J.C. Penney sees proceeds of approximately $20M from sale of corporate aircraft
On June 8, 2018, J. C. Penney determined that a charge for impairment to the corporate aircraft assets held by J. C. Penney Corporation, Inc., a wholly-owned subsidiary of the company, was required under generally accepted accounting principles in the United States. The impairment charge is a result of the company's decision to sell its corporate aircraft and classify the assets as held for sale. The impaired assets consist of three aircraft and associated engines and parts. The Company currently estimates the total impairment charge to be approximately $50M, which represents the current expected loss on sale upon completion of disposition of the assets. The Company currently expects to receive approximately $20M in cash proceeds during fiscal 2018 from the sale of the corporate aircraft. The impairment charge will be recorded in the fiscal second quarter of 2018. The Company does not currently expect that the impairment charge will result in any significant future cash expenditures. The Company currently expects the sale of the corporate aircraft to reduce annual operating expenses approximately between $5M-$10M through reductions in depreciation and selling, general and administrative expenses.