Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jan. 31, 2015 | Mar. 02, 2015 | Aug. 01, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | 1-Feb-14 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | 1 | ||
Document Fiscal Year Focus | 2014 | ||
Amendment Flag | FALSE | ||
Entity Registrant Name | Nordstrom Inc. | ||
Entity Central Index Key | 72333 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 190,405,729 | ||
Entity Public Float | $10.60 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Statement [Abstract] | |||
Net sales | $13,110 | $12,166 | $11,762 |
Credit card revenues | 396 | 374 | 372 |
Total revenues | 13,506 | 12,540 | 12,134 |
Cost of sales and related buying and occupancy costs | -8,406 | -7,737 | -7,432 |
Selling, general and administrative expenses | -3,777 | -3,453 | -3,357 |
Earnings before interest and income taxes | 1,323 | 1,350 | 1,345 |
Interest expense, net | -138 | -161 | -160 |
Earnings before income taxes | 1,185 | 1,189 | 1,185 |
Income tax expense | -465 | -455 | -450 |
Net earnings | $720 | $734 | $735 |
Earnings per share: | |||
Basic (in dollars per share) | $3.79 | $3.77 | $3.62 |
Diluted (in dollars per share) | $3.72 | $3.71 | $3.56 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 190 | 194.5 | 203 |
Diluted (in shares) | 193.6 | 197.7 | 206.7 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Earnings (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $720 | $734 | $735 |
Postretirement plan adjustments, net of tax of $7, ($6) and $1 | -11 | 10 | -2 |
Foreign currency translation adjustment | -14 | -2 | 0 |
Comprehensive net earnings | $695 | $742 | $733 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Earnings (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Postretirement plan adjustments, tax | $7 | ($6) | $1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $827 | $1,194 |
Accounts receivable, net | 2,306 | 2,177 |
Merchandise inventories | 1,733 | 1,531 |
Current deferred tax assets, net | 256 | 239 |
Prepaid expenses and other | 102 | 87 |
Total current assets | 5,224 | 5,228 |
Land, property and equipment, net | 3,340 | 2,949 |
Goodwill | 435 | 175 |
Other assets | 246 | 222 |
Total assets | 9,245 | 8,574 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 1,328 | 1,263 |
Accrued salaries, wages and related benefits | 416 | 395 |
Other current liabilities | 1,048 | 876 |
Current portion of long-term debt | 8 | 7 |
Total current liabilities | 2,800 | 2,541 |
Long-term debt, net | 3,123 | 3,106 |
Deferred property incentives, net | 510 | 498 |
Other liabilities | 372 | 349 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value: 1,000 shares authorized; 190.1 and 191.2 shares issued and outstanding | 2,338 | 1,827 |
Retained earnings | 166 | 292 |
Accumulated other comprehensive loss | -64 | -39 |
Total shareholders’ equity | 2,440 | 2,080 |
Total liabilities and shareholders’ equity | $9,245 | $8,574 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Shareholders’ equity | ||
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 190.1 | 191.2 |
Common stock, shares outstanding | 190.1 | 191.2 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Millions, unless otherwise specified | ||||
Balance at Jan. 28, 2012 | $1,956 | $1,484 | $517 | ($45) |
Balance (in shares) at Jan. 28, 2012 | 207.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 735 | 735 | ||
Other comprehensive earnings (loss) | -2 | -2 | ||
Dividends | -220 | -220 | ||
Issuance of common stock under stock compensation plans | 114 | 114 | ||
Issuance of common stock under stock compensation plans (in shares) | 3.3 | |||
Stock-based compensation | 47 | 47 | ||
Stock-based compensation (in shares) | 0.1 | |||
Repurchase of common stock | -717 | -717 | ||
Repurchase of common stock (in shares) | -14 | -14 | ||
Balance at Feb. 02, 2013 | 1,913 | 1,645 | 315 | -47 |
Balance (in shares) at Feb. 02, 2013 | 197 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 734 | 734 | ||
Other comprehensive earnings (loss) | 8 | 8 | ||
Dividends | -234 | -234 | ||
Issuance of common stock under stock compensation plans | 124 | 124 | ||
Issuance of common stock under stock compensation plans (in shares) | 3.2 | |||
Stock-based compensation | 58 | 58 | ||
Stock-based compensation (in shares) | 0.1 | |||
Repurchase of common stock | -523 | -523 | ||
Repurchase of common stock (in shares) | -9.1 | -9.1 | ||
Balance at Feb. 01, 2014 | 2,080 | 1,827 | 292 | -39 |
Balance (in shares) at Feb. 01, 2014 | 191.2 | 191.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock for Trunk Club acquisition (in shares) | 3.6 | |||
Balance at Nov. 01, 2014 | ||||
Balance at Feb. 01, 2014 | 2,080 | 1,827 | 292 | -39 |
Balance (in shares) at Feb. 01, 2014 | 191.2 | 191.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net earnings | 720 | 720 | ||
Other comprehensive earnings (loss) | -25 | -25 | ||
Dividends | -251 | -251 | ||
Issuance of common stock for Trunk Club acquisition | 280 | 280 | ||
Issuance of common stock for Trunk Club acquisition (in shares) | 3.7 | |||
Issuance of common stock under stock compensation plans | 161 | 161 | ||
Issuance of common stock under stock compensation plans (in shares) | 3.6 | |||
Stock-based compensation | 70 | 70 | ||
Stock-based compensation (in shares) | 0.5 | |||
Repurchase of common stock | -595 | -595 | ||
Repurchase of common stock (in shares) | -8.9 | -8.9 | ||
Balance at Jan. 31, 2015 | $2,440 | $2,338 | $166 | ($64) |
Balance (in shares) at Jan. 31, 2015 | 190.1 | 190.1 |
Recovered_Sheet1
Consolidated Statements Of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Dividends (in dollars per share) | $0.33 | $1.32 | $1.20 | $1.08 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Operating Activities | |||
Net earnings | $720 | $734 | $735 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization expenses | 508 | 454 | 429 |
Amortization of deferred property incentives and other, net | -76 | -58 | -63 |
Deferred income taxes, net | 7 | 12 | 22 |
Stock-based compensation expense | 68 | 58 | 53 |
Tax benefit from stock-based compensation | 20 | 21 | 23 |
Excess tax benefit from stock-based compensation | -22 | -23 | -24 |
Bad debt expense | 41 | 52 | 42 |
Change in operating assets and liabilities: | |||
Accounts receivable | -161 | -93 | -99 |
Merchandise inventories | -176 | -157 | -170 |
Prepaid expenses and other assets | -4 | -6 | 5 |
Accounts payable | 15 | 167 | 48 |
Accrued salaries, wages and related benefits | 18 | -12 | 13 |
Other current liabilities | 155 | 60 | 36 |
Deferred property incentives | 110 | 89 | 58 |
Other liabilities | -3 | 22 | 2 |
Net cash provided by operating activities | 1,220 | 1,320 | 1,110 |
Investing Activities | |||
Capital expenditures | -861 | -803 | -513 |
Change in restricted cash | 0 | 0 | 200 |
Change in credit card receivables originated at third parties | -8 | -6 | -42 |
Other, net | -20 | -13 | -14 |
Net cash used in investing activities | -889 | -822 | -369 |
Financing Activities | |||
Proceeds from long-term borrowings, net of discounts | 34 | 399 | 0 |
Principal payments on long-term borrowings | -7 | -407 | -506 |
(Decrease) increase in cash book overdrafts | -4 | 47 | 5 |
Cash dividends paid | -251 | -234 | -220 |
Payments for repurchase of common stock | -610 | -515 | -725 |
Proceeds from issuances under stock compensation plans | 141 | 103 | 91 |
Excess tax benefit from stock-based compensation | 22 | 23 | 24 |
Other, net | -23 | -5 | -2 |
Net cash used in financing activities | -698 | -589 | -1,333 |
Net decrease in cash and cash equivalents | -367 | -91 | -592 |
Cash and cash equivalents at beginning of year | 1,194 | 1,285 | 1,877 |
Cash and cash equivalents at end of year | 827 | 1,194 | 1,285 |
Cash paid during the year for: | |||
Income taxes, net of refunds | 391 | 445 | 429 |
Interest, net of capitalized interest | 152 | 170 | 169 |
Non-cash investing and financing activities: | |||
Issuance of common stock for Trunk Club acquisition | 280 | 0 | 0 |
Debt exchange | $0 | $201 | $0 |
Nature_Of_Operations_And_Summa
Nature Of Operations And Summary Of Significant Accounting Policies | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Nature Of Operations And Summary Of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
The Company | ||||||||||||
Founded in 1901 as a shoe store in Seattle, Washington, Nordstrom, Inc. is now a leading fashion specialty retailer that offers customers a well-edited selection of high-quality fashion brands focused on apparel, shoes, cosmetics and accessories for men, women and children. This breadth of merchandise allows us to serve a wide range of customers who appreciate quality fashion and a superior shopping experience. We offer an extensive selection of high-quality brand-name and private label merchandise through multiple retail channels, including 116 “Nordstrom” branded full-line stores in the U.S. and at Nordstrom.com (collectively, “Nordstrom”), one Canada full-line store, 167 off-price Nordstrom Rack stores, Nordstromrack.com and HauteLook, five Trunk Club showrooms and TrunkClub.com, two Jeffrey boutiques and one Last Chance clearance store. Our stores are located in 38 states throughout the U.S and in one province in Canada. | ||||||||||||
Through our Credit segment, we provide our customers with a variety of payment products and services, including a Nordstrom private label card, two Nordstrom Visa credit cards and a debit card for Nordstrom purchases. These products also allow our customers to participate in our loyalty program designed to increase customer visits and spending. Although the primary purposes of our Credit segment are to foster greater customer loyalty and drive more sales, we also generate revenues from finance charges and other fees on these cards. In addition, we save on interchange fees that the Retail segment would incur if our customers used third-party cards. | ||||||||||||
Fiscal Year | ||||||||||||
We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2014 and all years within this document are based on a 52-week fiscal year, except 2012, which is based on a 53-week fiscal year. | ||||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include the allowance for credit losses, revenue recognition, inventory, goodwill, stock-based compensation and income taxes. | ||||||||||||
Net Sales | ||||||||||||
We recognize revenue from sales at our retail stores at the point of sale, net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped directly from our stores, website and catalog, which includes shipping revenue when applicable, is recognized upon estimated receipt by the customer. We estimate customer merchandise returns based on historical return patterns and reduce sales and cost of sales accordingly. Activity in the allowance for sales returns, net, for the past three fiscal years is as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Allowance at beginning of year | $128 | $116 | $103 | |||||||||
Additions | 2,129 | 1,880 | 1,724 | |||||||||
Returns, net1 | (2,097 | ) | (1,868 | ) | (1,711 | ) | ||||||
Allowance at end of year | $160 | $128 | $116 | |||||||||
1 Returns, net consist of actual returns offset by the value of the merchandise returned and any related sales commission. | ||||||||||||
Credit Card Revenues | ||||||||||||
Credit card revenues include finance charges, late fees and other revenue generated by our combined Nordstrom private label card and Nordstrom Visa credit card programs, and interchange fees generated by the use of Nordstrom Visa credit cards at third-party merchants. Finance charges and late fees are assessed according to the terms of the related cardholder agreements and recognized as revenue when earned. Credit card revenues are recorded net of estimated uncollectible finance charges and fees. | ||||||||||||
Cost of Sales | ||||||||||||
Cost of sales includes the purchase cost of inventory sold (net of vendor allowances), in-bound freight and certain costs of loyalty program benefits related to our credit and debit cards. | ||||||||||||
Loyalty Program | ||||||||||||
Customers who use our Nordstrom private label credit or debit card or our Nordstrom Visa credit cards can participate in the Nordstrom Rewards program through which customers accumulate points based on their level of spending. Upon reaching a certain points threshold, customers receive Nordstrom Notes, which can be redeemed for goods or services at Nordstrom full-line stores in the U.S. and Canada, Nordstrom Rack stores and at Nordstrom.com. Nordstrom Rewards customers receive reimbursements for alterations, get Personal Triple Points days and have early access to sales events. With increased spending, they can receive additional amounts of these benefits as well as access to exclusive fashion and shopping events. | ||||||||||||
We estimate the net cost of Nordstrom Notes that will be issued and redeemed and record this cost as rewards points are accumulated. These costs, as well as reimbursed alterations, are recorded in cost of sales given that we provide customers with products and services for these rewards. Other costs of the loyalty program, including shopping and fashion events, are recorded in selling, general and administrative expenses. | ||||||||||||
Buying and Occupancy Costs | ||||||||||||
Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center and distribution operations. | ||||||||||||
Rent | ||||||||||||
We recognize minimum rent expense, net of landlord reimbursements, on a straight-line basis over the minimum lease term from the time that we control the leased property. For leases that contain predetermined, fixed escalations of the minimum rent, we recognize the rent expense on a straight-line basis and record the difference between the rent expense and the rent payable as a deferred credit. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable. | ||||||||||||
We receive incentives from landlords to construct stores in certain developments. These property incentives are recorded as a deferred credit and recognized as a reduction of rent expense on a straight-line basis over the lease term. At the end of 2014 and 2013, the deferred credit balance was $570 and $561. | ||||||||||||
Selling, General and Administrative Expenses | ||||||||||||
Selling, general and administrative expenses consist primarily of compensation and benefit costs, advertising, shipping and handling costs, bad debt expense related to our credit card operations and other miscellaneous expenses. | ||||||||||||
Advertising | ||||||||||||
Advertising production costs for Internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $195, $167 and $161 in 2014, 2013 and 2012 were included in selling, general and administrative expenses. | ||||||||||||
Vendor Allowances | ||||||||||||
We receive allowances from merchandise vendors for cosmetic selling expenses, purchase price adjustments, cooperative advertising and promotion programs and various other expenses. Allowances for cosmetic selling expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for cooperative advertising and promotion programs and other expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Any allowances in excess of actual costs incurred that are included in selling, general and administrative expenses are recorded as a reduction of cost of sales. Vendor allowances earned are as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Cosmetic selling expenses | $140 | $137 | $137 | |||||||||
Purchase price adjustments | 164 | 143 | 125 | |||||||||
Cooperative advertising and promotion | 102 | 103 | 92 | |||||||||
Other | 7 | 6 | 3 | |||||||||
Total vendor allowances | $413 | $389 | $357 | |||||||||
Shipping and Handling Costs | ||||||||||||
Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our distribution centers, which we include in the cost of our inventory. Shipping and handling costs of $348, $267 and $240 in 2014, 2013 and 2012 were included in selling, general and administrative expenses. | ||||||||||||
Stock-Based Compensation | ||||||||||||
We recognize stock-based compensation expense related to stock options and restricted stock at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. The total compensation expense is reduced by estimated forfeitures expected to occur over the vesting period of the award. We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. Stock-based compensation expense also includes amounts related to HauteLook and Trunk Club stock compensation based on the grant date fair value. Stock-based compensation expense related to the Trunk Club Value Creation Plan is based on the grant date fair value of the payout scenario we believe is probable using the Black-Scholes valuation model and is recognized on an accelerated basis due to performance criteria and graded vesting features of the plan. We also recognize stock-based compensation expense for performance share units and our Employee Stock Purchase Plan, which are based on their fair values as of the end of each reporting period. | ||||||||||||
New Store Opening Costs | ||||||||||||
Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and temporary occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and selling, general and administrative expenses according to their nature as disclosed above. | ||||||||||||
Gift Cards | ||||||||||||
We recognize revenue from the sale of gift cards when the gift card is redeemed by the customer, or we recognize breakage income when the likelihood of redemption, based on historical experience, is deemed to be remote. Based on an analysis of our program since its inception in 1999, we determined that balances remaining on cards issued beyond five years are unlikely to be redeemed and therefore may be recognized as income. Breakage income was $8, $9 and $10 in 2014, 2013 and 2012. To date, our breakage rate is approximately 3% of the amount initially issued as gift cards. Gift card breakage income is included in selling, general and administrative expenses in our Consolidated Statements of Earnings. We had outstanding gift card liabilities of $286 and $255 at the end of 2014 and 2013, which are included in other current liabilities. | ||||||||||||
Income Taxes | ||||||||||||
We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized. | ||||||||||||
We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. | ||||||||||||
Interest and penalties related to income tax matters are classified as a component of income tax expense. | ||||||||||||
Comprehensive Net Earnings | ||||||||||||
Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects and foreign currency translation adjustments. | ||||||||||||
Cash Equivalents | ||||||||||||
Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at amortized cost, which approximates fair value. Our cash management system provides for the reimbursement of all major bank disbursement accounts on a daily basis. Accounts payable at the end of 2014 and 2013 included $129 and $133 of checks not yet presented for payment drawn in excess of our bank deposit balances. | ||||||||||||
Accounts Receivable | ||||||||||||
Accounts receivable includes credit card receivables from our Nordstrom private label and Visa credit cards, as well as credit and debit card receivables due from third parties. We record credit card receivables on our Consolidated Balance Sheets at the outstanding balance, net of an allowance for credit losses. The allowance for credit losses reflects our best estimate of the losses inherent in our credit card receivables as of the balance sheet date, including uncollectible finance charges and fees. We estimate such credit losses based on several factors, including historical aging and delinquency trends, write-off experience, portfolio concentration and risk metrics and general economic conditions. For purposes of determining impairment and recording the associated allowance for credit losses, we evaluate our credit card receivables on a collective basis as they are composed of large groups of smaller-balance homogeneous loans and, therefore, are not individually evaluated for impairment. We record estimated uncollectible principal balances to bad debt expense while estimated uncollectible finance charges and fees result in a reduction of credit card revenue. Credit card receivables constitute unsecured consumer loans, for which the risk of cardholder default and associated credit losses tend to increase as general economic conditions deteriorate. | ||||||||||||
We consider a credit card account delinquent if the minimum payment is not received by the payment due date. Our aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Delinquent accounts, including accrued finance charges and fees, are written off when they are determined to be uncollectible. During the third quarter of 2014, we modified our write-off policy from 150 days past due to 180 days past due to better align with industry practice. Accounts are written off sooner in the event of customer bankruptcy or other circumstances that make further collection unlikely. | ||||||||||||
Concurrent with our write-off policy change discussed above, we now recognize finance charges and fees on delinquent accounts until they become 150 days past due, after which we place accounts on non-accrual status. Payments received for accounts on non-accrual status are applied to accrued finance charges, fees and principal balances consistent with other accounts, with subsequent finance charge income recognized only when actually received. Non-accrual accounts may return to accrual status when we receive three consecutive minimum payments or the equivalent lump sum. | ||||||||||||
Our Nordstrom private label credit and debit cards can be used only at our Nordstrom full-line stores in the U.S., Nordstrom Rack stores and online at Nordstrom.com, Nordstromrack.com and HauteLook, while our Nordstrom Visa credit cards also may be used for purchases outside of Nordstrom. Cash flows from the use of both the private label and Nordstrom Visa credit cards for sales originating at our stores and our website are treated as an operating activity within the Consolidated Statements of Cash Flows, as they relate to sales at Nordstrom. Cash flows arising from the use of Nordstrom Visa credit cards outside of our stores are treated as an investing activity within the Consolidated Statements of Cash Flows, as they represent loans made to our customers for purchases at third parties. | ||||||||||||
Merchandise Inventories | ||||||||||||
Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method (weighted-average cost). Under the retail method, the valuation of inventories and the resulting gross margins are determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling floor. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We reserve for obsolescence based on historical trends and specific identification. | ||||||||||||
Land, Property and Equipment | ||||||||||||
Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project. | ||||||||||||
We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. | ||||||||||||
Depreciation is computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: | ||||||||||||
Asset | Life (in years) | |||||||||||
Buildings and improvements | 5 – 40 | |||||||||||
Store fixtures and equipment | 3 – 15 | |||||||||||
Leasehold improvements | 5 – 40 | |||||||||||
Capitalized software | 3 – 7 | |||||||||||
Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are depreciated over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancelable term of a lease, plus any renewal periods determined to be reasonably assured. | ||||||||||||
Goodwill, Intangible Assets and Long-Lived Assets | ||||||||||||
Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. As of January 31, 2015, we had Trunk Club goodwill of $261, HauteLook goodwill of $121 and Nordstrom.com and Jeffrey goodwill of $53. We review our goodwill annually for impairment or when circumstances indicate its carrying value may not be recoverable. We perform this evaluation at the reporting unit level, comprised of the principal business units within our Retail segment, through the application of a two-step fair value test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach) or a combination of both. If fair value is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The fair value of Trunk Club’s reporting unit will be tested in 2015. | ||||||||||||
When facts and circumstances indicate that the carrying values of long-lived assets, including buildings, equipment and amortizable intangible assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. Upon indication that the carrying values of long-lived assets will not be recoverable, we recognize an impairment loss. We estimate the fair value of the assets using the expected present value of future cash flows of the assets. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment. Cash flows for our retail store assets are identified at the individual store level, while our intangible assets associated with HauteLook and Trunk Club are identified at their respective reporting unit levels. We did not record any material impairment losses for long-lived tangible or amortizable intangible assets in 2014, 2013 or 2012. Amortization expense for acquired intangibles was $10, $10 and $19 in 2014, 2013 and 2012. As of January 31, 2015, we expect future amortization expense of acquired intangible assets of $16 in 2015, $15 in 2016, $11 in 2017, $7 in 2018 and $7 in 2019. | ||||||||||||
Self-Insurance | ||||||||||||
We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and general liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors. | ||||||||||||
Foreign Currency | ||||||||||||
As of January 31, 2015, we have opened one full-line store in Canada and have announced plans to open five additional full-line stores in Canada over the next few years. The functional currency of our Canadian operations is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using a weighted-average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. In addition, our U.S. operations incurred certain expenditures denominated in Canadian Dollars and our Canadian operations incurred certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations and are recorded as gains or losses in the Consolidated Statements of Earnings. As of January 31, 2015, activities associated with the foreign currency exchange risk have not had a material impact on our consolidated financial statements. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU raises the threshold for a disposal to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new guidance, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. We do not expect the provisions of this ASU, which are effective for us beginning in the first quarter of 2015, to have a material impact on our consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The core principle of this ASU is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing, and uncertainty of revenue and cash flows from contracts with customers. This ASU is effective for us beginning with the first quarter of 2017. We are currently evaluating the impact the provisions of this ASU would have on our consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation. This ASU provides guidance on how to account for share-based payments for performance targets that could be achieved after an employee completes the requisite service period. Under the new guidance, a performance target that affects vesting and could be achieved after the requisite service period is treated as a performance condition. As such, the performance target is not reflected in estimating the grant-date fair value of the award. This ASU is effective for us beginning with the first quarter of 2016. We do not expect the provisions of this ASU to have a material impact on our consolidated financial statements. |
Trunk_Club_Acquisition
Trunk Club Acquisition | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Trunk Club Acquisition | TRUNK CLUB ACQUISITION | |||
On August 22, 2014, we acquired 100% of the outstanding equity of Trunk Club, a personalized clothing service for men. We believe the acquisition enables us to provide a high-touch personalized shopping experience combined with the convenience of an online platform. This represents a natural extension of our core business, aligns with our strategic priorities around a relevant customer experience and accelerates our entry into this fast-growing market. | ||||
The following bullets summarize the accounting activity related to Trunk Club and provide reference to relevant disclosures throughout our 10-K: | ||||
• | Consideration – The purchase price fair value of $357 reflects the value of our stock as of the acquisition date. Purchase price consideration is discussed in further detail below. | |||
• | Issuance of Nordstrom Common Stock – 3.7 shares of Nordstrom common stock were issued in 2014 as part of the acquisition purchase price. Additional shares will be issued, either to be earned as future compensation or associated with indemnity holdback releases. Stock issued is discussed in further detail below and also reflected in our Consolidated Statements of Shareholders’ Equity. | |||
• | Net Assets Acquired – Of the $357 purchase price fair value, $46 is compensation expense and subject to future performance and vesting. The remaining net purchase price consideration of $311 is allocated to the tangible and intangible assets acquired and liabilities assumed. The net asset allocation is discussed in further detail below. | |||
• | Issuance of Nordstrom Stock Awards – Trunk Club employees received Nordstrom stock awards in exchange for previously held Trunk Club awards and stock. Stock awards are discussed in further detail within Note 13: Stock-Based Compensation. | |||
• | Long-term Incentive Plan – A long-term incentive plan (the “Value Creation Plan”) was created to incentivize certain Trunk Club employees to increase the value of the Trunk Club business. The accounting for this plan is discussed in further detail within Note 13: Stock-Based Compensation. | |||
Trunk Club’s financial results have been included in our consolidated financial statements from the date of acquisition forward and were not material to our consolidated results for the fiscal year ended January 31, 2015. We have not presented pro forma results of operations for any periods prior to the acquisition, as Trunk Club’s results of operations were not material to our consolidated results. | ||||
The components of the purchase price consideration and the net assets acquired as of the acquisition date are as follows: | ||||
August 22, 2014 | ||||
Purchase Price Consideration | ||||
Purchase price fair value | $357 | |||
Less: post-combination compensation expense | (46 | ) | ||
Net purchase price | $311 | |||
Net Assets Acquired | ||||
Current assets | $21 | |||
Intangible assets: | ||||
Trade names | 47 | |||
Technology | 7 | |||
Customer relationships | 5 | |||
Goodwill | 261 | |||
Other non-current assets | 2 | |||
Total assets acquired | 343 | |||
Less: total liabilities assumed | (32 | ) | ||
Net assets acquired | $311 | |||
Purchase Price Consideration | ||||
The $357 purchase price, which is based on the closing stock price of $69 per share on August 22, 2014, includes $46 attributable to Trunk Club employee stock awards that are subject to ongoing vesting requirements. The $46 will be recorded as compensation expense as the related service is performed over the respective employee vesting periods of up to four years after the acquisition date. Of the purchase price consideration, $9 is attributable to an adjustment holdback settled primarily in Nordstrom stock in the fourth quarter of fiscal 2014 and $35 represents an indemnity holdback that will be settled primarily in Nordstrom stock over the next three years upon satisfaction of the representations, warranties and covenants subject to the indemnities. | ||||
Of the $311 net purchase price, $280 was recorded to common stock for 3.6 Nordstrom common shares at acquisition, 0.1 fully vested Nordstrom stock options and 0.1 Nordstrom common shares for the release of an acquisition adjustment holdback. The remaining $31 of net purchase price was recorded as a liability for future issuances of shares and cash related to the indemnity holdback. | ||||
Net Assets Acquired | ||||
We allocated the net purchase price of $311 to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date, with the remaining unallocated net purchase price recorded as goodwill. We estimated the fair values of the acquired intangible assets based on discounted cash flow models using estimates and assumptions regarding future operations and cash flows. We will amortize the acquired intangible assets over their estimated lives on a straight-line basis, which approximates the pattern of expected economic benefit. The expected amortization periods for intangible assets acquired are seven years for trade names, two years for technology and 2.5 years for customer relationships. We expect to record total amortization expense of $59 associated with these intangible assets over the next seven years, including $5 recognized in 2014. | ||||
Goodwill of $261 is equal to the excess of the net purchase price over the identifiable assets acquired and liabilities assumed and represents the acquisition’s benefits that are not attributable to individually identified and separately recognized assets. These benefits include our expected ability to increase innovation and speed in the way we serve customers across channels, Trunk Club’s assembled workforce, including its key management, and the going-concern value of acquiring Trunk Club’s business as a whole. We assigned this goodwill, which is not deductible for tax purposes, to our Retail segment. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Accounts Receivable, Net [Abstract] | ||||||||||||||
Accounts Receivable | ACCOUNTS RECEIVABLE | |||||||||||||
The components of accounts receivable are as follows: | ||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
Credit card receivables: | ||||||||||||||
Nordstrom Visa credit card receivables | $1,310 | $1,316 | ||||||||||||
Nordstrom private label credit card receivables | 974 | 868 | ||||||||||||
Total credit card receivables | 2,284 | 2,184 | ||||||||||||
Allowance for credit losses | (75 | ) | (80 | ) | ||||||||||
Credit card receivables, net | 2,209 | 2,104 | ||||||||||||
Other accounts receivable1 | 97 | 73 | ||||||||||||
Accounts receivable, net | $2,306 | $2,177 | ||||||||||||
1 Other accounts receivable consist primarily of debit card receivables and third-party credit receivables. | ||||||||||||||
Our credit card receivables are restricted under our securitization program. Our Series 2011-1 Class A Notes are secured by 100% of the Nordstrom private label credit card receivables and 90% of the Nordstrom Visa credit card receivables. As of January 31, 2015 and February 1, 2014, our restricted credit card receivables included more receivables than necessary to collateralize our outstanding secured debt and variable funding facilities. As such, they can be utilized to increase the current usage of our securitization program. Our credit card securitization agreements set a maximum percentage of receivables that can be associated with various receivable categories, such as employee or foreign receivables, and as of January 31, 2015 and February 1, 2014, these maximums were not exceeded. | ||||||||||||||
Activity in the allowance for credit losses is as follows: | ||||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||||
Allowance at beginning of year | $80 | $85 | $115 | |||||||||||
Bad debt expense | 41 | 52 | 42 | |||||||||||
Write-offs | (70 | ) | (80 | ) | (97 | ) | ||||||||
Recoveries | 24 | 23 | 25 | |||||||||||
Allowance at end of year | $75 | $80 | $85 | |||||||||||
Under certain circumstances, we may make modifications to payment terms for a customer experiencing financial difficulties in an effort to help the customer avoid a charge-off or bankruptcy and to maximize our recovery of the outstanding balance. These modifications, which meet the accounting definition of troubled debt restructurings (“TDRs”), include reduced or waived fees and finance charges, and/or reduced minimum payments. Receivables classified as TDRs are as follows: | ||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
Credit card receivables classified as TDRs | $34 | $43 | ||||||||||||
Percent of total credit card receivables classified as TDRs | 1.5 | % | 2 | % | ||||||||||
Credit Quality | ||||||||||||||
The primary indicators of the credit quality of our credit card receivables are aging and delinquency, particularly the levels of account balances delinquent 30 days or more, as these are the accounts most likely to be written off. The following table illustrates the aging and delinquency status of our credit card receivables: | ||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
Balance | % of total | Balance | % of total | |||||||||||
Current | $2,134 | 93.4 | % | $2,046 | 93.7 | % | ||||||||
1 – 29 days delinquent | 103 | 4.5 | % | 99 | 4.5 | % | ||||||||
30 days or more delinquent: | ||||||||||||||
30 – 59 days delinquent | 16 | 0.7 | % | 16 | 0.7 | % | ||||||||
60 – 89 days delinquent | 10 | 0.5 | % | 9 | 0.4 | % | ||||||||
90 days or more delinquent | 21 | 0.9 | % | 14 | 0.7 | % | ||||||||
Total 30 days or more delinquent | 47 | 2.1 | % | 39 | 1.8 | % | ||||||||
Total credit card receivables | $2,284 | 100 | % | $2,184 | 100 | % | ||||||||
Receivables not accruing finance charges | $13 | $13 | ||||||||||||
Receivables 90 days or more delinquent and still accruing finance charges | $13 | $8 | ||||||||||||
We also evaluate credit quality using FICO credit scores. The following table illustrates the distribution of our credit card receivables across FICO score ranges: | ||||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
FICO Score Range1 | Balance | % of total | Balance | % of total | ||||||||||
801+ | $369 | 16.2 | % | $313 | 14.3 | % | ||||||||
660 – 800 | 1,435 | 62.8 | % | 1,393 | 63.8 | % | ||||||||
001 – 659 | 392 | 17.1 | % | 379 | 17.4 | % | ||||||||
Other2 | 88 | 3.9 | % | 99 | 4.5 | % | ||||||||
Total credit card receivables | $2,284 | 100 | % | $2,184 | 100 | % | ||||||||
1 Credit scores for our credit cardholders are updated at least every 60 days for active accounts and every 90 days for inactive accounts. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated. | ||||||||||||||
2 Other consists of amounts not yet posted to customers’ accounts and receivables from customers for whom FICO scores are temporarily unavailable. |
Land_Property_And_Equipment
Land, Property And Equipment | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Land, Property And Equipment | LAND, PROPERTY AND EQUIPMENT | |||||||
Land, property and equipment consist of the following: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Land and land improvements | $99 | $80 | ||||||
Buildings and building improvements | 1,040 | 991 | ||||||
Leasehold improvements | 2,510 | 2,330 | ||||||
Store fixtures and equipment | 3,055 | 2,894 | ||||||
Capitalized software | 739 | 628 | ||||||
Construction in progress | 595 | 421 | ||||||
Land, property and equipment | 8,038 | 7,344 | ||||||
Less: accumulated depreciation and amortization | (4,698 | ) | (4,395 | ) | ||||
Land, property and equipment, net | $3,340 | $2,949 | ||||||
The total cost of property and equipment held under capital lease obligations was $28 at the end of both 2014 and 2013, with related accumulated amortization of $26 in 2014 and $25 in 2013. Depreciation expense was $498 in 2014, $444 in 2013 and $410 in 2012. |
SelfInsurance
Self-Insurance | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Self Insurance [Abstract] | ||||||||
Self-Insurance | SELF-INSURANCE | |||||||
Our self-insurance reserves are summarized as follows: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Workers’ compensation | $70 | $66 | ||||||
Employee health and welfare | 23 | 23 | ||||||
General liability | 16 | 16 | ||||||
Total self-insurance reserve | $109 | $105 | ||||||
Our workers’ compensation policies have a retention per claim of $1 or less and no policy limits. | ||||||||
We are self-insured for the majority of our employee health and welfare coverage and we do not use stop-loss coverage. Participants contribute to the cost of their coverage through both premiums and out-of-pocket expenses and are subject to certain plan limits and deductibles. | ||||||||
Our general liability policies, encompassing employment practices liability and commercial general liability, have a retention per claim of $3 or less and a policy limit up to $30 and $150, respectively. |
401k_Plan
401(k) Plan | 12 Months Ended |
Jan. 31, 2015 | |
Four Zero One K Plan [Abstract] | |
401(k) Plan | 401(k) PLAN |
We provide a 401(k) plan for our employees that allows for employee elective contributions and discretionary company contributions. Employee elective contributions are funded through voluntary payroll deductions. Our discretionary company contribution is funded in an amount determined by our Board of Directors each year. Our expense related to company contributions totaled $77, $77 and $83 in 2014, 2013 and 2012. |
Postretirement_Benefits
Postretirement Benefits | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||
Postretirement Benefits | POSTRETIREMENT BENEFITS | |||||||||||
We have an unfunded defined benefit Supplemental Executive Retirement Plan (“SERP”), which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant’s role in the company. At the end of 2014, we had 59 participants in the plan, including 27 officers and select employees eligible for SERP benefits, 31 retirees and 1 beneficiary. This plan is non-qualified and does not have a minimum funding requirement. | ||||||||||||
Benefit Obligations and Funded Status | ||||||||||||
Our benefit obligation and funded status is as follows: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | $168 | $167 | ||||||||||
Participant service cost | 3 | 4 | ||||||||||
Interest cost | 8 | 7 | ||||||||||
Benefits paid | (6 | ) | (5 | ) | ||||||||
Actuarial loss (gain) | 36 | (5 | ) | |||||||||
Plan amendment | (6 | ) | — | |||||||||
Benefit obligation at end of year | 203 | 168 | ||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | — | — | ||||||||||
Employer contribution | 6 | 5 | ||||||||||
Benefits paid | (6 | ) | (5 | ) | ||||||||
Fair value of plan assets at end of year | — | — | ||||||||||
Underfunded status at end of year | ($203 | ) | ($168 | ) | ||||||||
The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $197 and $162 at the end of 2014 and 2013. 2014 includes an actuarial loss of $36 driven by decreased interest rates and updated mortality rates, and will be amortized over the average remaining future service years. | ||||||||||||
Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Current liabilities | $8 | $7 | ||||||||||
Noncurrent liabilities | 195 | 161 | ||||||||||
Net amount recognized | $203 | $168 | ||||||||||
Components of SERP Expense | ||||||||||||
The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Participant service cost | $3 | $4 | $4 | |||||||||
Interest cost | 7 | 7 | 7 | |||||||||
Amortization of net loss | 6 | 8 | 7 | |||||||||
Total SERP expense | $16 | $19 | $18 | |||||||||
Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Accumulated loss | ($78 | ) | ($47 | ) | ||||||||
Prior service credit (cost) | 6 | (1 | ) | |||||||||
Total accumulated other comprehensive loss | ($72 | ) | ($48 | ) | ||||||||
In 2015, we expect $10 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense. | ||||||||||||
Assumptions | ||||||||||||
Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Assumptions used to determine benefit obligation: | ||||||||||||
Discount rate | 3.7 | % | 4.6 | % | 4.3 | % | ||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | ||||||
Assumptions used to determine SERP expense: | ||||||||||||
Discount rate | 4.6 | % | 4.3 | % | 4.5 | % | ||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | ||||||
Future Benefit Payments and Contributions | ||||||||||||
As of January 31, 2015, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows: | ||||||||||||
Fiscal year | ||||||||||||
2015 | $8 | |||||||||||
2016 | 9 | |||||||||||
2017 | 9 | |||||||||||
2018 | 9 | |||||||||||
2019 | 10 | |||||||||||
2020 – 2024 | 59 | |||||||||||
Debt_And_Credit_Facilities
Debt And Credit Facilities | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES | |||||||||||
Debt | ||||||||||||
A summary of our long-term debt is as follows: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Secured | ||||||||||||
Series 2011-1 Class A Notes, 2.28%, due October 2016 | $325 | $325 | ||||||||||
Mortgage payable, 7.68%, due April 2020 | 36 | 42 | ||||||||||
Other | 7 | 9 | ||||||||||
Total secured debt | 368 | 376 | ||||||||||
Unsecured | ||||||||||||
Net of unamortized discount: | ||||||||||||
Senior notes, 6.25%, due January 2018 | 649 | 648 | ||||||||||
Senior notes, 4.75%, due May 2020 | 499 | 499 | ||||||||||
Senior notes, 4.00%, due October 2021 | 499 | 499 | ||||||||||
Senior debentures, 6.95%, due March 2028 | 300 | 300 | ||||||||||
Senior notes, 7.00%, due January 2038 | 146 | 146 | ||||||||||
Senior notes, 5.00%, due January 2044 | 598 | 595 | ||||||||||
Other | 72 | 50 | ||||||||||
Total unsecured debt | 2,763 | 2,737 | ||||||||||
Total long-term debt | 3,131 | 3,113 | ||||||||||
Less: current portion | (8 | ) | (7 | ) | ||||||||
Total due beyond one year | $3,123 | $3,106 | ||||||||||
All of our Nordstrom private label card receivables and a 90% interest in our Nordstrom Visa credit card receivables serve as collateral for our Series 2011-1 Class A Notes. | ||||||||||||
In the fourth quarter of 2013, we issued $665 of 5.00% senior unsecured notes due January 2044 (“2044 Notes”). We used $400 of the proceeds to retire all 6.75% senior unsecured notes due June 2014. We exchanged $201 of the 7.00% senior unsecured notes due January 2038 (“2038 Notes”) for $265 of the 2044 Notes. The $64 in excess of the outstanding principal of the 2038 Notes relates to the lower interest rate and longer maturity of the new 2044 Notes, and we recorded it as part of the discount to be amortized over the term of the 2044 Notes. As of January 31, 2015, we had $598 of outstanding 2044 Notes, net of a $67 discount. The 2044 Notes exchanged for the 2038 Notes and the related discounts represented a non-cash activity of $201 that had no impact to our 2013 Consolidated Statements of Cash Flows. | ||||||||||||
Our mortgage payable is secured by an office building that had a net book value of $64 at the end of 2014. Other secured debt as of January 31, 2015 consisted primarily of capital lease obligations. | ||||||||||||
Required principal payments on long-term debt, excluding capital lease obligations, are as follows: | ||||||||||||
Fiscal year | ||||||||||||
2015 | $6 | |||||||||||
2016 | 333 | |||||||||||
2017 | 659 | |||||||||||
2018 | 41 | |||||||||||
2019 | 8 | |||||||||||
Thereafter | 2,116 | |||||||||||
Interest Expense | ||||||||||||
The components of interest expense, net are as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Interest on long-term debt and short-term borrowings | $156 | $176 | $167 | |||||||||
Less: | ||||||||||||
Interest income | (1 | ) | (1 | ) | (2 | ) | ||||||
Capitalized interest | (17 | ) | (14 | ) | (5 | ) | ||||||
Interest expense, net | $138 | $161 | $160 | |||||||||
Credit Facilities | ||||||||||||
As of January 31, 2015, we had total short-term borrowing capacity available for general corporate purposes of $800, which is our five-year $800 senior unsecured revolving credit facility (“revolver”) that expires in March 2018. Under the terms of our revolver, we pay a variable rate of interest and a commitment fee based on our debt rating. The revolver is available for working capital, capital expenditures and general corporate purposes and backs our commercial paper program. We have the option to increase the revolving commitment by up to $200, to a total of $1,000, provided that we obtain written consent from the lenders. | ||||||||||||
