JCPenney 2003 Annual Report Download - page 47

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J. C. Penney Company, Inc. 45
SUPPLEMENTAL DATA (UNAUDITED)
The following information is provided as a supplement to the
Company’s audited financial statements.
EBITDA
Earnings before interest, taxes, depreciation and amortization
(EBITDA) of continuing operations was $1,156 million, $1,071
million and $912 million for 2003, 2002 and 2001, respectively.
EBITDA is a key measure of cash flow generated and is focused
upon by debt investors and the credit rating agencies. It is pro-
vided as an alternative assessment of operating performance. It
is not intended to be a substitute for generally accepted account-
ing principles (GAAP) measurements and may vary for other
companies. The following reconciles Income from Continuing
Operations before Income Taxes (GAAP) to EBITDA (non-GAAP
measure).
($ in millions) 2003 2002 2001
Department Stores and
Catalog/Internet
Continuing Operations
Income from continuing
operations before
income taxes (GAAP) $546 $415 $ 274
Add back/(deduct):
Net interest expense 261 226 231
Real estate and other
(income)/expense (17) 59 48
Depreciation and
amortization 372 365 368
LIFO (credit)/charge (6) 6(9)
FIFO EBITDA of
continuing operations $1,156 $1,071 $ 912
Eckerd Discontinued
Operations
(Loss)/income before income
taxes (GAAP) $(369) $204 $ (64)
Add back/(deduct):
Net interest expense 163 161 153
Other expense/(income) 75(1)
Fair value adjustment 450 ——
Acquisition amortization 40 42 120
Depreciation and
amortization 301 253 226
LIFO charge 21 20 47
FIFO EBITDA of Eckerd
discontinued operations $613 $685 $ 481
Common Stock Holdings
The following table shows the approximate ownership
percentage of the Company’s common stock by major category
as of January 31, 2004:
% Ownership
Institutional 74%
Company savings plans 16%
Individual and other 10%