Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Feb. 03, 2024 | Mar. 11, 2024 | Jul. 28, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 03, 2024 | ||
Document Transition Report | false | ||
Entity File Number | 001-15059 | ||
Entity Registrant Name | Nordstrom, Inc. | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 91-0515058 | ||
Entity Address, Address Line One | 1617 Sixth Avenue | ||
Entity Address, City or Town | Seattle | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98101 | ||
City Area Code | 206 | ||
Local Phone Number | 628-2111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3 | ||
Entity Common Stock, Shares Outstanding | 163,258,218 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Proxy Statement for the 2024 Annual Meeting of Shareholders, scheduled to be held on May 22, 2024, are incorporated into Part III. | ||
Entity Central Index Key | 0000072333 | ||
ICFR Auditor Attestation flag | true | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --02-03 | ||
Common stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock, without par value | ||
Trading Symbol | JWN | ||
Security Exchange Name | NYSE | ||
Rights | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock purchase rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Feb. 03, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Seattle, Washington |
Auditor Firm ID | 34 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 14,219 | $ 15,092 | $ 14,402 |
Credit card revenues, net | 474 | 438 | 387 |
Total revenues | 14,693 | 15,530 | 14,789 |
Cost of sales and related buying and occupancy costs | (9,303) | (10,019) | (9,344) |
Selling, general and administrative expenses | (4,855) | (5,046) | (4,953) |
Canada wind-down costs | 284 | 0 | 0 |
Earnings before interest and income taxes | 251 | 465 | 492 |
Interest expense, net | (104) | (128) | (246) |
Earnings before income taxes | 147 | 337 | 246 |
Income tax expense | (13) | (92) | (68) |
Net earnings | $ 134 | $ 245 | $ 178 |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.83 | $ 1.53 | $ 1.12 |
Diluted (in dollars per share) | $ 0.82 | $ 1.51 | $ 1.10 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 161.8 | 160.1 | 159 |
Diluted (in shares) | 163.4 | 162.1 | 162.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 134 | $ 245 | $ 178 |
Postretirement plan adjustments, net of tax of ($2), ($12) and ($6) | 5 | 32 | 18 |
Foreign currency translation adjustment | (4) | (8) | 2 |
Comprehensive net earnings | $ 135 | $ 269 | $ 198 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on postretirement plan adjustments | $ (2) | $ (12) | $ (6) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Assets | ||
Cash and cash equivalents | $ 628 | $ 687 |
Accounts receivable, net | 334 | 265 |
Merchandise inventories | 1,888 | 1,941 |
Prepaid expenses and other current assets | 286 | 316 |
Total current assets | 3,136 | 3,209 |
Land, property and equipment, net | 3,177 | 3,351 |
Operating lease right-of-use assets | 1,359 | 1,470 |
Goodwill | 249 | 249 |
Other assets | 523 | 466 |
Total assets | 8,444 | 8,745 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 1,236 | 1,238 |
Accrued salaries, wages and related benefits | 244 | 291 |
Current portion of operating lease liabilities | 240 | 258 |
Other current liabilities | 1,102 | 1,203 |
Current portion of long-term debt | 250 | 0 |
Total current liabilities | 3,072 | 2,990 |
Long-term debt, net | 2,612 | 2,856 |
Non-current operating lease liabilities | 1,377 | 1,526 |
Other liabilities | 535 | 634 |
Commitments and contingencies (Note 13) | ||
Shareholders’ equity: | ||
Common stock, no par value: 1,000 shares authorized; 162.4 and 160.1 shares issued and outstanding | 3,418 | 3,353 |
Accumulated deficit | (2,578) | (2,588) |
Accumulated other comprehensive gain (loss) | 8 | (26) |
Total shareholders’ equity | 848 | 739 |
Total liabilities and shareholders’ equity | $ 8,444 | $ 8,745 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
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 | 162.4 | 160.1 |
Common stock, shares outstanding | 162.4 | 160.1 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock [Member] | Accumulated deficit [Member] | Accumulated other comprehensive gain (loss) [Member] | ||
Total at Jan. 30, 2021 | $ 3,205 | $ (2,830) | $ (70) | |||
Common stock | ||||||
Issuance of common stock under stock compensation plans | 14 | |||||
Stock-based compensation | 64 | |||||
Accumulated deficit | ||||||
Net earnings | $ 178 | 178 | ||||
Dividends | 0 | |||||
Repurchase of common stock | 0 | |||||
Accumulated other comprehensive gain (loss) | ||||||
Accumulated translation loss reclassified to earnings | 0 | |||||
Other comprehensive earnings | 20 | |||||
Total at Jan. 29, 2022 | $ 581 | 3,283 | (2,652) | (50) | ||
Accumulated other comprehensive gain (loss) | ||||||
Dividends per share | $ 0 | |||||
Issuance of common stock under stock compensation plans | 29 | |||||
Stock-based compensation | 41 | |||||
Net earnings | $ 245 | 245 | ||||
Dividends | (119) | |||||
Repurchase of common stock | (62) | |||||
Accumulated translation loss reclassified to earnings | 0 | |||||
Other comprehensive earnings | 24 | |||||
Total at Jan. 28, 2023 | $ 739 | 3,353 | (2,588) | (26) | ||
Accumulated other comprehensive gain (loss) | ||||||
Dividends per share | $ 0.76 | |||||
Issuance of common stock under stock compensation plans | 20 | |||||
Stock-based compensation | 45 | |||||
Net earnings | $ 134 | 134 | ||||
Dividends | (123) | |||||
Repurchase of common stock | [1] | (1) | ||||
Accumulated translation loss reclassified to earnings | (33) | [2] | 33 | |||
Other comprehensive earnings | 1 | |||||
Total at Feb. 03, 2024 | $ 848 | $ 3,418 | $ (2,578) | $ 8 | ||
Accumulated other comprehensive gain (loss) | ||||||
Dividends per share | $ 0.76 | |||||
[1] Subtotal of ending share repurchase capacity may not foot due to rounding. 1 Non-cash amounts are included in Canada wind-down costs on the Consolidated Statement of Cash Flows. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating Activities | |||
Net earnings | $ 134 | $ 245 | $ 178 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization expenses | 586 | 604 | 615 |
Canada wind-down costs | 207 | 0 | 0 |
Asset impairment | 30 | 80 | 0 |
Right-of-use asset amortization | 184 | 185 | 175 |
Deferred income taxes, net | (60) | (83) | (11) |
Stock-based compensation expense | 52 | 59 | 79 |
Other, net | (71) | (46) | 81 |
Change in operating assets and liabilities: | |||
Merchandise inventories | (61) | 265 | (383) |
Other current and noncurrent assets | (39) | (1) | 532 |
Accounts payable | 40 | (190) | (400) |
Accrued salaries, wages and related benefits | (42) | (94) | 31 |
Lease liabilities | (272) | (269) | (284) |
Other current and noncurrent liabilities | (67) | 191 | 92 |
Net cash provided by operating activities | 621 | 946 | 705 |
Investing Activities | |||
Capital expenditures | (569) | (473) | (506) |
Decrease in cash and cash equivalents resulting from Canada deconsolidation | (33) | 0 | 0 |
Proceeds from the sale of assets and other, net | 31 | 80 | (15) |
Net cash used in investing activities | (571) | (393) | (521) |
Financing Activities | |||
Proceeds from revolving line of credit | 0 | 100 | 400 |
Payments on revolving line of credit | 0 | (100) | (400) |
Proceeds from long-term borrowings | 0 | 0 | 675 |
Principal payments on long-term borrowings | 0 | 0 | (1,100) |
Change in cash book overdrafts | 2 | (14) | (32) |
Cash dividends paid | (123) | (119) | 0 |
Payments for repurchase of common stock | (1) | (62) | 0 |
Proceeds from issuances under stock compensation plans | 20 | 29 | 14 |
Other, net | (7) | (20) | (101) |
Net cash used in financing activities | (109) | (186) | (544) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (2) | 1 |
Net (decrease) increase in cash and cash equivalents | (59) | 365 | (359) |
Cash and cash equivalents at beginning of year | 687 | 322 | 681 |
Cash and cash equivalents at end of year | 628 | 687 | 322 |
Supplemental Cash Flow Information | |||
Income taxes paid, net of refunds received | 53 | 211 | (485) |
Interest paid, net of capitalized interest | $ 143 | $ 136 | $ 164 |
Nature Of Operations And Summar
Nature Of Operations And Summary Of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
Nature Of Operations And Summary Of Significant Accounting Policies | NOTE 1: NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Founded in 1901 as a retail shoe business in Seattle, Washington, our Company is a leading fashion retailer that offers an extensive selection of high-quality brand-name and private-label merchandise for women, men, young adults and children, with a focus on apparel, shoes, beauty, accessories and home goods. This breadth of merchandise allows us to serve a wide range of customers who appreciate quality fashion and a superior shopping experience, across our digital and physical assets and in b oth our Nordstrom and Nordstrom Rack banners. Our facilities and stores are located in 40 states in the U.S. As of February 3, 2024, Nordstrom includes: • 93 Nordstrom stores • Nordstrom.com website and mobile application • six Nordstrom Locals As of February 3, 2024, Nordstrom Rack includes: • 258 Nordstrom Rack stores • NordstromRack.com website and mobile application • two Last Chance clearance stores Fiscal Year We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2023 relate to the 53-week fiscal year ending February 3, 2024. References to any other years included within this document are based on a 52-week fiscal year. Principles of Consolidation The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries and are presented in U.S. dollars. All intercompany transactions and balances are eliminated in consolidation. On March 2, 2023, Nordstrom Canada commenced a wind-down of its business operations (see Note 2: Canada Wind-down) and as of this date, Nordstrom Canada was deconsolidated from Nordstrom, Inc.’s financial statements. Nordstrom Canada results prior to March 2, 2023 are included in the Company’s Consolidated Financial Statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires that we make estimates, judgments 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. Actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include revenue recognition, inventory valuation, long-lived asset recoverability, income taxes and contingent liabilities, including assumptions related to our Canada wind-down, all of which involve assumptions about future events. Revenue Net Sales We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales shipped to customers from our Supply Chain Network facilities, stores and directly from our vendors, which includes shipping revenue when applicable, is recognized at shipping point, the point in time where control has transferred to the customer. Costs to ship orders to customers are expensed as a fulfillment activity at shipping point, commissions from sales at our Nordstrom stores are expensed at the point of sale and both are recorded in SG&A expenses. We reduce sales and cost of sales by an estimate of future customer merchandise returns, which is calculated based on historical and expected return patterns, and record a sales return reserve and an estimated returns asset. Our sales return reserve is classified in other current liabilities and our estimated returns asset, calculated based on the cost of merchandise sold, is classified in prepaid expenses and other on the Consolidated Balance Sheets. As of February 3, 2024 and January 28, 2023, our sales return reserve was $377 and $415, and our estimated returns asset was $164 and $179. Due to the seasonality of our business, these balances typically increase when higher sales occur in the last month of a period, such as during the Anniversary Sale, which usually occurs at the end of the second quarter, and decrease in the following period. We record the impact of the sales return reserve separately in both our Nordstrom and Nordstrom Rack banners. The majority of our returns from both digital and physical sales come through our stores. Loyalty Program The Nordy Club is our customer loyalty program that incorporates a traditional point and benefit system, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes, which can be redeemed for goods or services across Nordstrom and Nordstrom Rack. The Nordy Club benefits vary based on the level of customer spend, and include bonus points days and shopping and fashion events. We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards, as well as a Nordstrom-branded private-label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, enhanced alterations and stylist benefits and incremental accumulation of points toward Nordstrom Notes. As our customers earn points and Nordstrom Notes in The Nordy Club, a portion of underlying sales revenue is deferred based on an estimated stand-alone selling price of points, Nordstrom Notes and other loyalty benefits, such as alterations. We recognize the revenue and related cost of sale when the Nordstrom Notes are ultimately redeemed and reduce our contract liability. We include the deferred revenue in other current liabilities on the Consolidated Balance Sheets. We record breakage revenue of unused points and unredeemed Nordstrom Notes based on expected customer redemption. We estimate, based on historical and expected usage, that approximate l y 8% of Nordstrom Notes and points will be unredeemed. Estimating future breakage rates requires judgment based on current and historical trends, and actual breakage rates may vary from our estimates. Other benefits of the loyalty program, including shopping and fashion events, are recorded in SG&A expenses as these are not a material right of the program. As of both February 3, 2024 and January 28, 2023, our outstanding performance obligation for The Nordy Club, which consists primarily of unredeemed points and Nordstrom Notes at retail value, was $115. Almost all Nordstrom Notes redemptions occur within eleven Gift Cards We record deferred revenue from the sale of gift cards at the time of purchase. As gift cards are redeemed, we recognize revenue and reduce our contract liability. Although our gift cards do not have an expiration date, we include this deferred revenue in other current liabilities on the Consolidated Balance Sheets as customers can redeem gift cards at any time. We record breakage revenue on unused gift cards based on expected customer redemption. We estimate, based on historical usage, that 4% of gift cards will be unredeemed and recognized as revenue. Estimating future breakage rates requires judgment based on current and historical trends and actual breakage rates may vary from our estimates. Breakage income was $52, $40 and $39 in 2023, 2022 and 2021. As of February 3, 2024 and January 28, 2023, our outstanding performance obligation for unredeemed gift cards was $343 and $370. Almost all gift card redemptions occur within two Credit Card Revenues, net Although the primary purpose of offering our credit cards is to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD. Under that agreement, which was amended in the fourth quarter of 2022 and runs through September 2026, TD is the exclusive issuer of Nordstrom-branded consumer credit cards and we perform account servicing functions for those cards. Credit card revenues, net include our portion of the ongoing credit card revenue, net of credit losses, pursuant to our program agreement with TD. In connection with the amendment, we recorded deferred revenue, which will be recognized in full over the term of the agreement as we perform account servicing functions. Our outstanding performance obligation for the TD agreement is included in other current liabilities and other liabilities on our Consolidated Balance Sheets and the amortization is included in other operating, net on the Consolidated Statements of Cash Flows. Cost of Sales Cost of sales primarily includes the purchase and manufacturing costs of inventory sold, net of vendor allowances, and in-bound freight and duty expense. 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 stores, office facilities and Supply Chain Network facilities. Selling, General and Administrative Expenses SG&A expenses consist primarily of compensation and benefits, marketing, outbound supply chain and technology costs. Shipping and Fulfillment Costs Our shipping and fulfillment 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 Supply Chain Network facilities, which we include in the cost of our inventory. Shipping and fulfillment costs of $712, $885 and $993 in 2023, 2022 and 2021 were included in SG&A 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 $313, $309 and $300 in 2023, 2022 and 2021 were included in SG&A expenses. Vendor Allowances We receive allowances from merchandise vendors for purchase price adjustments, beauty expenses, advertising programs and various other expenses. 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 beauty expenses, advertising programs and other expenses are recorded in SG&A expenses as a reduction of the related costs when incurred. Vendor allowances earned are as follows: Fiscal year 2023 2022 2021 Purchase price adjustments $94 $120 $108 Beauty expenses 114 111 103 Advertising 87 112 110 Other 6 2 3 Total vendor allowances $301 $345 $324 Advertising includes NMN, where vendors pay a fee for use of our first-party data. Funds received from vendors are recorded as a reduction of the campaign cost in SG&A expenses and media fees are recorded as a reduction of cost of sales. 