Penney (J.C.) Co.,Inc. (Holding Co.)

"As Reported  Annual Balance Sheet","02/03/2007","01/28/2006","01/29/2005","01/31/2004","01/25/2003",
"Currency","US Dollar","US Dollar","US Dollar","US Dollar","US Dollar",
"Auditor Status","Not Qualified","Not Qualified","Not Qualified","Not Qualified","Not Qualified",
"Consolidated","Yes","Yes","Yes","Yes","Yes",
"Scale","Millions","Millions","Millions","Millions","Millions",
"","","","","","",
"Cash & short-term investments","2,747","3,016","4,687","2,994","2,474",
"Receivables, gross","-","-","411","238","719",
"Bad debt reserves","-","-","7","5","14",
"Receivables, net","263","270","404","233","705",
"Merchandise inventories at lower FIFO or mkt","3,408","3,234","3,194","3,199","5,348",
"LIFO reserve","8","24","25","43","403",
"Merchandise inventories","3,400","3,210","3,169","3,156","4,945",
"Prepaid expenses","238","206","167","130","229",
"Total current assets","6,648","6,702","8,427","6,513","8,353",
"Land","237","208","203","206","-",
"Buildings","3,141","2,837","2,693","2,554","-",
"Furniture & equipment","2,104","2,078","2,145","2,203","-",
"Land & buildings","-","-","-","-","2,940",
"Furniture & fixtures","-","-","-","-","3,946",
"Leasehold improvements","795","722","674","674","1,268",
"Accumulated depreciation","2,115","2,097","2,077","2,122","3,253",
"Property & equipment, net","4,162","3,748","3,638","3,515","4,901",
"Prepaid pension","1,235","1,469","1,538","1,320","-",
"Goodwill","-","-","-","42","2,304",
"Intangible assets, net","-","-","-","-","494",
"Real estate investments","350","270","192","169","106",
"Leveraged lease investments","140","135","139","134","131",
"Capitalized software, net","95","89","99","97","228",
"Goodwill - Renner","-","-","43","-","-",
"Deferred catalog book costs","-","-","-","77","73",
"Debt issuance costs, net","21","24","31","52","46",
"Prepaid pension","-","-","-","-","1,172",
"Other assets","22","24","20","27","59",
"Total other assets","628","542","524","556","1,815",
"Assets of discontinued operations","-","-","-","6,354","-",
"Total assets","12,673","12,461","14,127","18,300","17,867",
"Trade payables","1,366","1,171","1,200","1,167","1,792",
"Accrued salaries, vacation & bonus","455","453","443","409","570",
"Customer gift cards/certificates","231","219","207","179","173",
"Taxes other than income taxes","116","74","125","-","-",
"Capital expenditures payable","88","47","-","-","-",
"Interest payable","84","95","107","132","122",
"Current portion of retirement plan liabilitie","74","-","-","-","-",
"Advertising payables","93","99","78","79","187",
"Current portion of workers' compensation & ge","67","72","68","63","99",
"Occupancy & rent-related payables","46","51","-","-","91",
"Common dividends payable","41","29","35","35","34",
"Reserves for discontinued operations","34","79","221","-","-",
"Taxes payable","-","-","79","119","123",
"Pharmacy payables","-","-","-","-","131",
"Restructuring reserves","-","-","-","-","37",
"Funds due for common stock repurchases","-","-","51","-","-",
"Other accrued expenses & other curr liabils","363","344","352","368","432",
"Total accrued expenses & oth current liabils","1,692","1,562","1,766","-","-",
"Accounts payable & accrued expenses","-","-","-","2,551","3,791",
"Current maturities of long term debt","434","21","459","242","275",
"Income taxes payable","-","8","-","-","-",
"Short-term debt","-","-","22","18","13",
"Deferred taxes","-","-","-","943","80",
"Total current liabilities","3,492","2,762","3,447","3,754","4,159",
"Notes","1,763","1,763","1,857","2,165","1,928",
"Debentures","1,369","1,369","1,525","1,525","1,525",
"Medium-term notes","300","300","493","493","493",
"Convertible subordinated notes","-","-","-","650","650",
"Sunking fund debentures","-","-","-","313","392",
"Original issue discount debentures","-","-","-","167","156",
"Equipment financing notes","4","10","15","21","25",
"Total notes & debentures","3,436","3,442","3,890","-","-",
"Capital lease obligs & other long-term debt","8","23","33","22","46",
"Total long-term debt, including current matur","3,444","3,465","3,923","-","-",
"Less: current maturities","434","21","459","242","275",
"Long-term debt","3,010","3,444","3,464","5,114","4,940",
"Deferred taxes","1,206","1,287","1,318","1,217","1,391",
"Retirement benefit plan liabilities","324","590","634","-","-",
"Long-term portion of workers' compensation &","152","164","157","-","-",
"Developer/tenant allowances","120","122","111","-","-",
"Reserves for discontinued operations","51","54","114","-","-",
"Other liabilities","30","31","26","-","-",
"Total other liabilities","677","961","1,042","-","-",
"Other liabilities","-","-","-","804","1,007",
"Liabilities of discontinued operations","-","-","-","1,986","-",
"Total liabilities","8,385","8,454","9,271","12,875","11,497",
"Preferred stock","-","-","-","304","333",
"Common stock","112","-","-","3,531","3,423",
"Additional paid-in capital","3,430","-","-","-","-",
"Common stock & additional paid-in capital","-","3,479","4,176","-","-",
"Reinvested earnings","922","512","812","1,728","2,817",
"Foreign currency translation","-","-","(104)","(115)","(164)",
"Non-qualified plan minimum liability adjustme","-","(102)","(102)","(82)","(58)",
"Net unrealized gains on investments","166","118","74","60","19",
"Net actuarial gain/(loss) & prior service (co","(342)","-","-","-","-",
"Other comprehensive (loss) from discont opers","-","-","-","(1)","-",
"Accumulated other comprehensive income (loss)","(176)","16","(132)","(138)","(203)",
"Total stockholders' equity","4,288","4,007","4,856","5,425","6,370",
"","","","","","",
Penney (J.C.) Co.,Inc. (Holding Co.)