The revolver requires that we maintain an adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) leverage ratio of less than four times. As of January 31, 2015 and February 1, 2014, we were in compliance with this covenant. | ||||||||||||
Our $800 commercial paper program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance of commercial paper has the effect, while it is outstanding, of reducing borrowing capacity under our revolver by an amount equal to the principal amount of commercial paper. | ||||||||||||
During 2014, 2013 and 2012, we had no issuances under our commercial paper program and no borrowings under our revolver. | ||||||||||||
In November 2013, our wholly owned subsidiary in Puerto Rico entered into a $52 unsecured borrowing facility to support our expansion into that market. The facility expires in November 2018 and borrowings on this facility incur interest based upon the LIBOR plus 1.275% per annum and also incurs a fee based on our unused commitment. As of January 31, 2015, we had $37 outstanding on this facility. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||
We disclose our financial assets and liabilities that are measured at fair value in our Consolidated Balance Sheets by level within the fair value hierarchy as defined by applicable accounting standards: | ||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities | ||||||||
Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data | ||||||||
Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own | ||||||||
assumptions | ||||||||
We did not have any financial assets or liabilities that were measured at fair value on a recurring basis as of January 31, 2015 or February 1, 2014. | ||||||||
Financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable and accounts payable and approximate fair value due to their short-term nature. We estimate the fair value of long-term debt using quoted market prices of the same or similar issues and, as such, this is considered a Level 2 fair value measurement. The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: | ||||||||
January 31, 2015 | February 1, 2014 | |||||||
Carrying value of long-term debt1 | $3,131 | $3,113 | ||||||
Fair value of long-term debt | 3,693 | 3,511 | ||||||
1 The carrying value of long-term debt includes the remaining unamortized adjustment from our previous effective fair value hedge. | ||||||||
We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill and long-lived tangible and intangible assets, in connection with periodic evaluations for potential impairment. See Note 1: Nature of Operations and Summary of Significant Accounting Policies for additional information related to goodwill, intangible assets and long-lived assets. We recorded no material impairment charges for these assets in 2014, 2013 and 2012. We estimate the fair value of goodwill and long-lived tangible and intangible assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. |
Leases
Leases | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Leases [Abstract] | ||||||||||||
Leases | LEASES | |||||||||||
We lease the land or the land and buildings at many of our stores. Additionally, we lease office facilities, warehouses and equipment. Most of these leases are classified as operating leases and they expire at various dates through 2080. The majority of our fixed, non-cancelable lease terms are 15 to 30 years for Nordstrom full-line stores and 10 to 15 years for Nordstrom Rack stores. Many of our leases include options that allow us to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Most of our leases also provide for payment of operating expenses, such as common area charges, real estate taxes and other executory costs, and some leases require additional payments based on sales, referred to as “percentage rent.” | ||||||||||||
Future minimum lease payments as of January 31, 2015 are as follows: | ||||||||||||
Fiscal year | Capital leases | Operating leases | ||||||||||
2015 | $2 | $210 | ||||||||||
2016 | 2 | 231 | ||||||||||
2017 | 1 | 229 | ||||||||||
2018 | 1 | 227 | ||||||||||
2019 | — | 219 | ||||||||||
Thereafter | — | 1,202 | ||||||||||
Total minimum lease payments | $6 | $2,318 | ||||||||||
Less: amount representing interest | (1 | ) | ||||||||||
Present value of net minimum lease payments | $5 | |||||||||||
Rent expense for 2014, 2013 and 2012 was as follows: | ||||||||||||
Fiscal year | 2,014 | 2,013 | 2,012 | |||||||||
Minimum rent: | ||||||||||||
Store locations | $170 | $145 | $124 | |||||||||
Offices, warehouses and equipment | 36 | 35 | 32 | |||||||||
Percentage rent | 14 | 14 | 14 | |||||||||
Property incentives | (83 | ) | (69 | ) | (65 | ) | ||||||
Total rent expense | $137 | $125 | $105 | |||||||||
The rent expense above does not include common area charges, real estate taxes and other executory costs, which were $88 in 2014, $81 in 2013 and $74 in 2012. |
Commitments_And_Contingent_Lia
Commitments And Contingent Liabilities | 12 Months Ended |
Jan. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES |
Our estimated total purchase obligations, capital expenditure contractual commitments and inventory purchase orders were $2,092 as of January 31, 2015. In connection with the purchase of foreign merchandise, we have outstanding trade letters of credit totaling $1 as of January 31, 2015. | |
Plans for our Manhattan full-line store, which we currently expect to open in late 2018 to 2019, ultimately include owning a condominium interest in a mixed-use tower and leasing certain nearby properties. As of January 31, 2015, we had approximately $125 of fee interest in land, which is expected to convert to the condominium interest once the store is constructed. We have committed to make future installment payments based on the developer meeting pre-established construction and development milestones. Our fee interest in the land is currently and will continue to be subject to lien by project development lenders until project completion or fulfillment of our existing installment payment commitment. In the unlikely event that this project is not completed, the opening may be delayed and we may potentially be subject to future losses or capital commitments in order to complete construction or to monetize our previous investments in the land. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Shareholders' Equity | SHAREHOLDERS’ EQUITY | ||||||||||
In February 2013, our Board of Directors authorized a program to repurchase up to $800 of our outstanding common stock, through March 1, 2015. In September 2014, our Board of Directors authorized a new program to repurchase up to $1,000 of our outstanding common stock through March 1, 2016, in addition to the remaining amount available for repurchase under the previously authorized program. The following is a summary of the activity related to our share repurchase programs in 2012, 2013 and 2014: | |||||||||||
Shares | Average price | Amount | |||||||||
per share | |||||||||||
Capacity at January 28, 2012 | $310 | ||||||||||
February 2012 authorization (ended February 1, 2014) | 800 | ||||||||||
Shares repurchased | 14 | $51 | (717 | ) | |||||||
Capacity at February 2, 2013 | 393 | ||||||||||
February 2013 authorization (ends March 1, 2015) | 800 | ||||||||||
Shares repurchased | 9.1 | $57 | (523 | ) | |||||||
Capacity at February 1, 2014 | 670 | ||||||||||
September 2014 authorization (ends March 1, 2016) | 1,000 | ||||||||||
Shares repurchased | 8.9 | $66 | (595 | ) | |||||||
Capacity at January 31, 2015 | $1,075 | ||||||||||
The actual number and timing of future share repurchases, if any, will be subject to market and economic conditions and applicable SEC rules. | |||||||||||
We paid dividends of $1.32 per share in 2014, $1.20 per share in 2013 and $1.08 per share in 2012. In February 2015, we declared a quarterly dividend of $0.37 per share, increased from a quarterly dividend of $0.33 per share in 2014. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Share-based Compensation [Abstract] | |||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION | ||||||||||||
We currently have three stock-based compensation plans: the 2010 Equity Incentive Plan (“2010 Plan”), the Employee Stock Purchase Plan (“ESPP”) and the 2002 Nonemployee Director Stock Incentive Plan. Additionally, as part of our acquisitions of HauteLook in 2011 and Trunk Club in 2014, we replaced and/or granted awards from shares available that were not allocated to a specific plan, as well as created an additional long-term incentive plan for certain Trunk Club employees. | |||||||||||||
In 2010, our shareholders approved the adoption of the 2010 Plan, which replaced the 2004 Equity Incentive Plan (“2004 Plan”). The 2010 Plan authorizes the grant of stock options, performance share units, restricted stock units, stock appreciation rights and both restricted and unrestricted shares of common stock to employees. The aggregate number of shares to be issued under the 2010 Plan may not exceed 27.6 plus any shares currently outstanding under the 2004 Plan which are forfeited or which expire during the term of the 2010 Plan. No future grants will be made under the 2004 Plan. As of January 31, 2015, we have 70.4 shares authorized, 40.4 shares issued and outstanding and 16.7 shares remaining available for future grants under the 2010 Plan. | |||||||||||||
Under the ESPP, employees may make payroll deductions of up to 10% of their base and bonus compensation. At the end of each six-month offering period, participants may apply their accumulated payroll deductions toward the purchase of shares of our common stock at 90% of the fair market value on the last day of the offer period. As of January 31, 2015, we had 12.6 shares authorized and 3.3 shares available for issuance under the ESPP. We issued 0.3 shares under the ESPP during 2014. At the end of both 2014 and 2013, we had current liabilities of $6 for future purchases of shares under the ESPP. | |||||||||||||
The 2002 Nonemployee Director Stock Incentive Plan authorizes the grant of stock awards to our nonemployee directors. These awards may be deferred or issued in the form of restricted or unrestricted stock, non-qualified stock options or stock appreciation rights. As of January 31, 2015, we had 0.9 shares authorized and 0.5 shares available for issuance under this plan. In 2014, we deferred shares with a total expense of less than $1. | |||||||||||||
The following table summarizes our stock-based compensation expense: | |||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||
Stock options | $37 | $44 | $36 | ||||||||||
Acquisition-related stock compensation | 11 | 8 | 9 | ||||||||||
Restricted stock units | 10 | — | — | ||||||||||
Performance share units | 6 | — | 3 | ||||||||||
Other | 4 | 6 | 5 | ||||||||||
Total stock-based compensation expense, before income tax benefit | 68 | 58 | 53 | ||||||||||
Income tax benefit | (23 | ) | (19 | ) | (17 | ) | |||||||
Total stock-based compensation expense, net of income tax benefit | $45 | $39 | $36 | ||||||||||
The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows: | |||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||
Cost of sales and related buying and occupancy costs | $17 | $15 | $14 | ||||||||||
Selling, general and administrative expenses | 51 | 43 | 39 | ||||||||||
Total stock-based compensation expense, before income tax benefit | $68 | $58 | $53 | ||||||||||
The benefit of tax deductions in excess of the compensation cost recognized for stock-based awards is classified as financing cash inflows and are reflected as “Excess tax benefit from stock-based compensation” in the Consolidated Statements of Cash Flows. | |||||||||||||
Stock Options | |||||||||||||
We used the following assumptions to estimate the fair value for stock options at grant date: | |||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options. | 0.2% – 2.6% | 0.2% – 1.8% | 0.3% – 2.0% | ||||||||||
Weighted-average volatility: Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. | 30.1 | % | 31.8 | % | 36.5 | % | |||||||
Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 years. | 2.2 | % | 2 | % | 2.1 | % | |||||||
Expected life in years: Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior. | 6.8 | 6.7 | 6.1 | ||||||||||
The weighted-average fair value per option at the grant date was $16, $14 and $15 in 2014, 2013 and 2012. In 2014, 2013 and 2012, stock option awards to employees were approved by the Compensation Committee of our Board of Directors and their exercise price was set at $61, $54 and $53, the closing price of our common stock on March 3, 2014, March 4, 2013 and February 22, 2012 (the dates of grant). The awards are determined based upon a percentage of the recipients’ base salaries’ and the fair value of the stock options. Options vest over four years, and expire 10 years after the date of grant. In 2014, we awarded stock options to 1,799 employees, compared with 1,625 and 1,477 employees in 2013 and 2012. | |||||||||||||
A summary of stock option activity (excluding Trunk Club) for 2014 is presented below: | |||||||||||||
Fiscal year | 2014 | ||||||||||||
Shares | Weighted- | Weighted-average | Aggregate | ||||||||||
average | remaining | intrinsic | |||||||||||
exercise price | contractual | value | |||||||||||
life (years) | |||||||||||||
Outstanding, beginning of year | 13.8 | $43 | |||||||||||
Granted | 1.9 | 61 | |||||||||||
Exercised | (3.1 | ) | 40 | ||||||||||
Forfeited or cancelled | (0.3 | ) | 55 | ||||||||||
Outstanding, end of year | 12.3 | $47 | 6 | $362 | |||||||||
Options exercisable at end of year | 6.2 | $39 | 5 | $232 | |||||||||
Options vested or expected to vest at end of year | 11.9 | $46 | 6 | $353 | |||||||||
The aggregate intrinsic value of options exercised during 2014, 2013 and 2012 was $89, $89 and $90. The total fair value of stock options vested during 2014, 2013 and 2012 was $39, $34 and $32. As of January 31, 2015, the total unrecognized stock-based compensation expense related to nonvested stock options was $49, which is expected to be recognized over a weighted-average period of 27 months. | |||||||||||||
Restricted Stock Units | |||||||||||||
Beginning in the quarter ended May 3, 2014, we grant our employees a combination of restricted stock units and stock options. In 2014, restricted stock units granted to employees were approved by the Compensation Committee of our Board of Directors, and are determined based upon a percentage of the recipients’ base salaries’ and the fair value of the restricted stock units. Restricted stock units typically vest over four years. | |||||||||||||
A summary of restricted stock unit activity (excluding Trunk Club) for 2014 is presented below: | |||||||||||||
Fiscal year | 2,014 | ||||||||||||
Shares | Weighted-average grant date fair value per unit | ||||||||||||
Outstanding, beginning of year | 0 | $56 | |||||||||||
Granted | 0.5 | 63 | |||||||||||
Vested | 0 | 56 | |||||||||||
Forfeited | 0 | 61 | |||||||||||
Outstanding, end of year | 0.5 | $63 | |||||||||||
The total fair value of restricted stock units vested during 2014 was $1. As of January 31, 2015, the total unrecognized stock-based compensation expense related to nonvested restricted stock units was $25, which is expected to be recognized over a weighted-average period of 38 months. | |||||||||||||
Trunk Club | |||||||||||||
As discussed in Note 2: Trunk Club Acquisition, some of the Nordstrom stock issued as consideration for our acquisition includes ongoing vesting requirements for Trunk Club’s employees. These amounts are recorded as compensation expense as the related service is performed over the respective employee vesting periods of up to four years after the acquisition date. | |||||||||||||
The weighted-average grant date fair value of stock options granted was $59 per share. As of January 31, 2015, the total unrecognized stock-based compensation expense related to Trunk Club options was $13, which is expected to be recognized over a weighted-average period of 32 months. The total intrinsic value of Trunk Club options exercised during 2014 was $8, while the total fair value of Trunk Club stock options vested during 2014 was $2. A summary of the stock option activity related to Trunk Club is as follows: | |||||||||||||
Fiscal year | 2014 | ||||||||||||
Shares | Weighted- | Weighted-average | Aggregate | ||||||||||
average | remaining | intrinsic | |||||||||||
exercise price | contractual | value | |||||||||||
life (years) | |||||||||||||
Outstanding, beginning of year | — | $— | |||||||||||
Granted | 0.5 | 4 | |||||||||||
Exercised | (0.1 | ) | 3 | ||||||||||
Forfeited or cancelled | 0 | 6 | |||||||||||
Outstanding, end of year | 0.4 | $4 | 8 | $24 | |||||||||
Options exercisable at end of year | 0.1 | $4 | 8 | $4 | |||||||||
Options vested or expected to vest at end of year | 0.3 | $4 | 8 | $24 | |||||||||
The total unrecognized stock-based compensation expense related to Trunk Club restricted stock was $21, which is expected to be recognized over a weighted-average period of 30 months. A summary of the restricted stock award activity related to Trunk Club is as follows: | |||||||||||||
Fiscal year | 2014 | ||||||||||||
Shares | Weighted-average grant date fair value per unit | ||||||||||||
Outstanding, beginning of year | — | $— | |||||||||||
Granted | 0.5 | 69 | |||||||||||
Vested | (0.1 | ) | 69 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding, end of year | 0.4 | $69 | |||||||||||
As part of the acquisition, we created a Value Creation Plan (“VCP”) to incentivize Trunk Club employees to increase the value of the Trunk Club business. The VCP has three payout scenarios that are determined based on the Trunk Club business meeting minimum or exceeding maximum fiscal 2018 sales and earnings metrics. If the minimum is not met, the payout is $0 (“Outcome A”); if the maximum is met, the payout is $100 (“Outcome B”). If the sales and earnings metrics surpass the minimum but do not reach the maximum, the payout is based on the incremental value growth of the Trunk Club business since acquisition, and will be between $0 and $100 (“Outcome C”). | |||||||||||||
We estimate the grant date fair value for each outcome and recognize expense based upon Outcome C, deemed most probable. If at any time it becomes probable that another outcome will be achieved, compensation expense will be cumulatively adjusted based on the grant date fair value associated with that outcome. | |||||||||||||
The final payout amount will be determined at the end of fiscal 2018 and settled in fiscal 2019 at our discretion in either cash or stock. We intend to settle the VCP in stock. | |||||||||||||
As of the fiscal year ended January 31, 2015, based on the payout scenario we believe is probable, we estimated the grant date fair value of $10 per unit using the Black-Scholes valuation model. Stock-based compensation expense will be recognized on an accelerated basis due to the performance criteria and graded vesting features of the VCP. In 2014, we recognized $3 in stock-based compensation expense associated with the VCP. | |||||||||||||
As of January 31, 2015, we have granted 0.8 of the 1.0 units available for grant. Total unrecognized stock-based compensation expense related to nonvested VCP units was $6, which we expect to recognize over the next 43 months. | |||||||||||||
Performance Share Units | |||||||||||||
We generally grant performance share units to executive officers as one of the ways to align compensation with shareholder interests. Performance share units are earned after a three-year performance cycle only when our total shareholder return (reflecting daily stock price appreciation and compounded reinvestment of dividends) outperforms companies in a defined group of competitors determined by the Compensation Committee of our Board of Directors. Performance share units granted in 2012 and 2013 also require the total shareholder return to be positive for any payout. The percentage of units that are earned depends on our relative position at the end of the performance cycle and can range from 0% to 175% of the number of units granted. | |||||||||||||
Because performance share units are payable in either cash or stock as elected by the employee, they are classified as a liability award. The liability is remeasured, with a corresponding adjustment to earnings, at each fiscal quarter-end during the performance cycle. The performance share unit liability is remeasured using the estimated percentage of units earned multiplied by the closing market price of our common stock on the current period-end date and is pro-rated based on the amount of time that has passed in the vesting period. The price used to determine the amount of cash received for the performance share units upon vesting is the closing market price of our common stock on the last day of the performance cycle. | |||||||||||||
The following is a summary of performance share unit activity: | |||||||||||||
Fiscal year | 20141 | ||||||||||||
Outstanding units, beginning of year | 0.2 | ||||||||||||
Granted | 0.1 | ||||||||||||
Vested | — | ||||||||||||
Forfeited or cancelled | (0.1 | ) | |||||||||||
Outstanding units, end of year2 | 0.2 | ||||||||||||
1 Assumes performance share units at 100% of the number of units granted. | |||||||||||||
2 On February 13, 2015, the Compensation Committee of our Board of Directors approved the vesting of 48,229 performance share units that were granted in 2012 and outstanding as of January 31, 2015. Those units were earned and vested at 75% based on the defined performance criteria above. For purposes of this footnote only, performance share units are stated in exact units instead of millions. | |||||||||||||
No performance share units were earned and vested in 2014. As of January 31, 2015, our current and non-current other liabilities included a total of $8 for performance share units. As of January 31, 2015, the remaining unrecognized stock-based compensation expense for unvested performance share units was $6, which is expected to be recognized over a weighted-average period of 21 months. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
Income tax expense consists of the following: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Current income taxes: | ||||||||||||
Federal | $397 | $379 | $362 | |||||||||
State and local | 61 | 64 | 66 | |||||||||
Total current income tax expense | 458 | 443 | 428 | |||||||||
Deferred income taxes: | ||||||||||||
Federal | 9 | 9 | 21 | |||||||||
State and local | 2 | 3 | 1 | |||||||||
Foreign | (4 | ) | — | — | ||||||||
Total deferred income tax expense | 7 | 12 | 22 | |||||||||
Total income tax expense | $465 | $455 | $450 | |||||||||
A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State and local income taxes, net of federal income taxes | 3.8 | % | 3.6 | % | 3.6 | % | ||||||
Non-deductible acquisition-related items | 0.9 | % | — | % | — | % | ||||||
Other, net | (0.5 | %) | (0.3 | %) | (0.6 | %) | ||||||
Effective tax rate | 39.2 | % | 38.3 | % | 38 | % | ||||||
In 2014, we acquired Trunk Club in a tax-free merger transaction. Tax adjustments related to a reassessment of our deferred tax assets related to acquisitions resulted in an increase in our effective tax rate in 2014. | ||||||||||||
The major components of deferred tax assets and liabilities are as follows: | ||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Compensation and benefits accruals | $191 | $182 | ||||||||||
Allowance for sales returns | 62 | 56 | ||||||||||
Accrued expenses | 51 | 48 | ||||||||||
Allowance for credit losses | 29 | 32 | ||||||||||
Merchandise inventories | 31 | 28 | ||||||||||
Gift cards | 23 | 21 | ||||||||||
Gain on sale of interest rate swap | 12 | 19 | ||||||||||
