<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.
                                     20549

                                  ___________

                                  FORM 10-Q/A

                              Amendment No. 1 to
               Quarterly Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934

                                  __________

For the 13 week and 39 week periods              Commission File Number 1-4947-1
ended October 28, 2000

                          J. C. PENNEY FUNDING CORPORATION
--------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)


              Delaware                                    51-0101524
--------------------------------------------------------------------------------
  (State or other jurisdiction of                      (I.R.S. Employer
  incorporation or organization)                      Identification No.)


6501 Legacy Drive, Plano, Texas                            75024-3698
--------------------------------------------------------------------------------
(Address of principal executive offices)                   (Zip Code)


Registrant's telephone number, including area code    972-431-1000
                                                     ------------------

                              -------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes    x      No
    ------       ------

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

500,000 shares of Common Stock, $100 par value, as of October 28, 2000.

<PAGE>

  J. C. Penney Funding Corporation hereby amends its Quarterly Report on Form
10-Q for the 13 week and 39 week periods ending October 28, 2000, initially
filed with the Securities and Exchange Commission on December 12, 2000.  This
Amendment No. 1 is being filed to restate our financial statements for the 13
week and 39 week periods ended October 28, 2000 included in Item 1 of Part I--
Financial Statements, reflecting correction of an overstatement of interest
income as a result of an inadvertent calculation error.

PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.
          ---------------------

The following interim financial information of J. C. Penney Funding Corporation
("Funding"), a wholly owned subsidiary of J. C. Penney Company, Inc.
("JCPenney"), is unaudited; however, in the opinion of Funding, it includes all
adjustments, consisting only of normal recurring accruals, necessary for a fair
presentation.  The financial information should be read in conjunction with the
audited financial statements included in Funding's Annual Report on Form 10-K
for the 52 weeks ended January 29, 2000.


Statements of Income and Reinvested Earnings
(Dollars in millions)


<TABLE>
<CAPTION>
                                                                   13 weeks ended                  39 weeks ended
                                                               -----------------------          ------------------------
                                                                Oct. 28,        Oct 30,         Oct. 28,         Oct 30,
                                                                  2000            1999             2000            1999
                                                               -------          ------          -------          -------
<S>                                                            <C>             <C>             <C>              <C>
Interest earned from
   JCPenney and affiliates                                      $   11          $   63           $   16          $  156

Interest expense                                                     7              41               10             102
                                                                ------          ------           ------          ------

Income before income taxes                                           4              22                6              54
Income taxes                                                         1               7                2              19
                                                                ------          ------           ------          ------

Net income                                                           3              15                4              35

Reinvested earnings at                                           1,089           1,062            1,088           1,042
    Beginning of period                                         ------          ------           ------          ------

Reinvested earnings at
   end of period                                                $1,092          $1,077           $1,092          $1,077
                                                                ======          ======           ======          ======
</TABLE>

                                       2
<PAGE>

Balance Sheets
(Dollars in millions)


<TABLE>
<CAPTION>
                                                                 Oct. 28,          Oct. 30,              Jan.29,
                                                                   2000              1999                 2000
                                                                  ------            ------               ------
<S>                                                              <C>               <C>               <C>
ASSETS
Cash                                                              $    -            $    1               $    -
Loans to JCPenney and affiliates                                  $1,621            $4,481               $1,588
                                                                  ------            ------               ------

                                                                  $1,621            $4,482               $1,588
                                                                  ======            ======               ======

LIABILITIES AND EQUITY OF JCPENNEY

Short-term debt                                                   $  357            $3,222               $  330

Due to JCPenney                                                       27                38                   25
                                                                  ------            ------               ------
Total liabilities                                                 $  384            $3,260               $  355

Equity of JCPenney:
    Common stock (including contributed capital), par
     value $100:                                                  $  145            $  145               $  145
    Authorized, 750,000 shares
    Issued, 500,000 shares

Reinvested earnings                                               $1,092            $1,077               $1,088
                                                                  ------            ------               ------

Total equity of JCPenney                                          $1,237            $1,222               $1,233
                                                                  ------            ------               ------
                                                                  $1,621            $4,482               $1,588
                                                                  ======            ======               ======
</TABLE>

                                       3
<PAGE>

Consolidated Statements of Cash Flows
(Dollars in millions)



<TABLE>
<CAPTION>
                                                                                39 weeks ended
                                                                         ------------------------------
                                                                         Oct. 28,              Oct. 30,
                                                                           2000                  1999
                                                                         ------                -------
<S>                                                                     <C>                   <C>
Operating Activities
   Net Income                                                             $   4                $    35
   (Increase) Decrease in loans to
   JCPenney                                                                 (33)                (1,353)
   (Decrease) Increase in amount due
   to JCPenney                                                                2                     20
                                                                          -----                -------
                                                                            (27)                (1,298)
                                                                          -----                -------

Financing Activities
   Increase (Decrease) in short-term
   Debt                                                                      27                  1,298
                                                                          -----                -------


Increase (Decrease) in cash                                                 -0-                    -1-

Cash at beginning of year                                                   -0-                    -0-
                                                                          -----                -------

Cash at end of third quarter                                              $ -0-                $   -1-
                                                                          =====                =======
</TABLE>

                                       4
<PAGE>

                                  SIGNATURES
                                  ----------


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                          J. C. PENNEY FUNDING CORPORATION


                                          By:   /s/ W. J. Alcorn
                                             -----------------------------------
                                                  W. J. Alcorn
                                                  Controller
                                                  (Principal Accounting Officer)

Date: April 24, 2001

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