401(k) Plan We provide a 401(k) plan for our employees that allows for employee elective contributions and our matching contributions. Employee elective contributions are funded through voluntary payroll deductions. Total expenses related to Company contributions were $71 in 2023 and 2022 and $67 in 2021, and were included in both buying and occupancy costs and SG&A expenses on our Consolidated Statements of Earnings. Stock-Based Compensation The 2019 Plan authorizes the grant of stock options, PSUs, RSUs, stock appreciation rights and both restricted and unrestricted shares of common stock to employees and nonemployee directors. We grant stock-based awards under our 2019 Plan and employees may purchase our stock at a discount under our ESPP. We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. Compensation expense for PSUs is adjusted based on the payout percentage of the PSU grant subject to achieving specific performance measures. The total compensation expense is reduced by actual forfeitures as they occur. We primarily estimate the grant date fair value of stock options using the Binomial Lattice-based valuation model, but for our price-hurdle grants in 2021, we estimate the grant date fair value using the Monte Carlo simulation valuation model. The grant date fair value of RSUs and PSUs is determined based on the number of RSUs or PSUs granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. PSUs granted are classified as equity. Amounts included on the following line items of our Consolidated Statements of Shareholders’ Equity and our Consolidated Statements of Cash Flows are as follows: • Issuance of common stock under stock compensation plans — includes common stock option exercises and purchases of shares under the ESPP • Stock-based compensation — primarily includes stock-based compensation expense for our common stock options, RSUs and PSUs, partially offset by shares withheld for taxes on RSUs and PSUs New Store Opening Costs Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and SG&A expenses, according to their nature as disclosed above. 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 and for operating loss and tax credit carryforwards. 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 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. Income taxes require significant management judgment regarding applicable statutes and their related interpretation, the status of various income tax audits and our particular facts and circumstances. Also, as audits are completed or statutes of limitations lapse, it may be necessary to record adjustments to our taxes payable, deferred taxes, tax reserves or income tax expense. 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 RSUs and stock options. Dilutive common stock is calculated using the treasury stock method and includes outstanding RSUs and options that would reduce the amount of earnings for which each share is entitled. 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. 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 an original maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2023 and 2022, checks not yet presented for payment drawn in excess of our bank deposit balances were $62 a nd $60. Amounts are included in accounts payable on our Consolidated Balance Sheets and in change in cash book overdrafts as a financing activity in our Consolidated Statements of Cash Flows. Accounts Receivable Accounts receivable, net primarily includes receivables from TD related to our program agreement, non-Nordstrom-branded credit and debit cards and developer reimbursements. As of February 3, 2024, accounts receivable, net also includes the amount we believe probable of receipt as part of the claims process related to the wind-down of Canada (see Note 2: Canada Wind-down). Merchandise Inventories Merchandise inventories are stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is 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 also reduced by a charge to cost of sales for retail inventory markdowns taken on the selling price. 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 record reserves for excess and obsolete inventory based on historical trends and specific identification. We take physical inventory counts at our stores and Supply Chain Network locations and adjust for differences between recorded amounts and counted amounts. Following each physical inventory cycle and using the most recent physical inventory count and historical results, we record an estimate for shrink based on a percentage of sales until the next physical inventory count. Leases We record leases, which consist primarily of operating leases, on the Consolidated Balance Sheets as operating lease ROU assets and operating lease liabilities, both of which include current and noncurrent portions. Operating lease liabilities are initially recognized based on the net present value of the fixed portion of our lease and common area maintenance payments from lease commencement through the lease term. To calculate the net present value, we apply an incremental borrowing rate. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest we would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use quoted interest rates obtained from financial institutions as an input to derive our incremental borrowing rate as the discount rate for the lease. We recognize ROU assets based on operating lease liabilities reduced by property incentives received from landlords. We test ROU assets for impairment in the same manner as long-lived assets and exclude the related operating lease liability and operating lease payments in our analysis. We lease the land, buildings, or land and buildings for many of our stores, office facilities and Supply Chain Network facilities. Land, Property and Equipment Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation and amortization. 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 and amortization are 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 2 – 7 Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized 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. Long-Lived Assets When facts and circumstances indicate the carrying values of buildings, equipment and ROU assets may be impaired, we compare the carrying value to the related projected future cash flows, among other quantitative and qualitative analyses. Cash flow analysis requires judgment regarding many factors, such as revenues, growth rates, expenses, capital expenditures and sublease income. These projections are inherently subject to uncertainties. While we believe the inputs and assumptions utilized in our future cash flows are reasonable, our estimates may change in the near term based on our current and future performance. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment, while cash flows for our retail store assets are identified at the individual store level. The following table provides details related to asset impairment charges for each fiscal year: 2023 2022 Supply Chain Supply Chain Trunk Club Long-lived asset impairment 1 $9 $58 $10 Operating lease ROU asset impairment 1 21 12 — Asset impairment $30 $70 $10 1 After impairment, the carrying values of the remaining long-lived tangible and ROU assets were not material. Supply Chain Impairments During the fourth quarter of 2023 and the third quarter of 2022, as part of our supply chain optimization initiatives, we incurred a non-cash impairment charge to adjust the carrying values to their estimated fair values for certain supply chain assets. These charges are included in our Corporate/Other SG&A expense on the Consolidated Statement of Earnings and in asset impairment on the Consolidated Statement of Cash Flows. We evaluated the assets for impairment by comparing the carrying values to the related projected future cash flows, among other quantitative and qualitative analyses. After impairment, the carrying values of the remaining long-lived tangible and ROU assets were not material. Trunk Club Wind-down During the first quarter of 2022, in conjunction with the decision to sunset the Trunk Club brand, we incurred non-cash impairment charges related to a Trunk Club property to adjust the carrying values to their estimated fair value. These charges are included in our Retail segment SG&A expense on the Consolidated Statement of Earnings and in asset impairment on the Consolidated Statement of Cash Flows. During the second quarter of 2022, we also incurred additional costs of $8 associated with the wind-down of Trunk Club. These expenses are primarily included in our Retail segment cost of sales and related buying and occupancy costs on the Consolidated Statement of Earnings. All charges are classified as operating on the Consolidated Statement of Cash Flows. Goodwill Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment, as of the first day of the fourth quarter, or when circumstances indicate that the carrying value may exceed the fair value. We perform this evaluation at the reporting unit level, all in our Retail segment. Our goodwill is allocated to two reporting units, Nordstrom and NordstromRack.com. When evaluating these assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we determine that it is more likely than not that the carrying value exceeds the fair value of the reporting unit, we perform a quantitative fair value test. We may also choose to bypass this qualitative assessment and perform the quantitative assessment. As of February 3, 2024 and January 28, 2023, we had goodwill of $249. To determine fair value, we compare 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 (market approach) or a combination of both. Determining fair value using these approaches requires management assumptions, estimations and judgments regarding factors like overall economic conditions, prospective financial information, growth rates, terminal value, discount rates and market multiples. If fair value is lower than the carrying value, an impairment charge is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Based on the results of our tests, fair value exceeded carrying value, and we therefore had no goodwill impairment in 2023, 2022 or 2021. Investments From time to time, we invest in financial interests of certain private companies and venture capital funds that align with our business and omni-channel strategies, which are recorded in other assets in the Consolidated Balance Sheets and proceeds from the sale of assets and other, net on the Consolidated Statements of Cash Flows. As of February 3, 2024 and January 28, 2023, we held $41 and $42 of equity interests in certain venture capital funds, which are recorded at fair value using the practical expedient estimate of NAV or its equivalent. During the first quarter of 2022, in connection with the sale of a limited partnership interest in a corporate office building, we recognized a gain of $51 in our Corporate/Other SG&A expense in the Consolidated Statement of Earnings and $73 in proceeds from the sale of assets and other, net on the Consolidated Statement of Cash Flows. Self-Insurance We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other 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 On March 2, 2023, Nordstrom Canada commenced a wind-down of its business operations. The functional currency of our Canadian operations was the Canadian Dollar. Prior to deconsolidation, we translated assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translated revenues and expenses using an average exchange rate for the period. We recorded these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. In the first quarter of 2023, we recognized a charge of $33 related to the derecognition of the accumulated comprehensive loss on foreign currency translation (see Note 2: Canada Wind-down). |
Canada Wind-Down
Canada Wind-Down | 12 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | NOTE 2: CANADA WIND-DOWN Background On March 2, 2023, as part of our initiatives to drive long-term profitable growth and enhance shareholder value, and after careful consideration of all reasonably available options, we announced the decision to discontinue support for Nordstrom Canada’s operations. Accordingly, Nordstrom Canada commenced a wind-down of its business operations, obtaining an Initial Order from the Ontario Superior Court of Justice under the CCAA on March 2, 2023 to facilitate the wind-down in an orderly fashion. Nordstrom Canada’s e-commerce platform ceased operations on March 2, 2023 and the closure of six Nordstrom and seven Nordstrom Rack stores was completed in June 2023. Significant developments in the case, including a creditor vote to approve a Plan of Compromise and Arrangement and a court hearing to sanction that plan and authorize its implementation are scheduled to occur in the first quarter of 2024. Distributions to creditors, including distributions to Nordstrom, Inc. as a creditor of Nordstrom Canada, are expected to be substantially complete by the end of 2024. The Ontario Superior Court of Justice has appointed a monitor to oversee the wind-down process. Subsequent to the CCAA filing, Nordstrom has been providing limited support to Nordstrom Canada for the purpose of supporting an orderly wind-down, including providing shared services and temporary use of intellectual property. Wind-down Charges and Deconsolidation of Nordstrom Canada The following table details the pre-tax charges associated with the wind-down of operations in Canada: Fiscal year 2023 Loss on Canada write-off 1 $176 Accumulated translation loss reclassified to earnings 1 33 Contingent liabilities 70 Other exit costs 2 5 Total pre-tax charges $284 1 Non-cash amounts are included in Canada wind-down costs on the Consolidated Statement of Cash Flows. 2 Other exit costs include funding an employee trust, net of expected recoveries, and professional fees. These charges are primarily included in Corporate/Other in Note 15: Segment Reporting. The decrease in cash due to the deconsolidation of Nordstrom Canada is included in investing activities on the Consolidated Statement of Cash Flows and all other impacts are included in operating cash flows. Loss on Canada Write-off and Accumulated Translation Loss While Nordstrom continues to own 100% of the shares of Nordstrom Canada, as of March 2, 2023, the date of the CCAA filing, we no longer have a controlling interest under GAAP and have deconsolidated Nordstrom Canada. We hold a variable interest in the Nordstrom Canada entities, which are considered variable interest entities, but are not consolidated, as we are no longer the primary beneficiary. For the year ended February 3, 2024, we recorded a pre-tax loss on Canada write-off of $176 that included the derecognition of Nordstrom Canada’s assets and liabilities and the write-down of both our Nordstrom Canada investment and related-party receivables to estimated fair value. In addition, we recognized a charge of $33 related to the derecognition of the accumulated comprehensive loss on foreign currency translation. To assess the estimated fair value of our Nordstrom Canada investment and our related-party receivables, we estimated the assets available for distribution in relation to expected claims. At the time of filing for CCAA protection on March 2, 2023, the estimated amount of Nordstrom Canada’s liabilities exceeded the estimated fair value of assets available for distribution to creditors, and we believed we would not recover a significant portion of our receivables. As a result, our fair value was recorded as zero in our Condensed Consolidated Balance Sheets as of April 29, 2023. As of February 3, 2024, we adjusted our receivables by an immaterial amount based on currently available information. Prior to deconsolidation, Nordstrom made loans to the Canadian subsidiaries and incurred liabilities related to certain intercompany charges. These were considered intercompany transactions and were eliminated in consolidation of Nordstrom. Subsequent to deconsolidation, these liabilities and receivables were no longer eliminated through consolidation, are considered related-party transactions and are recorded in our Consolidated Balance Sheets at estimated fair value. As of February 3, 2024, Nordstrom had a net outstanding liability to Nordstrom Canada of $52 related to certain intercompany charges incurred prior to deconsolidation. Contingent Liabilities and Guarantees In the third quarter of 2023, Nordstrom, Inc. reached a settlement with former landlords related to guarantees of certain lease obligations of Nordstrom Canada. As part of the agreements, we made cash payments to the former landlords in exchange for a release of substantially all our guarantee obligations, as well as the right to these landlords’ distributions from Nordstrom Canada as part of the CCAA proceedings. Employee Trust In connection with the filing, Nordstrom contributed $11 to establish an employee trust to fund termination and severance payments to employees of Nordstrom Canada. As of February 3, 2024, the trust has been terminated. Debtor-in-Possession Financing If needed, Nordstrom has agreed to provide Nordstrom Canada debtor-in-possession financing up to $11. However, we believe Nordstrom Canada has sufficient liquidity to sustain operations through the wind-down period and therefore it is not likely that any amounts would need to be borrowed from Nordstrom. As of February 3, 2024, there were no outstanding borrowings. Estimates As of February 3, 2024, we recorded $71 in accounts receivable, net on the Consolidated Balance Sheets to reflect the amount we believe probable of receipt as part of the claims process. This includes receipts related to the rights to the former landlords’ distributions, reimbursement of employee trust contributions and other receivables existing at the time of deconsolidation. The receivable and our other estimates are dependent on the outcome of the Nordstrom Canada wind-down process, including the amount of third-party and Nordstrom claims asserted and recognized in the claims process, the amount of assets available for distribution and the approval of the CCAA plan of arrangement by the Ontario Superior Court of Justice, which we expect to have updated information on in the first quarter of 2024. We continue to work through the wind-down process and our estimates of net losses are based on currently available information, our assessment of the validity of certain expected claims and our assessment of the recoverability of amounts receivable from Nordstrom Canada. These estimates may change as new information becomes available and it is reasonably possible that they may materially change from the estimated amounts. Increases in estimated costs to settle claims and decreases in estimated assets available for distribution may result in additional material charges. At the same time, any future decreases in estimated costs to settle claims or increases in estimated assets available for distribution may result in a gain, which would reduce our estimated charges. Income Taxes For the year ended February 3, 2024, we recognized net tax benefits of $95 primarily related to the write-off of our investment in Canada, net of tax expense related to an increase in valuation allowance for Canada deferred tax assets. |