"As Reported  Annual Income Statement","02/03/2007","01/28/2006","01/29/2005","01/31/2004","01/25/2003",
"Currency","US Dollar","US Dollar","US Dollar","US Dollar","US Dollar",
"Auditor Status","Not Qualified","Not Qualified","Not Qualified","Not Qualified","Not Qualified",
"Consolidated","Yes","Yes","Yes","Yes","Yes",
"Scale","Millions","Millions","Millions","Millions","Millions",
"","","","","","",
"Retail sales, net","19,903","18,781","18,424","17,786","32,347",
"Cost of goods sold","12,078","11,405","11,285","11,166","22,573",
"Gross margin","7,825","7,376","7,139","6,620","-",
"Selling, general & administrative expenses","5,521","5,799","5,827","5,830","8,667",
"Depreciation & amortization expenses","389","-","-","-","-",
"Pre-opening expense","27","-","-","-","-",
"Real estate & other income (expense)","34","-","-","-","-",
"Other unallocated expenses","-","-","-","-","93",
"Total operating expenses","5,903","-","-","-","-",
"Operating income","1,922","-","-","-","-",
"Interest on long-term debt","270","280","373","429","-",
"Interest on short-term debt","-","-","3","6","-",
"Short-term investments","(135)","(111)","(63)","(30)","-",
"Other interest expense (income), net","(5)","4","17","20","-",
"Less: interest expense allocated to discontin","-","(4)","(97)","(164)","-",
"Interest expense, net","-","-","-","-","(388)",
"Net interest expense","130","169","233","261","(388)",
"Bond premiums & unamortized costs","-","18","47","-","-",
"Real estate activities","-","39","30","28","-",
"Net gains from sale of real estate","-","27","8","51","-",
"Asset impair, PVOL & other unit closing costs","-","(12)","(19)","(57)","-",
"Management transition costs","-","-","(29)","-","-",
"Other real estate other income (expense)","-","-","(2)","(5)","-",
"Real estate & other income (expense)","-","54","12","(17)","-",
"Acquisition amortization","-","-","-","-","42",
"Total costs & expenses","-","-","-","-","31,763",
"Income (loss) from cont opers bef inc taxes","1,792","1,444","1,020","546","584",
"Current federal & foreign income tax (benef)","590","541","340","40","58",
"Current state & local income taxes (benefit)","109","(11)","14","5","14",
"Total current income taxes (benefit)","699","530","354","45","72",
"Dfd federal & foreign income taxes (benefit)","(33)","(44)","(8)","126","130",
"Deferred state & local income taxes (benefit)","(8)","(19)","7","11","11",
"Total deferred income taxes (benefit)","(41)","(63)","(1)","137","141",
"Income tax expense","658","467","353","182","213",
"Income (loss) from continuing operations","1,134","977","667","364","371",
"Income (loss) from discontinued operations","19","111","-","-","-",
"Gain (loss) on sale of discontinued opers","-","-","-","-","34",
"Discontinued operations, net","-","-","(143)","(1,292)","-",
"Net income (loss)","1,153","1,088","524","(928)","405",
"Less: preferred stock dividends","-","-","12","25","27",
"Net income (loss) applic to com stockholders","1,153","1,088","512","(953)","378",
"Weighted average shares outstanding - basic","229","253","279","272","267",
"Weighted average shares outstanding - diluted","232","255","307","297","293",
"Year end shares outstanding","226","233","271","274","269",
"Income (loss) per share- cont opers-basic","4.95","3.86","2.35","1.25","1.28",
"Income (loss) per sh-discont opers-basic","0.08","0.44","(0.52)","-","-",
"Inc (loss) per sh-sale of discont opers-basic","-","-","-","-","0.13",
"Net income (loss) per share-basic","5.03","4.3","1.83","(3.5)","1.41",
"Income (loss) per share-cont opers-diluted","4.88","3.83","2.23","1.21","1.25",
"Income (loss) per sh-discont opers-diluted","0.08","0.43","(0.47)","-","-",
"Inc (loss) per sh-sale of discont opers-dilut","-","-","-","-","0.12",
"Net income (loss) per share-diluted","4.96","4.26","1.76","(3.13)","1.37",
"Dividends per share","0.72","0.5","-","0.125","-",
"Total number of employees","155,000","151,000","151,000","147,000","228,000",
"Number of common stockholders","37,388","40,362","43,242","46,524","48,510",
"","","","","","",
Penney (J.C.) Co.,Inc. (Holding Co.)