Nordstrom Notes | 22 | 18 | ||||||||||
Federal benefit of state taxes | 3 | 6 | ||||||||||
Other | 4 | 16 | ||||||||||
Total deferred tax assets | 428 | 426 | ||||||||||
Land, property and equipment basis and depreciation differences | (116 | ) | (98 | ) | ||||||||
Debt exchange premium | (22 | ) | (24 | ) | ||||||||
Total deferred tax liabilities | (138 | ) | (122 | ) | ||||||||
Net deferred tax assets | $290 | $304 | ||||||||||
As of January 31, 2015, our state and foreign net operating loss carryforwards for income tax purposes were approximately $3 and $11, respectively. As of February 1, 2014, our federal, state and foreign net operating loss carryforwards for income tax purposes were approximately $4, $24 and $0, respectively. The state net operating loss carryforwards are subject to certain statutory limitations of the Internal Revenue Code and applicable state law. If not utilized, a portion of our state and foreign net operating loss carryforwards will begin to expire in 2031 and 2033, respectively. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefit at beginning of year | $14 | $15 | $21 | |||||||||
Gross increase to tax positions in prior periods | 9 | 3 | 1 | |||||||||
Gross decrease to tax positions in prior periods | (2 | ) | (1 | ) | (7 | ) | ||||||
Gross increase to tax positions in current period | 2 | 1 | 1 | |||||||||
Lapses in statute | (3 | ) | — | — | ||||||||
Settlements | (5 | ) | (4 | ) | (1 | ) | ||||||
Unrecognized tax benefit at end of year | $15 | $14 | $15 | |||||||||
At the end of 2014, 2013 and 2012, $13, $7 and $7 of the ending gross unrecognized tax benefit related to items which, if recognized, would affect the effective tax rate. | ||||||||||||
Our income tax expense included a decrease to expense of $1 in both 2014 and 2012, and an increase to expense of $1 in 2013, for tax-related interest and penalties. At the end of 2014, 2013 and 2012, our liability for interest and penalties was $2, $7 and $7. | ||||||||||||
We file income tax returns in the U.S. and a limited number of foreign jurisdictions. With few exceptions, we are no longer subject to federal, state and local, or non-U.S. income tax examinations for years before 2010. Unrecognized tax benefits related to federal, state and local tax positions may decrease by $4 by January 30, 2016, due to the completion of examinations and the expiration of various statutes of limitations. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||||||
Earnings per basic share is computed using the weighted-average number of common shares outstanding during the year. Earnings per diluted share uses the weighted-average number of common shares outstanding during the year plus dilutive common stock equivalents, primarily stock options. Dilutive common stock reflects the issuance of stock for all outstanding options that could be exercised, and would also reduce the amount of earnings that each share is entitled to. Anti-dilutive shares (including stock options and other shares) are excluded from the calculation of diluted shares and earnings per diluted share because their impact could increase earnings per diluted share. | ||||||||||||
The computation of earnings per share is as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Net earnings | $720 | $734 | $735 | |||||||||
Basic shares | 190 | 194.5 | 203 | |||||||||
Dilutive effect of stock options and other | 3.6 | 3.2 | 3.7 | |||||||||
Diluted shares | 193.6 | 197.7 | 206.7 | |||||||||
Earnings per basic share | $3.79 | $3.77 | $3.62 | |||||||||
Earnings per diluted share | $3.72 | $3.71 | $3.56 | |||||||||
Anti-dilutive stock options and other | 2.1 | 4.1 | 4.2 | |||||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment Reporting | SEGMENT REPORTING | ||||||||||||||||||||
Segments | |||||||||||||||||||||
We have two reportable segments: Retail and Credit. Our Retail segment includes our “Nordstrom” operating segment, which is composed of our Nordstrom full-line stores in the U.S. and our online store at Nordstrom.com. Through our multi-channel initiatives, we have integrated the operations, merchandising and technology of our Nordstrom full-line and online stores, consistent with our customers’ expectations of a seamless shopping experience regardless of channel. Our internal reporting to our president, who is our chief operating decision maker, is consistent with these multi-channel initiatives. We aggregate our Nordstrom Rack operating segment into the Retail reporting segment, based on similar economic and other qualitative characteristics. Additionally, we include Nordstromrack.com, HauteLook, Jeffrey, Trunk Club and our Canadian operations in the Retail reporting segment. | |||||||||||||||||||||
Through our Credit segment, we provide our customers with a variety of payment products and services, including a Nordstrom private label card, two Nordstrom Visa credit cards and a debit card for Nordstrom purchases. Our credit and debit card products also include a loyalty program that provides benefits to our cardholders based on their level of spending. | |||||||||||||||||||||
Amounts in the Corporate/Other column include unallocated corporate expenses and assets, sales return reserve, inter-segment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with generally accepted accounting principles. | |||||||||||||||||||||
Accounting Policy | |||||||||||||||||||||
In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated company. However, redemptions of our Nordstrom Notes are included in net sales for our Retail segment. The sales amount in our Corporate/Other column includes an entry to eliminate these transactions from our consolidated net sales. The related Nordstrom Notes expenses are included in our Retail segment at face value. Our Corporate/Other column includes an adjustment to reduce the Nordstrom Notes expense from face value to their estimated cost. In addition, our sales return reserve and other corporate adjustments are recorded in the Corporate/Other column. Other than as described above, the accounting policies of the operating segments are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies. | |||||||||||||||||||||
The following table sets forth information for our reportable segments: | |||||||||||||||||||||
Retail | Corporate/Other | Total Retail Business1 | Credit | Total | |||||||||||||||||
Fiscal year 2014 | |||||||||||||||||||||
Net sales | $13,369 | ($259 | ) | $13,110 | $— | $13,110 | |||||||||||||||
Credit card revenues | — | — | — | 396 | 396 | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,404 | (283 | ) | 1,121 | 202 | 1,323 | |||||||||||||||
Interest expense, net | — | (120 | ) | (120 | ) | (18 | ) | (138 | ) | ||||||||||||
Earnings (loss) before income taxes | 1,404 | (403 | ) | 1,001 | 184 | 1,185 | |||||||||||||||
Capital expenditures | 683 | 172 | 855 | 6 | 861 | ||||||||||||||||
Depreciation and amortization | 393 | 112 | 505 | 3 | 508 | ||||||||||||||||
Goodwill | 435 | — | 435 | — | 435 | ||||||||||||||||
Assets2 | 5,103 | 1,781 | 6,884 | 2,361 | 9,245 | ||||||||||||||||
Fiscal year 2013 | |||||||||||||||||||||
Net sales | $12,395 | ($229 | ) | $12,166 | $— | $12,166 | |||||||||||||||
Credit card revenues | — | — | — | 374 | 374 | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,420 | (258 | ) | 1,162 | 188 | 1,350 | |||||||||||||||
Interest expense, net | — | (137 | ) | (137 | ) | (24 | ) | (161 | ) | ||||||||||||
Earnings (loss) before income taxes | 1,420 | (395 | ) | 1,025 | 164 | 1,189 | |||||||||||||||
Capital expenditures | 636 | 161 | 797 | 6 | 803 | ||||||||||||||||
Depreciation and amortization | 364 | 88 | 452 | 2 | 454 | ||||||||||||||||
Goodwill | 175 | — | 175 | — | 175 | ||||||||||||||||
Assets2 | 4,191 | 2,118 | 6,309 | 2,265 | 8,574 | ||||||||||||||||
Fiscal year 2012 | |||||||||||||||||||||
Net sales | $11,949 | ($187 | ) | $11,762 | $— | $11,762 | |||||||||||||||
Credit card revenues | — | — | — | 372 | 372 | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,409 | (246 | ) | 1,163 | 182 | 1,345 | |||||||||||||||
Interest expense, net | — | (134 | ) | (134 | ) | (26 | ) | (160 | ) | ||||||||||||
Earnings (loss) before income taxes | 1,409 | (380 | ) | 1,029 | 156 | 1,185 | |||||||||||||||
Capital expenditures | 371 | 140 | 511 | 2 | 513 | ||||||||||||||||
Depreciation and amortization | 357 | 70 | 427 | 2 | 429 | ||||||||||||||||
Goodwill | 175 | — | 175 | — | 175 | ||||||||||||||||
Assets2 | 3,922 | 1,966 | 5,888 | 2,201 | 8,089 | ||||||||||||||||
1 Total Retail Business is not a reportable segment, but represents a subtotal of the Retail segment and Corporate/Other, and is consistent with our presentation in Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||||||||||||||||
2 Assets in Corporate/Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets. | |||||||||||||||||||||
The following table summarizes net sales within our reportable segments: | |||||||||||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||||||||||
Nordstrom full-line stores - U.S. | $7,682 | $7,705 | $7,964 | ||||||||||||||||||
Nordstrom.com | 1,996 | 1,622 | 1,269 | ||||||||||||||||||
Nordstrom | 9,678 | 9,327 | 9,233 | ||||||||||||||||||
Nordstrom Rack | 3,215 | 2,738 | 2,445 | ||||||||||||||||||
Nordstromrack.com and HauteLook | 360 | 295 | 236 | ||||||||||||||||||
Other retail1 | 116 | 35 | 35 | ||||||||||||||||||
Total Retail segment | 13,369 | 12,395 | 11,949 | ||||||||||||||||||
Corporate/Other | (259 | ) | (229 | ) | (187 | ) | |||||||||||||||
Total net sales | $13,110 | $12,166 | $11,762 | ||||||||||||||||||
1 Other retail includes our Jeffrey boutiques, Trunk Club and our Nordstrom Canada full-line store. | |||||||||||||||||||||
The following table summarizes net sales by merchandise category: | |||||||||||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||||||||||
Net sales | % of total | Net sales | % of total | Net sales | % of total | ||||||||||||||||
Women’s Apparel | $3,950 | 30 | % | $3,733 | 31 | % | $3,684 | 31 | % | ||||||||||||
Shoes | 3,038 | 23 | % | 2,828 | 23 | % | 2,716 | 23 | % | ||||||||||||
Men’s Apparel | 2,129 | 16 | % | 1,943 | 16 | % | 1,866 | 16 | % | ||||||||||||
Women’s Accessories | 1,801 | 14 | % | 1,644 | 14 | % | 1,574 | 13 | % | ||||||||||||
Cosmetics | 1,400 | 11 | % | 1,312 | 11 | % | 1,255 | 11 | % | ||||||||||||
Kids’ Apparel | 483 | 4 | % | 413 | 3 | % | 381 | 3 | % | ||||||||||||
Other | 309 | 2 | % | 293 | 2 | % | 286 | 3 | % | ||||||||||||
Total net sales | $13,110 | 100 | % | $12,166 | 100 | % | $11,762 | 100 | % | ||||||||||||
Selected_Quarterly_Data_Unaudi
Selected Quarterly Data (Unaudited) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Selected Quarterly Data (Unaudited) | SELECTED QUARTERLY DATA1 (UNAUDITED) | |||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total | ||||||||||||||||
Fiscal year 2014 | ||||||||||||||||||||
Net sales | $2,837 | $3,296 | $3,040 | $3,938 | $13,110 | |||||||||||||||
Comparable sales increase2 | 3.9 | % | 3.3 | % | 3.9 | % | 4.7 | % | 4 | % | ||||||||||
Credit card revenues | 94 | 96 | 100 | 105 | 396 | |||||||||||||||
Gross profit3 | 1,015 | 1,166 | 1,079 | 1,444 | 4,704 | |||||||||||||||
Selling, general and administrative expenses | (844 | ) | (931 | ) | (917 | ) | (1,084 | ) | (3,777 | ) | ||||||||||
Earnings before income taxes | 230 | 296 | 228 | 431 | 1,185 | |||||||||||||||
Net earnings | 140 | 183 | 142 | 255 | 720 | |||||||||||||||
Earnings per basic share | $0.74 | $0.97 | $0.74 | $1.35 | $3.79 | |||||||||||||||
Earnings per diluted share | $0.72 | $0.95 | $0.73 | $1.32 | $3.72 | |||||||||||||||
Fiscal year 2013 | ||||||||||||||||||||
Net sales | $2,657 | $3,104 | $2,791 | $3,614 | $12,166 | |||||||||||||||
Comparable sales increase2 | 2.7 | % | 4.4 | % | 0.1 | % | 2.6 | % | 2.5 | % | ||||||||||
Credit card revenues | 92 | 92 | 93 | 97 | 374 | |||||||||||||||
Gross profit3 | 984 | 1,100 | 1,000 | 1,345 | 4,429 | |||||||||||||||
Selling, general and administrative expenses | (801 | ) | (857 | ) | (840 | ) | (955 | ) | (3,453 | ) | ||||||||||
Earnings before income taxes | 236 | 298 | 218 | 437 | 1,189 | |||||||||||||||
Net earnings | 145 | 184 | 137 | 268 | 734 | |||||||||||||||
Earnings per basic share | $0.74 | $0.94 | $0.70 | $1.39 | $3.77 | |||||||||||||||
Earnings per diluted share | $0.73 | $0.93 | $0.69 | $1.37 | $3.71 | |||||||||||||||
1 Quarterly totals may not foot across due to rounding. | ||||||||||||||||||||
2 Comparable sales include sales from stores that have been open at least one full year at the beginning of the year. We also include sales from our online channels (Nordstrom.com, Nordstromrack.com and HauteLook) in comparable sales because of the integration with our stores. | ||||||||||||||||||||
3 Gross profit is calculated as net sales less cost of sales and related buying and occupancy costs (for all segments). |
Nature_Of_Operations_And_Summa1
Nature Of Operations And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Fiscal Year | Fiscal Year | |||||||||||
We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2014 and all years within this document are based on a 52-week fiscal year, except 2012, which is based on a 53-week fiscal year. | ||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||
The consolidated financial statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | ||||||||||||
Use of Estimates | Use of Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include the allowance for credit losses, revenue recognition, inventory, goodwill, stock-based compensation and income taxes. | ||||||||||||
Net Sales | Net Sales | |||||||||||
We recognize revenue from sales at our retail stores at the point of sale, net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped directly from our stores, website and catalog, which includes shipping revenue when applicable, is recognized upon estimated receipt by the customer. We estimate customer merchandise returns based on historical return patterns and reduce sales and cost of sales accordingly. Activity in the allowance for sales returns, net, for the past three fiscal years is as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Allowance at beginning of year | $128 | $116 | $103 | |||||||||
Additions | 2,129 | 1,880 | 1,724 | |||||||||
Returns, net1 | (2,097 | ) | (1,868 | ) | (1,711 | ) | ||||||
Allowance at end of year | $160 | $128 | $116 | |||||||||
1 Returns, net consist of actual returns offset by the value of the merchandise returned and any related sales commission. | ||||||||||||
Credit Card Revenues | Credit Card Revenues | |||||||||||
Credit card revenues include finance charges, late fees and other revenue generated by our combined Nordstrom private label card and Nordstrom Visa credit card programs, and interchange fees generated by the use of Nordstrom Visa credit cards at third-party merchants. Finance charges and late fees are assessed according to the terms of the related cardholder agreements and recognized as revenue when earned. Credit card revenues are recorded net of estimated uncollectible finance charges and fees. | ||||||||||||
Cost of Sales | Cost of Sales | |||||||||||
Cost of sales includes the purchase cost of inventory sold (net of vendor allowances), in-bound freight and certain costs of loyalty program benefits related to our credit and debit cards. | ||||||||||||
Loyalty Program | Loyalty Program | |||||||||||
Customers who use our Nordstrom private label credit or debit card or our Nordstrom Visa credit cards can participate in the Nordstrom Rewards program through which customers accumulate points based on their level of spending. Upon reaching a certain points threshold, customers receive Nordstrom Notes, which can be redeemed for goods or services at Nordstrom full-line stores in the U.S. and Canada, Nordstrom Rack stores and at Nordstrom.com. Nordstrom Rewards customers receive reimbursements for alterations, get Personal Triple Points days and have early access to sales events. With increased spending, they can receive additional amounts of these benefits as well as access to exclusive fashion and shopping events. | ||||||||||||
We estimate the net cost of Nordstrom Notes that will be issued and redeemed and record this cost as rewards points are accumulated. These costs, as well as reimbursed alterations, are recorded in cost of sales given that we provide customers with products and services for these rewards. Other costs of the loyalty program, including shopping and fashion events, are recorded in selling, general and administrative expenses. | ||||||||||||
Buying and Occupancy Costs | Buying and Occupancy Costs | |||||||||||
Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center and distribution operations. | ||||||||||||
Rent | Rent | |||||||||||
We recognize minimum rent expense, net of landlord reimbursements, on a straight-line basis over the minimum lease term from the time that we control the leased property. For leases that contain predetermined, fixed escalations of the minimum rent, we recognize the rent expense on a straight-line basis and record the difference between the rent expense and the rent payable as a deferred credit. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable. | ||||||||||||
We receive incentives from landlords to construct stores in certain developments. These property incentives are recorded as a deferred credit and recognized as a reduction of rent expense on a straight-line basis over the lease term. At the end of 2014 and 2013, the deferred credit balance was $570 and $561. | ||||||||||||
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | |||||||||||
Selling, general and administrative expenses consist primarily of compensation and benefit costs, advertising, shipping and handling costs, bad debt expense related to our credit card operations and other miscellaneous expenses. | ||||||||||||
Advertising | Advertising | |||||||||||
Advertising production costs for Internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $195, $167 and $161 in 2014, 2013 and 2012 were included in selling, general and administrative expenses. | ||||||||||||
Vendor Allowances | Vendor Allowances | |||||||||||
We receive allowances from merchandise vendors for cosmetic selling expenses, purchase price adjustments, cooperative advertising and promotion programs and various other expenses. Allowances for cosmetic selling expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for cooperative advertising and promotion programs and other expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Any allowances in excess of actual costs incurred that are included in selling, general and administrative expenses are recorded as a reduction of cost of sales. Vendor allowances earned are as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Cosmetic selling expenses | $140 | $137 | $137 | |||||||||
Purchase price adjustments | 164 | 143 | 125 | |||||||||
Cooperative advertising and promotion | 102 | 103 | 92 | |||||||||
Other | 7 | 6 | 3 | |||||||||
Total vendor allowances | $413 | $389 | $357 | |||||||||
Shipping and Handling Costs | Shipping and Handling Costs | |||||||||||
Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our distribution centers, which we include in the cost of our inventory. Shipping and handling costs of $348, $267 and $240 in 2014, 2013 and 2012 were included in selling, general and administrative expenses. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||
We recognize stock-based compensation expense related to stock options and restricted stock at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. The total compensation expense is reduced by estimated forfeitures expected to occur over the vesting period of the award. We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. Stock-based compensation expense also includes amounts related to HauteLook and Trunk Club stock compensation based on the grant date fair value. Stock-based compensation expense related to the Trunk Club Value Creation Plan is based on the grant date fair value of the payout scenario we believe is probable using the Black-Scholes valuation model and is recognized on an accelerated basis due to performance criteria and graded vesting features of the plan. We also recognize stock-based compensation expense for performance share units and our Employee Stock Purchase Plan, which are based on their fair values as of the end of each reporting period. | ||||||||||||
New Store Opening Costs | New Store Opening Costs | |||||||||||
Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and temporary occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and selling, general and administrative expenses according to their nature as disclosed above. | ||||||||||||
Gift Cards | Gift Cards | |||||||||||
We recognize revenue from the sale of gift cards when the gift card is redeemed by the customer, or we recognize breakage income when the likelihood of redemption, based on historical experience, is deemed to be remote. Based on an analysis of our program since its inception in 1999, we determined that balances remaining on cards issued beyond five years are unlikely to be redeemed and therefore may be recognized as income. Breakage income was $8, $9 and $10 in 2014, 2013 and 2012. To date, our breakage rate is approximately 3% of the amount initially issued as gift cards. Gift card breakage income is included in selling, general and administrative expenses in our Consolidated Statements of Earnings. We had outstanding gift card liabilities of $286 and $255 at the end of 2014 and 2013, which are included in other current liabilities. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized. | ||||||||||||
We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. | ||||||||||||
Interest and penalties related to income tax matters are classified as a component of income tax expense. | ||||||||||||
Comprehensive Net Earnings | Comprehensive Net Earnings | |||||||||||
Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects and foreign currency translation adjustments. | ||||||||||||
Cash Equivalents | Cash Equivalents | |||||||||||
Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at amortized cost, which approximates fair value. Our cash management system provides for the reimbursement of all major bank disbursement accounts on a daily basis. Accounts payable at the end of 2014 and 2013 included $129 and $133 of checks not yet presented for payment drawn in excess of our bank deposit balances. | ||||||||||||
Accounts Receivable | Accounts Receivable | |||||||||||
Accounts receivable includes credit card receivables from our Nordstrom private label and Visa credit cards, as well as credit and debit card receivables due from third parties. We record credit card receivables on our Consolidated Balance Sheets at the outstanding balance, net of an allowance for credit losses. The allowance for credit losses reflects our best estimate of the losses inherent in our credit card receivables as of the balance sheet date, including uncollectible finance charges and fees. We estimate such credit losses based on several factors, including historical aging and delinquency trends, write-off experience, portfolio concentration and risk metrics and general economic conditions. For purposes of determining impairment and recording the associated allowance for credit losses, we evaluate our credit card receivables on a collective basis as they are composed of large groups of smaller-balance homogeneous loans and, therefore, are not individually evaluated for impairment. We record estimated uncollectible principal balances to bad debt expense while estimated uncollectible finance charges and fees result in a reduction of credit card revenue. Credit card receivables constitute unsecured consumer loans, for which the risk of cardholder default and associated credit losses tend to increase as general economic conditions deteriorate. | ||||||||||||