Revenue
Revenue | 12 Months Ended |
Feb. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 3: REVENUE Contract Liabilities Contract liabilities represent our obligation to transfer goods or services to customers and include deferred revenue for The Nordy Club (including points and Nordstrom Notes), gift cards and our amended 2022 TD program agreement. Our contract liabilities are classified on the Consolidated Balance Sheets as follows: Other current liabilities Other liabilities Balance as of January 29, 2022 $478 $— Balance as of January 28, 2023 536 136 Balance as of February 3, 2024 508 85 Contract liabilities increased during 2022 primarily as a result of deferred revenue recorded in connection with our amended 2022 TD program agreement. Revenues recognized from our beginning contract liability balance were $316 and $265 for the years ended February 3, 2024 and January 28, 2023. Disaggregation of Revenue The following table summarizes our disaggregated net sales: Fiscal year 2023 2022 2021 Nordstrom $9,436 $10,279 $9,640 Nordstrom Rack 4,783 4,813 4,762 Total net sales $14,219 $15,092 $14,402 Digital sales as a % of total net sales 36% 38% 42% The following table summarizes the percent of net sales by merchandise category: Fiscal year 2023 2022 2021 Women’s Apparel 27% 28% 28% Shoes 26% 26% 25% Men’s Apparel 15% 15% 14% Beauty 13% 12% 12% Accessories 12% 13% 14% Kids’ Apparel 4% 3% 4% Other 3% 3% 3% Total net sales 100 % 100 % 100 % |
Land, Property And Equipment
Land, Property And Equipment | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Land, Property And Equipment | NOTE 4: LAND, PROPERTY AND EQUIPMENT Land, property and equipment consist of the following: February 3, 2024 January 28, 2023 Land and land improvements $283 $288 Buildings and building improvements 1,365 1,352 Leasehold improvements 3,103 3,389 Store fixtures and equipment 3,873 4,138 Capitalized software 2,439 2,151 Construction in progress 365 322 Land, property and equipment 11,428 11,640 Accumulated depreciation and amortization (8,251) (8,289) Land, property and equipment, net $3,177 $3,351 |
Leases
Leases | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
Leases | NOTE 5: LEASES We lease the land, buildings, or land and buildings for many of our stores, office facilities and Supply Chain Network facilities, as well as equipment. The following table summarizes the majority of our fixed, non-cancelable lease terms: Property Type Lease Term (in years) Nordstrom stores 15 – 30 Nordstrom Rack stores Approximately 10 Office and Supply Chain Network facilities 5 – 20 Many of our leases include options that allow us to extend the lease term beyond the initial commitment period. At the commencement of a lease, we generally include only the initial lease term as we have determined that options to extend are not reasonably certain to occur. The exercise of lease renewal options is generally at our sole discretion. At the renewal of an expiring lease, we reassess our options in the agreement and include all reasonably certain extensions in the measurement of our lease term. Most of our leases also require us to pay certain expenses, such as common area maintenance charges, real estate taxes and other executory costs, the fixed portion of which is included in Operating Lease Cost, as we combine lease and non-lease components. We recognize Operating Lease Cost, which is primarily included in occupancy costs, on a straight-line basis over the lease term. Variable lease cost includes payments for variable common area maintenance charges and additional payments based on a percentage of sales, which are recognized when probable. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table summarizes the components of lease cost: Fiscal year 2023 2022 2021 Operating Lease Cost $278 $280 $265 Variable lease cost 1 93 97 100 Sublease income (25) (19) (20) Total lease cost, net $346 $358 $345 1 Variable lease cost includes short-term lease cost, which was immaterial in 2023, 2022 and 2021. The following table summarizes future lease payments as of February 3, 2024: Fiscal year Operating Leases 2024 $321 2025 324 2026 273 2027 224 2028 182 Thereafter 708 Total lease payments 1 2,032 Amount representing interest (415) Present value of net lease payments 2 $1,617 1 Total lease payments do not include payments for variable lease costs that are required by most of our lease agreements. 2 Net lease payments exclude $139 of lease payments for operating leases that were signed but not yet commenced as of February 3, 2024. The following table includes supplemental information: Fiscal year 2023 2022 2021 Cash paid related to operating lease liabilities $358 $354 $371 Operating lease interest 86 85 87 Operating lease liabilities arising from lease agreements 242 260 137 February 3, 2024 January 28, 2023 Weighted-average remaining lease term 8 years 8 years Weighted-average discount rate 5.5 % 4.9 % |
Debt And Credit Facilities
Debt And Credit Facilities | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Debt And Credit Facilities | NOTE 6: DEBT AND CREDIT FACILITIES Debt A summary of our long-term debt is as follows: February 3, 2024 January 28, 2023 Long-term debt, net of unamortized discount: Senior notes, 2.30%, due April 2024 $250 $250 Senior notes, 4.00%, due March 2027 349 349 Senior debentures, 6.95%, due March 2028 300 300 Senior notes, 4.375%, due April 2030 500 500 Senior notes, 4.25%, due August 2031 425 425 Senior notes, 7.00%, due January 2038 147 147 Senior notes, 5.00%, due January 2044 1 909 905 Deferred bond issuance costs (18) (20) Total long-term debt $2,862 $2,856 Current portion of debt (250) — Total due beyond one year $2,612 $2,856 1 The unamortized discount on these notes was $57 and $61 as of February 3, 2024 and January 28, 2023. Required principal payments on long-term debt are as follows: Fiscal year 1 2024 $250 2025 — 2026 — 2027 350 2028 300 Thereafter 2,039 1 Required principal payments exclude estimated future interest payments of $1,519 as of February 3, 2024, with $136 payable within one year. During the first quarter of 2021, we issued $250 aggregate principal amount of 2.30% senior notes due April 2024 and $425 aggregate principal amount of 4.25% senior notes due August 2031. With the net proceeds of these new notes, together with cash on hand, we retired our $600 Secured Notes. We reco rded $88 related to the redemption in interest expense, net, which primarily consisted of a one-time payment of $78 for a “ make-whole” premium, and the write-off of unamortized balances associated with the debt discount and issuance costs. The “make-whole” premium payment was not included in cash paid during the period for interest, net of capitalized interest in the Supplemental Cash Flow Information. Interest Expense The components of interest expense, net are as follows: Fiscal year 2023 2022 2021 Interest on long-term debt and short-term borrowings $150 $150 $258 Interest income (33) (10) (1) Capitalized interest (13) (12) (11) Interest expense, net $104 $128 $246 Credit Facilities On March 1, 2023, we amended our Revolver originally dated May 6, 2022. Prior to this amendment, Nordstrom Canada Retail, Inc. was a loan party under the Revolver and the obligations under the Revolver were secured, in part, by the assets of this subsidiary. As a result of this amendment, Nordstrom Canada Retail, Inc. was removed as a loan party and obligations under the Revolver are no longer secured by these assets. In addition, this amendment excludes as subsidiaries or affiliates all Nordstrom Canada entities and carves out certain CCAA-related expenses and obligations from financial covenants under the Revolver. As of February 3, 2024 and January 28, 2023, we had no outstanding borrowings under the Revolver that expires in May 2027. Our short-term borrowing capacity was reduced by $30 to $770 as a result of issuing a standby letter of credit in the fourth quarter of 2023. Provided that we obtain written consent from the lenders, we have the option to increase the Revolver by up to $200, to a total of $1,000, and two options to extend the Revolver for additional one-year terms. Any outstanding borrowings under the Revolver are secured by substantially all our personal and intellectual property assets and are guaranteed by certain of our subsidiaries. Under the Revolver, our obligation to secure any outstanding borrowings will be eliminated if no default exists and we either have an unsecured investment-grade debt rating from two of three specified ratings agencies, or we have one investment-grade rating and achieve two consecutive fiscal quarters with a Leverage Ratio of less than 2.5 times. Under the Revolver, we have two financial covenant tests that need to be met on a quarterly basis: a Leverage Ratio that is less than or equal to 4 times and a fixed charge coverage ratio that is greater than or equal to 1.25 times. As of February 3, 2024, we were in compliance with all covenants. The Revolver contains customary representations, warranties, covenants and terms, including paying a variable rate of interest and a facility fee based on our debt rating, and is available for working capital, capital expenditures and general corporate purposes. The Revolver allows us to issue dividends and repurchase shares provided we are not in default and no default would arise as a result of such payments. If the pro-forma Leverage Ratio after such payments is less than 3 times, then such payments are unlimited. If the pro-forma Leverage Ratio is greater than or equal to 3 times but less than 3.5 times, then we are limited to $100 per fiscal quarter and if the pro-forma Leverage Ratio is greater than or equal to 3.5 times, then the limit is $60 per fiscal quarter. 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 of reducing available liquidity under the Revolver by an amount equal to the principal amount of commercial paper outstanding. Conversely, borrowings under our Revolver have the effect of reducing the available capacity of our commercial paper program by an amount equal to the amount outstanding. As of February 3, 2024 and January 28, 2023, we had no issuances outstanding under our commercial paper program. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 7: 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 Financial instruments measured at carrying value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and our Revolver, which approximate fair value due to their short-term nature. Long-term debt is recorded at carrying value. If long-term debt was measured at fair value, we would use quoted market prices of the same or similar issues, which 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: February 3, 2024 January 28, 2023 Carrying value of long-term debt $2,862 $2,856 Fair value of long-term debt 2,441 2,278 We measure certain items at fair value on a nonrecurring basis, primarily goodwill, and long-lived tangible and ROU assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. For more information regarding long-lived tangible and ROU asset impairment charges, see Note 1: Nature of Operations and Summary of Significant Accounting Policies. During the year ended February 3, 2024, we measured our investment in Nordstrom Canada, our related-party receivables and related lease guarantees at fair value (see Note 2: Canada Wind-down). Investments Measured at NAV We have certain investments that are measured at fair value using the NAV per share, or its equivalent, as a practical expedient. This class of investments consists of partnership interests that mainly invest in venture capital strategies with a focus on privately held consumer and technology companies. The NAV is based on the fair value of the underlying net assets owned by the fund and the relative interest of each participating investor in the fair value of the underlying assets. Our interest in these partnerships is generally not redeemable and is subject to significant restrictions regarding transfers. Distributions from each fund will be received as the underlying assets of the funds are liquidated. Liquidation is triggered by clauses within the partnership agreements or at the funds’ stated end date. The contractual terms of the partnership interests range from six ten |
Self-Insurance
Self-Insurance | 12 Months Ended |
Feb. 03, 2024 | |
Self Insurance [Abstract] | |
Self-Insurance | NOTE 8: SELF-INSURANCE Our self-insurance reserves are summarized as follows: February 3, 2024 January 28, 2023 Workers’ compensation $73 $78 Employee health and welfare 28 26 Other liability 18 12 Total self-insurance reserves $119 $116 We are self-insured for the majority of our workers’ compensation programs, employee health and welfare coverage and other liability. Our workers’ compensation policies have a retention per claim of $1 or less and no policy limits. Approximately 30% of our workers’ compensation obligations are payable within one year. In connection with our workers’ compensation programs, we have a standby letter of credit issued on our behalf with $13 available and $2 outstanding as of February 3, 2024. This letter of credit is not reflected in our Consolidated Balance Sheets. Our employee health and welfare programs do not use stop-loss coverage and participants contribute to the cost of their coverage through premiums and out-of-pocket expenses for deductibles, copays and coinsurance. Other liability primarily includes commercial general liability obligations. Our commercial general liability policy, with a limit up to $111, has a retention per claim of $1 or less. Approximately 50% of our other liability reserve obligations are payable within one year. |
SERP
SERP | 12 Months Ended |
Feb. 03, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
