Washington
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91-0515058
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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1617 Sixth Avenue, Seattle, Washington
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98101
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 2.
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Item 6.
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Quarter Ended
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Six Months Ended
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||||||||||||
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August 1, 2015
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August 2, 2014
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August 1, 2015
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August 2, 2014
|
||||||||
Net sales
|
$
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3,598
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|
|
$
|
3,296
|
|
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$
|
6,714
|
|
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$
|
6,133
|
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Credit card revenues
|
103
|
|
|
96
|
|
|
202
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|
|
190
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|
||||
Total revenues
|
3,701
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3,392
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6,916
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6,323
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||||
Cost of sales and related buying and occupancy costs
|
(2,327
|
)
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(2,130
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)
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(4,326
|
)
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(3,951
|
)
|
||||
Selling, general and administrative expenses
|
(1,048
|
)
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|
(931
|
)
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(2,019
|
)
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(1,776
|
)
|
||||
Credit transaction and other, net
|
51
|
|
|
—
|
|
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51
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|
|
—
|
|
||||
Earnings before interest and income taxes
|
377
|
|
|
331
|
|
|
622
|
|
|
596
|
|
||||
Interest expense, net
|
(32
|
)
|
|
(35
|
)
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(65
|
)
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|
(70
|
)
|
||||
Earnings before income taxes
|
345
|
|
|
296
|
|
|
557
|
|
|
526
|
|
||||
Income tax expense
|
(134
|
)
|
|
(113
|
)
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|
(218
|
)
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|
(203
|
)
|
||||
Net earnings
|
$
|
211
|
|
|
$
|
183
|
|
|
$
|
339
|
|
|
$
|
323
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||||||||
Earnings per share:
|
|
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||||||||
Basic
|
$
|
1.11
|
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|
$
|
0.97
|
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$
|
1.78
|
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$
|
1.70
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Diluted
|
$
|
1.09
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$
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0.95
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$
|
1.74
|
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$
|
1.68
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||||||||
Weighted-average shares outstanding:
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||||||||
Basic
|
189.4
|
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|
189.6
|
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190.0
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189.7
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||||
Diluted
|
193.5
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|
192.7
|
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|
194.2
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|
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192.7
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Quarter Ended
|
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Six Months Ended
|
||||||||||||
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August 1, 2015
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August 2, 2014
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August 1, 2015
|
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August 2, 2014
|
||||||||
Net earnings
|
$
|
211
|
|
|
$
|
183
|
|
|
$
|
339
|
|
|
$
|
323
|
|
Postretirement plan adjustments, net of tax
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Foreign currency translation adjustment
|
(10
|
)
|
|
—
|
|
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(5
|
)
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|
1
|
|
||||
