,155,659,106
============== =============
</TABLE>
*Party in interest
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, 1994
<TABLE>
<CAPTION>
Current
Expense value of
Aggregate incurred asset on Net
Identity of party Description number of Purchase Selling Lease with Cost transaction gain
involved of asset transactions price price rental transaction of asset date (loss)
-------- -------- ------------ -------- ----- ------ ----------- -------- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases:
Common stock:
J. C. Penney Common
Company, Inc. stock 64 $121,380,644 -- -- -- 121,380,644 121,380,644 --
Sales:
Investment contract
with insurance
company:
Metropolitan
Life Insurance
Company 8.55% due
12/31/95 102 -- 125,776,607 -- -- 125,776,607 125,776,607 --
</TABLE>
See accompanying independent auditors' report.
<PAGE>
[LETTERHEAD OF KPMG PEAT MARWICK LLP APPEARS HERE]
INDEPENDENT AUDITORS' CONSENT
-----------------------------
The J. C. Penney Company, Inc.
Benefits Administration Committee,
Benefit Plans Investment Committee, and
Benefit Plans Review Committee:
We consent to incorporation by reference in the registration statements (No.
33-56995 and No. 33-59668) on Form S-8 of J. C. Penney Company, Inc. of our
report dated May 12, 1995 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, 1994 and 1993, 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, 1994 annual report on Form 11-K
of the J. C. Penney Company, Inc. Savings and Profit-Sharing Retirement Plan.
/s/ KPMG Peat Marwick LLP
Dallas, Texas
June 22, 1995
<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 on its behalf by the undersigned hereunto duly authorized.
SAVINGS AND PROFIT-SHARING RETIREMENT PLAN
By: /s/ J. F. Hundley
--------------------------------------------
J. F. Hundley
Member of Benefits Administration Committee
Date: June 22, 1995
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