SERP | NOTE 9: SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN We have a SERP, which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant’s role. At the end of 2023, we had 57 participants in the plan, including five officers and select employees eligible for SERP benefits, 47 retirees and five beneficiaries. This plan is nonqualified and does not have a m inimum funding requirement. We selected the measurement date of January 31, the calendar month end closest to our fiscal year end, to value our SERP. Benefit Obligation and Funded Status Our benefit obligation and funded status is as follows: February 3, 2024 January 28, 2023 Change in benefit obligation: Benefit obligation at beginning of year $176 $212 Participant service cost 1 2 Interest cost 9 6 Benefits paid (11) (10) Actuarial gain (7) (34) Benefit obligation at end of year 168 176 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contribution 11 10 Benefits paid (11) (10) Fair value of plan assets at end of year — — Underfunded status at end of year ($168) ($176) The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, wa s $168 and $175 at the end of 2023 and 2022. Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: February 3, 2024 January 28, 2023 Accrued salaries, wages and related benefits $12 $11 Other liabilities (noncurrent) 156 165 Net amount recognized $168 $176 Components of SERP Expense The components of SERP expense recognized in SG&A expense on the Consolidated Statements of Earnings are as follows: Fiscal year 2023 2022 2021 Participant service cost $1 $2 $2 Interest cost 9 6 5 Amortization of net loss and other — 4 8 Total SERP expense $10 $12 $15 Accumulated Other Comprehensive Gain (Loss) Amounts recognized in accumulated other comprehensive gain (loss) (pre-tax) consist of the following: Fiscal year 2023 2022 2021 Actuarial gain ($7) ($34) ($14) Amortization of net loss and other — (4) (8) Amounts recognized in accumulated other comprehensive gain (loss) ($7) ($38) ($22) Assumptions Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows: Fiscal year 2023 2022 2021 Assumptions used to determine benefit obligation: Discount rate 5.27 % 4.95 % 3.19 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Assumptions used to determine SERP expense: Discount rate 4.95 % 3.19 % 2.62 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Future Benefit Payments and Contributions As of February 3, 2024, 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 2024 $12 2025 12 2026 13 2027 13 2028 13 2029 – 2033 61 Thereafter 44 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 03, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | NOTE 10: STOCK-BASED COMPENSATION Under our deferred and stock-based compensation plan arrangements, we issued 2.4, 3.4 and 1.6 shares of common stock in 2023, 2022 and 2021. On June 6, 2023, our shareholders approved an amendment to the 2019 Equity Incentive Plan. The amendment increases common stock available for issuance by 15.0 shares. Under the 2019 Plan, the aggregate number of shares to be issued may not exceed 39.5 plus any shares currently outstanding under the 2010 Plan that are forfeited or expire during the term of the 2019 Plan. As of February 3, 2024, we had 39.5 shares authorized, 14.8 shares issued and outstanding and 23.9 shares remaining available for future grants under the 2019 Plan. Under the ESPP, employees may make payroll deductions of up to 15% of their base compensation for the purchase of Nordstrom common stock. At the end of each six On June 6, 2023, our shareholders approved an amendment under the ESPP. The amendment increases common stock available for purchase by 3.5 shares. As of February 3, 2024, we had 19.6 s hares authorized and 4.9 shares available for issuance under the ESPP. We issued 1.0, 0.9 and 0.5 shares under the ESPP during 2023, 2022 and 2021. At the end of 2023 and 2022, we had current liabilities of $5 and $6 fo r future purchases of shares under the ESPP. The following table summarizes our stock-based compensation expense: Fiscal year 2023 2022 2021 RSUs $40 $41 $52 Stock options 6 11 22 Other 1 6 7 5 Total stock-based compensation expense, before income tax benefit 52 59 79 Income tax benefit (13) (15) (20) Total stock-based compensation expense, net of income tax benefit $39 $44 $59 1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows: Fiscal year 2023 2022 2021 Cost of sales and related buying and occupancy costs $10 $9 $15 SG&A expenses 42 50 64 Total stock-based compensation expense, before income tax benefit $52 $59 $79 Restricted Stock Our Compensation, People and Culture Committee of our Board of Directors approves grants of restricted stock units to employees. The number of units granted to an individual are determined based upon award amounts and the fair value of the restricted stock units at the time of grant. Restricted stock units typically vest over four years. A summary of restricted stock unit activity for 2023 is presented below: Fiscal year 2023 Shares Weighted-average grant date fair value per unit Outstanding, beginning of year 4.6 $32 Granted 3.6 16 Vested (1.3) 26 Forfeited or canceled (0.7) 21 Outstanding, end of year 6.2 $19 The aggregate fair value of restricted stock units vested during 2023, 2022 and 2021 was $33, $62 and $50. As of February 3, 2024, the total unrecognized stock-based compensation expense related to nonvested restricted stock units was $69, which is expected to be recognized over a weighted-average period of 24 months. Stock Options Our Compensation, People and Culture Committee of our Board of Directors approves grants of nonqualified stock options to employees. The number of awards granted to an individual are determined based upon award amounts and the fair value of stock options at the time of grant. Our options primarily vest equally over a four Fiscal year 2023 2022 2021 1 Assumptions Risk-free interest rate 2 3.98% – 5.05% 1.18% – 1.95% 0.11% – 1.51% Weighted-average volatility 3 52.3 % 52.4 % 52.2 % Weighted-average expected dividend yield 4 3.8 % 3.4 % 3.4 % Expected life in years 5 8.2 8.3 8.3 Grant Date Information Date of grant March 6, 2023 March 3, 2022 March 4, 2021 Weighted-average fair value per option $8 $10 $13 Exercise price per option $20 $26 $36 1 The options granted on March 4, 2021 include market performance-based stock options with a contractual term of ten years that were awarded to certain members of senior management as well as time-based options. The price-hurdle options contain a market condition that requires the closing price of our stock to meet or exceed certain price thresholds for 20 consecutive trading days in order for shares to vest. 2 Represents the yield on U.S. Treasury securities that mature over the 10-year life of the stock options. 3 Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. 4 Our forecasted dividend yield for the next 10 years. 5 Derived from the output of the binomial lattice model and represents the estimated period of time until option exercise. The expected term of options granted is 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. A summary of stock option activity for 2023 is presented below: Fiscal year 2023 Shares Weighted- average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value 1 Outstanding, beginning of year 8.5 $38 Granted 1.1 20 Exercised (0.3) 16 Forfeited or canceled (1.7) 44 Outstanding, end of year 7.6 $35 5 $5 Exercisable, end of year 4.8 $40 4 $5 Fiscal year 2023 2022 2021 Aggregate intrinsic value of options exercised $1 $4 $— Fair value of stock options vested $4 $27 $2 1 The aggregate intrinsic value represents the amount realized if all in-the-money options were exercised on the final business day before February 3, 2024 . As of February 3, 2024, the total unrecognized stock-based compensation expense related to nonvested stock options was $6, which is expected to be recognized over a weighted-average period of 10 months. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 03, 2024 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | NOTE 11: SHAREHOLDERS’ EQUITY We have certain limitations with respect to the payment of dividends and share repurchases under our Revolver agreement (see Note 6: Debt and Credit Facilities). Changes in the number of issued and outstanding shares of our common stock in 2023, 2022 and 2021 are the result of share repurchases and compensation plan issuances (see Note 10: Stock-based Compensation). Share Repurchases In May 2022, our Board of Directors authorized a new program to repurchase up to $500 of our outstanding common stock, with no expiration date, which replaced the August 2018 program. The following is a summary of the activity related to our share repurchase programs: Shares Average price per share Amount Capacity at January 30, 2021 $707 Shares repurchased — — — Capacity at January 29, 2022 707 August 2018 program termination (707) May 2022 program authorization (no expiration) 500 Shares repurchased 2.8 $22 (62) Capacity at January 28, 2023 438 Shares repurchased 1 0.03 $19 (1) Capacity at February 3, 2024 1 $438 1 Subtotal of ending share repurchase capacity may not foot due to rounding. Dividends We paid dividends of $0.76 per share in 2023 and in 2022 and none in 2021. In February 2024, subsequent to year end, we declared a quarterly dividend of $0.19 per share, which will be paid on March 27, 2024 to shareholders of record as of March 12, 2024. Rights Plan In September 2022, our Board of Directors approved a shareholder rights agreement and declared a dividend of one right for each outstanding share of Nordstrom common stock to shareholders of record on September 30, 2022. In June 2023, shareholders approved an advisory vote on the extension of our Rights Plan at our 2023 Annual Meeting, and in August 2023, the Board of Directors extended the expiration date to September 19, 2025, unless redeemed, exchanged or terminated earlier by our Board. Each right entitles holders to purchase one newly issued share of Nordstrom common stock at an exercise price of $94 per right, subject to adjustment. Initially, the rights are not exercisable and trade with our shares of common stock. In general, the rights become exercisable following a public announcement that a person acquires 10% or more of the outstanding shares of Nordstrom common stock. If the rights are exercised, each holder (except the acquiring person) will have the right to receive common stock equal to two times the exercise price of the right. The Company may redeem the rights for $0.001 per right anytime prior to the rights becoming exercisable. The agreement also provides for exceptions and additional terms for other certain situations and circumstances. There is currently no impact to our Consolidated Financial Statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12: INCOME TAXES U.S. and foreign components of earnings before income taxes were as follows: Fiscal year 2023 2022 2021 U.S. $143 $316 $241 Foreign 4 21 5 Earnings before income taxes $147 $337 $246 Income tax expense consists of the following: Fiscal year 2023 2022 2021 Current income taxes: Federal $55 $149 $61 State and local 18 27 18 Foreign — (1) — Total current income tax expense 73 175 79 Deferred income taxes: Federal (59) (86) (10) State and local (10) (2) (5) Foreign 9 5 4 Total deferred income tax benefit (60) (83) (11) Total income tax expense $13 $92 $68 A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows: Fiscal year 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % CARES Act impact — — (0.9 %) State and local income taxes, net of federal income taxes 4.0 % 5.9 % 3.4 % Federal credits (4.7 %) (3.8 %) (4.0 %) Non-deductible expenses 2.9 % 1.2 % 2.7 % Stock-based compensation 5.1 % 1.8 % 2.0 % Valuation allowance 6.6 % 0.4 % 1.8 % Taxes on foreign operations 1.5 % 1.6 % 1.3 % Excess tax over book loss on Canada wind-down (18.2 %) — — Resolution of prior period tax matters (11.2 %) — — Other, net 1.6 % (0.9 %) 0.2 % Effective tax rate 8.6 % 27.2 % 27.5 % The components of deferred tax assets and liabilities are as follows: February 3, 2024 January 28, 2023 Deferred tax assets: Lease liabilities $425 $463 Compensation and benefits accruals 104 111 Sales return reserve 56 61 Accrued expenses 31 28 Merchandise inventories 36 33 Gift cards 39 43 The Nordy Club loyalty program 2 8 Net operating losses 38 52 Other 36 25 Total deferred tax assets 767 824 Valuation allowance (1) (28) Total deferred tax assets, net of valuation allowance 766 796 Deferred tax liabilities: ROU assets (310) (331) Land, property and equipment (164) (230) Debt exchange premium (11) (12) Total deferred tax liabilities (485) (573) Net deferred tax assets $281 $223 The following sets forth information on approximate net operating loss carryforwards for income tax purposes: February 3, 2024 January 28, 2023 State $621 $756 Foreign — 26 The net operating loss carryforwards are subject to certain statutory limitations of applicable state laws. If not utilized, a portion of our state net operating loss carryforwards will begin to expire in 2024. As of February 3, 2024 and January 28, 2023, the valuation allowance for deferred tax assets was $1 and $28. As a result of the wind-down of our Canada operations in 2023, the valuation allowance for foreign deferred tax assets increased $9 and upon deconsolidation was written off to zero. The write-off of the deferred tax assets and corresponding valuation allowance for Canada was included in the Canada wind-down costs. In 2023, a valuation allowance of $1 was recorded for state net operating loss carryforwards that will not be realized in the foreseeable future. There was no change to the valuation allowance in 2022. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal year 2023 2022 2021 Unrecognized tax benefit at beginning of year $48 $47 $32 Gross increase to tax positions in prior periods 1 1 11 Gross decrease to tax positions in prior periods (4) (6) — Gross increase to tax positions in current period 6 7 6 Settlements (27) (1) (2) Unrecognized tax benefit at end of year $24 $48 $47 At the end of 2023 and 2022, $22 and $45 of the ending gross unrecognized tax benefit related to items which, if recognized, would affect the effective tax rate. There was no material expense for interest and penalties in 2023, 2022 and 2021. At the end of 2023 and 2022, our liability for interest and penalties was $3 and $8. We file income tax returns in the U.S. With few exceptions, we are no longer subject to federal or state and local income tax examinations for years before 2014. As of February 3, 2024, we believe it is reasonably possible unrecognized tax benefits related to federal, state and local tax positions may decrease $6 by February 1, 2025, due to the completion of examinations and the expiration of various statutes of limitations. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Feb. 03, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 13: COMMITMENTS AND CONTINGENCIES Our estimated total purchase obligations, which primarily consist of inventory purchase orders and capital expenditure commitments, were $2,049 as of February 3, 2024. These purchase obligations are primarily payable within one year. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 14: EARNINGS PER SHARE The computation of EPS is as follows: Fiscal year 2023 2022 2021 Net earnings $134 $245 $178 Basic weighted-average shares outstanding 161.8 160.1 159.0 Dilutive shares 1.6 2.0 3.5 Diluted weighted-average shares outstanding 163.4 162.1 162.5 Basic EPS $0.83 $1.53 $1.12 Diluted EPS $0.82 $1.51 $1.10 Anti-dilutive shares 8.4 8.7 8.1 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 15: SEGMENT REPORTING Segments We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments. We have one reportable “Retail” segment to align with how management operates and evaluates the results of our operations. Our principal executive officer, who is our chief operating decision maker, reviews results on a total Company, Nordstrom and Nordstrom Rack basis and uses EBIT as a measure of profitability. Our Retail reportable segment aggregates our two operating segments, Nordstrom and Nordstrom Rack. As of February 3, 2024, Nordstrom consists of Nordstrom.com, Nordstrom U.S. stores and Nordstrom Local. Nordstrom also included Canada operations prior to March 2, 2023, inclusive of Nordstrom.ca, Nordstrom Canadian stores and Nordstrom Rack Canadian stores, ASOS | Nordstrom prior to December 2023 and TrunkClub.com prior to October 2022. Nordstrom Rack consists of NordstromRack.com, Nordstrom Rack U.S. stores and Last Chance clearance stores. Our Nordstrom and Nordstrom Rack operating segments both generate revenue by offering customers an extensive selection of high-quality brand-name and private-label merchandise for women, men, young adults and children, with a focus on apparel, shoes, beauty, accessories and home goods. We continue to focus on omni-channel initiatives by integrating the operations, merchandising and technology necessary to be consistent with our customers’ expectations of a seamless shopping experience regardless of channel or business. Nordstrom and Nordstrom Rack have historically had similar economic characteristics and financial performance over the long-term, which we expect to continue in the future. They also have other similar qualitative characteristics, including suppliers, method of distribution, type of customer and regulatory environment. Due to their similar qualitative and economic characteristics, we have aggregated our Nordstrom and Nordstrom Rack operating segments into a single reportable segment. Amounts in the Corporate/Other column include unallocated corporate expenses and assets (including unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings, equipment and deferred tax assets), inter-segment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with GAAP. Accounting Policy We present our segment results in the way that management views our results internally and 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 segment: Retail Corporate/Other Total Fiscal year 2023 Net sales $14,219 $— $14,219 Credit card revenues, net — 474 474 Earnings (loss) before interest and income taxes 855 (604) 251 Capital expenditures (244) (325) (569) Canada wind-down costs — (284) (284) Depreciation and amortization (263) (323) (586) Assets 5,622 2,822 8,444 Fiscal year 2022 Net sales $15,092 $— $15,092 Credit card revenues, net — 438 438 Earnings (loss) before interest and income taxes 719 (254) 465 Capital expenditures (154) (319) (473) Depreciation and amortization (316) (288) (604) Assets 5,968 2,777 8,745 Fiscal year 2021 Net sales $14,402 $— $14,402 Credit card revenues, net — 387 387 Earnings (loss) before interest and income taxes 687 (195) 492 Capital expenditures (218) (288) (506) Depreciation and amortization (350) (265) (615) Assets 6,244 2,625 8,869 For information about disaggregated revenues, see Note 3: Revenue. |
Nature Of Operations And Summ_2
Nature Of Operations And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries and are presented in U.S. dollars. All intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires that we make estimates, judgments 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. Actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include revenue recognition, inventory valuation, long-lived asset recoverability, income taxes and contingent liabilities, including assumptions related to our Canada wind-down, all of which involve assumptions about future events. |
