The Company reported an operating loss for the full year of $2 million, which includes $451 million of restructuring and management transition charges. Excluding restructuring and management transition charges and the non-cash qualified pension plan expense of $87 million for the year; adjusted operating income was $536 million.
The Company ended the year with its inventory down approximately 9.2 percent as compared to last year. The Company's financial position remained strong in 2011 with cash and cash equivalents totaling approximately $1.5 billion as of the end of the year.
As previously announced, the Company expects full-year earnings for fiscal year 2012 to meet or exceed $1.59 per share. This includes approximately $15 million of restructuring charges to complete the realignment of the Company's supply chain operations and approximately $197 million of non-cash qualified pension plan expense. Adjusted for these items, the Company anticipates that earnings will meet or exceed $2.16 per share on a non-GAAP basis.
The Company expects to incur additional restructuring and management transition charges related to the simplification of its business model and will disclose the financial impact of these changes with its quarterly results at a later date. Capital expenditures for the year are expected to be approximately $800 million to support the Company's transformational efforts.
"As we embark on this transformation, the strategic changes we are making to our business model will dramatically simplify jcpenney's operations, significantly lower the Company's cost structure and create a platform for growth that will result in improved profitability in 2012 and beyond," Mr. Johnson commented. "We look forward to updating our shareholders, our vendors and other key stakeholders on our progress throughout the year, beginning in May 2012 with our first quarter earnings release."
marketing@alchempro.com