We consider a credit card account delinquent if the minimum payment is not received by the payment due date. Our aging method is based on the number of completed billing cycles during which the customer has failed to make a minimum payment. Delinquent accounts, including accrued finance charges and fees, are written off when they are determined to be uncollectible. During the third quarter of 2014, we modified our write-off policy from 150 days past due to 180 days past due to better align with industry practice. Accounts are written off sooner in the event of customer bankruptcy or other circumstances that make further collection unlikely. | ||||||||||||
Concurrent with our write-off policy change discussed above, we now recognize finance charges and fees on delinquent accounts until they become 150 days past due, after which we place accounts on non-accrual status. Payments received for accounts on non-accrual status are applied to accrued finance charges, fees and principal balances consistent with other accounts, with subsequent finance charge income recognized only when actually received. Non-accrual accounts may return to accrual status when we receive three consecutive minimum payments or the equivalent lump sum. | ||||||||||||
Our Nordstrom private label credit and debit cards can be used only at our Nordstrom full-line stores in the U.S., Nordstrom Rack stores and online at Nordstrom.com, Nordstromrack.com and HauteLook, while our Nordstrom Visa credit cards also may be used for purchases outside of Nordstrom. Cash flows from the use of both the private label and Nordstrom Visa credit cards for sales originating at our stores and our website are treated as an operating activity within the Consolidated Statements of Cash Flows, as they relate to sales at Nordstrom. Cash flows arising from the use of Nordstrom Visa credit cards outside of our stores are treated as an investing activity within the Consolidated Statements of Cash Flows, as they represent loans made to our customers for purchases at third parties. | ||||||||||||
Merchandise Inventories | Merchandise Inventories | |||||||||||
Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method (weighted-average cost). Under the retail method, the valuation of inventories and the resulting gross margins are determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling floor. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We reserve for obsolescence based on historical trends and specific identification. | ||||||||||||
Land, Property and Equipment | Land, Property and Equipment | |||||||||||
Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project. | ||||||||||||
We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. | ||||||||||||
Depreciation is computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: | ||||||||||||
Asset | Life (in years) | |||||||||||
Buildings and improvements | 5 – 40 | |||||||||||
Store fixtures and equipment | 3 – 15 | |||||||||||
Leasehold improvements | 5 – 40 | |||||||||||
Capitalized software | 3 – 7 | |||||||||||
Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are depreciated over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancelable term of a lease, plus any renewal periods determined to be reasonably assured. | ||||||||||||
Goodwill, Intangible Assets and Long-Lived Assets | Goodwill, Intangible Assets and Long-Lived Assets | |||||||||||
Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. As of January 31, 2015, we had Trunk Club goodwill of $261, HauteLook goodwill of $121 and Nordstrom.com and Jeffrey goodwill of $53. We review our goodwill annually for impairment or when circumstances indicate its carrying value may not be recoverable. We perform this evaluation at the reporting unit level, comprised of the principal business units within our Retail segment, through the application of a two-step fair value test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach) or a combination of both. If fair value is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The fair value of Trunk Club’s reporting unit will be tested in 2015. | ||||||||||||
When facts and circumstances indicate that the carrying values of long-lived assets, including buildings, equipment and amortizable intangible assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. Upon indication that the carrying values of long-lived assets will not be recoverable, we recognize an impairment loss. We estimate the fair value of the assets using the expected present value of future cash flows of the assets. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment. Cash flows for our retail store assets are identified at the individual store level, while our intangible assets associated with HauteLook and Trunk Club are identified at their respective reporting unit levels. We did not record any material impairment losses for long-lived tangible or amortizable intangible assets in 2014, 2013 or 2012. Amortization expense for acquired intangibles was $10, $10 and $19 in 2014, 2013 and 2012. As of January 31, 2015, we expect future amortization expense of acquired intangible assets of $16 in 2015, $15 in 2016, $11 in 2017, $7 in 2018 and $7 in 2019. | ||||||||||||
Self-Insurance | Self-Insurance | |||||||||||
We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and general liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors. | ||||||||||||
Foreign Currency | Foreign Currency | |||||||||||
As of January 31, 2015, we have opened one full-line store in Canada and have announced plans to open five additional full-line stores in Canada over the next few years. The functional currency of our Canadian operations is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using a weighted-average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. In addition, our U.S. operations incurred certain expenditures denominated in Canadian Dollars and our Canadian operations incurred certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations and are recorded as gains or losses in the Consolidated Statements of Earnings. As of January 31, 2015, activities associated with the foreign currency exchange risk have not had a material impact on our consolidated financial statements. | ||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU raises the threshold for a disposal to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Under the new guidance, companies report discontinued operations when they have a disposal that represents a strategic shift that has or will have a major impact on operations or financial results. We do not expect the provisions of this ASU, which are effective for us beginning in the first quarter of 2015, to have a material impact on our consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The core principle of this ASU is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing, and uncertainty of revenue and cash flows from contracts with customers. This ASU is effective for us beginning with the first quarter of 2017. We are currently evaluating the impact the provisions of this ASU would have on our consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation. This ASU provides guidance on how to account for share-based payments for performance targets that could be achieved after an employee completes the requisite service period. Under the new guidance, a performance target that affects vesting and could be achieved after the requisite service period is treated as a performance condition. As such, the performance target is not reflected in estimating the grant-date fair value of the award. This ASU is effective for us beginning with the first quarter of 2016. We do not expect the provisions of this ASU to have a material impact on our consolidated financial statements. | ||||||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||||||
Earnings per basic share is computed using the weighted-average number of common shares outstanding during the year. Earnings per diluted share uses the weighted-average number of common shares outstanding during the year plus dilutive common stock equivalents, primarily stock options. Dilutive common stock reflects the issuance of stock for all outstanding options that could be exercised, and would also reduce the amount of earnings that each share is entitled to. Anti-dilutive shares (including stock options and other shares) are excluded from the calculation of diluted shares and earnings per diluted share because their impact could increase earnings per diluted share. | ||||||||||||
Segment Reporting | SEGMENT REPORTING | |||||||||||
Segments | ||||||||||||
We have two reportable segments: Retail and Credit. Our Retail segment includes our “Nordstrom” operating segment, which is composed of our Nordstrom full-line stores in the U.S. and our online store at Nordstrom.com. Through our multi-channel initiatives, we have integrated the operations, merchandising and technology of our Nordstrom full-line and online stores, consistent with our customers’ expectations of a seamless shopping experience regardless of channel. Our internal reporting to our president, who is our chief operating decision maker, is consistent with these multi-channel initiatives. We aggregate our Nordstrom Rack operating segment into the Retail reporting segment, based on similar economic and other qualitative characteristics. Additionally, we include Nordstromrack.com, HauteLook, Jeffrey, Trunk Club and our Canadian operations in the Retail reporting segment. | ||||||||||||
Through our Credit segment, we provide our customers with a variety of payment products and services, including a Nordstrom private label card, two Nordstrom Visa credit cards and a debit card for Nordstrom purchases. Our credit and debit card products also include a loyalty program that provides benefits to our cardholders based on their level of spending. | ||||||||||||
Amounts in the Corporate/Other column include unallocated corporate expenses and assets, sales return reserve, inter-segment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with generally accepted accounting principles. | ||||||||||||
Accounting Policy | ||||||||||||
In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated company. However, redemptions of our Nordstrom Notes are included in net sales for our Retail segment. The sales amount in our Corporate/Other column includes an entry to eliminate these transactions from our consolidated net sales. The related Nordstrom Notes expenses are included in our Retail segment at face value. Our Corporate/Other column includes an adjustment to reduce the Nordstrom Notes expense from face value to their estimated cost. In addition, our sales return reserve and other corporate adjustments are recorded in the Corporate/Other column. Other than as described above, the accounting policies of the operating segments are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies. |
Nature_Of_Operations_And_Summa2
Nature Of Operations And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Activity In The Allowance For Sales Returns, Net | Activity in the allowance for sales returns, net, for the past three fiscal years is as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Allowance at beginning of year | $128 | $116 | $103 | |||||||||
Additions | 2,129 | 1,880 | 1,724 | |||||||||
Returns, net1 | (2,097 | ) | (1,868 | ) | (1,711 | ) | ||||||
Allowance at end of year | $160 | $128 | $116 | |||||||||
1 Returns, net consist of actual returns offset by the value of the merchandise returned and any related sales commission. | ||||||||||||
Vendor Allowances | Vendor allowances earned are as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Cosmetic selling expenses | $140 | $137 | $137 | |||||||||
Purchase price adjustments | 164 | 143 | 125 | |||||||||
Cooperative advertising and promotion | 102 | 103 | 92 | |||||||||
Other | 7 | 6 | 3 | |||||||||
Total vendor allowances | $413 | $389 | $357 | |||||||||
Estimated Useful Life Of Land, Property And Equipment By Asset Category | Depreciation is computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: | |||||||||||
Asset | Life (in years) | |||||||||||
Buildings and improvements | 5 – 40 | |||||||||||
Store fixtures and equipment | 3 – 15 | |||||||||||
Leasehold improvements | 5 – 40 | |||||||||||
Capitalized software | 3 – 7 |
Trunk_Club_Acquisition_Tables
Trunk Club Acquisition (Tables) | 12 Months Ended | |||
Jan. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Components Of Purchase Price Consideration And Net Assets Acquired | The components of the purchase price consideration and the net assets acquired as of the acquisition date are as follows: | |||
August 22, 2014 | ||||
Purchase Price Consideration | ||||
Purchase price fair value | $357 | |||
Less: post-combination compensation expense | (46 | ) | ||
Net purchase price | $311 | |||
Net Assets Acquired | ||||
Current assets | $21 | |||
Intangible assets: | ||||
Trade names | 47 | |||
Technology | 7 | |||
Customer relationships | 5 | |||
Goodwill | 261 | |||
Other non-current assets | 2 | |||
Total assets acquired | 343 | |||
Less: total liabilities assumed | (32 | ) | ||
Net assets acquired | $311 | |||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Accounts Receivable, Net [Abstract] | ||||||||||||||
Components Of Accounts Receivable | The components of accounts receivable are as follows: | |||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
Credit card receivables: | ||||||||||||||
Nordstrom Visa credit card receivables | $1,310 | $1,316 | ||||||||||||
Nordstrom private label credit card receivables | 974 | 868 | ||||||||||||
Total credit card receivables | 2,284 | 2,184 | ||||||||||||
Allowance for credit losses | (75 | ) | (80 | ) | ||||||||||
Credit card receivables, net | 2,209 | 2,104 | ||||||||||||
Other accounts receivable1 | 97 | 73 | ||||||||||||
Accounts receivable, net | $2,306 | $2,177 | ||||||||||||
1 Other accounts receivable consist primarily of debit card receivables and third-party credit receivables. | ||||||||||||||
Activity In The Allowance For Credit Losses | Activity in the allowance for credit losses is as follows: | |||||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||||
Allowance at beginning of year | $80 | $85 | $115 | |||||||||||
Bad debt expense | 41 | 52 | 42 | |||||||||||
Write-offs | (70 | ) | (80 | ) | (97 | ) | ||||||||
Recoveries | 24 | 23 | 25 | |||||||||||
Allowance at end of year | $75 | $80 | $85 | |||||||||||
Receivables Classified As TDRs | Receivables classified as TDRs are as follows: | |||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
Credit card receivables classified as TDRs | $34 | $43 | ||||||||||||
Percent of total credit card receivables classified as TDRs | 1.5 | % | 2 | % | ||||||||||
Aging And Delinquency Status Of Credit Card Receivables | The following table illustrates the aging and delinquency status of our credit card receivables: | |||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
Balance | % of total | Balance | % of total | |||||||||||
Current | $2,134 | 93.4 | % | $2,046 | 93.7 | % | ||||||||
1 – 29 days delinquent | 103 | 4.5 | % | 99 | 4.5 | % | ||||||||
30 days or more delinquent: | ||||||||||||||
30 – 59 days delinquent | 16 | 0.7 | % | 16 | 0.7 | % | ||||||||
60 – 89 days delinquent | 10 | 0.5 | % | 9 | 0.4 | % | ||||||||
90 days or more delinquent | 21 | 0.9 | % | 14 | 0.7 | % | ||||||||
Total 30 days or more delinquent | 47 | 2.1 | % | 39 | 1.8 | % | ||||||||
Total credit card receivables | $2,284 | 100 | % | $2,184 | 100 | % | ||||||||
Receivables not accruing finance charges | $13 | $13 | ||||||||||||
Receivables 90 days or more delinquent and still accruing finance charges | $13 | $8 | ||||||||||||
Distribution Of Credit Card Receivables Across FICO Score Ranges | The following table illustrates the distribution of our credit card receivables across FICO score ranges: | |||||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||||
FICO Score Range1 | Balance | % of total | Balance | % of total | ||||||||||
801+ | $369 | 16.2 | % | $313 | 14.3 | % | ||||||||
660 – 800 | 1,435 | 62.8 | % | 1,393 | 63.8 | % | ||||||||
001 – 659 | 392 | 17.1 | % | 379 | 17.4 | % | ||||||||
Other2 | 88 | 3.9 | % | 99 | 4.5 | % | ||||||||
Total credit card receivables | $2,284 | 100 | % | $2,184 | 100 | % | ||||||||
1 Credit scores for our credit cardholders are updated at least every 60 days for active accounts and every 90 days for inactive accounts. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated. | ||||||||||||||
2 Other consists of amounts not yet posted to customers’ accounts and receivables from customers for whom FICO scores are temporarily unavailable. |
Land_Property_And_Equipment_Ta
Land, Property And Equipment (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule Of Land, Property And Equipment | Land, property and equipment consist of the following: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Land and land improvements | $99 | $80 | ||||||
Buildings and building improvements | 1,040 | 991 | ||||||
Leasehold improvements | 2,510 | 2,330 | ||||||
Store fixtures and equipment | 3,055 | 2,894 | ||||||
Capitalized software | 739 | 628 | ||||||
Construction in progress | 595 | 421 | ||||||
Land, property and equipment | 8,038 | 7,344 | ||||||
Less: accumulated depreciation and amortization | (4,698 | ) | (4,395 | ) | ||||
Land, property and equipment, net | $3,340 | $2,949 | ||||||
SelfInsurance_Tables
Self-Insurance (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Self Insurance [Abstract] | ||||||||
Summary Of Self-Insurance Reserves | Our self-insurance reserves are summarized as follows: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Workers’ compensation | $70 | $66 | ||||||
Employee health and welfare | 23 | 23 | ||||||
General liability | 16 | 16 | ||||||
Total self-insurance reserve | $109 | $105 | ||||||
Postretirement_Benefits_Tables
Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||
Benefit Obligations And Funded Status | Our benefit obligation and funded status is as follows: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Change in benefit obligation: | ||||||||||||
Benefit obligation at beginning of year | $168 | $167 | ||||||||||
Participant service cost | 3 | 4 | ||||||||||
Interest cost | 8 | 7 | ||||||||||
Benefits paid | (6 | ) | (5 | ) | ||||||||
Actuarial loss (gain) | 36 | (5 | ) | |||||||||
Plan amendment | (6 | ) | — | |||||||||
Benefit obligation at end of year | 203 | 168 | ||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of year | — | — | ||||||||||
Employer contribution | 6 | 5 | ||||||||||
Benefits paid | (6 | ) | (5 | ) | ||||||||
Fair value of plan assets at end of year | — | — | ||||||||||
Underfunded status at end of year | ($203 | ) | ($168 | ) | ||||||||
Amounts Recognized As Liabilities In The Consolidated Balance Sheets | Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Current liabilities | $8 | $7 | ||||||||||
Noncurrent liabilities | 195 | 161 | ||||||||||
Net amount recognized | $203 | $168 | ||||||||||
Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings | The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Participant service cost | $3 | $4 | $4 | |||||||||
Interest cost | 7 | 7 | 7 | |||||||||
Amortization of net loss | 6 | 8 | 7 | |||||||||
Total SERP expense | $16 | $19 | $18 | |||||||||
Amounts Not Yet Reflected In SERP Expense And Included In Accumulated Other Comprehensive Loss (Pre-Tax) | Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Accumulated loss | ($78 | ) | ($47 | ) | ||||||||
Prior service credit (cost) | 6 | (1 | ) | |||||||||
Total accumulated other comprehensive loss | ($72 | ) | ($48 | ) | ||||||||
Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense | Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Assumptions used to determine benefit obligation: | ||||||||||||
Discount rate | 3.7 | % | 4.6 | % | 4.3 | % | ||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | ||||||
Assumptions used to determine SERP expense: | ||||||||||||
Discount rate | 4.6 | % | 4.3 | % | 4.5 | % | ||||||
Rate of compensation increase | 3 | % | 3 | % | 3 | % | ||||||
Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service | As of January 31, 2015, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows: | |||||||||||
Fiscal year | ||||||||||||
2015 | $8 | |||||||||||
2016 | 9 | |||||||||||
2017 | 9 | |||||||||||
2018 | 9 | |||||||||||
2019 | 10 | |||||||||||
2020 – 2024 | 59 | |||||||||||
Debt_And_Credit_Facilities_Tab
Debt And Credit Facilities (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Summary Of Long-Term Debt | A summary of our long-term debt is as follows: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Secured | ||||||||||||
Series 2011-1 Class A Notes, 2.28%, due October 2016 | $325 | $325 | ||||||||||
Mortgage payable, 7.68%, due April 2020 | 36 | 42 | ||||||||||
Other | 7 | 9 | ||||||||||
Total secured debt | 368 | 376 | ||||||||||
Unsecured | ||||||||||||
Net of unamortized discount: | ||||||||||||
Senior notes, 6.25%, due January 2018 | 649 | 648 | ||||||||||
Senior notes, 4.75%, due May 2020 | 499 | 499 | ||||||||||
Senior notes, 4.00%, due October 2021 | 499 | 499 | ||||||||||
Senior debentures, 6.95%, due March 2028 | 300 | 300 | ||||||||||
Senior notes, 7.00%, due January 2038 | 146 | 146 | ||||||||||
Senior notes, 5.00%, due January 2044 | 598 | 595 | ||||||||||
Other | 72 | 50 | ||||||||||
Total unsecured debt | 2,763 | 2,737 | ||||||||||
Total long-term debt | 3,131 | 3,113 | ||||||||||
Less: current portion | (8 | ) | (7 | ) | ||||||||
Total due beyond one year | $3,123 | $3,106 | ||||||||||
Schedule Of Required Principal Payments On Long-Term Debt | Required principal payments on long-term debt, excluding capital lease obligations, are as follows: | |||||||||||
Fiscal year | ||||||||||||
2015 | $6 | |||||||||||
2016 | 333 | |||||||||||
2017 | 659 | |||||||||||
2018 | 41 | |||||||||||
2019 | 8 | |||||||||||
Thereafter | 2,116 | |||||||||||
Components Of Interest Expense, Net | The components of interest expense, net are as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Interest on long-term debt and short-term borrowings | $156 | $176 | $167 | |||||||||
Less: | ||||||||||||
Interest income | (1 | ) | (1 | ) | (2 | ) | ||||||
Capitalized interest | (17 | ) | (14 | ) | (5 | ) | ||||||
Interest expense, net | $138 | $161 | $160 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt | The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: | |||||||
January 31, 2015 | February 1, 2014 | |||||||
Carrying value of long-term debt1 | $3,131 | $3,113 | ||||||
Fair value of long-term debt | 3,693 | 3,511 | ||||||
1 The carrying value of long-term debt includes the remaining unamortized adjustment from our previous effective fair value hedge. |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Leases [Abstract] | ||||||||||||
Future Minimum Lease Payments | Future minimum lease payments as of January 31, 2015 are as follows: | |||||||||||
Fiscal year | Capital leases | Operating leases | ||||||||||
2015 | $2 | $210 | ||||||||||
2016 | 2 | 231 | ||||||||||
2017 | 1 | 229 | ||||||||||
2018 | 1 | 227 | ||||||||||
2019 | — | 219 | ||||||||||
Thereafter | — | 1,202 | ||||||||||
Total minimum lease payments | $6 | $2,318 | ||||||||||
Less: amount representing interest | (1 | ) | ||||||||||
Present value of net minimum lease payments | $5 | |||||||||||
Schedule Of Rent Expense | Rent expense for 2014, 2013 and 2012 was as follows: | |||||||||||
Fiscal year | 2,014 | 2,013 | 2,012 | |||||||||
Minimum rent: | ||||||||||||
Store locations | $170 | $145 | $124 | |||||||||
Offices, warehouses and equipment | 36 | 35 | 32 | |||||||||
Percentage rent | 14 | 14 | 14 | |||||||||
Property incentives | (83 | ) | (69 | ) | (65 | ) | ||||||
Total rent expense | $137 | $125 | $105 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||
Summary Of Share Repurchase Activity | The following is a summary of the activity related to our share repurchase programs in 2012, 2013 and 2014: | ||||||||||
Shares | Average price | Amount | |||||||||