Revenue | Revenue Net Sales We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales shipped to customers from our Supply Chain Network facilities, stores and directly from our vendors, which includes shipping revenue when applicable, is recognized at shipping point, the point in time where control has transferred to the customer. Costs to ship orders to customers are expensed as a fulfillment activity at shipping point, commissions from sales at our Nordstrom stores are expensed at the point of sale and both are recorded in SG&A expenses. We reduce sales and cost of sales by an estimate of future customer merchandise returns, which is calculated based on historical and expected return patterns, and record a sales return reserve and an estimated returns asset. Our sales return reserve is classified in other current liabilities and our estimated returns asset, calculated based on the cost of merchandise sold, is classified in prepaid expenses and other on the Consolidated Balance Sheets. As of February 3, 2024 and January 28, 2023, our sales return reserve was $377 and $415, and our estimated returns asset was $164 and $179. Due to the seasonality of our business, these balances typically increase when higher sales occur in the last month of a period, such as during the Anniversary Sale, which usually occurs at the end of the second quarter, and decrease in the following period. We record the impact of the sales return reserve separately in both our Nordstrom and Nordstrom Rack banners. The majority of our returns from both digital and physical sales come through our stores. Loyalty Program The Nordy Club is our customer loyalty program that incorporates a traditional point and benefit system, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes, which can be redeemed for goods or services across Nordstrom and Nordstrom Rack. The Nordy Club benefits vary based on the level of customer spend, and include bonus points days and shopping and fashion events. We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards, as well as a Nordstrom-branded private-label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, enhanced alterations and stylist benefits and incremental accumulation of points toward Nordstrom Notes. As our customers earn points and Nordstrom Notes in The Nordy Club, a portion of underlying sales revenue is deferred based on an estimated stand-alone selling price of points, Nordstrom Notes and other loyalty benefits, such as alterations. We recognize the revenue and related cost of sale when the Nordstrom Notes are ultimately redeemed and reduce our contract liability. We include the deferred revenue in other current liabilities on the Consolidated Balance Sheets. We record breakage revenue of unused points and unredeemed Nordstrom Notes based on expected customer redemption. We estimate, based on historical and expected usage, that approximate l y 8% of Nordstrom Notes and points will be unredeemed. Estimating future breakage rates requires judgment based on current and historical trends, and actual breakage rates may vary from our estimates. Other benefits of the loyalty program, including shopping and fashion events, are recorded in SG&A expenses as these are not a material right of the program. As of both February 3, 2024 and January 28, 2023, our outstanding performance obligation for The Nordy Club, which consists primarily of unredeemed points and Nordstrom Notes at retail value, was $115. Almost all Nordstrom Notes redemptions occur within eleven Gift Cards We record deferred revenue from the sale of gift cards at the time of purchase. As gift cards are redeemed, we recognize revenue and reduce our contract liability. Although our gift cards do not have an expiration date, we include this deferred revenue in other current liabilities on the Consolidated Balance Sheets as customers can redeem gift cards at any time. We record breakage revenue on unused gift cards based on expected customer redemption. We estimate, based on historical usage, that 4% of gift cards will be unredeemed and recognized as revenue. Estimating future breakage rates requires judgment based on current and historical trends and actual breakage rates may vary from our estimates. Breakage income was $52, $40 and $39 in 2023, 2022 and 2021. As of February 3, 2024 and January 28, 2023, our outstanding performance obligation for unredeemed gift cards was $343 and $370. Almost all gift card redemptions occur within two Credit Card Revenues, net Although the primary purpose of offering our credit cards is to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD. Under that agreement, which was amended in the fourth quarter of 2022 and runs through September 2026, TD is the exclusive issuer of Nordstrom-branded consumer credit cards and we perform account servicing functions for those cards. Credit card revenues, net include our portion of the ongoing credit card revenue, net of credit losses, pursuant to our program agreement with TD. |
Cost of Sales | Cost of Sales |
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 stores, office facilities and Supply Chain Network facilities. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A expenses consist primarily of compensation and benefits, marketing, outbound supply chain and technology costs. |
Shipping and Handling Costs | Shipping and Fulfillment Costs Our shipping and fulfillment 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 Supply Chain Network facilities, which we include in the cost of our inventory. Shipping and fulfillment costs of $712, $885 and $993 in 2023, 2022 and 2021 were included in SG&A 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 $313, $309 and $300 in 2023, 2022 and 2021 were included in SG&A expenses. |
Vendor Allowances | Vendor Allowances We receive allowances from merchandise vendors for purchase price adjustments, beauty expenses, advertising programs and various other expenses. 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 beauty expenses, advertising programs and other expenses are recorded in SG&A expenses as a reduction of the related costs when incurred. Vendor allowances earned are as follows: Fiscal year 2023 2022 2021 Purchase price adjustments $94 $120 $108 Beauty expenses 114 111 103 Advertising 87 112 110 Other 6 2 3 Total vendor allowances $301 $345 $324 Advertising includes NMN, where vendors pay a fee for use of our first-party data. Funds received from vendors are recorded as a reduction of the campaign cost in SG&A expenses and media fees are recorded as a reduction of cost of sales. |
401(k) Plan | 401(k) Plan We provide a 401(k) plan for our employees that allows for employee elective contributions and our matching contributions. Employee elective contributions are funded through voluntary payroll deductions. Total expenses related to Company contributions were $71 in 2023 and 2022 and $67 in 2021, and were included in both buying and occupancy costs and SG&A expenses on our Consolidated Statements of Earnings. |
Stock-Based Compensation | Stock-Based Compensation The 2019 Plan authorizes the grant of stock options, PSUs, RSUs, stock appreciation rights and both restricted and unrestricted shares of common stock to employees and nonemployee directors. We grant stock-based awards under our 2019 Plan and employees may purchase our stock at a discount under our ESPP. We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. Compensation expense for PSUs is adjusted based on the payout percentage of the PSU grant subject to achieving specific performance measures. The total compensation expense is reduced by actual forfeitures as they occur. We primarily estimate the grant date fair value of stock options using the Binomial Lattice-based valuation model, but for our price-hurdle grants in 2021, we estimate the grant date fair value using the Monte Carlo simulation valuation model. The grant date fair value of RSUs and PSUs is determined based on the number of RSUs or PSUs granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. PSUs granted are classified as equity. Amounts included on the following line items of our Consolidated Statements of Shareholders’ Equity and our Consolidated Statements of Cash Flows are as follows: • Issuance of common stock under stock compensation plans — includes common stock option exercises and purchases of shares under the ESPP • Stock-based compensation — primarily includes stock-based compensation expense for our common stock options, RSUs and PSUs, partially offset by shares withheld for taxes on RSUs and PSUs |
New Store Opening Costs | New Store Opening Costs Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and SG&A expenses, according to their nature as disclosed above. |
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 and for operating loss and tax credit carryforwards. 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 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. |
Earnings Per Share | Earnings Per Share |
Comprehensive Net Earnings | Comprehensive Net Earnings |
Cash Equivalents | Cash Equivalents Cash equivalents are short-term investments with an original maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2023 and 2022, checks not yet presented for payment drawn in excess of our bank deposit balances were $62 a nd $60. Amounts are included in accounts payable on our Consolidated Balance Sheets and in change in cash book overdrafts as a financing activity in our Consolidated Statements of Cash Flows. |
Accounts Receivable | Accounts Receivable Accounts receivable, net primarily includes receivables from TD related to our program agreement, non-Nordstrom-branded credit and debit cards and developer reimbursements. As of February 3, 2024, accounts receivable, net also includes the amount we believe probable of receipt as part of the claims process related to the wind-down of Canada (see Note 2: Canada Wind-down). |
Merchandise Inventories | Merchandise Inventories Merchandise inventories are stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is 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 also reduced by a charge to cost of sales for retail inventory markdowns taken on the selling price. 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 record reserves for excess and obsolete inventory based on historical trends and specific identification. We take physical inventory counts at our stores and Supply Chain Network locations and adjust for differences between recorded amounts and counted amounts. Following each physical inventory cycle and using the most recent physical inventory count and historical results, we record an estimate for shrink based on a percentage of sales until the next physical inventory count. |
Leases | Leases We record leases, which consist primarily of operating leases, on the Consolidated Balance Sheets as operating lease ROU assets and operating lease liabilities, both of which include current and noncurrent portions. Operating lease liabilities are initially recognized based on the net present value of the fixed portion of our lease and common area maintenance payments from lease commencement through the lease term. To calculate the net present value, we apply an incremental borrowing rate. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest we would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use quoted interest rates obtained from financial institutions as an input to derive our incremental borrowing rate as the discount rate for the lease. We recognize ROU assets based on operating lease liabilities reduced by property incentives received from landlords. We test ROU assets for impairment in the same manner as long-lived assets and exclude the related operating lease liability and operating lease payments in our analysis. We lease the land, buildings, or land and buildings for many of our stores, office facilities and Supply Chain Network facilities. |
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 and amortization. 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 and amortization are 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 2 – 7 Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized 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. |
Long-Lived Assets | Long-Lived Assets When facts and circumstances indicate the carrying values of buildings, equipment and ROU assets may be impaired, we compare the carrying value to the related projected future cash flows, among other quantitative and qualitative analyses. Cash flow analysis requires judgment regarding many factors, such as revenues, growth rates, expenses, capital expenditures and sublease income. These projections are inherently subject to uncertainties. While we believe the inputs and assumptions utilized in our future cash flows are reasonable, our estimates may change in the near term based on our current and future performance. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment, while cash flows for our retail store assets are identified at the individual store level. The following table provides details related to asset impairment charges for each fiscal year: 2023 2022 Supply Chain Supply Chain Trunk Club Long-lived asset impairment 1 $9 $58 $10 Operating lease ROU asset impairment 1 21 12 — Asset impairment $30 $70 $10 1 After impairment, the carrying values of the remaining long-lived tangible and ROU assets were not material. Supply Chain Impairments During the fourth quarter of 2023 and the third quarter of 2022, as part of our supply chain optimization initiatives, we incurred a non-cash impairment charge to adjust the carrying values to their estimated fair values for certain supply chain assets. These charges are included in our Corporate/Other SG&A expense on the Consolidated Statement of Earnings and in asset impairment on the Consolidated Statement of Cash Flows. We evaluated the assets for impairment by comparing the carrying values to the related projected future cash flows, among other quantitative and qualitative analyses. After impairment, the carrying values of the remaining long-lived tangible and ROU assets were not material. Trunk Club Wind-down During the first quarter of 2022, in conjunction with the decision to sunset the Trunk Club brand, we incurred non-cash impairment charges related to a Trunk Club property to adjust the carrying values to their estimated fair value. These charges are included in our Retail segment SG&A expense on the Consolidated Statement of Earnings and in asset impairment on the Consolidated Statement of Cash Flows. During the second quarter of 2022, we also incurred additional costs of $8 associated with the wind-down of Trunk Club. These expenses are primarily included in our Retail segment cost of sales and related buying and occupancy costs on the Consolidated Statement of Earnings. All charges are classified as operating on the Consolidated Statement of Cash Flows. |
Goodwill | Goodwill Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment, as of the first day of the fourth quarter, or when circumstances indicate that the carrying value may exceed the fair value. We perform this evaluation at the reporting unit level, all in our Retail segment. Our goodwill is allocated to two reporting units, Nordstrom and NordstromRack.com. When evaluating these assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we determine that it is more likely than not that the carrying value exceeds the fair value of the reporting unit, we perform a quantitative fair value test. We may also choose to bypass this qualitative assessment and perform the quantitative assessment. As of February 3, 2024 and January 28, 2023, we had goodwill of $249. To determine fair value, we compare 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 (market approach) or a combination of both. Determining fair value using these approaches requires management assumptions, estimations and judgments regarding factors like overall economic conditions, prospective financial information, growth rates, terminal value, discount rates and market multiples. If fair value is lower than the carrying value, an impairment charge is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Based on the results of our tests, fair value exceeded carrying value, and we therefore had no goodwill impairment in 2023, 2022 or 2021. |
Investments | Investments From time to time, we invest in financial interests of certain private companies and venture capital funds that align with our business and omni-channel strategies, which are recorded in other assets in the Consolidated Balance Sheets and proceeds from the sale of assets and other, net on the Consolidated Statements of Cash Flows. As of February 3, 2024 and January 28, 2023, we held $41 and $42 of equity interests in certain venture capital funds, which are recorded at fair value using the practical expedient estimate of NAV or its equivalent. |
Self-Insurance | Self-Insurance We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other 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 On March 2, 2023, Nordstrom Canada commenced a wind-down of its business operations. The functional currency of our Canadian operations was the Canadian Dollar. Prior to deconsolidation, we translated assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translated revenues and expenses using an average exchange rate for the period. We recorded these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. In the first quarter of 2023, we recognized a charge of $33 related to the derecognition of the accumulated comprehensive loss on foreign currency translation (see Note 2: Canada Wind-down). |
Segment Reporting | Accounting Policy We present our segment results in the way that management views our results internally and 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 Summ_3
Nature Of Operations And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Accounting Policies [Abstract] | |
Vendor Allowances | Vendor allowances earned are as follows: Fiscal year 2023 2022 2021 Purchase price adjustments $94 $120 $108 Beauty expenses 114 111 103 Advertising 87 112 110 Other 6 2 3 Total vendor allowances $301 $345 $324 |
Estimated Useful Life Of Land, Property And Equipment By Asset Category | Depreciation and amortization are 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 2 – 7 |
