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Compute the following: Liquidity ratios Current, Quick, and Cash-to-Sales --- Leverage ratios Debt-to-Capital, Interest Coverage, and Cash to- Debt EXHIBIT 36.1 Income Statements 20102012 (in

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  1. Compute the following:

Liquidity ratios Current, Quick, and Cash-to-Sales ---

Leverage ratios Debt-to-Capital, Interest Coverage, and Cash to- Debt

EXHIBIT 36.1 Income Statements 20102012 (in millions of dollars, except per-share data) 2012 2011 2010 12,985 8.919 4,066 4,535 298 543 5,376 (1,310) 17,260 11,042 6,218 5,251 451 518 6,220 17,759 10,799 6,960 5,358 255 515 6,128 832 Total revenue Cost of revenue Gross profit Selling general and administrative Non recurring Others Total operating expenses Operating Income or loss Income from continuing operations Total other Income/expenses net Earnings before Interest and taxes Interest expense Income before tax Income tax expense Net Income Wt. avg. shares for basic EPS-basic Weighted average shares-diluted Basic earnings per share Diluted earnings per share 9 823 592 (1.310) 226 (1.536) (551) (985) 219.2 219.2 ($4.49) ($4.49) (229) (77) (152) 217.4 217.4 ($0.70) ($0.70) 203 389 236.4 238.0 $1.64 $1.63 EXHIBIT 36.2 Balance Sheets 2010-2012 (in millions of dollars) 2012 2011 2010 930 2.341 Assets Current assets Cash and cash equivalents Inventory Prepaid and other Total current assets Property, plant, and equipment Other assets Total assets 412 3,683 1,507 2,916 658 5,081 5,176 1.167 11,424 2,622 3.213 535 6,370 5,231 1,467 13,068 5.353 745 9,781 1.162 1.380 1,133 1,514 26 1.022 1,503 231 2,756 2,871 Liabilities Current liabilities Merchandise accounts payable Other accounts payable Short-term and current long-term debt Total current liabilities Long-term debt Other liabilities Deferred long-term liability charges Total liabilities Stockholders' equity Common stock Retained earnings Capital surplus Other stockholder equity Total stockholder equity Total liabilities and stockholders' equity 2,568 2,956 698 388 6,610 899 2,647 3,099 670 1,192 7,608 888 7,414 110 380 3.799 (1.118) 3,171 9,781 108 1.412 3.699 (1.209) 4,010 11,424 118 2.222 3.925 (805) 5,460 13,068 EXHIBIT 36.3 Quarterly Income Statements, 2011 and 2012 (in millions of dollars, except per-share data) Q4 2012 03 2012 Q2 2012 Q1 2012 04 2011 03 2011 Q2 2011 Q1 2011 Total revenue 3,884 2,927 3 ,022 3,152 5.425 3,986 3.906 3.943 Cost of revenue 2.960 1.9752 .018 1.966 3,788 2.497 2.409 2.348 Gross profit 924 952 1,004 1,186 1,637 1.489 1.497 1.595 Operating expenses Selling general and administrative 1,209 1,087 1,050 1,160 1.343 1.242 1,243 1.281 Depreciation and amortization 128 125 135 128 128 Other 303 (112) 127 232 Total operating expenses 1,669 1.108 1,412 1.710 1,660 1.416 1.434 Operating income (745) (156) (183) (226) (73) (171) Interest expense 58 Income before tax (802) (211) (241) (282) (130) (226) Income tax expense (250) (88) (119) (43) 183) 10 Not Income (552) (123) (147) (163) (87) (143) Wt avg. shares for basic EPS-basic 219.5 219.4 219.3 218.3 217.4 213.3 216 229.2 Weighted average shares-diluted 219.4 219.3 218.3 217.4 213.3 216 231.7 Basic earnings per share ($2.51) ($0.56) ($0.67) $0.75) $0.40) $0.67) $0.06 $0.28 Diluted earnings per share ($2.51) ($0.56) ($0.67) ($0.75) ($0.40) $0.67) $0.06 $0.28 157 133 127 291 1.187 57 55 56 57 57 219.5 745 EXHIBIT 36.4 Quarterly Balance Sheets 2011-2012 (in millions of dollars) Q4 2012 03 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 02 2011 Q1 2011 Assets Current assets Cash and cash equivalents 930 525 888 839 1507 1085 1551 1767 Inventory 2.341 3.362 2993 3084 2916 4376 3572 3408 Other current assets 412 743 855 759 658 649 528 458 Total Current Assets 3,683 4,630 4,736 4,682 5,081 6,110 5,651 5,633 Property, plant, and equipment 5.353 5,493 5,153 5,126 5.176 5.242 5.237 5.226 Other assets 767 922 1,231 1.167 1,399 1,541 1.515 Total assets 9,781 10,890 1 0,812 11,039 11,424 12,751 12,429 12,374 Liabilities Current liabilities Merchandise accounts payable 1,162 1.408 1,015 984 1.022 1.831 1.386 1.274 Other accounts payable 1,380 1,344 1,219 1.222 1,503 1,404 1.381 1.396 Short-term and current long-term debt 26 22 250 231 231 231 0 0 Total current liabilities 2,568 2,774 2,484 2.437 2.756 3,466 2.767 2,670 Long-term debt 2.956 2.943 2901 2,871 2.871 2.871 3.099 3.099 Other liabilities 698 885 852 899 644 646 Deferred long-term liability charges 388 786 904 924 888 1.152 1.216 1.208 Total liabilities 6.610 7,388 7,141 7,103 7.414 8,229 7.726 7,623 Stockholders' equity Common stock 110 110 109 109 108 107 Retained earnings 380 1.057 1,204 1,412 1,541 1.728 1.819 Capital surplus 3.799 3789 3,7823 ,767 3,699 3.619 3.605 3.587 Other stockholder equity (1.118) (1.329) (1.277) (1,144) (1.209) (745) (737) (763) Total stockholder equity 3,502 3,671 3.936 4,010 4 ,522 4.703 4.751 Total liabilities and stockholders' equity 9.781 10,890 10.812 1 1,039 11,424 12,751 12.429 12,374 871 108 932 EXHIBIT 36.5 Capital Structure of J. C. Penney and Competitors (in millions of dollars as of June 30, 2012) $14.772 41% $12,339 45% 40% 33% $10.744 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 $8,480 23% $6,467 28% $5,690 $4,057 $3,151 $2.896 S882 JCP Dillard's Macy's Kohl's Debt Market Cap Nordstrom Debt/Capital Ratio Debt includes all short-term and long-term interest-bearing debt. Operating leases are included in debt as six times the reported rental expense for the year. Equity is computed on a market value basis (i.e., market cap = stock price x shares outstanding). EXHIBIT 36.6 Cash Balances: Q1 2010-Q4 2012 (in millions of dollars) $3,000 $2,622 $2,500 $:2-378- $2,000 H $2,003 $1,666 $1,767 $1,551 $1.507 . $1,500 $1,085 $1,000 H $930 $839 $888 $525 $500 H $0 ULL 10 2010 20 2010 30 2010 AQ 2010 10 2011 20 2011 30 2011 40 2011 10 2012 20 2012 30 2012 40 2012

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