per share | |||||||||||
Capacity at January 28, 2012 | $310 | ||||||||||
February 2012 authorization (ended February 1, 2014) | 800 | ||||||||||
Shares repurchased | 14 | $51 | (717 | ) | |||||||
Capacity at February 2, 2013 | 393 | ||||||||||
February 2013 authorization (ends March 1, 2015) | 800 | ||||||||||
Shares repurchased | 9.1 | $57 | (523 | ) | |||||||
Capacity at February 1, 2014 | 670 | ||||||||||
September 2014 authorization (ends March 1, 2016) | 1,000 | ||||||||||
Shares repurchased | 8.9 | $66 | (595 | ) | |||||||
Capacity at January 31, 2015 | $1,075 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary Of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||
Stock options | $37 | $44 | $36 | ||||||||||
Acquisition-related stock compensation | 11 | 8 | 9 | ||||||||||
Restricted stock units | 10 | — | — | ||||||||||
Performance share units | 6 | — | 3 | ||||||||||
Other | 4 | 6 | 5 | ||||||||||
Total stock-based compensation expense, before income tax benefit | 68 | 58 | 53 | ||||||||||
Income tax benefit | (23 | ) | (19 | ) | (17 | ) | |||||||
Total stock-based compensation expense, net of income tax benefit | $45 | $39 | $36 | ||||||||||
Stock-Based Compensation Expense Before Income Tax Benefit | The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||
Cost of sales and related buying and occupancy costs | $17 | $15 | $14 | ||||||||||
Selling, general and administrative expenses | 51 | 43 | 39 | ||||||||||
Total stock-based compensation expense, before income tax benefit | $68 | $58 | $53 | ||||||||||
Assumptions To Estimate The Fair Value For Stock Options At Grant Date | We used the following assumptions to estimate the fair value for stock options at grant date: | ||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options. | 0.2% – 2.6% | 0.2% – 1.8% | 0.3% – 2.0% | ||||||||||
Weighted-average volatility: Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. | 30.1 | % | 31.8 | % | 36.5 | % | |||||||
Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 years. | 2.2 | % | 2 | % | 2.1 | % | |||||||
Expected life in years: Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior. | 6.8 | 6.7 | 6.1 | ||||||||||
Summary Of Stock Option Activity | A summary of stock option activity (excluding Trunk Club) for 2014 is presented below: | ||||||||||||
Fiscal year | 2014 | ||||||||||||
Shares | Weighted- | Weighted-average | Aggregate | ||||||||||
average | remaining | intrinsic | |||||||||||
exercise price | contractual | value | |||||||||||
life (years) | |||||||||||||
Outstanding, beginning of year | 13.8 | $43 | |||||||||||
Granted | 1.9 | 61 | |||||||||||
Exercised | (3.1 | ) | 40 | ||||||||||
Forfeited or cancelled | (0.3 | ) | 55 | ||||||||||
Outstanding, end of year | 12.3 | $47 | 6 | $362 | |||||||||
Options exercisable at end of year | 6.2 | $39 | 5 | $232 | |||||||||
Options vested or expected to vest at end of year | 11.9 | $46 | 6 | $353 | |||||||||
Summary Of Restricted Stock Unit Activity (Excluding Trunk Club) | A summary of restricted stock unit activity (excluding Trunk Club) for 2014 is presented below: | ||||||||||||
Fiscal year | 2,014 | ||||||||||||
Shares | Weighted-average grant date fair value per unit | ||||||||||||
Outstanding, beginning of year | 0 | $56 | |||||||||||
Granted | 0.5 | 63 | |||||||||||
Vested | 0 | 56 | |||||||||||
Forfeited | 0 | 61 | |||||||||||
Outstanding, end of year | 0.5 | $63 | |||||||||||
Summary Of Trunk Club Restricted Stock Award Activity | A summary of the restricted stock award activity related to Trunk Club is as follows: | ||||||||||||
Fiscal year | 2014 | ||||||||||||
Shares | Weighted-average grant date fair value per unit | ||||||||||||
Outstanding, beginning of year | — | $— | |||||||||||
Granted | 0.5 | 69 | |||||||||||
Vested | (0.1 | ) | 69 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding, end of year | 0.4 | $69 | |||||||||||
Summary Of Performance Share Unit Activity | The following is a summary of performance share unit activity: | ||||||||||||
Fiscal year | 20141 | ||||||||||||
Outstanding units, beginning of year | 0.2 | ||||||||||||
Granted | 0.1 | ||||||||||||
Vested | — | ||||||||||||
Forfeited or cancelled | (0.1 | ) | |||||||||||
Outstanding units, end of year2 | 0.2 | ||||||||||||
1 Assumes performance share units at 100% of the number of units granted. | |||||||||||||
2 On February 13, 2015, the Compensation Committee of our Board of Directors approved the vesting of 48,229 performance share units that were granted in 2012 and outstanding as of January 31, 2015. Those units were earned and vested at 75% based on the defined performance criteria above. For purposes of this footnote only, performance share units are stated in exact units instead of millions. | |||||||||||||
Trunk Club [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary Of Stock Option Activity | A summary of the stock option activity related to Trunk Club is as follows: | ||||||||||||
Fiscal year | 2014 | ||||||||||||
Shares | Weighted- | Weighted-average | Aggregate | ||||||||||
average | remaining | intrinsic | |||||||||||
exercise price | contractual | value | |||||||||||
life (years) | |||||||||||||
Outstanding, beginning of year | — | $— | |||||||||||
Granted | 0.5 | 4 | |||||||||||
Exercised | (0.1 | ) | 3 | ||||||||||
Forfeited or cancelled | 0 | 6 | |||||||||||
Outstanding, end of year | 0.4 | $4 | 8 | $24 | |||||||||
Options exercisable at end of year | 0.1 | $4 | 8 | $4 | |||||||||
Options vested or expected to vest at end of year | 0.3 | $4 | 8 | $24 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components Of Income Tax Expense | Income tax expense consists of the following: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Current income taxes: | ||||||||||||
Federal | $397 | $379 | $362 | |||||||||
State and local | 61 | 64 | 66 | |||||||||
Total current income tax expense | 458 | 443 | 428 | |||||||||
Deferred income taxes: | ||||||||||||
Federal | 9 | 9 | 21 | |||||||||
State and local | 2 | 3 | 1 | |||||||||
Foreign | (4 | ) | — | — | ||||||||
Total deferred income tax expense | 7 | 12 | 22 | |||||||||
Total income tax expense | $465 | $455 | $450 | |||||||||
Reconciliation Of Statutory To Effective Tax Rate | A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State and local income taxes, net of federal income taxes | 3.8 | % | 3.6 | % | 3.6 | % | ||||||
Non-deductible acquisition-related items | 0.9 | % | — | % | — | % | ||||||
Other, net | (0.5 | %) | (0.3 | %) | (0.6 | %) | ||||||
Effective tax rate | 39.2 | % | 38.3 | % | 38 | % | ||||||
Components Of Deferred Tax Assets And Liabilities | The major components of deferred tax assets and liabilities are as follows: | |||||||||||
January 31, 2015 | February 1, 2014 | |||||||||||
Compensation and benefits accruals | $191 | $182 | ||||||||||
Allowance for sales returns | 62 | 56 | ||||||||||
Accrued expenses | 51 | 48 | ||||||||||
Allowance for credit losses | 29 | 32 | ||||||||||
Merchandise inventories | 31 | 28 | ||||||||||
Gift cards | 23 | 21 | ||||||||||
Gain on sale of interest rate swap | 12 | 19 | ||||||||||
Nordstrom Notes | 22 | 18 | ||||||||||
Federal benefit of state taxes | 3 | 6 | ||||||||||
Other | 4 | 16 | ||||||||||
Total deferred tax assets | 428 | 426 | ||||||||||
Land, property and equipment basis and depreciation differences | (116 | ) | (98 | ) | ||||||||
Debt exchange premium | (22 | ) | (24 | ) | ||||||||
Total deferred tax liabilities | (138 | ) | (122 | ) | ||||||||
Net deferred tax assets | $290 | $304 | ||||||||||
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefit at beginning of year | $14 | $15 | $21 | |||||||||
Gross increase to tax positions in prior periods | 9 | 3 | 1 | |||||||||
Gross decrease to tax positions in prior periods | (2 | ) | (1 | ) | (7 | ) | ||||||
Gross increase to tax positions in current period | 2 | 1 | 1 | |||||||||
Lapses in statute | (3 | ) | — | — | ||||||||
Settlements | (5 | ) | (4 | ) | (1 | ) | ||||||
Unrecognized tax benefit at end of year | $15 | $14 | $15 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation Of Earnings Per Share | The computation of earnings per share is as follows: | |||||||||||
Fiscal year | 2014 | 2013 | 2012 | |||||||||
Net earnings | $720 | $734 | $735 | |||||||||
Basic shares | 190 | 194.5 | 203 | |||||||||
Dilutive effect of stock options and other | 3.6 | 3.2 | 3.7 | |||||||||
Diluted shares | 193.6 | 197.7 | 206.7 | |||||||||
Earnings per basic share | $3.79 | $3.77 | $3.62 | |||||||||
Earnings per diluted share | $3.72 | $3.71 | $3.56 | |||||||||
Anti-dilutive stock options and other | 2.1 | 4.1 | 4.2 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Information By Reportable Segment | The following table sets forth information for our reportable segments: | ||||||||||||||||||||
Retail | Corporate/Other | Total Retail Business1 | Credit | Total | |||||||||||||||||
Fiscal year 2014 | |||||||||||||||||||||
Net sales | $13,369 | ($259 | ) | $13,110 | $— | $13,110 | |||||||||||||||
Credit card revenues | — | — | — | 396 | 396 | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,404 | (283 | ) | 1,121 | 202 | 1,323 | |||||||||||||||
Interest expense, net | — | (120 | ) | (120 | ) | (18 | ) | (138 | ) | ||||||||||||
Earnings (loss) before income taxes | 1,404 | (403 | ) | 1,001 | 184 | 1,185 | |||||||||||||||
Capital expenditures | 683 | 172 | 855 | 6 | 861 | ||||||||||||||||
Depreciation and amortization | 393 | 112 | 505 | 3 | 508 | ||||||||||||||||
Goodwill | 435 | — | 435 | — | 435 | ||||||||||||||||
Assets2 | 5,103 | 1,781 | 6,884 | 2,361 | 9,245 | ||||||||||||||||
Fiscal year 2013 | |||||||||||||||||||||
Net sales | $12,395 | ($229 | ) | $12,166 | $— | $12,166 | |||||||||||||||
Credit card revenues | — | — | — | 374 | 374 | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,420 | (258 | ) | 1,162 | 188 | 1,350 | |||||||||||||||
Interest expense, net | — | (137 | ) | (137 | ) | (24 | ) | (161 | ) | ||||||||||||
Earnings (loss) before income taxes | 1,420 | (395 | ) | 1,025 | 164 | 1,189 | |||||||||||||||
Capital expenditures | 636 | 161 | 797 | 6 | 803 | ||||||||||||||||
Depreciation and amortization | 364 | 88 | 452 | 2 | 454 | ||||||||||||||||
Goodwill | 175 | — | 175 | — | 175 | ||||||||||||||||
Assets2 | 4,191 | 2,118 | 6,309 | 2,265 | 8,574 | ||||||||||||||||
Fiscal year 2012 | |||||||||||||||||||||
Net sales | $11,949 | ($187 | ) | $11,762 | $— | $11,762 | |||||||||||||||
Credit card revenues | — | — | — | 372 | 372 | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,409 | (246 | ) | 1,163 | 182 | 1,345 | |||||||||||||||
Interest expense, net | — | (134 | ) | (134 | ) | (26 | ) | (160 | ) | ||||||||||||
Earnings (loss) before income taxes | 1,409 | (380 | ) | 1,029 | 156 | 1,185 | |||||||||||||||
Capital expenditures | 371 | 140 | 511 | 2 | 513 | ||||||||||||||||
Depreciation and amortization | 357 | 70 | 427 | 2 | 429 | ||||||||||||||||
Goodwill | 175 | — | 175 | — | 175 | ||||||||||||||||
Assets2 | 3,922 | 1,966 | 5,888 | 2,201 | 8,089 | ||||||||||||||||
1 Total Retail Business is not a reportable segment, but represents a subtotal of the Retail segment and Corporate/Other, and is consistent with our presentation in Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||||||||||||||||||||
2 Assets in Corporate/Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets. | |||||||||||||||||||||
Schedule Of Net Sales By Channel | The following table summarizes net sales within our reportable segments: | ||||||||||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||||||||||
Nordstrom full-line stores - U.S. | $7,682 | $7,705 | $7,964 | ||||||||||||||||||
Nordstrom.com | 1,996 | 1,622 | 1,269 | ||||||||||||||||||
Nordstrom | 9,678 | 9,327 | 9,233 | ||||||||||||||||||
Nordstrom Rack | 3,215 | 2,738 | 2,445 | ||||||||||||||||||
Nordstromrack.com and HauteLook | 360 | 295 | 236 | ||||||||||||||||||
Other retail1 | 116 | 35 | 35 | ||||||||||||||||||
Total Retail segment | 13,369 | 12,395 | 11,949 | ||||||||||||||||||
Corporate/Other | (259 | ) | (229 | ) | (187 | ) | |||||||||||||||
Total net sales | $13,110 | $12,166 | $11,762 | ||||||||||||||||||
1 Other retail includes our Jeffrey boutiques, Trunk Club and our Nordstrom Canada full-line store. | |||||||||||||||||||||
Summary Of Net Sales By Merchandise Category | The following table summarizes net sales by merchandise category: | ||||||||||||||||||||
Fiscal year | 2014 | 2013 | 2012 | ||||||||||||||||||
Net sales | % of total | Net sales | % of total | Net sales | % of total | ||||||||||||||||
Women’s Apparel | $3,950 | 30 | % | $3,733 | 31 | % | $3,684 | 31 | % | ||||||||||||
Shoes | 3,038 | 23 | % | 2,828 | 23 | % | 2,716 | 23 | % | ||||||||||||
Men’s Apparel | 2,129 | 16 | % | 1,943 | 16 | % | 1,866 | 16 | % | ||||||||||||
Women’s Accessories | 1,801 | 14 | % | 1,644 | 14 | % | 1,574 | 13 | % | ||||||||||||
Cosmetics | 1,400 | 11 | % | 1,312 | 11 | % | 1,255 | 11 | % | ||||||||||||
Kids’ Apparel | 483 | 4 | % | 413 | 3 | % | 381 | 3 | % | ||||||||||||
Other | 309 | 2 | % | 293 | 2 | % | 286 | 3 | % | ||||||||||||
Total net sales | $13,110 | 100 | % | $12,166 | 100 | % | $11,762 | 100 | % | ||||||||||||
Selected_Quarterly_Data_Unaudi1
Selected Quarterly Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Schedule Of Quarterly Financial Information | ||||||||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total | ||||||||||||||||
Fiscal year 2014 | ||||||||||||||||||||
Net sales | $2,837 | $3,296 | $3,040 | $3,938 | $13,110 | |||||||||||||||
Comparable sales increase2 | 3.9 | % | 3.3 | % | 3.9 | % | 4.7 | % | 4 | % | ||||||||||
Credit card revenues | 94 | 96 | 100 | 105 | 396 | |||||||||||||||
Gross profit3 | 1,015 | 1,166 | 1,079 | 1,444 | 4,704 | |||||||||||||||
Selling, general and administrative expenses | (844 | ) | (931 | ) | (917 | ) | (1,084 | ) | (3,777 | ) | ||||||||||
Earnings before income taxes | 230 | 296 | 228 | 431 | 1,185 | |||||||||||||||
Net earnings | 140 | 183 | 142 | 255 | 720 | |||||||||||||||
Earnings per basic share | $0.74 | $0.97 | $0.74 | $1.35 | $3.79 | |||||||||||||||
Earnings per diluted share | $0.72 | $0.95 | $0.73 | $1.32 | $3.72 | |||||||||||||||
Fiscal year 2013 | ||||||||||||||||||||
Net sales | $2,657 | $3,104 | $2,791 | $3,614 | $12,166 | |||||||||||||||
Comparable sales increase2 | 2.7 | % | 4.4 | % | 0.1 | % | 2.6 | % | 2.5 | % | ||||||||||
Credit card revenues | 92 | 92 | 93 | 97 | 374 | |||||||||||||||
Gross profit3 | 984 | 1,100 | 1,000 | 1,345 | 4,429 | |||||||||||||||
Selling, general and administrative expenses | (801 | ) | (857 | ) | (840 | ) | (955 | ) | (3,453 | ) | ||||||||||
Earnings before income taxes | 236 | 298 | 218 | 437 | 1,189 | |||||||||||||||
Net earnings | 145 | 184 | 137 | 268 | 734 | |||||||||||||||
Earnings per basic share | $0.74 | $0.94 | $0.70 | $1.39 | $3.77 | |||||||||||||||
Earnings per diluted share | $0.73 | $0.93 | $0.69 | $1.37 | $3.71 | |||||||||||||||
1 Quarterly totals may not foot across due to rounding. | ||||||||||||||||||||
2 Comparable sales include sales from stores that have been open at least one full year at the beginning of the year. We also include sales from our online channels (Nordstrom.com, Nordstromrack.com and HauteLook) in comparable sales because of the integration with our stores. | ||||||||||||||||||||
3 Gross profit is calculated as net sales less cost of sales and related buying and occupancy costs (for all segments). |
Nature_Of_Operations_And_Summa3
Nature Of Operations And Summary Of Significant Accounting Policies (Activity In The Allowance For Sales Returns, Net) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Accounting Policies [Abstract] | ||||||
Allowance at beginning of year | $128 | $116 | $103 | |||
Additions | 2,129 | 1,880 | 1,724 | |||
Returns, net | -2,097 | [1] | -1,868 | [1] | -1,711 | [1] |
Allowance at end of year | $160 | $128 | $116 | |||
[1] | Returns, net consist of actual returns offset by the value of the merchandise returned and any related sales commission. |
Nature_Of_Operations_And_Summa4
Nature Of Operations And Summary Of Significant Accounting Policies (Vendor Allowances) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Nature Of Retail Operations [Line Items] | |||
Vendor allowances | $413 | $389 | $357 |
Cosmetic selling expenses [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Vendor allowances | 140 | 137 | 137 |
Purchase price adjustments [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Vendor allowances | 164 | 143 | 125 |
Cooperative advertising and promotion [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Vendor allowances | 102 | 103 | 92 |
Other [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Vendor allowances | $7 | $6 | $3 |
Nature_Of_Operations_And_Summa5
Nature Of Operations And Summary Of Significant Accounting Policies (Estimated Useful Life of Land, Property And Equipment By Asset Category) (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Minimum [Member] | Buildings and improvements [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Minimum [Member] | Store fixtures and equipment [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Minimum [Member] | Leasehold improvements [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Minimum [Member] | Capitalized software [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Maximum [Member] | Buildings and improvements [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Maximum [Member] | Store fixtures and equipment [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 15 years |
Maximum [Member] | Leasehold improvements [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Maximum [Member] | Capitalized software [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Nature_Of_Operations_And_Summa6
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
payment | |||
state | |||
Nature Of Retail Operations [Line Items] | |||
Number of states in which company operates | 38 | ||
Number of provinces in which the company operates | 1 | ||
Nordstrom Visa credit cards | 2 | ||
Development incentive deferred rent credit | $570 | $561 | |
Advertising expense, net of vendor allowances | 195 | 167 | 161 |
Shipping and handling cost, excluding inbound freight | 348 | 267 | 240 |
Period at which unused gift card balance redemptions are deemed remote, years | 5 years | ||
Gift card breakage income | 8 | 9 | 10 |
Gift card breakage rate | 3.00% | ||
Outstanding gift card liability | 286 | 255 | |
Amount recognized in uncertain tax positions | cumulatively greater than 50% | ||
Checks not yet presented for payment drawn in excess of bank deposit balances | 129 | 133 | |
Period until which delinquent accounts are written off | 180 days | ||
Period until which finance charges are recognized on delinquent accounts | 150 days | ||
Number of consecutive minimum payments when non-accrual accounts return to accrual status | 3 | ||
Long-lived tangible asset impairment | 0 | 0 | 0 |
Amortizable intangible asset impairment | 0 | 0 | 0 |
Amortization expense of intangible assets | 10 | 10 | 19 |
Future amortization expense of intangible assets, 2015 | 16 | ||
Future amortization expense of intangible assets, 2016 | 15 | ||
Future amortization expense of intangible assets, 2017 | 11 | ||
Future amortization expense of intangible assets, 2018 | 7 | ||
Future amortization expense of intangible assets, 2019 | 7 | ||
Nordstrom Canada [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 5 | ||
Change In Accounting Policy [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Period until which delinquent accounts are written off | 150 days | ||
Nordstrom - U.S. [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 116 | ||
Nordstrom Canada [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 1 | ||
Nordstrom Rack [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 167 | ||
Trunk Club [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 5 | ||
HauteLook [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Goodwill | 121 | ||
Jeffrey [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 2 | ||
Last Chance [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Number of retail channels | 1 | ||
Nordstrom.com and Jeffrey [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Goodwill | $53 |
Trunk_Club_Acquisition_Compone
Trunk Club Acquisition (Components Of Purchase Price Consideration And Net Assets Acquired) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Aug. 22, 2014 |
Purchase Price Consideration | ||
Purchase price fair value | $357 | |
Less: post combination compensation expense | -46 | |
Net purchase price | 311 | |
Net Assets Acquired | ||
Current assets | 21 | |
Other non-current assets | 2 | |
Total assets acquired | 343 | |
Less: total liabilities assumed | -32 | |
Net assets acquired | 311 | |
Trunk Club [Member] | ||
Net Assets Acquired | ||
Goodwill | 261 | |
Trade names [Member] | ||
Net Assets Acquired | ||
Intangible assets | 47 | |
Technology [Member] | ||
Net Assets Acquired | ||
Intangible assets | 7 | |
Customer relationships [Member] | ||
Net Assets Acquired | ||
Intangible assets | $5 |
Trunk_Club_Acquisition_Narrati
Trunk Club Acquisition (Narrative) (Details) (USD $) | 12 Months Ended | 9 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Nov. 01, 2014 | Aug. 22, 2014 |
Business Acquisition [Line Items] | |||||
Acquisition date | 22-Aug-14 | ||||
Outstanding equity of Trunk Club acquired (in percent) | 100.00% | ||||
Purchase price fair value | $357 | ||||
Total unrecognized stock-based compensation expense related to Trunk Club long-term incentive plan units | 46 | ||||
Net purchase price | 311 | ||||
Closing stock price at acquisition date | $69 | ||||
Issuance of common stock for Trunk Club acquisition | 280 | ||||
Vested replacement stock options issued | 0.1 | ||||
Net assets acquired | 311 | ||||
Amortization expense of intangible assets | 10 | 10 | 19 | ||
Trade names [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period for intangible assets acquired | 7 years | ||||
Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period for intangible assets acquired | 2 years | ||||
Customer relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period for intangible assets acquired | 2 years 6 months | ||||
Adjustment holdback [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price fair value | 9 | ||||
Indemnity holdback [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price fair value | 35 | ||||
Net purchase price | 31 | ||||
Indemnity holdback payout settlement period | 3 years | ||||
Trunk Club [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period for intangible assets acquired | 7 years | ||||
Expected total amortization expense of intangible assets | 59 | ||||
Amortization expense of intangible assets | 5 | ||||
Goodwill | 261 | ||||
Trunk Club [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Employee vesting period for unvested stock awards and options | 4 years | ||||
Common Stock | |||||
Business Acquisition [Line Items] | |||||
Issuance of common stock for Trunk Club acquisition (in shares) | 3.7 | 3.6 | |||
Issuance of common stock for Trunk Club acquisition | $280 | ||||
Common Stock | Adjustment holdback [Member] | |||||
Business Acquisition [Line Items] | |||||
Issuance of common stock for Trunk Club acquisition (in shares) | 0.1 |
Accounts_Receivable_Components
Accounts Receivable (Components Of Accounts Receivable) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | ||
In Millions, unless otherwise specified | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Credit card receivables | $2,284 | $2,184 | ||||
Allowance for credit losses | -75 | -80 | -85 | -115 | ||
Credit card receivables, net | 2,209 | 2,104 | ||||
Other accounts receivable | 97 | [1] | 73 | [1] | ||
Accounts receivable, net | 2,306 | 2,177 | ||||
Nordstrom Visa credit card receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Credit card receivables | 1,310 | 1,316 | ||||
Nordstrom private label credit card receivables [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Credit card receivables | $974 | $868 | ||||