Asset impairment charges | The following table provides details related to asset impairment charges for each fiscal year: 2023 2022 Supply Chain Supply Chain Trunk Club Long-lived asset impairment 1 $9 $58 $10 Operating lease ROU asset impairment 1 21 12 — Asset impairment $30 $70 $10 1 After impairment, the carrying values of the remaining long-lived tangible and ROU assets were not material. |
Canada Wind-Down (Tables)
Canada Wind-Down (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Restructuring and Related Activities [Abstract] | |
Detail Of Pre-Tax Charges Associated With Canada Wind-down | The following table details the pre-tax charges associated with the wind-down of operations in Canada: Fiscal year 2023 Loss on Canada write-off 1 $176 Accumulated translation loss reclassified to earnings 1 33 Contingent liabilities 70 Other exit costs 2 5 Total pre-tax charges $284 1 Non-cash amounts are included in Canada wind-down costs on the Consolidated Statement of Cash Flows. 2 Other exit costs include funding an employee trust, net of expected recoveries, and professional fees. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary Of Contract Liabilities | Our contract liabilities are classified on the Consolidated Balance Sheets as follows: Other current liabilities Other liabilities Balance as of January 29, 2022 $478 $— Balance as of January 28, 2023 536 136 Balance as of February 3, 2024 508 85 |
Disaggregated Net Sales | The following table summarizes our disaggregated net sales: Fiscal year 2023 2022 2021 Nordstrom $9,436 $10,279 $9,640 Nordstrom Rack 4,783 4,813 4,762 Total net sales $14,219 $15,092 $14,402 Digital sales as a % of total net sales 36% 38% 42% |
Percent Of Net Sales By Merchandise Category Summary | The following table summarizes the percent of net sales by merchandise category: Fiscal year 2023 2022 2021 Women’s Apparel 27% 28% 28% Shoes 26% 26% 25% Men’s Apparel 15% 15% 14% Beauty 13% 12% 12% Accessories 12% 13% 14% Kids’ Apparel 4% 3% 4% Other 3% 3% 3% Total net sales 100 % 100 % 100 % |
Land, Property And Equipment (T
Land, Property And Equipment (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Land, Property And Equipment | Land, property and equipment consist of the following: February 3, 2024 January 28, 2023 Land and land improvements $283 $288 Buildings and building improvements 1,365 1,352 Leasehold improvements 3,103 3,389 Store fixtures and equipment 3,873 4,138 Capitalized software 2,439 2,151 Construction in progress 365 322 Land, property and equipment 11,428 11,640 Accumulated depreciation and amortization (8,251) (8,289) Land, property and equipment, net $3,177 $3,351 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
Lease Terms Summary | The following table summarizes the majority of our fixed, non-cancelable lease terms: Property Type Lease Term (in years) Nordstrom stores 15 – 30 Nordstrom Rack stores Approximately 10 Office and Supply Chain Network facilities 5 – 20 |
Components Of Lease Cost | The following table summarizes the components of lease cost: Fiscal year 2023 2022 2021 Operating Lease Cost $278 $280 $265 Variable lease cost 1 93 97 100 Sublease income (25) (19) (20) Total lease cost, net $346 $358 $345 1 Variable lease cost includes short-term lease cost, which was immaterial in 2023, 2022 and 2021. |
Future Lease Payments | The following table summarizes future lease payments as of February 3, 2024: Fiscal year Operating Leases 2024 $321 2025 324 2026 273 2027 224 2028 182 Thereafter 708 Total lease payments 1 2,032 Amount representing interest (415) Present value of net lease payments 2 $1,617 1 Total lease payments do not include payments for variable lease costs that are required by most of our lease agreements. 2 Net lease payments exclude $139 of lease payments for operating leases that were signed but not yet commenced as of February 3, 2024. |
Supplemental Lease Information | The following table includes supplemental information: Fiscal year 2023 2022 2021 Cash paid related to operating lease liabilities $358 $354 $371 Operating lease interest 86 85 87 Operating lease liabilities arising from lease agreements 242 260 137 February 3, 2024 January 28, 2023 Weighted-average remaining lease term 8 years 8 years Weighted-average discount rate 5.5 % 4.9 % |
Debt And Credit Facilities (Tab
Debt And Credit Facilities (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Debt Disclosure [Abstract] | |
Summary Of Long-Term Debt | A summary of our long-term debt is as follows: February 3, 2024 January 28, 2023 Long-term debt, net of unamortized discount: Senior notes, 2.30%, due April 2024 $250 $250 Senior notes, 4.00%, due March 2027 349 349 Senior debentures, 6.95%, due March 2028 300 300 Senior notes, 4.375%, due April 2030 500 500 Senior notes, 4.25%, due August 2031 425 425 Senior notes, 7.00%, due January 2038 147 147 Senior notes, 5.00%, due January 2044 1 909 905 Deferred bond issuance costs (18) (20) Total long-term debt $2,862 $2,856 Current portion of debt (250) — Total due beyond one year $2,612 $2,856 1 The unamortized discount on these notes was $57 and $61 as of February 3, 2024 and January 28, 2023. |
Schedule Of Required Principal Payments On Long-Term Debt | Required principal payments on long-term debt are as follows: Fiscal year 1 2024 $250 2025 — 2026 — 2027 350 2028 300 Thereafter 2,039 1 Required principal payments exclude estimated future interest payments of $1,519 as of February 3, 2024, with $136 payable within one year. |
Components Of Interest Expense, Net | The components of interest expense, net are as follows: Fiscal year 2023 2022 2021 Interest on long-term debt and short-term borrowings $150 $150 $258 Interest income (33) (10) (1) Capitalized interest (13) (12) (11) Interest expense, net $104 $128 $246 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt, Including Current Maturities | The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: February 3, 2024 January 28, 2023 Carrying value of long-term debt $2,862 $2,856 Fair value of long-term debt 2,441 2,278 |
Self-Insurance (Tables)
Self-Insurance (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Self Insurance [Abstract] | |
Summary Of Self-Insurance Reserves | Our self-insurance reserves are summarized as follows: February 3, 2024 January 28, 2023 Workers’ compensation $73 $78 Employee health and welfare 28 26 Other liability 18 12 Total self-insurance reserves $119 $116 |
SERP (Tables)
SERP (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Benefit Obligation And Funded Status | Our benefit obligation and funded status is as follows: February 3, 2024 January 28, 2023 Change in benefit obligation: Benefit obligation at beginning of year $176 $212 Participant service cost 1 2 Interest cost 9 6 Benefits paid (11) (10) Actuarial gain (7) (34) Benefit obligation at end of year 168 176 Change in plan assets: Fair value of plan assets at beginning of year — — Employer contribution 11 10 Benefits paid (11) (10) Fair value of plan assets at end of year — — Underfunded status at end of year ($168) ($176) |
Amounts Recognized As Liabilities In The Consolidated Balance Sheets | Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following: February 3, 2024 January 28, 2023 Accrued salaries, wages and related benefits $12 $11 Other liabilities (noncurrent) 156 165 Net amount recognized $168 $176 |
Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings | The components of SERP expense recognized in SG&A expense on the Consolidated Statements of Earnings are as follows: Fiscal year 2023 2022 2021 Participant service cost $1 $2 $2 Interest cost 9 6 5 Amortization of net loss and other — 4 8 Total SERP expense $10 $12 $15 |
Amounts Recognized In Accumulated Other Comprehensive Loss (Pre-Tax) | Amounts recognized in accumulated other comprehensive gain (loss) (pre-tax) consist of the following: Fiscal year 2023 2022 2021 Actuarial gain ($7) ($34) ($14) Amortization of net loss and other — (4) (8) Amounts recognized in accumulated other comprehensive gain (loss) ($7) ($38) ($22) |
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 2023 2022 2021 Assumptions used to determine benefit obligation: Discount rate 5.27 % 4.95 % 3.19 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Assumptions used to determine SERP expense: Discount rate 4.95 % 3.19 % 2.62 % Rate of compensation increase 2.50 % 2.50 % 2.50 % |
Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service | As of February 3, 2024, 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 2024 $12 2025 12 2026 13 2027 13 2028 13 2029 – 2033 61 Thereafter 44 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary Of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense: Fiscal year 2023 2022 2021 RSUs $40 $41 $52 Stock options 6 11 22 Other 1 6 7 5 Total stock-based compensation expense, before income tax benefit 52 59 79 Income tax benefit (13) (15) (20) Total stock-based compensation expense, net of income tax benefit $39 $44 $59 1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. |
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 2023 2022 2021 Cost of sales and related buying and occupancy costs $10 $9 $15 SG&A expenses 42 50 64 Total stock-based compensation expense, before income tax benefit $52 $59 $79 |
Summary Of Restricted Stock Unit Activity | A summary of restricted stock unit activity for 2023 is presented below: Fiscal year 2023 Shares Weighted-average grant date fair value per unit Outstanding, beginning of year 4.6 $32 Granted 3.6 16 Vested (1.3) 26 Forfeited or canceled (0.7) 21 Outstanding, end of year 6.2 $19 |
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 each grant date: Fiscal year 2023 2022 2021 1 Assumptions Risk-free interest rate 2 3.98% – 5.05% 1.18% – 1.95% 0.11% – 1.51% Weighted-average volatility 3 52.3 % 52.4 % 52.2 % Weighted-average expected dividend yield 4 3.8 % 3.4 % 3.4 % Expected life in years 5 8.2 8.3 8.3 Grant Date Information Date of grant March 6, 2023 March 3, 2022 March 4, 2021 Weighted-average fair value per option $8 $10 $13 Exercise price per option $20 $26 $36 1 The options granted on March 4, 2021 include market performance-based stock options with a contractual term of ten years that were awarded to certain members of senior management as well as time-based options. The price-hurdle options contain a market condition that requires the closing price of our stock to meet or exceed certain price thresholds for 20 consecutive trading days in order for shares to vest. 2 Represents the yield on U.S. Treasury securities that mature over the 10-year life of the stock options. 3 Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. 4 Our forecasted dividend yield for the next 10 years. 5 Derived from the output of the binomial lattice model and represents the estimated period of time until option exercise. The expected term of options granted is 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. |
Summary Of Stock Option Activity | A summary of stock option activity for 2023 is presented below: Fiscal year 2023 Shares Weighted- average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value 1 Outstanding, beginning of year 8.5 $38 Granted 1.1 20 Exercised (0.3) 16 Forfeited or canceled (1.7) 44 Outstanding, end of year 7.6 $35 5 $5 Exercisable, end of year 4.8 $40 4 $5 Fiscal year 2023 2022 2021 Aggregate intrinsic value of options exercised $1 $4 $— Fair value of stock options vested $4 $27 $2 1 The aggregate intrinsic value represents the amount realized if all in-the-money options were exercised on the final business day before February 3, 2024 . |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Repurchase Agreements | The following is a summary of the activity related to our share repurchase programs: Shares Average price per share Amount Capacity at January 30, 2021 $707 Shares repurchased — — — Capacity at January 29, 2022 707 August 2018 program termination (707) May 2022 program authorization (no expiration) 500 Shares repurchased 2.8 $22 (62) Capacity at January 28, 2023 438 Shares repurchased 1 0.03 $19 (1) Capacity at February 3, 2024 1 $438 1 Subtotal of ending share repurchase capacity may not foot due to rounding. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
U.S. And Foreign Components Of Earnings Before Income Taxes | U.S. and foreign components of earnings before income taxes were as follows: Fiscal year 2023 2022 2021 U.S. $143 $316 $241 Foreign 4 21 5 Earnings before income taxes $147 $337 $246 |
Components Of Income Tax Expense | Income tax expense consists of the following: Fiscal year 2023 2022 2021 Current income taxes: Federal $55 $149 $61 State and local 18 27 18 Foreign — (1) — Total current income tax expense 73 175 79 Deferred income taxes: Federal (59) (86) (10) State and local (10) (2) (5) Foreign 9 5 4 Total deferred income tax benefit (60) (83) (11) Total income tax expense $13 $92 $68 |
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 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % CARES Act impact — — (0.9 %) State and local income taxes, net of federal income taxes 4.0 % 5.9 % 3.4 % Federal credits (4.7 %) (3.8 %) (4.0 %) Non-deductible expenses 2.9 % 1.2 % 2.7 % Stock-based compensation 5.1 % 1.8 % 2.0 % Valuation allowance 6.6 % 0.4 % 1.8 % Taxes on foreign operations 1.5 % 1.6 % 1.3 % Excess tax over book loss on Canada wind-down (18.2 %) — — Resolution of prior period tax matters (11.2 %) — — Other, net 1.6 % (0.9 %) 0.2 % Effective tax rate 8.6 % 27.2 % 27.5 % |
Components Of Deferred Tax Assets And Liabilities | The components of deferred tax assets and liabilities are as follows: February 3, 2024 January 28, 2023 Deferred tax assets: Lease liabilities $425 $463 Compensation and benefits accruals 104 111 Sales return reserve 56 61 Accrued expenses 31 28 Merchandise inventories 36 33 Gift cards 39 43 The Nordy Club loyalty program 2 8 Net operating losses 38 52 Other 36 25 Total deferred tax assets 767 824 Valuation allowance (1) (28) Total deferred tax assets, net of valuation allowance 766 796 Deferred tax liabilities: ROU assets (310) (331) Land, property and equipment (164) (230) Debt exchange premium (11) (12) Total deferred tax liabilities (485) (573) Net deferred tax assets $281 $223 |
Information On Approximate Net Operating Loss Carryforwards | The following sets forth information on approximate net operating loss carryforwards for income tax purposes: February 3, 2024 January 28, 2023 State $621 $756 Foreign — 26 |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal year 2023 2022 2021 Unrecognized tax benefit at beginning of year $48 $47 $32 Gross increase to tax positions in prior periods 1 1 11 Gross decrease to tax positions in prior periods (4) (6) — Gross increase to tax positions in current period 6 7 6 Settlements (27) (1) (2) Unrecognized tax benefit at end of year $24 $48 $47 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Earnings Per Share [Abstract] | |
Computation of EPS | The computation of EPS is as follows: Fiscal year 2023 2022 2021 Net earnings $134 $245 $178 Basic weighted-average shares outstanding 161.8 160.1 159.0 Dilutive shares 1.6 2.0 3.5 Diluted weighted-average shares outstanding 163.4 162.1 162.5 Basic EPS $0.83 $1.53 $1.12 Diluted EPS $0.82 $1.51 $1.10 Anti-dilutive shares 8.4 8.7 8.1 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Information By Reportable Segment | The following table sets forth information for our reportable segment: Retail Corporate/Other Total Fiscal year 2023 Net sales $14,219 $— $14,219 Credit card revenues, net — 474 474 Earnings (loss) before interest and income taxes 855 (604) 251 Capital expenditures (244) (325) (569) Canada wind-down costs — (284) (284) Depreciation and amortization (263) (323) (586) Assets 5,622 2,822 8,444 Fiscal year 2022 Net sales $15,092 $— $15,092 Credit card revenues, net — 438 438 Earnings (loss) before interest and income taxes 719 (254) 465 Capital expenditures (154) (319) (473) Depreciation and amortization (316) (288) (604) Assets 5,968 2,777 8,745 Fiscal year 2021 Net sales $14,402 $— $14,402 Credit card revenues, net — 387 387 Earnings (loss) before interest and income taxes 687 (195) 492 Capital expenditures (218) (288) (506) Depreciation and amortization (350) (265) (615) Assets 6,244 2,625 8,869 |
Nature Of Operations And Summ_4
Nature Of Operations And Summary Of Significant Accounting Policies (Vendor Allowances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | $ 301 | $ 345 | $ 324 |
Purchase price adjustments [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 94 | 120 | 108 |
Beauty expenses [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 114 | 111 | 103 |
Advertising [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 87 | 112 | 110 |
Other [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | $ 6 | $ 2 | $ 3 |
Nature Of Operations And Summ_5
Nature Of Operations And Summary Of Significant Accounting Policies (Estimated Useful Life of Land, Property And Equipment By Asset Category) (Details) | Feb. 03, 2024 |
Buildings and improvements [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Buildings and improvements [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Store fixtures and equipment [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 3 years |
Store fixtures and equipment [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 15 years |
Leasehold improvements [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Leasehold improvements [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Capitalized software [Member] | Minimum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Capitalized software [Member] | Maximum [Member] | |
