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      &lt;span&gt;&amp;#160;&lt;/span&gt;
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            &lt;span&gt;&lt;i&gt;&lt;span style="color:black"&gt;($ in
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;b&gt;&lt;span style="color:black"&gt;Six Months
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;b style=
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            &lt;span&gt;&lt;b&gt;&lt;span style="color:black"&gt;Aug.
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;b&gt;&lt;span style="color:black"&gt;Aug.
            2,&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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      &lt;td width="407" valign="bottom" style=
      "width:305.55pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;td width="10" valign="bottom" style=
        "width:7.3pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 0in 0in 0in; border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;mso-border-bottom-alt: solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
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            &lt;span&gt;&lt;b style=
            "mso-bidi-font-weight:normal"&gt;&lt;span style=
            "color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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        &lt;td width="66" valign="bottom" style=
        "width:49.5pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm; mso-border-bottom-alt:solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
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            &lt;span&gt;&lt;b&gt;&lt;span style=
            "color:black"&gt;2009&amp;#160;&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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        "width:8.15pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;td width="9" valign="top" style=
        "width:6.55pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;td width="9" valign="bottom" style=
        "width:6.55pt;border:none;border-bottom:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;padding:0in 0in 0in 0in; border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;mso-border-bottom-alt: solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
        "text-align:right"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
          &lt;/p&gt;
        &lt;/td&gt;
        &lt;td width="62" valign="bottom" style=
        "width:46.25pt;border:none;border-bottom: solid windowtext 1.0pt;mso-border-bottom-alt:solid windowtext .5pt; padding:0in 0in 0in 0in;border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm; mso-border-bottom-alt:solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
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            &lt;span&gt;&lt;b&gt;&lt;span style=
            "color:black"&gt;2008&amp;#160;&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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        &lt;td width="12" valign="top" style=
        "width:9.0pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
          &lt;/p&gt;
        &lt;/td&gt;
        &lt;td width="78" valign="bottom" style=
        "width:58.5pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
          &lt;/p&gt;
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      &lt;/tr&gt;
      &lt;tr style=
      "mso-yfti-irow:3;mso-prop-change:tspieth 20090820T1455; mso-yfti-irow:3 !msorm"&gt;
      &lt;td width="407" valign="bottom" style=
      "width:305.55pt;border:none;border-bottom: solid white 1.0pt;mso-border-bottom-alt:solid white .75pt;padding:0in 0in 0in 0in; border:none !msorm;border-bottom:solid white 1.0pt !msorm;mso-border-bottom-alt: solid white .75pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;Income taxes
            paid&lt;/span&gt;&lt;/span&gt;
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        &lt;td width="9" style=
        "width:6.65pt;border:none;border-bottom:solid white 1.0pt; mso-border-bottom-alt:solid white .75pt;padding:0in 0in 0in 0in;border:none !msorm; border-bottom:solid white 1.0pt !msorm;mso-border-bottom-alt:solid white .75pt !msorm; padding:0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
          &lt;/p&gt;
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        &lt;td width="10" valign="bottom" style=
        "width:7.3pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in;border:none !msorm;mso-border-top-alt: solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
        "text-align:right"&gt;
            &lt;span&gt;&lt;b&gt;&lt;span style="color:black"&gt;$&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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        &lt;td width="66" valign="bottom" style=
        "width:49.5pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in;border:none !msorm;mso-border-top-alt: solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
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            &lt;span&gt;&lt;b style=
            "mso-bidi-font-weight:normal"&gt;&lt;span style=
            "color:black"&gt;24&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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        &lt;td width="11" valign="bottom" style=
        "width:8.15pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
        "text-align:right"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
          &lt;/p&gt;
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        &lt;td width="9" valign="top" style=
        "width:6.55pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
        "text-align:right"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;td width="9" valign="bottom" style=
        "width:6.55pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in;border:none !msorm;mso-border-top-alt: solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal" align="right" style=
        "text-align:right"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;$&lt;/span&gt;&lt;/span&gt;
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        "width:46.25pt;border:none;mso-border-top-alt: solid windowtext .5pt;padding:0in 0in 0in 0in;border:none !msorm;mso-border-top-alt: solid windowtext .5pt !msorm;padding:0in 0in 0in 0in !msorm"&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;140&lt;/span&gt;&lt;/span&gt;
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        "width:9.0pt;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm"&gt;
        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;p class="MsoNormal"&gt;
            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
          &lt;/p&gt;
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      &lt;tr style=
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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        &lt;p class="MsoNormal" align="right" style=
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            &lt;span&gt;&lt;b&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/b&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;b style=
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        &lt;p class="MsoNormal" align="right" style=
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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            &lt;span&gt;&lt;span style="color:black"&gt;&amp;#160;&lt;/span&gt;&lt;/span&gt;
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      &lt;span&gt;&lt;b style="mso-bidi-font-weight:normal"&gt;&lt;i style=
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      transaction:&lt;/i&gt;&lt;/b&gt;&lt;span style="mso-spacerun:yes"&gt;&amp;#160;&lt;/span&gt;
      On May 18, 2009, we made a voluntary contribution of
      approximately 13.4 million newly issued shares of JCPenney
      common stock, valued at $340 million, to the J. C. Penney
      Corporation, Inc. Pension Plan. &lt;span style=
      "mso-spacerun:yes"&gt;&amp;#160;&lt;/span&gt;See Note 9 for more information
      regarding this contribution.&lt;/span&gt;
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          <NonNumericTextHeader>Note 3 &amp;#8211; Supplemental Cash Flow Information


      &amp;#160;





            ($ in
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