[1] | Other accounts receivable consist primarily of debit card receivables and third-party credit receivables. |
Accounts_Receivable_Activity_I
Accounts Receivable (Activity In The Allowance For Credit Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Accounts Receivable, Net [Abstract] | |||
Allowance at beginning of year | $80 | $85 | $115 |
Bad debt expense | 41 | 52 | 42 |
Write-offs | -70 | -80 | -97 |
Recoveries | 24 | 23 | 25 |
Allowance at end of year | $75 | $80 | $85 |
Accounts_Receivable_Receivable
Accounts Receivable (Receivables Classified As TDRs) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Accounts Receivable, Net [Abstract] | ||
Credit card receivables classified as TDRs | $34 | $43 |
Percent of total credit card receivables classified as TDRs | 1.50% | 2.00% |
Accounts_Receivable_Aging_And_
Accounts Receivable (Aging And Delinquency Status Of Credit Card Receivables) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | $2,284 | $2,184 |
Credit card receivables, % of total | 100.00% | 100.00% |
Receivables not accruing finance charges | 13 | 13 |
Receivables 90 days or more delinquent and still accruing finance charges | 13 | 8 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | 2,134 | 2,046 |
Credit card receivables, % of total | 93.40% | 93.70% |
1 - 29 days delinquent [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | 103 | 99 |
Credit card receivables, % of total | 4.50% | 4.50% |
30 - 59 days delinquent [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | 16 | 16 |
Credit card receivables, % of total | 0.70% | 0.70% |
60 - 89 days delinquent [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | 10 | 9 |
Credit card receivables, % of total | 0.50% | 0.40% |
90 days or more delinquent [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | 21 | 14 |
Credit card receivables, % of total | 0.90% | 0.70% |
Total 30 days or more delinquent [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Credit card receivables | $47 | $39 |
Credit card receivables, % of total | 2.10% | 1.80% |
Accounts_Receivable_Distributi
Accounts Receivable (Distribution Of Credit Card Receivables Across FICO Score Ranges) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card receivables | 2,284 | $2,184 | ||
Credit card receivables, % of total | 100.00% | 100.00% | ||
801 plus [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card receivables | 369 | [1] | 313 | [1] |
Credit card receivables, % of total | 16.20% | [1] | 14.30% | [1] |
660 - 800 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card receivables | 1,435 | [1] | 1,393 | [1] |
Credit card receivables, % of total | 62.80% | [1] | 63.80% | [1] |
001 - 659 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card receivables | 392 | [1] | 379 | [1] |
Credit card receivables, % of total | 17.10% | [1] | 17.40% | [1] |
Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card receivables | 88 | [1],[2] | $99 | [1],[2] |
Credit card receivables, % of total | 3.90% | [1],[2] | 4.50% | [1],[2] |
Maximum [Member] | Active cardholder [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit scores updated | 60 days | |||
Maximum [Member] | Inactive cardholder [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit scores updated | 90 days | |||
[1] | Credit scores for our credit cardholders are updated at least every 60 days for active accounts and every 90 days for inactive accounts. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated. | |||
[2] | Other consists of amounts not yet posted to customers’ accounts and receivables from customers for whom FICO scores are temporarily unavailable. |
Accounts_Receivable_Narrative_
Accounts Receivable (Narrative) (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Days delinquent, accounts most likely to be written off | 30 days |
Series 2011-1 Class A Notes [Member] | Nordstrom private label credit card receivables [Member] | Restricted [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of company interest in credit card receivables used as collateral to secure debt | 100.00% |
Series 2011-1 Class A Notes [Member] | Nordstrom Visa credit card receivables [Member] | Restricted [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of company interest in credit card receivables used as collateral to secure debt | 90.00% |
Land_Property_And_Equipment_Sc
Land, Property And Equipment (Schedule Of Land, Buildings And Equipment) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $8,038 | $7,344 |
Less: accumulated depreciation and amortization | -4,698 | -4,395 |
Land, property and equipment, net | 3,340 | 2,949 |
Land and land improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 99 | 80 |
Buildings and building improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 1,040 | 991 |
Leasehold improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 2,510 | 2,330 |
Store fixtures and equipment [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 3,055 | 2,894 |
Capitalized software [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 739 | 628 |
Construction in progress [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $595 | $421 |
Land_Property_And_Equipment_Na
Land, Property And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Land, Property and Equipment [Line Items] | |||
Depreciation expense | $498 | $444 | $410 |
Property And Equipment [Member] | |||
Land, Property and Equipment [Line Items] | |||
Capital lease obligations | 28 | 28 | |
Accumulated amortization on capital lease obligations | $26 | $25 |
SelfInsurance_Summary_Of_SelfI
Self-Insurance (Summary Of Self-Insurance Reserves) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Self-Insurance [Line Items] | ||
Self-insurance reserve | $109 | $105 |
Workers' compensation [Member] | ||
Self-Insurance [Line Items] | ||
Self-insurance reserve | 70 | 66 |
Employee health and welfare [Member] | ||
Self-Insurance [Line Items] | ||
Self-insurance reserve | 23 | 23 |
General liability [Member] | ||
Self-Insurance [Line Items] | ||
Self-insurance reserve | $16 | $16 |
SelfInsurance_Narrative_Detail
Self-Insurance (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Workers' compensation [Member] | |
Self-Insurance [Line Items] | |
Self-insurance policy retention per claim ($1 or less for workers' compensation, and $3 or less for general policies) | $1 |
Workers' compensation policy limit | no policy limits |
General liability [Member] | |
Self-Insurance [Line Items] | |
Self-insurance policy retention per claim ($1 or less for workers' compensation, and $3 or less for general policies) | 3 |
General liability [Member] | Employment practices liability [Member] | |
Self-Insurance [Line Items] | |
Self-insurance policy limit, maximum | 30 |
General liability [Member] | Commercial General Liability [Member] | |
Self-Insurance [Line Items] | |
Self-insurance policy limit, maximum | $150 |
401k_and_Profit_Sharing_Narrat
401(k) and Profit Sharing (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Four Zero One K Plan [Abstract] | |||
Matching contributions to 401(k) plan expense | $77 | $77 | $83 |
Postretirement_Benefits_Benefi
Postretirement Benefits (Benefit Obligations And Funded Status) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Postretirement Benefits Disclosure [Line Items] | ||
Underfunded status at end of year | ($203) | ($168) |
Change in benefit obligation [Member] | ||
Postretirement Benefits Disclosure [Line Items] | ||
Benefit obligation at beginning of year | 168 | 167 |
Participant service cost | 3 | 4 |
Interest cost | 8 | 7 |
Benefits paid | -6 | -5 |
Actuarial loss (gain) | 36 | -5 |
Plan amendment | -6 | 0 |
Benefit obligation at end of year | 203 | 168 |
Change in plan assets [Member] | ||
Postretirement Benefits Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Employer contribution | 6 | 5 |
Benefits paid | -6 | -5 |
Fair value of plan assets at end of year | $0 | $0 |
Postretirement_Benefits_Amount
Postretirement Benefits (Amounts Recognized As Liabilities In The Consolidated Balance Sheets) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Current liabilities | $8 | $7 |
Noncurrent liabilities | 195 | 161 |
Net amount recognized | $203 | $168 |
Postretirement_Benefits_Compon
Postretirement Benefits (Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings) (Details) (Components of SERP expense [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Components of SERP expense [Member] | |||
Postretirement Benefits Disclosure [Line Items] | |||
Participant service cost | $3 | $4 | $4 |
Interest cost | 7 | 7 | 7 |
Amortization of net loss | 6 | 8 | 7 |
Total SERP expense | $16 | $19 | $18 |
Postretirement_Benefits_Amount1
Postretirement Benefits (Amounts Not Yet Reflected In SERP Expense And Included In Accumulated Other Comprehensive Loss (Pre-tax)) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Accumulated loss | ($78) | ($47) |
Prior service credit (cost) | 6 | -1 |
Total accumulated other comprehensive loss | ($72) | ($48) |
Postretirement_Benefits_Weight
Postretirement Benefits (Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense) (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Assumptions used to determine benefit obligation: | |||
Discount rate | 3.70% | 4.60% | 4.30% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Assumptions used to determine SERP expense: | |||
Discount rate | 4.60% | 4.30% | 4.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Postretirement_Benefits_Expect
Postretirement Benefits (Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service) (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
2015 | $8 |
2016 | 9 |
2017 | 9 |
2018 | 9 |
2019 | 10 |
2020 - 2024 | $59 |
Postretirement_Benefits_Narrat
Postretirement Benefits (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of total participants in SERP benefits plan | 59 | |
Number of officers and select employees eligible for SERP benefits | 27 | |
Number of retirees eligible for SERP benefits | 31 | |
Number of beneficiaries eligible for SERP benefits | 1 | |
Accumulated benefit obligation | $197 | $162 |
Cost currently in accumulated other comprehensive loss expected to be recognized as components of SERP expense in the next year | 10 | |
Change in benefit obligation [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial loss | ($36) | $5 |
Debt_And_Credit_Facilities_Sum
Debt And Credit Facilities (Summary Of Long-Term Debt) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||
Total secured debt | $368 | $376 | $368 |
Total unsecured debt | 2,763 | 2,737 | 2,763 |
Total long-term debt | 3,131 | 3,113 | 3,131 |
Less: current portion | -8 | -7 | -8 |
Total due beyond one year | 3,123 | 3,106 | 3,123 |
Series 2011-1 Class A Notes, 2.28%, due October 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Total secured debt | 325 | 325 | 325 |
Debt instrument interest rate | 2.28% | 2.28% | 2.28% |
Maturity date | Oct-16 | Oct-16 | |
Mortgage payable, 7.68%, due April 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Total secured debt | 36 | 42 | 36 |
Debt instrument interest rate | 7.68% | 7.68% | 7.68% |
Maturity date | Apr-20 | Apr-20 | |
Other [Member] | |||
Debt Instrument [Line Items] | |||
Total secured debt | 7 | 9 | 7 |
Total unsecured debt | 72 | 50 | 72 |
Senior notes, 6.25%, due January 2018, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | 649 | 648 | 649 |
Debt instrument interest rate | 6.25% | 6.25% | 6.25% |
Maturity date | Jan-18 | Jan-18 | |
Senior notes, 4.75%, due May 2020, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | 499 | 499 | 499 |
Debt instrument interest rate | 4.75% | 4.75% | 4.75% |
Maturity date | May-20 | May-20 | |
Senior notes, 4.00%, due October 2021, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | 499 | 499 | 499 |
Debt instrument interest rate | 4.00% | 4.00% | 4.00% |
Maturity date | Oct-21 | Oct-21 | |
Senior debentures, 6.95%, due March 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | 300 | 300 | 300 |
Debt instrument interest rate | 6.95% | 6.95% | 6.95% |
Maturity date | Mar-28 | Mar-28 | |
Senior notes, 7.00%, due January 2038, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | 146 | 146 | 146 |
Debt instrument interest rate | 7.00% | 7.00% | 7.00% |
Maturity date | Jan-38 | Jan-38 | |
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | $598 | $595 | $598 |
Debt instrument interest rate | 5.00% | 5.00% | |
Maturity date | Jan-44 |
Debt_And_Credit_Facilities_Sch
Debt And Credit Facilities (Schedule Of Required Principal Payments On Long-Term Debt) (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $6 |
2016 | 333 |
2017 | 659 |
2018 | 41 |
2019 | 8 |
Thereafter | $2,116 |
Debt_And_Credit_Facilities_Com
Debt And Credit Facilities (Components Of Interest Expense, Net) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Debt Disclosure [Abstract] | |||
Interest on long-term debt and short-term borrowings | $156 | $176 | $167 |
Less: | |||
Interest income | -1 | -1 | -2 |
Capitalized interest | -17 | -14 | -5 |
Interest expense, net | $138 | $161 | $160 |
Debt_And_Credit_Facilities_Nar
Debt And Credit Facilities (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Feb. 01, 2014 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | Nov. 30, 2013 |
Debt Instrument [Line Items] | ||||||
Amount of proceeds and senior unsecured notes retired | $400 | |||||
Amount of new senior unsecured notes issued in exchange transaction | 265 | 0 | 201 | 0 | ||
Excess outstanding principal of exchanged notes relating to lower interest rate and longer maturity recorded as a portion of the total discount | 64 | 64 | ||||
Total unsecured debt | 2,737 | 2,763 | 2,737 | 2,763 | ||
Book value of office building used to secure mortgage payable | 64 | 64 | ||||
Debt instrument interest rate | LIBOR plus 1.275% | |||||
Basis spread on variable rate | 1.28% | |||||
Series 2011-1 Class A Notes, 2.28%, due October 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 2.28% | 2.28% | 2.28% | 2.28% | ||
Maturity date | Oct-16 | Oct-16 | ||||
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total senior unsecured notes issued, gross | 665 | 665 | ||||
Debt instrument interest rate | 5.00% | 5.00% | ||||
Total unsecured debt | 595 | 598 | 595 | 598 | ||
Total discount on the new senior unsecured notes | 67 | 67 | ||||
Maturity date | Jan-44 | |||||
Senior notes, 7.00%, due January 2038, net of unamortized discount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | 7.00% | ||
Total unsecured debt | 146 | 146 | 146 | 146 | ||
Maturity date | Jan-38 | Jan-38 | ||||
Senior notes, 6.75%, due June 2014, net of unamortized discount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 6.75% | 6.75% | ||||
Maturity date | Jun-14 | Jun-14 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity of current facility | 800 | 800 | ||||
Maturity date | Mar-18 | |||||
Option to increase the maximum capacity of revolving credit facility | 200 | |||||
Maximum borrowing capacity | 1,000 | 1,000 | ||||
Debt covenant leverage ratio | 4 | |||||
Line of credit facility, issuances or borrowings during period | 0 | 0 | 0 | |||
Commercial Paper [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity of current facility | 800 | 800 | ||||
Line of credit facility, issuances or borrowings during period | 0 | 0 | 0 | |||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Nov-18 | |||||
Maximum borrowing capacity | 52 | |||||
Outstanding borrowings or issuances | 37 | 37 | ||||
Short-Term Borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total short-term borrowing capacity | $800 | $800 | ||||
Nordstrom Visa credit card receivables [Member] | Restricted [Member] | Series 2011-1 Class A Notes, 2.28%, due October 2016 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of company interest in credit card receivables used as collateral to secure debt | 90.00% |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value Measurements, Long-term Debt [Line Items] | ||||
Carrying value of long-term debt | $3,131 | [1] | $3,113 | [1] |
Level 2 [Member] | ||||
Fair Value Measurements, Long-term Debt [Line Items] | ||||
Fair value of long-term debt | $3,693 | $3,511 | ||
[1] | The carrying value of long-term debt includes the remaining unamortized adjustment from our previous effective fair value hedge. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Measurements, Nonrecurring [Line Items] | |||
Impairment charges | $0 | $0 | $0 |
Leases_Future_Minimum_Lease_Pa
Leases (Future Minimum Lease Payments) (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Capital leases | |
2015 | $2 |
2016 | 2 |
2017 | 1 |
2018 | 1 |
2019 | 0 |
Thereafter | 0 |
Total minimum lease payments | 6 |
Less: amount representing interest | -1 |
Present value of net minimum lease payments | 5 |
Operating leases | |
2015 | 210 |
2016 | 231 |
2017 | 229 |
2018 | 227 |
2019 | 219 |
Thereafter | 1,202 |
Total minimum lease payments | $2,318 |
Leases_Schedule_Of_Rent_Expens
Leases (Schedule Of Rent Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Operating Leased Assets [Line Items] | |||
Percentage rent | $14 | $14 | $14 |
Property incentives | -83 | -69 | -65 |
Total rent expense | 137 | 125 | 105 |
Store locations [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rent | 170 | 145 | 124 |
Offices, warehouses and equipment [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rent | $36 | $35 | $32 |
Leases_Narrative_Details
Leases (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Leases [Line Items] | |||
Charges not included in rent expense | $88 | $81 | $74 |
Minimum [Member] | Nordstrom full-line stores [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 15 years | ||
Minimum [Member] | Nordstrom Rack [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 10 years | ||
Maximum [Member] | Nordstrom full-line stores [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 30 years | ||
Maximum [Member] | Nordstrom Rack [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 15 years |
Commitments_And_Contingent_Lia1
Commitments And Contingent Liabilities (Narrative) (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations, capital expenditure contractual commitments and inventory purchase orders | $2,092 |
Outstanding trade letters of credit [Member] | |
Long-term purchase commitment [Line Items] | |
Outstanding trade letters of credit | 1 |
Manhattan full-line store [Member] | |
Long-term purchase commitment [Line Items] | |
Amount of property assets subject to lien | $125 |
Shareholders_Equity_Summary_Of
Shareholders' Equity (Summary Of Share Repurchase Activity) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share Repurchase Program [Line Items] | |||
Capacity beginning balance | $670 | $393 | $310 |
Shares repurchased (in shares) | 8.9 | 9.1 | 14 |
Shares repurchased, average price per share (in dollars per share) | $66 | $57 | $51 |
Shares repurchased (amount) | -595 | -523 | -717 |
Capacity ending balance | 1,075 | 670 | 393 |
2012 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | 800 | ||
2013 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | 800 | ||
2014 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | $1,000 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Mar. 16, 2015 |
Share Repurchase Program [Line Items] | |||||
Dividends paid | $0.33 | $1.32 | $1.20 | $1.08 | |
Subsequent Event [Member] | |||||
Share Repurchase Program [Line Items] | |||||
Quarterly dividend per share declared and paid in 2015 | $0.37 | ||||
2013 Program [Member] | |||||
Share Repurchase Program [Line Items] | |||||
Share repurchase authorization | $800 | $800 | |||
2014 Program [Member] | |||||
Share Repurchase Program [Line Items] | |||||
Share repurchase authorization | $1,000 | $1,000 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $68 | $58 | $53 |
Income tax benefit | -23 | -19 | -17 |
Total stock-based compensation expense, net of income tax benefit | 45 | 39 | 36 |
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 37 | 44 | 36 |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 10 | 0 | 0 |
Performance share units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 6 | 0 | 3 |
Other [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 4 | 6 | 5 |
Acquisition-related stock compensation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $11 | $8 | $9 |
StockBased_Compensation_StockB
Stock-Based Compensation (Stock-Based Compensation Expense Before Income Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $68 | $58 | $53 |
Cost of sales and related buying and occupancy costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 17 | 15 | 14 |
Selling, general and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $51 | $43 | $39 |
StockBased_Compensation_Assump
Stock-Based Compensation (Assumptions To Estimate The Fair Value For Stock Options At Grant Date) (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Weighted-average volatility | 30.10% | 31.80% | 36.50% |
Weighted-average expected dividend yield | 2.20% | 2.00% | 2.10% |
Expected life in years | 6 years 9 months | 6 years 8 months 11 days | 6 years 1 month 6 days |
Minimum [Member] | |||
Risk-free interest rate | 0.20% | 0.20% | 0.30% |
Maximum [Member] | |||
Risk-free interest rate | 2.60% | 1.80% | 2.00% |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of Stock Option Activity (Excluding Trunk Club)) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Aug. 22, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vested or expected to vest at end of year, shares | 0.1 | |||
Stock option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning of year, shares | 13.8 | |||
Outstanding, beginning of year, stock option weighted-average exercise price per unit (in dollars per share) | $43 | |||
Granted, shares | 1.9 | |||
Weighted-average exercise price per stock option granted (in dollars per share or unit) | $61 | $54 | $53 | |
Stock options exercised (in shares) | -3.1 | |||
Weighted-average exercise price per stock option exercised (in dollars per share) | $40 | |||
Forfeited or cancelled stock options (in shares) | -0.3 | |||
Forfeited or cancelled, weighted-average exercise price | $55 | |||
Outstanding, end of year, shares | 12.3 | 13.8 | ||
Outstanding, end of year, stock option weighted-average exercise price per unit (in dollars per share) | $47 | $43 | ||
Outstanding, end of year, Weighted-average remaining contractual life (years) | 6 years | |||
Outstanding, end of year, aggregate intrinsic value | $362 | |||
Options exercisable at end of year, shares | 6.2 | |||
Options exercisable at end of year, weighted-average exercise price | $39 | |||
Options exercisable at end of year, weighted-average remaining contractual life (years) | 5 years | |||
Options exercisable at end of year, aggregate intrinsic value | 232 | |||
Options vested or expected to vest at end of year, shares | 11.9 | |||
Options vested or expected to vest at end of year, weighted-average exercise price | $46 | |||
Options vested or expected to vest at end of year, weighted-average remaining contractual life (years) | 6 years | |||
Options vested or expected to vest at end of year, aggregate intrinsic value | $353 |
StockBased_Compensation_StockB1
Stock-Based Compensation Stock-Based Compensation (Summary Of Restricted Stock Unit Activity (Excluding Trunk Club)) (Details) (Restricted stock units [Member], USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year (in shares) | 0 |
Outstanding, beginning of year, weighted-average grant-date fair value per unit (in dollars per share) | $56 |
Granted units (in shares or units) | 500,000 |
Weighted-average grant-date fair value per unit granted (in dollars per share) | $63 |
Vested units (in shares) | 0 |
Weighted-average grant-date fair value per unit vested (in dollars per share) | $56 |
Forfeited units (in shares) | 0 |
Weighted-average grant-date fair value per unit forfeited (in dollars per share) | $61 |
Outstanding, end of year (in shares) | 500,000 |