Land, Property and Equipment [Line Items] | |
Estimated useful life (in years) | 7 years |
Nature Of Operations And Summ_6
Nature Of Operations And Summary Of Significant Accounting Policies (Asset Impairment Charges) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Other facilities [Member] | ||
Land, Property and Equipment [Line Items] | ||
Long-lived asset impairment | $ 9 | $ 58 |
Operating lease ROU asset impairment | 21 | 12 |
Total asset impairment | $ 30 | 70 |
Trunk Club [Member] | ||
Land, Property and Equipment [Line Items] | ||
Long-lived asset impairment | 10 | |
Operating lease ROU asset impairment | 0 | |
Total asset impairment | $ 10 |
Nature Of Operations And Summ_7
Nature Of Operations And Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 USD ($) store report state | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | ||
Nature Of Retail Operations [Line Items] | ||||
Number of states in which company operates | state | 40 | |||
Sales return allowance | $ 377 | $ 415 | ||
Estimated returns asset | 164 | 179 | ||
Contract liabilities | 508 | 536 | $ 478 | |
Gift card breakage income | 52 | 40 | 39 | |
Shipping and fulfillment costs | 4,855 | 5,046 | 4,953 | |
Advertising expense, net of vendor allowances | 313 | 309 | 300 | |
Expense related to Company 401(k) plan contributions | 71 | 71 | 67 | |
Checks not yet presented for payment drawn in excess of bank deposit balances | $ 62 | 60 | ||
Other Trunk Club wind-down costs | 8 | |||
Number of reporting units | report | 2 | |||
Goodwill | $ 249 | 249 | ||
Goodwill impairment | 0 | 0 | 0 | |
Gain on sale of investments | 51 | |||
Proceeds from sale of assets | 73 | |||
Accumulated translation loss reclassified to earnings | [1] | 33 | ||
Fair Value Measured at Net Asset Value Per Share | ||||
Nature Of Retail Operations [Line Items] | ||||
Equity interests | 41 | 42 | ||
Shipping and handling [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Shipping and fulfillment costs | 712 | 885 | $ 993 | |
Nordstrom Rewards [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Contract liabilities | 115 | 115 | ||
Gift Cards [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Contract liabilities | $ 343 | $ 370 | ||
Loyalty Program, Nordstrom Notes [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Breakage rate | 8% | |||
Average period between issuance and redemption | 11 months | |||
Loyalty Program, Points [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Breakage rate | 8% | |||
Gift Cards [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Breakage rate | 4% | |||
Average period between issuance and redemption | 2 years | |||
Nordstrom - U.S. [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Number of stores | store | 93 | |||
Nordstrom Local [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Number of stores | store | 6 | |||
Nordstrom Rack [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Number of stores | store | 258 | |||
Last Chance [Member] | ||||
Nature Of Retail Operations [Line Items] | ||||
Number of stores | store | 2 | |||
[1] 1 Non-cash amounts are included in Canada wind-down costs on the Consolidated Statement of Cash Flows. |
Canada Wind-Down (Detail Of Pre
Canada Wind-Down (Detail Of Pre-Tax Charges Associated With Canada Wind-down) (Details) $ in Millions | 12 Months Ended | |
Feb. 03, 2024 USD ($) | ||
Restructuring and Related Activities [Abstract] | ||
Loss on Canada write-off | $ 176 | [1] |
Accumulated translation loss reclassified to earnings | 33 | [1] |
Contingent liabilities | 70 | |
Other exit costs | 5 | [2] |
Total pre-tax charges | $ 284 | |
[1] 1 Non-cash amounts are included in Canada wind-down costs on the Consolidated Statement of Cash Flows. 2 |
Canada Wind-Down (Narrative) (D
Canada Wind-Down (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 USD ($) | Mar. 02, 2023 store | Jan. 28, 2023 USD ($) | ||
Restructuring Cost and Reserve [Line Items] | ||||
Loss on Canada write-off | [1] | $ 176 | ||
Accumulated translation loss reclassified to earnings | [1] | 33 | ||
Outstanding liability to Nordstrom Canada | 1,236 | $ 1,238 | ||
Other exit costs | [2] | 5 | ||
Debtor-in-possession financing | 11 | |||
Debtor-in-possession financing, borrowings outstanding | 0 | |||
Receivables, net, for Nordstrom Canada wind-down process | 334 | $ 265 | ||
Net tax benefit | 95 | |||
Termination and severance payments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other exit costs | $ 11 | |||
Nordstrom, Inc. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Nordstrom, Inc. ownership of Nordstrom Canada | 100% | |||
Outstanding liability to Nordstrom Canada | $ 52 | |||
Receivables, net, for Nordstrom Canada wind-down process | $ 71 | |||
Nordstrom Canada [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores | store | 6 | |||
Nordstrom Rack Canada [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores | store | 7 | |||
[1] 1 Non-cash amounts are included in Canada wind-down costs on the Consolidated Statement of Cash Flows. 2 |
Revenue (Summary Of Contract Li
Revenue (Summary Of Contract Liabilities) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities in other current liabilities | $ 508 | $ 536 | $ 478 |
Contract liabilities in other liabilities | $ 85 | $ 136 | $ 0 |
Revenue (Disaggregated Net Sale
Revenue (Disaggregated Net Sales) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 14,219 | $ 15,092 | $ 14,402 |
% of net sales | 100% | 100% | 100% |
Digital Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 36% | 38% | 42% |
Nordstrom | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 9,436 | $ 10,279 | $ 9,640 |
Nordstrom Rack | |||
Disaggregation of Revenue [Line Items] | |||
Total net sales | $ 4,783 | $ 4,813 | $ 4,762 |
Revenue (Percent Of Net Sales B
Revenue (Percent Of Net Sales By Merchandise Category Summary) (Details) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Disaggregation of Revenue [Line Items] | |||
% of net sales | 100% | 100% | 100% |
Women's Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 27% | 28% | 28% |
Shoes [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 26% | 26% | 25% |
Men's Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 15% | 15% | 14% |
Beauty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 13% | 12% | 12% |
Accessories [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 12% | 13% | 14% |
Kids' Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 4% | 3% | 4% |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 3% | 3% | 3% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from beginning contract liability balance | $ 316 | $ 265 |
Land, Property And Equipment (S
Land, Property And Equipment (Schedule Of Land, Property And Equipment) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $ 11,428 | $ 11,640 |
Accumulated depreciation and amortization | (8,251) | (8,289) |
Land, property and equipment, net | 3,177 | 3,351 |
Land and land improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 283 | 288 |
Buildings and building improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 1,365 | 1,352 |
Leasehold improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 3,103 | 3,389 |
Store fixtures and equipment [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 3,873 | 4,138 |
Capitalized software [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 2,439 | 2,151 |
Construction in progress [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $ 365 | $ 322 |
Leases (Lease Terms Summary) (D
Leases (Lease Terms Summary) (Details) | Feb. 03, 2024 |
Nordstrom [Member] | Minimum [Member] | |
Leases [Line Items] | |
Lease terms | 15 years |
Nordstrom [Member] | Maximum [Member] | |
Leases [Line Items] | |
Lease terms | 30 years |
Nordstrom Rack [Member] | |
Leases [Line Items] | |
Lease terms | 10 years |
Other facilities [Member] | Minimum [Member] | |
Leases [Line Items] | |
Lease terms | 5 years |
Other facilities [Member] | Maximum [Member] | |
Leases [Line Items] | |
Lease terms | 20 years |
Leases (Components Of Lease Cos
Leases (Components Of Lease Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Leases [Abstract] | ||||
Operating Lease Cost | $ 278 | $ 280 | $ 265 | |
Variable lease cost | [1] | 93 | 97 | 100 |
Sublease income | (25) | (19) | (20) | |
Total lease cost, net | $ 346 | $ 358 | $ 345 | |
[1]Variable lease cost includes short-term lease cost, which was immaterial in 2023, 2022 and 2021. |
Leases (Future Lease Payments)
Leases (Future Lease Payments) (Details) $ in Millions | Feb. 03, 2024 USD ($) | |
Leases [Abstract] | ||
2024 | $ 321 | |
2025 | 324 | |
2026 | 273 | |
2027 | 224 | |
2028 | 182 | |
Thereafter | 708 | |
Total lease payments | 2,032 | [1] |
Amount representing interest | (415) | |
Present value of net lease payments | 1,617 | [2] |
Lease payments for operating leases that have not yet commenced | $ 139 | |
[1] Total lease payments do not include payments for variable lease costs that are required by most of our lease agreements. |
Leases (Supplemental Lease Info
Leases (Supplemental Lease Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases [Abstract] | |||
Cash paid related to operating lease liabilities | $ 358 | $ 354 | $ 371 |
Operating lease interest | 86 | 85 | 87 |
Operating lease liabilities arising from lease agreements | $ 242 | $ 260 | $ 137 |
Weighted-average remaining lease term | 8 years | 8 years | |
Weighted-average discount rate | 5.50% | 4.90% |
Debt And Credit Facilities (Sum
Debt And Credit Facilities (Summary Of Long-Term Debt) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 | |
Debt Instrument [Line Items] | |||
Carrying value of long-term debt | $ 2,862 | $ 2,856 | |
Deferred bond issuance costs | (18) | (20) | |
Long-Term Debt, Current Maturities | (250) | 0 | |
Total due beyond one year | $ 2,612 | $ 2,856 | |
Senior notes, 2.30%, due April 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.30% | 2.30% | |
Carrying value of long-term debt | $ 250 | $ 250 | |
Senior notes, 4.00%, due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4% | 4% | |
Carrying value of long-term debt | $ 349 | $ 349 | |
Senior debentures, 6.95%, due March 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.95% | 6.95% | |
Carrying value of long-term debt | $ 300 | $ 300 | |
Senior notes, 4.375%, due April 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.375% | 4.375% | |
Carrying value of long-term debt | $ 500 | $ 500 | |
Senior notes, 4.25%, due August 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.25% | 4.25% | |
Carrying value of long-term debt | $ 425 | $ 425 | |
Senior notes, 7.00%, due January 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7% | 7% | |
Carrying value of long-term debt | $ 147 | $ 147 | |
Senior notes, 5.00%, due January 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5% | 5% | |
Carrying value of long-term debt | [1] | $ 909 | $ 905 |
Unamortized discount | $ 57 | $ 61 | |
[1]The unamortized discount on these notes was $57 and $61 as of February 3, 2024 and January 28, 2023. |
Debt And Credit Facilities (Sch
Debt And Credit Facilities (Schedule Of Required Principal Payments On Long-Term Debt) (Details) $ in Millions | 12 Months Ended | |
Feb. 03, 2024 USD ($) | ||
Debt Instrument [Line Items] | ||
2024 | $ 250 | [1] |
2025 | 0 | [1] |
2026 | 0 | [1] |
2027 | 350 | [1] |
2028 | 300 | [1] |
Thereafter | 2,039 | [1] |
Estimated future interest payments | $ 1,519 | |
Estimated future payments, term | 1 year | |
Interest Expense [Member] | ||
Debt Instrument [Line Items] | ||
Estimated future payments, term | 1 year | |
Future interest payments due in twelve months | ||
Debt Instrument [Line Items] | ||
Estimated future interest payments | $ 136 | |
[1]Required principal payments exclude estimated future interest payments of $1,519 as of February 3, 2024, with $136 payable within one year. |
Debt And Credit Facilities (Com
Debt And Credit Facilities (Components Of Interest Expense, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Debt Disclosure [Abstract] | |||
Interest on long-term debt and short-term borrowings | $ 150 | $ 150 | $ 258 |
Interest income | (33) | (10) | (1) |
Capitalized interest | (13) | (12) | (11) |
Interest expense, net | $ 104 | $ 128 | $ 246 |
Debt And Credit Facilities (Nar
Debt And Credit Facilities (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2024 USD ($) numberOfPeriods numberOfRatingsAgencies covenant | Apr. 30, 2022 USD ($) | Feb. 03, 2024 USD ($) numberOfPeriods numberOfRatingsAgencies covenant | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 2,862 | $ 2,862 | $ 2,856 | ||
Principal payments on long-term borrowings | 0 | 0 | $ 1,100 | ||
Interest expense, net | 104 | 128 | $ 246 | ||
Standby letters of credit issued on our behalf outstanding | $ 2 | $ 2 | |||
Number of financial covenant tests | covenant | 2 | 2 | |||
Commercial Paper [Member] | |||||
Debt Instrument [Line Items] | |||||
Commercial paper issuances outstanding | $ 0 | $ 0 | 0 | ||
Maximum borrowing capacity | 800 | $ 800 | |||
Middle range of Leverage Ratio limits on dividends and share repurchases | |||||
Debt Instrument [Line Items] | |||||
Limit on dividends and share repurchases | 100 | ||||
Upper range of Leverage Ratio limits on dividends and share repurchases | |||||
Debt Instrument [Line Items] | |||||
Limit on dividends and share repurchases | $ 60 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of specified ratings agencies | numberOfRatingsAgencies | 2 | 2 | |||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of specified ratings agencies | numberOfRatingsAgencies | 3 | 3 | |||
Senior notes, 2.30%, due April 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 250 | $ 250 | $ 250 | ||
Debt instrument interest rate | 2.30% | 2.30% | 2.30% | ||
Senior notes, 4.25%, due August 2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 425 | $ 425 | $ 425 | ||
Debt instrument interest rate | 4.25% | 4.25% | 4.25% | ||
2021 Refinancing [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense, net | $ 88 | ||||
One time "make-whole" premium | $ 78 | ||||
Secured Notes, 8.75%, due May 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal payments on long-term borrowings | $ 600 | ||||
Unsecured revolving credit facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Commercial paper issuances outstanding | $ 0 | $ 0 | $ 0 | ||
Standby letters of credit issued on our behalf outstanding | 30 | 30 | |||
Current borrowing capacity | 770 | 770 | |||
Option to increase the current capacity of revolving credit facility | 200 | 200 | |||
Maximum borrowing capacity | $ 1,000 | $ 1,000 | |||
Number of options to extend revolver | 2 | 2 | |||
Debt covenant leverage ratio | 4 | 4 | |||
Fixed Charge Coverage Ratio | 1.25 | 1.25 | |||
Unsecured revolving credit facility [Member] | Leverage ratio for unlimited dividends and share repurchases | |||||
Debt Instrument [Line Items] | |||||
Debt covenant leverage ratio | 3 | 3 | |||
Unsecured revolving credit facility [Member] | Upper limit of Leverage Ratio | |||||
Debt Instrument [Line Items] | |||||
Debt covenant leverage ratio | 3.5 | 3.5 | |||
Unsecured revolving credit facility [Member] | Minimum [Member] | Unsecured revolver lower limit requirements | |||||
Debt Instrument [Line Items] | |||||
Number of specified ratings agencies | numberOfRatingsAgencies | 1 | 1 | |||
Number of consecutive fiscal quarters meeting leverage ratio threshold | numberOfPeriods | 2 | 2 | |||
Debt covenant leverage ratio | 2.5 | 2.5 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt, Including Current Maturities) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Fair Value Measurements, Long-term Debt [Line Items] | ||
Carrying value of long-term debt | $ 2,862 | $ 2,856 |
Level 2 [Member] | ||
Fair Value Measurements, Long-term Debt [Line Items] | ||
Fair value of long-term debt | $ 2,441 | $ 2,278 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 12 Months Ended |
Feb. 03, 2024 | |
Minimum [Member] | |
Fair Value Measurements, Long-term Debt [Line Items] | |
Contractual terms of partnership interests range | 6 years |
Maximum [Member] | |
Fair Value Measurements, Long-term Debt [Line Items] | |
Contractual terms of partnership interests range | 10 years |
Self-Insurance (Summary Of Self
Self-Insurance (Summary Of Self-Insurance Reserves) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Self-insurance reserve [Line Items] | ||
Total self-insurance reserves | $ 119 | $ 116 |
Workers' compensation [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserves | 73 | 78 |
Employee health and welfare [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserves | 28 | 26 |
Other liability [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserves | $ 18 | $ 12 |
Self-Insurance (Narrative) (Det
Self-Insurance (Narrative) (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2024 USD ($) | |
Self-insurance reserve [Line Items] | |
Estimated future payments, term | 1 year |
Standby letters of credit issued on our behalf outstanding | $ 2 |
Standby Letters of Credit | |
Self-insurance reserve [Line Items] | |
Standby letters of credit issued on our behalf available | 13 |
Workers' compensation [Member] | |
Self-insurance reserve [Line Items] | |
General liability policy retention per claim | 1 |
Workers' compensation policy limit | $ 0 |
Percent of future payment obligation due | 30% |
Estimated future payments, term | 1 year |
Other liability [Member] | |
Self-insurance reserve [Line Items] | |
General liability policy retention per claim | $ 1 |
Percent of future payment obligation due | 50% |
Estimated future payments, term | 1 year |
General liability policy limit | $ 111 |
SERP (Benefit Obligation And Fu