"As Reported  Annual Retained Earnings","02/03/2007","01/28/2006","01/29/2005","01/31/2004","01/25/2003",
"Currency","US Dollar","US Dollar","US Dollar","US Dollar","US Dollar",
"Auditor Status","Not Qualified","Not Qualified","Not Qualified","Not Qualified","Not Qualified",
"Consolidated","Yes","Yes","Yes","Yes","Yes",
"Scale","Millions","Millions","Millions","Millions","Millions",
"","","","","","",
"Previous reinvested earnings","512","812","1,728","2,817","2,573",
"Common stock dividends declared","165","125","-","-","-",
"Dividends declared","-","-","150","161","161",
"Common stock repurchased & retired","578","1,263","1,290","-","-",
"Reinvested earnings","922","512","812","1,728","2,817",
"","","","","","",
Penney (J.C.) Co.,Inc. (Holding Co.)

"As Reported  Annual Cash Flow","02/03/2007","01/28/2006","01/29/2005","01/31/2004","01/25/2003",
"Currency","US Dollar","US Dollar","US Dollar","US Dollar","US Dollar",
"Auditor Status","Not Qualified","Not Qualified","Not Qualified","Not Qualified","Not Qualified",
"Consolidated","Yes","Yes","Yes","Yes","Yes",
"Scale","Millions","Millions","Millions","Millions","Millions",
"","","","","","",
"Net income (loss)","1,153","1,088","-","-","-",
"Loss (income) from discontinued operations","(19)","(111)","-","-","-",
"Income (loss) from continuing operations","-","-","667","364","371",
"Asset impair, PVOL & other unit closing costs","4","12","19","35","104",
"Depreciation & amortization","389","372","368","394","667",
"Net gains on sale of assets","(8)","(27)","(8)","(51)","(18)",
"Co contributions to savings & profits sharing","-","-","-","-","47",
"Benefit plans expense (income)","(51)","49","45","135","30",
"Pension contribution","(300)","-","(300)","(300)","(300)",
"Tax benefits on stock options exercised","6","-","-","-","-",
"Deferred taxes","(6)","15","1","137","141",
"Receivables","29","(44)","(34)","3","(6)",
"Inventory","(190)","(67)","(13)","(100)","82",
"Prepaid expenses & other assets","(37)","(16)","9","(36)","(36)",
"Accounts payable","-","-","33","-","138",
"Trade payables","195","28","-","-","-",
"Accounts payable & accrued expenses","-","-","-","94","-",
"Current income taxes payable","(1)","(124)","182","(17)","3",
"Accrued expenses & other liabilities","31","124","135","-","-",
"Other liabilities","-","-","-","145","102",
"Net cash flows from operating activities","1,255","1,337","1,127","812","1,329",
"Capital expenditures","(772)","(535)","(412)","(373)","(658)",
"Proceeds from sale of discontinued operations","-","283","4,666","20","-",
"Proceeds from sale of assets","20","31","34","100","38",
"Net cash flows from investing activities","(752)","(221)","4,288","(253)","(620)",
"Change in short-term debt","-","-","4","5","(2)",
"Issuance of equipment financing","-","-","-","-","27",
"Proceeds from the issuance of long-term debt","-","-","-","607","-",
"Payments of long-term debt, including capital","(21)","(474)","(856)","(450)","(939)",
"Common stock issued, net","-","-","260","52","30",
"Common stock repurchased","(750)","(2,252)","(1,901)","-","-",
"Dividends paid, common & preferred","(153)","(131)","(150)","(160)","(161)",
"Preferred stock redeemed","-","-","(13)","(29)","(30)",
"Proceeds from stock options exercised","135","162","-","-","-",
"Excess tax benefits on stock options exercise","39","43","-","-","-",
"Other cash flows from financing activities","(1)","-","-","-","-",
"Net cash flows from financing activities","(751)","(2,652)","(2,656)","25","(1,075)",
"Cash flows from discontinued operations: Oper","11","82","-","-","-",
"Cash flows from discontinued operations: Inve","(32)","(187)","-","-","-",
"Cash flows from discontinued operations: Fina","-","8","-","-","-",
"Cash flows from discontinued operations","(21)","(97)","(1,066)","(64)","-",
"Net incr (decr) in cash & short-term invests","(269)","(1,633)","1,693","520","(366)",
"Cash & short-term investments at beg of year","3,016","4,649","2,994","2,474","2,840",
"Cash & short-term investments at end of year","2,747","3,016","4,687","2,994","2,474",
"Interest expense paid","281","312","405","420","422",
"Interest received","(140)","(109)","57","188","39",
"Income taxes paid","593","441","178","50","60",
"","","","","","",