Outstanding, end of year, weighted-average grant-date fair value per unit (in dollars per share) | $63 |
StockBased_Compensation_Summar2
Stock-Based Compensation (Summary of Stock Option Activity for Trunk Club) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Aug. 22, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vested or expected to vest at end of year, shares | 0.1 | |||
Stock option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning of year, shares | 13.8 | |||
Outstanding, beginning of year, stock option weighted-average exercise price per unit (in dollars per share) | $43 | |||
Granted stock options (in shares) | 1.9 | |||
Weighted-average exercise price per stock option granted (in dollars per share or unit) | $61 | $54 | $53 | |
Stock options exercised (in shares) | -3.1 | |||
Weighted-average exercise price per stock option exercised (in dollars per share) | $40 | |||
Forfeited or cancelled stock options (in shares) | -0.3 | |||
Outstanding, end of year, shares | 12.3 | 13.8 | ||
Outstanding, end of year, stock option weighted-average exercise price per unit (in dollars per share) | $47 | $43 | ||
Outstanding, end of year, Weighted-average remaining contractual life (years) | 6 years | |||
Outstanding, end of year, aggregate intrinsic value | $362 | |||
Options exercisable at end of year, shares | 6.2 | |||
Options exercisable at end of year, weighted-average exercise price | $39 | |||
Options exercisable at end of year, weighted-average remaining contractual life (years) | 5 years | |||
Options exercisable at end of year, aggregate intrinsic value | 232 | |||
Options vested or expected to vest at end of year, shares | 11.9 | |||
Options vested or expected to vest at end of year, weighted-average exercise price | $46 | |||
Options vested or expected to vest at end of year, weighted-average remaining contractual life (years) | 6 years | |||
Options vested or expected to vest at end of year, aggregate intrinsic value | 353 | |||
Trunk Club [Member] | Stock option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning of year, shares | 0 | |||
Outstanding, beginning of year, stock option weighted-average exercise price per unit (in dollars per share) | $0 | |||
Granted stock options (in shares) | 0.5 | |||
Weighted-average exercise price per stock option granted (in dollars per share or unit) | $4 | |||
Stock options exercised (in shares) | -0.1 | |||
Weighted-average exercise price per stock option exercised (in dollars per share) | $3 | |||
Forfeited or cancelled stock options (in shares) | 0 | |||
Weighted-average exercise price per stock option forfeited or cancelled (in dollars per share) | $6 | |||
Outstanding, end of year, shares | 0.4 | |||
Outstanding, end of year, stock option weighted-average exercise price per unit (in dollars per share) | $4 | |||
Outstanding, end of year, Weighted-average remaining contractual life (years) | 8 years | |||
Outstanding, end of year, aggregate intrinsic value | 24 | |||
Options exercisable at end of year, shares | 0.1 | |||
Options exercisable at end of year, weighted-average exercise price | $4 | |||
Options exercisable at end of year, weighted-average remaining contractual life (years) | 8 years | |||
Options exercisable at end of year, aggregate intrinsic value | 4 | |||
Options vested or expected to vest at end of year, shares | 0.3 | |||
Options vested or expected to vest at end of year, weighted-average exercise price | $4 | |||
Options vested or expected to vest at end of year, weighted-average remaining contractual life (years) | 8 years | |||
Options vested or expected to vest at end of year, aggregate intrinsic value | $24 |
StockBased_Compensation_Summar3
Stock-Based Compensation (Summary Of Trunk Club Restricted Stock Award Activity) (Details) (Trunk Club [Member], Restricted stock [Member], USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Trunk Club [Member] | Restricted stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year (in shares) | 0 |
Outstanding, beginning of year, weighted-average grant-date fair value per unit (in dollars per share) | $0 |
Granted units (in shares or units) | 500,000 |
Weighted-average grant-date fair value per unit granted (in dollars per share) | $69 |
Vested units (in shares) | -100,000 |
Weighted-average grant-date fair value per unit vested (in dollars per share) | $69 |
Forfeited units (in shares) | 0 |
Weighted-average grant-date fair value per unit forfeited or cancelled (in dollars per share) | $0 |
Outstanding, end of year (in shares) | 400,000 |
Outstanding, end of year, weighted-average grant-date fair value per unit (in dollars per share) | $69 |
StockBased_Compensation_Summar4
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) (Performance share units [Member]) | 12 Months Ended | 1 Months Ended | |
Jan. 31, 2015 | Mar. 16, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning of year (in shares) | 200,000 | [1] | |
Granted units (in shares or units) | 100,000 | [1] | |
Vested units (in shares) | 0 | [1] | |
Forfeited or cancelled (in shares) | -100,000 | [1] | |
Outstanding, end of year (in shares) | 200,000 | [1],[2] | |
Vesting rate of the number of units granted | 100.00% | ||
Subsequent Event [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested units (in shares) | -48,229 | ||
Vesting rate of the number of units granted | 75.00% | ||
[1] | Assumes performance share units at 100% of the number of units granted. | ||
[2] | On February 13, 2015, the Compensation Committee of our Board of Directors approved the vesting of 48,229 performance share units that were granted in 2012 and outstanding as of January 31, 2015. Those units were earned and vested at 75% based on the defined performance criteria above. For purposes of this footnote only, performance share units are stated in exact units instead of millions. |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Aug. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares issued | 190.1 | 191.2 | |||
Common stock, shares outstanding | 190.1 | 191.2 | |||
Other current liabilities | $1,048 | $876 | |||
Weighted-average fair value per option at grant date | $16 | $14 | $15 | ||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 46 | ||||
Total stock-based compensation expense, before income tax benefit | 68 | 58 | 53 | ||
Stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average exercise price per stock option granted (in dollars per share or unit) | $61 | $54 | $53 | ||
Number of employees awarded stock options | 1,799 | 1,625 | 1,477 | ||
Total intrinsic value of options exercised | 89 | 89 | 90 | ||
Total fair value of stock options vested | 39 | 34 | 32 | ||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 49 | ||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 27 months | ||||
Total stock-based compensation expense, before income tax benefit | 37 | 44 | 36 | ||
Restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, in years | 4 years | ||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 25 | ||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 38 months | ||||
Weighted-average grant-date fair value per unit (in dollars per share) | $63 | $56 | |||
Total stock-based compensation expense, before income tax benefit | 10 | 0 | 0 | ||
Granted units (in shares or units) | 0.5 | ||||
Total fair value of units vested | 1 | ||||
Performance share units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, in years | 3 years | ||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 6 | ||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 21 months | ||||
Total stock-based compensation expense, before income tax benefit | 6 | 0 | 3 | ||
Granted units (in shares or units) | 0.1 | [1] | |||
Total fair value of units vested | 0 | ||||
PSU's in other liabilities | 8 | ||||
Performance share units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of units that are earned | 0.00% | ||||
Performance share units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of units that are earned | 175.00% | ||||
2010 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of shares authorized to be issued under equity incentive plan | 27.6 | ||||
Shares or units authorized under equity incentive plan | 70.4 | ||||
Common stock, shares issued | 40.4 | ||||
Common stock, shares outstanding | 40.4 | ||||
Shares available for grant under equity incentive plan | 16.7 | ||||
2010 Equity Incentive Plan [Member] | Stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, in years | 4 years | ||||
Option expiration period | 10 years | ||||
Employee stock purchase plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum percentage of employee payroll deductions under ESPP | 10.00% | ||||
ESPP offering period | 6 months | ||||
Percentage of fair market value for purchase of shares of common stock in ESPP | 90.00% | ||||
Shares authorized under Employee Stock Purchase Plan | 12.6 | ||||
Shares available for issuance under Employee Stock Purchase Plan | 3.3 | ||||
Shares issued under Employee Stock Purchase Plan | 0.3 | ||||
Other current liabilities | 6 | ||||
2002 Nonemployee Director Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized under nonemployee director stock incentive plan | 0.9 | ||||
Remaining shares available for issuance under nonemployee director stock incentive plan | 0.5 | ||||
Expense recognized on deferred shares awarded under the nonemployee director stock incentive plan (less than $1 as of February 1, 2014) | 1 | ||||
Trunk Club [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average fair value per option at grant date | $59 | ||||
Trunk Club [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Trunk Club Value Creation Plan payout | 0 | ||||
Trunk Club [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, in years | 4 years | ||||
Trunk Club Value Creation Plan payout | 100 | ||||
Trunk Club [Member] | Stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average exercise price per stock option granted (in dollars per share or unit) | $4 | ||||
Total intrinsic value of options exercised | 8 | ||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 13 | ||||
Total fair value of units vested | 2 | ||||
Trunk Club [Member] | Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 32 months | ||||
Trunk Club [Member] | Restricted stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 21 | ||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 30 months | ||||
Weighted-average grant-date fair value per unit (in dollars per share) | $69 | $0 | |||
Granted units (in shares or units) | 0.5 | ||||
Trunk Club [Member] | Value Creation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares or units authorized under equity incentive plan | 1 | ||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | 6 | ||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 43 months | ||||
Weighted-average grant-date fair value per unit (in dollars per share) | $10 | ||||
Total stock-based compensation expense, before income tax benefit | $3 | ||||
Granted units (in shares or units) | 0.8 | ||||
[1] | Assumes performance share units at 100% of the number of units granted. |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Current income taxes: | |||
Federal | $397 | $379 | $362 |
State and local | 61 | 64 | 66 |
Total current income tax expense | 458 | 443 | 428 |
Deferred income taxes: | |||
Federal | 9 | 9 | 21 |
State and local | 2 | 3 | 1 |
Foreign | -4 | 0 | 0 |
Total deferred income tax expense | 7 | 12 | 22 |
Total income tax expense | $465 | $455 | $450 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Statutory To Effective Tax Rate) (Details) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal income taxes | 3.80% | 3.60% | 3.60% |
Non-deductible acquisition-related items | 0.90% | 0.00% | 0.00% |
Other, net | -0.50% | -0.30% | -0.60% |
Effective tax rate | 39.20% | 38.30% | 38.00% |
Income_Taxes_Components_Of_Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Compensation and benefits accruals | $191 | $182 |
Allowance for sales returns | 62 | 56 |
Accrued expenses | 51 | 48 |
Allowance for credit losses | 29 | 32 |
Merchandise inventories | 31 | 28 |
Gift cards | 23 | 21 |
Gain on sale of interest rate swap | 12 | 19 |
Nordstrom Notes | 22 | 18 |
Federal benefit of state taxes | 3 | 6 |
Other | 4 | 16 |
Total deferred tax assets | 428 | 426 |
Land, property and equipment basis and depreciation differences | -116 | -98 |
Debt exchange premium | -22 | -24 |
Total deferred tax liabilities | -138 | -122 |
Net deferred tax assets | $290 | $304 |
Income_Taxes_Reconciliation_Of1
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit at beginning of year | $14 | $15 | $21 |
Gross increase to tax positions in prior periods | 9 | 3 | 1 |
Gross decrease to tax positions in prior periods | -2 | -1 | -7 |
Gross increase to tax positions in current period | 2 | 1 | 1 |
Lapses in statute | -3 | 0 | 0 |
Settlements | -5 | -4 | -1 |
Unrecognized tax benefit at end of year | $15 | $14 | $15 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Tax Credit Carryforward [Line Items] | |||
Unrecognized tax benefits that would affect the effective tax rate | $13 | $7 | $7 |
Income tax expense, penalties and interest, (decrease)/increase | -1 | 1 | -1 |
Liability for interest and penalties | 2 | 7 | 7 |
Estimated unrecognized tax benefits, decrease in tax position | 4 | ||
State [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 3 | 24 | |
Foreign [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 11 | 0 | |
Federal [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | $4 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net earnings | $255 | [1] | $142 | [1] | $183 | [1] | $140 | [1] | $268 | [1] | $137 | [1] | $184 | [1] | $145 | [1] | $720 | $734 | $735 |
Basic (in shares) | 190 | 194.5 | 203 | ||||||||||||||||
Dilutive effect of stock options and other (in shares) | 3.6 | 3.2 | 3.7 | ||||||||||||||||
Diluted (in shares) | 193.6 | 197.7 | 206.7 | ||||||||||||||||
Earnings per basic share (in dollars per share) | $1.35 | [1] | $0.74 | [1] | $0.97 | [1] | $0.74 | [1] | $1.39 | [1] | $0.70 | [1] | $0.94 | [1] | $0.74 | [1] | $3.79 | $3.77 | $3.62 |
Earnings per diluted share (in dollars per share) | $1.32 | [1] | $0.73 | [1] | $0.95 | [1] | $0.72 | [1] | $1.37 | [1] | $0.69 | [1] | $0.93 | [1] | $0.73 | [1] | $3.72 | $3.71 | $3.56 |
Anti-dilutive stock options and other equity instruments | 2.1 | 4.1 | 4.2 | ||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. |
Segment_Reporting_Information_
Segment Reporting (Information By Reportable Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | $3,938 | [1] | $3,040 | [1] | $3,296 | [1] | $2,837 | [1] | $3,614 | [1] | $2,791 | [1] | $3,104 | [1] | $2,657 | [1] | $13,110 | $12,166 | $11,762 | |||
Credit card revenues | 105 | [1] | 100 | [1] | 96 | [1] | 94 | [1] | 97 | [1] | 93 | [1] | 92 | [1] | 92 | [1] | 396 | 374 | 372 | |||
Earnings (loss) before interest and income taxes | 1,323 | 1,350 | 1,345 | |||||||||||||||||||
Interest expense, net | -138 | -161 | -160 | |||||||||||||||||||
Earnings (loss) before income taxes | 431 | [1] | 228 | [1] | 296 | [1] | 230 | [1] | 437 | [1] | 218 | [1] | 298 | [1] | 236 | [1] | 1,185 | 1,189 | 1,185 | |||
Capital expenditures | 861 | 803 | 513 | |||||||||||||||||||
Depreciation and amortization | 508 | 454 | 429 | |||||||||||||||||||
Goodwill | 435 | 175 | 435 | 175 | 175 | |||||||||||||||||
Assets | 9,245 | 8,574 | 9,245 | 8,574 | 8,089 | |||||||||||||||||
Retail [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 13,369 | 12,395 | 11,949 | |||||||||||||||||||
Credit card revenues | 0 | 0 | 0 | |||||||||||||||||||
Earnings (loss) before interest and income taxes | 1,404 | 1,420 | 1,409 | |||||||||||||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||||||||||||
Earnings (loss) before income taxes | 1,404 | 1,420 | 1,409 | |||||||||||||||||||
Capital expenditures | 683 | 636 | 371 | |||||||||||||||||||
Depreciation and amortization | 393 | 364 | 357 | |||||||||||||||||||
Goodwill | 435 | 175 | 435 | 175 | 175 | |||||||||||||||||
Assets | 5,103 | [2] | 4,191 | [2] | 5,103 | [2] | 4,191 | [2] | 3,922 | [2] | ||||||||||||
Corporate/Other [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | -259 | -229 | -187 | |||||||||||||||||||
Credit card revenues | 0 | 0 | 0 | |||||||||||||||||||
Earnings (loss) before interest and income taxes | -283 | -258 | -246 | |||||||||||||||||||
Interest expense, net | -120 | -137 | -134 | |||||||||||||||||||
Earnings (loss) before income taxes | -403 | -395 | -380 | |||||||||||||||||||
Capital expenditures | 172 | 161 | 140 | |||||||||||||||||||
Depreciation and amortization | 112 | 88 | 70 | |||||||||||||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Assets | 1,781 | [2] | 2,118 | [2] | 1,781 | [2] | 2,118 | [2] | 1,966 | [2] | ||||||||||||
Total Retail Business [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 13,110 | [3] | 12,166 | [3] | 11,762 | [3] | ||||||||||||||||
Credit card revenues | 0 | [3] | 0 | [3] | 0 | [3] | ||||||||||||||||
Earnings (loss) before interest and income taxes | 1,121 | [3] | 1,162 | [3] | 1,163 | [3] | ||||||||||||||||
Interest expense, net | -120 | [3] | -137 | [3] | -134 | [3] | ||||||||||||||||
Earnings (loss) before income taxes | 1,001 | [3] | 1,025 | [3] | 1,029 | [3] | ||||||||||||||||
Capital expenditures | 855 | [3] | 797 | [3] | 511 | [3] | ||||||||||||||||
Depreciation and amortization | 505 | [3] | 452 | [3] | 427 | [3] | ||||||||||||||||
Goodwill | 435 | [3] | 175 | [3] | 435 | [3] | 175 | [3] | 175 | [3] | ||||||||||||
Assets | 6,884 | [2],[3] | 6,309 | [2],[3] | 6,884 | [2],[3] | 6,309 | [2],[3] | 5,888 | [2],[3] | ||||||||||||
Credit [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||||||
Credit card revenues | 396 | 374 | 372 | |||||||||||||||||||
Earnings (loss) before interest and income taxes | 202 | 188 | 182 | |||||||||||||||||||
Interest expense, net | -18 | -24 | -26 | |||||||||||||||||||
Earnings (loss) before income taxes | 184 | 164 | 156 | |||||||||||||||||||
Capital expenditures | 6 | 6 | 2 | |||||||||||||||||||
Depreciation and amortization | 3 | 2 | 2 | |||||||||||||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Assets | $2,361 | [2] | $2,265 | [2] | $2,361 | [2] | $2,265 | [2] | $2,201 | [2] | ||||||||||||
[1] | Quarterly totals may not foot across due to rounding. | |||||||||||||||||||||
[2] | Assets in Corporate/Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets. | |||||||||||||||||||||
[3] | Total Retail Business is not a reportable segment, but represents a subtotal of the Retail segment and Corporate/Other, and is consistent with our presentation in Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Segment_Reporting_Schedule_Of_
Segment Reporting (Schedule Of Net Sales By Channel) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | $3,938 | [1] | $3,040 | [1] | $3,296 | [1] | $2,837 | [1] | $3,614 | [1] | $2,791 | [1] | $3,104 | [1] | $2,657 | [1] | $13,110 | $12,166 | $11,762 | |||
Total Retail segment [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 13,369 | 12,395 | 11,949 | |||||||||||||||||||
Nordstrom [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 9,678 | 9,327 | 9,233 | |||||||||||||||||||
Nordstrom full-line stores - U.S. [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 7,682 | 7,705 | 7,964 | |||||||||||||||||||
Nordstrom.com [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 1,996 | 1,622 | 1,269 | |||||||||||||||||||
Nordstrom Rack [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 3,215 | 2,738 | 2,445 | |||||||||||||||||||
Nordstromrack.com and HauteLook [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 360 | 295 | 236 | |||||||||||||||||||
Other retail [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 116 | [2] | 35 | [2] | 35 | [2] | ||||||||||||||||
Corporate/Other [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | ($259) | ($229) | ($187) | |||||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. | |||||||||||||||||||||
[2] | Other retail includes our Jeffrey boutiques, Trunk Club and our Nordstrom Canada full-line store. |
Segment_Reporting_Net_Sales_By
Segment Reporting (Net Sales By Merchandise Category) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $3,938 | [1] | $3,040 | [1] | $3,296 | [1] | $2,837 | [1] | $3,614 | [1] | $2,791 | [1] | $3,104 | [1] | $2,657 | [1] | $13,110 | $12,166 | $11,762 |
% of total | 100.00% | 100.00% | 100.00% | ||||||||||||||||
Women's Apparel [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 3,950 | 3,733 | 3,684 | ||||||||||||||||
% of total | 30.00% | 31.00% | 31.00% | ||||||||||||||||
Shoes [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 3,038 | 2,828 | 2,716 | ||||||||||||||||
% of total | 23.00% | 23.00% | 23.00% | ||||||||||||||||
Men's Apparel [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 2,129 | 1,943 | 1,866 | ||||||||||||||||
% of total | 16.00% | 16.00% | 16.00% | ||||||||||||||||
Women's Accessories [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 1,801 | 1,644 | 1,574 | ||||||||||||||||
% of total | 14.00% | 14.00% | 13.00% | ||||||||||||||||
Cosmetics [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 1,400 | 1,312 | 1,255 | ||||||||||||||||
% of total | 11.00% | 11.00% | 11.00% | ||||||||||||||||
Kids' apparel [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 483 | 413 | 381 | ||||||||||||||||
% of total | 4.00% | 3.00% | 3.00% | ||||||||||||||||
Other [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $309 | $293 | $286 | ||||||||||||||||
% of total | 2.00% | 2.00% | 3.00% | ||||||||||||||||
[1] | Quarterly totals may not foot across due to rounding. |
Segment_Reporting_Narrative_De
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Jan. 31, 2015 | |
segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Selected_Quarterly_Data_Unaudi2
Selected Quarterly Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Net sales | $3,938 | [1] | $3,040 | [1] | $3,296 | [1] | $2,837 | [1] | $3,614 | [1] | $2,791 | [1] | $3,104 | [1] | $2,657 | [1] | $13,110 | $12,166 | $11,762 | ||
Comparable sales percentage change | 4.70% | [1],[2] | 3.90% | [1],[2] | 3.30% | [1],[2] | 3.90% | [1],[2] | 2.60% | [1],[2] | 0.10% | [1],[2] | 4.40% | [1],[2] | 2.70% | [1],[2] | 4.00% | [2] | 2.50% | [2] | |
Credit card revenues | 105 | [1] | 100 | [1] | 96 | [1] | 94 | [1] | 97 | [1] | 93 | [1] | 92 | [1] | 92 | [1] | 396 | 374 | 372 | ||
Gross profit | 1,444 | [1],[3] | 1,079 | [1],[3] | 1,166 | [1],[3] | 1,015 | [1],[3] | 1,345 | [1],[3] | 1,000 | [1],[3] | 1,100 | [1],[3] | 984 | [1],[3] | 4,704 | [3] | 4,429 | [3] | |
Selling, general and administrative expenses | -1,084 | [1] | -917 | [1] | -931 | [1] | -844 | [1] | -955 | [1] | -840 | [1] | -857 | [1] | -801 | [1] | -3,777 | -3,453 | -3,357 | ||
Earnings before income taxes | 431 | [1] | 228 | [1] | 296 | [1] | 230 | [1] | 437 | [1] | 218 | [1] | 298 | [1] | 236 | [1] | 1,185 | 1,189 | 1,185 | ||
Net earnings | $255 | [1] | $142 | [1] | $183 | [1] | $140 | [1] | $268 | [1] | $137 | [1] | $184 | [1] | $145 | [1] | $720 | $734 | $735 | ||
Earnings per basic share (in dollars per share) | $1.35 | [1] | $0.74 | [1] | $0.97 | [1] | $0.74 | [1] | $1.39 | [1] | $0.70 | [1] | $0.94 | [1] | $0.74 | [1] | $3.79 | $3.77 | $3.62 | ||
Earnings per diluted share (in dollars per share) | $1.32 | [1] | $0.73 | [1] | $0.95 | [1] | $0.72 | [1] | $1.37 | [1] | $0.69 | [1] | $0.93 | [1] | $0.73 | [1] | $3.72 | $3.71 | $3.56 | ||
[1] | Quarterly totals may not foot across due to rounding. | ||||||||||||||||||||
[2] | Comparable sales include sales from stores that have been open at least one full year at the beginning of the year. We also include sales from our online channels (Nordstrom.com, Nordstromrack.com and HauteLook) in comparable sales because of the integration with our stores. | ||||||||||||||||||||
[3] | Gross profit is calculated as net sales less cost of sales and related buying and occupancy costs (for all segments). |