SERP (Benefit Obligation And Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Benefit obligation at beginning of year | $ 176 | $ 212 | |
Participant service cost | 1 | 2 | $ 2 |
Interest cost | 9 | 6 | 5 |
Benefits paid | (11) | (10) | |
Actuarial gain | (7) | (34) | (14) |
Benefit obligation at end of year | 168 | 176 | 212 |
Fair value of plan assets at beginning of year | 0 | 0 | |
Employer contribution | 11 | 10 | |
Benefits paid | (11) | (10) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Underfunded status at end of year | $ (168) | $ (176) |
SERP (Amounts Recognized As Lia
SERP (Amounts Recognized As Liabilities In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Accrued salaries, wages and related benefits | $ 12 | $ 11 |
Other liabilities (noncurrent) | 156 | 165 |
Net amount recognized | $ 168 | $ 176 |
SERP (Components Of SERP Expens
SERP (Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Participant service cost | $ 1 | $ 2 | $ 2 |
Interest cost | 9 | 6 | 5 |
Amortization of net loss and other | 0 | 4 | 8 |
Total SERP expense | $ 10 | $ 12 | $ 15 |
SERP (Amounts Recognized In Acc
SERP (Amounts Recognized In Accumulated Other Comprehensive Loss (Pre-tax)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Actuarial gain | $ (7) | $ (34) | $ (14) |
Amortization of net loss and other | 0 | (4) | (8) |
Amounts recognized in accumulated other comprehensive gain (loss) | $ (7) | $ (38) | $ (22) |
SERP (Weighted-Average Assumpti
SERP (Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense) (Details) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Assumptions used to determine benefit obligation: | |||
Discount rate | 5.27% | 4.95% | 3.19% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Assumptions used to determine SERP expense: | |||
Discount rate | 4.95% | 3.19% | 2.62% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
SERP (Expected Future Benefit P
SERP (Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service) (Details) $ in Millions | Feb. 03, 2024 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
2024 | $ 12 |
2025 | 12 |
2026 | 13 |
2027 | 13 |
2028 | 13 |
2029 – 2033 | 61 |
Thereafter | $ 44 |
SERP (Narrative) (Details)
SERP (Narrative) (Details) $ in Millions | Feb. 03, 2024 USD ($) officer participant retiree beneficiary | Jan. 28, 2023 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Number of total participants in SERP benefits plan | participant | 57 | |
Number of officers and select employees eligible for SERP benefits | officer | 5 | |
Number of retirees eligible for SERP benefits | retiree | 47 | |
Number of beneficiaries eligible for SERP benefits | beneficiary | 5 | |
Accumulated benefit obligation | $ | $ 168 | $ 175 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | $ 52 | $ 59 | $ 79 | |
Income tax benefit | (13) | (15) | (20) | |
Total stock-based compensation expense, net of income tax benefit | 39 | 44 | 59 | |
Restricted stock units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | 40 | 41 | 52 | |
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | 6 | 11 | 22 | |
Other [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense, before income tax benefit | [1] | $ 6 | $ 7 | $ 5 |
[1]Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards. |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense Before Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 52 | $ 59 | $ 79 |
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 | 10 | 9 | 15 |
SG&A expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 42 | $ 50 | $ 64 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock Unit Activity) (Details) - Restricted stock units [Member] shares in Millions | 12 Months Ended |
Feb. 03, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year (in shares or units) | shares | 4.6 |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 32 |
Granted (in shares or units) | shares | 3.6 |
Granted (in dollars per share) | $ / shares | $ 16 |
Vested (in shares or units) | shares | (1.3) |
Vested (in dollars per share) | $ / shares | $ 26 |
Forfeited or cancelled (in shares or units) | shares | (0.7) |
Forfeited or cancelled (in dollars per share) | $ / shares | $ 21 |
Outstanding, end of year (in shares or units) | shares | 6.2 |
Outstanding, end of year (in dollars per share) | $ / shares | $ 19 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions To Estimate The Fair Value For Stock Options At Grant Date) (Details) - $ / shares | 12 Months Ended | ||||||||
Mar. 06, 2023 | Mar. 03, 2022 | Mar. 04, 2021 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | [2] | |||
Assumptions | |||||||||
Weighted-average volatility | [1] | 52.30% | 52.40% | 52.20% | |||||
Weighted-average expected dividend yield | [3] | 3.80% | 3.40% | 3.40% | |||||
Expected life in years | [4] | 8 years 2 months 12 days | 8 years 3 months 18 days | 8 years 3 months 18 days | |||||
Grant Date Information | |||||||||
Weighted-average fair value per option | $ 8 | $ 10 | $ 13 | [2] | |||||
Exercise price per option | $ 20 | $ 26 | $ 36 | [2] | $ 20 | ||||
Stock options [Member] | |||||||||
Grant Date Information | |||||||||
Option expiration period, in years | 10 years | ||||||||
Stock options [Member] | Price thresholds [Member] | |||||||||
Grant Date Information | |||||||||
Vesting period | 20 days | ||||||||
Minimum [Member] | |||||||||
Assumptions | |||||||||
Risk-free interest rate | [5] | 3.98% | 1.18% | 0.11% | |||||
Minimum [Member] | Stock options [Member] | |||||||||
Grant Date Information | |||||||||
Vesting period | 2 years | ||||||||
Maximum [Member] | |||||||||
Assumptions | |||||||||
Risk-free interest rate | [5] | 5.05% | 1.95% | 1.51% | |||||
Maximum [Member] | Stock options [Member] | |||||||||
Grant Date Information | |||||||||
Vesting period | 4 years | ||||||||
[1]Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock.[2] The options granted on March 4, 2021 include market performance-based stock options with a contractual term of ten years that were awarded to certain members of senior management as well as time-based options. The price-hurdle options contain a market condition that requires the closing price of our stock to meet or exceed certain price thresholds for 20 consecutive trading days in order for shares to vest. |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 06, 2023 | Mar. 03, 2022 | Mar. 04, 2021 | [1] | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Share-Based Payment Arrangement, Noncash Expense [Abstract] | ||||||||
Outstanding, beginning of year (in shares) | 8.5 | |||||||
Outstanding, beginning of year (in dollars per share) | $ 38 | |||||||
Granted (in shares) | 1.1 | |||||||
Exercise price at time of grant (in dollars per share) | $ 20 | $ 26 | $ 36 | $ 20 | ||||
Exercised (in shares) | (0.3) | |||||||
Exercised (in dollars per share) | $ 16 | |||||||
Forfeited or cancelled (in shares) | (1.7) | |||||||
Forfeited or cancelled (in dollars per share) | $ 44 | |||||||
Outstanding, end of year (in shares) | 7.6 | 8.5 | ||||||
Outstanding, end of year (in dollars per share) | $ 35 | $ 38 | ||||||
Outstanding, end of year, weighted-average remaining contractual life (years) | 5 years | |||||||
Outstanding, end of year, aggregate intrinsic value | [2] | $ 5 | ||||||
Exercisable, end of year (in shares) | 4.8 | |||||||
Exercisable, end of year (in dollars per share) | $ 40 | |||||||
Exercisable, end of year, weighted-average remaining contractual life (years) | 4 years | |||||||
Exercisable, end of year, aggregate intrinsic value | [2] | $ 5 | ||||||
Aggregate intrinsic value of options exercised | 1 | $ 4 | $ 0 | |||||
Fair value of stock options vested | $ 4 | $ 27 | $ 2 | |||||
[1] The options granted on March 4, 2021 include market performance-based stock options with a contractual term of ten years that were awarded to certain members of senior management as well as time-based options. The price-hurdle options contain a market condition that requires the closing price of our stock to meet or exceed certain price thresholds for 20 consecutive trading days in order for shares to vest. The aggregate intrinsic value represents the amount realized if all in-the-money options were exercised on the final business day before February 3, 2024 . |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock issued under deferred and stock-based compensation plan arrangement | 2,400,000 | 3,400,000 | 1,600,000 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued | 162,400,000 | 160,100,000 | |
Common stock, shares outstanding | 162,400,000 | 160,100,000 | |
Shares issued under Employee Stock Purchase Plan | 1,000,000 | 900,000 | 500,000 |
Other current liabilities | $ 1,102 | $ 1,203 | |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Total fair value of units vested | $ 33 | 62 | $ 50 |
Total unrecognized stock-based compensation expense related to nonvested share-based awards | $ 69 | ||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 24 months | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | 10 months | ||
Option expiration period, in years | 10 years | ||
Stock options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Stock options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Employee stock purchase plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized | 19,600,000 | ||
Maximum percentage of employee payroll deductions under ESPP | 15% | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 3.5 | ||
ESPP offering period | 6 months | ||
Percentage of fair market value for purchase of shares of common stock in ESPP | 90% | ||
Shares available for issuance under Employee Stock Purchase Plan | 4,900,000 | ||
Other current liabilities | $ 5 | $ 6 | |
2019 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum aggregate number of shares to be issued | 39,500,000 | ||
Common stock, shares authorized | 39,500,000 | ||
Common stock, shares issued | 14,800,000 | ||
Common stock, shares outstanding | 14,800,000 | ||
Shares available for grant under equity incentive plan | 23,900,000 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 15 |
Shareholders' Equity (Summary O
Shareholders' Equity (Summary Of Share Repurchase Program Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | ||
Shareholders' Equity [Line Items] | ||||
Capacity beginning balance | $ 438 | $ 707 | $ 707 | |
Shares repurchased (in shares) | 30,000 | [1] | 2,800,000 | 0 |
Shares repurchased, average price per share (in dollars per share) | $ 19 | [1] | $ 22 | $ 0 |
Capacity ending balance | $ 438 | [1] | $ 438 | $ 707 |
2018 Program [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Expiration of unused capacity | (707) | |||
2022 Program [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Program authorization | 500 | |||
Accumulated deficit [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Shares repurchased (amount) | $ (1) | [1] | $ (62) | $ 0 |
[1] Subtotal of ending share repurchase capacity may not foot due to rounding. |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Millions | 2 Months Ended | 12 Months Ended | ||
Mar. 19, 2024 $ / shares | Feb. 03, 2024 $ / shares shares | Jan. 28, 2023 USD ($) $ / shares | Jan. 29, 2022 $ / shares | |
Shareholders' Equity [Line Items] | ||||
Dividends (in dollars per share) | $ 0.76 | $ 0.76 | $ 0 | |
Number of rights declared for each outstanding share of common stock | 1 | |||
Rights Plan expiration date | Sep. 19, 2025 | |||
Number of shares each right holders is entitled to purchase per right | shares | 1 | |||
Exercise price per right | $ 94 | |||
Ownership percentage required that triggers exercisability for right holders | 10% | |||
Multiple of exercise price of right, value of common stock received | 2 | |||
Redemption price per right | $ 0.001 | |||
Subsequent Event [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Quarterly dividend per share declared and paid subsequent quarter | $ 0.19 | |||
2022 Program [Member] | ||||
Shareholders' Equity [Line Items] | ||||
Program authorization | $ | $ 500 |
Income Taxes (U.S. And Foreign
Income Taxes (U.S. And Foreign Components Of Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 143 | $ 316 | $ 241 |
Foreign | 4 | 21 | 5 |
Earnings before income taxes | $ 147 | $ 337 | $ 246 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Current income taxes: | |||
Federal | $ 55 | $ 149 | $ 61 |
State and local | 18 | 27 | 18 |
Foreign | 0 | (1) | 0 |
Total current income tax expense | 73 | 175 | 79 |
Deferred income taxes: | |||
Federal | (59) | (86) | (10) |
State and local | (10) | (2) | (5) |
Foreign | 9 | 5 | 4 |
Total deferred income tax benefit | (60) | (83) | (11) |
Total income tax expense | $ 13 | $ 92 | $ 68 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Statutory To Effective Tax Rate) (Details) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Tax Credit Carryforward [Line Items] | |||
Statutory rate | 21% | 21% | 21% |
State and local income taxes, net of federal income taxes | 4% | 5.90% | 3.40% |
Federal credits | (4.70%) | (3.80%) | (4.00%) |
Non-deductible expenses | 2.90% | 1.20% | 2.70% |
Stock-based compensation | 5.10% | 1.80% | 2% |
Valuation allowance | 6.60% | 0.40% | 1.80% |
Taxes on foreign operations | 1.50% | 1.60% | 1.30% |
Excess tax over book loss on Canada wind-down | (18.20%) | 0% | 0% |
Resolution of prior period tax matters | (11.20%) | 0% | 0% |
Other, net | 1.60% | (0.90%) | 0.20% |
Effective tax rate | 8.60% | 27.20% | 27.50% |
CARES Act | |||
Tax Credit Carryforward [Line Items] | |||
Federal credits | 0% | 0% | (0.90%) |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Mar. 02, 2023 | Jan. 28, 2023 |
Deferred tax assets: | |||
Lease liabilities | $ 425 | $ 463 | |
Compensation and benefits accruals | 104 | 111 | |
Sales return reserve | 56 | 61 | |
Accrued expenses | 31 | 28 | |
Merchandise inventories | 36 | 33 | |
Gift cards | 39 | 43 | |
The Nordy Club loyalty program | 2 | 8 | |
Net operating losses | 38 | 52 | |
Other | 36 | 25 | |
Total deferred tax assets | 767 | 824 | |
Valuation allowance | (1) | $ 0 | (28) |
Total deferred tax assets, net of valuation allowance | 766 | 796 | |
Deferred tax liabilities: | |||
ROU assets | (310) | (331) | |
Land, property and equipment | (164) | (230) | |
Debt exchange premium | (11) | (12) | |
Total deferred tax liabilities | (485) | (573) | |
Net deferred tax assets | $ 281 | $ 223 |
Income Taxes (Information On Ap
Income Taxes (Information On Approximate Net Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Feb. 03, 2024 | Jan. 28, 2023 |
State [Member] | ||
Income Tax Examination [Line Items] | ||
Approximate net operating loss carryforwards for income tax | $ 621 | $ 756 |
Foreign [Member] | ||
Income Tax Examination [Line Items] | ||
Approximate net operating loss carryforwards for income tax | $ 0 | $ 26 |
Income Taxes (Reconciliation _2
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit at beginning of year | $ 48 | $ 47 | $ 32 |
Gross increase to tax positions in prior periods | 1 | 1 | 11 |
Gross decrease to tax positions in prior periods | (4) | (6) | 0 |
Gross increase to tax positions in current period | 6 | 7 | 6 |
Settlements | (27) | (1) | (2) |
Unrecognized tax benefit at end of year | $ 24 | $ 48 | $ 47 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 02, 2023 | Feb. 01, 2025 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Tax Credit Carryforward [Line Items] | |||||
Valuation Allowance | $ 0 | $ 1 | $ 28 | ||
Change in valuation allowance | $ 9 | 0 | |||
Unrecognized tax benefits that would affect the effective tax rate | 22 | 45 | |||
Interest and penalties | 0 | 0 | $ 0 | ||
Liability for interest and penalties | $ 3 | $ 8 | |||
Estimated future interest payments [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits related to federal, state and local tax positions | $ 6 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations, inventory purchase orders and capital expenditure commitments | $ 2,049 |
Estimated future payments, term | 1 year |
Earnings Per Share (Computation
Earnings Per Share (Computation Of EPS) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 134 | $ 245 | $ 178 |
Basic weighted-average shares outstanding (in shares) | 161.8 | 160.1 | 159 |
Dilutive shares | 1.6 | 2 | 3.5 |
Diluted weighted-average shares outstanding (in shares) | 163.4 | 162.1 | 162.5 |
Basic EPS (in dollars per share) | $ 0.83 | $ 1.53 | $ 1.12 |
Diluted EPS (in dollars per share) | $ 0.82 | $ 1.51 | $ 1.10 |
Anti-dilutive shares | 8.4 | 8.7 | 8.1 |
Segment Reporting (Information
Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 14,219 | $ 15,092 | $ 14,402 |
Credit card revenues, net | 474 | 438 | 387 |
Earnings (loss) before interest and income taxes | 251 | 465 | 492 |
Capital expenditures | (569) | (473) | (506) |
Canada wind-down costs | (284) | 0 | 0 |
Depreciation and amortization | (586) | (604) | (615) |
Assets | 8,444 | 8,745 | 8,869 |
Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 14,219 | 15,092 | 14,402 |
Credit card revenues, net | 0 | 0 | 0 |
Earnings (loss) before interest and income taxes | 855 | 719 | 687 |
Capital expenditures | (244) | (154) | (218) |
Canada wind-down costs | 0 | ||
Depreciation and amortization | (263) | (316) | (350) |
Assets | 5,622 | 5,968 | 6,244 |
Corporate/Other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | 0 |
Credit card revenues, net | 474 | 438 | 387 |
Earnings (loss) before interest and income taxes | (604) | (254) | (195) |
Capital expenditures | (325) | (319) | (288) |
Canada wind-down costs | (284) | ||
Depreciation and amortization | (323) | (288) | (265) |
Assets | $ 2,822 | $ 2,777 | $ 2,625 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Feb. 03, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 2 |