Comprehensive net earnings
|
$
|
202
|
|
|
$
|
184
|
|
|
$
|
337
|
|
|
$
|
326
|
|
|
August 1, 2015
|
|
January 31, 2015
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August 2, 2014
|
||||||
Assets
|
|
|
|
|
|
||||||
Current assets:
|
|
|
|
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|
||||||
Cash and cash equivalents
|
$
|
423
|
|
|
$
|
827
|
|
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$
|
772
|
|
Accounts receivable held for sale
|
2,391
|
|
|
—
|
|
|
—
|
|
|||
Accounts receivable, net
|
241
|
|
|
2,306
|
|
|
2,454
|
|
|||
Merchandise inventories
|
2,004
|
|
|
1,733
|
|
|
1,805
|
|
|||
Current deferred tax assets, net
|
256
|
|
|
256
|
|
|
260
|
|
|||
Prepaid expenses and other
|
117
|
|
|
102
|
|
|
96
|
|
|||
Total current assets
|
5,432
|
|
|
5,224
|
|
|
5,387
|
|
|||
|
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||||||
Land, property and equipment (net of accumulated depreciation of $4,912, $4,698 and $4,587)
|
3,570
|
|
|
3,340
|
|
|
3,096
|
|
|||
Goodwill
|
447
|
|
|
435
|
|
|
175
|
|
|||
Other assets
|
251
|
|
|
246
|
|
|
248
|
|
|||
Total assets
|
$
|
9,700
|
|
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$
|
9,245
|
|
|
$
|
8,906
|
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||||||
Liabilities and Shareholders' Equity
|
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||||||
Current liabilities:
|
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|
||||||
Accounts payable
|
$
|
1,589
|
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|
$
|
1,328
|
|
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$
|
1,529
|
|
Accrued salaries, wages and related benefits
|
389
|
|
|
416
|
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358
|
|
|||
Other current liabilities
|
1,145
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1,048
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|
944
|
|
|||
Current portion of long-term debt
|
333
|
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|
8
|
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|
7
|
|
|||
Total current liabilities
|
3,456
|
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|
2,800
|
|
|
2,838
|
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|||
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|
||||||
Long-term debt, net
|
2,808
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|
3,123
|
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3,111
|
|
|||
Deferred property incentives, net
|
560
|
|
|
510
|
|
|
498
|
|
|||
Other liabilities
|
385
|
|
|
372
|
|
|
358
|
|
|||
|
|
|
|
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|
||||||
Commitments and contingencies (Note 7)
|
|
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|
||||||
|
|
|
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|
||||||
Shareholders' equity:
|
|
|
|
|
|
||||||
Common stock, no par value: 1,000 shares authorized; 188.2, 190.1 and 188.6 shares issued and outstanding
|
2,460
|
|
|
2,338
|
|
|
1,958
|
|
|||
Retained earnings
|
97
|
|
|
166
|
|
|
179
|
|
|||
Accumulated other comprehensive loss
|
(66
|
)
|
|
(64
|
)
|
|
(36
|
)
|
|||
Total shareholders' equity
|
2,491
|
|
|
2,440
|
|
|
2,101
|
|
|||
Total liabilities and shareholders' equity
|
$
|
9,700
|
|
|
$
|
9,245
|
|
|
$
|
8,906
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
||||||||
|
|
|
|
|
|
|
Other
|
|
|
|
||||||||
|
Common Stock
|
|
Retained
|
|
|
Comprehensive
|
|
|
|
|||||||||
|
Shares
|
|
Amount
|
|
Earnings
|
|
|
Loss
|
|
|
Total
|
|
||||||
Balance at January 31, 2015
|
190.1
|
|
|
$
|
2,338
|
|
|
$
|
166
|
|
|
$
|
(64
|
)
|
|
$
|
2,440
|
|
Net earnings
|
—
|
|
|
—
|
|
|
339
|
|
|
—
|
|
|
339
|
|
||||
Other comprehensive earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||
Dividends ($0.74 per share)
|
—
|
|
|
—
|
|
|
(142
|
)
|
|
—
|
|
|
(142
|
)
|
||||
Issuance of common stock under stock compensation plans
|
1.5
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
84
|
|
||||
Stock-based compensation
|
0.1
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
38
|
|
||||
Repurchase of common stock
|
(3.5
|
)
|
|
—
|
|
|
(266
|
)
|
|
—
|
|
|
(266
|
)
|
||||
Balance at August 1, 2015
|
188.2
|
|
|
$
|
2,460
|
|
|
$
|
97
|
|
|
$
|
(66
|
)
|
|
$
|
2,491
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
Accumulated
|
|
|
|
||||||||
|
|
|
|
|
|
|
Other
|
|
|
|
||||||||
|
Common Stock
|
|
Retained
|
|
|
Comprehensive
|
|
|
|
|||||||||
|
Shares
|
|
Amount
|
|
Earnings
|
|
|
Loss
|
|
|
Total
|
|
||||||
Balance at February 1, 2014
|
191.2
|
|
|
$
|
1,827
|
|
|
$
|
292
|
|
|
$
|
(39
|
)
|
|
$
|
2,080
|
|
Net earnings
|
—
|
|
|
—
|
|
|
323
|
|
|
—
|
|
|
323
|
|
||||
Other comprehensive earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Dividends ($0.66 per share)
|
—
|
|
|
—
|
|
|
(125
|
)
|
|
—
|
|
|
(125
|
)
|
||||
Issuance of common stock under stock compensation plans
|
2.3
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
101
|
|
||||
Stock-based compensation
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||
Repurchase of common stock
|
(4.9
|
)
|
|
—
|
|
|
(311
|
)
|
|
—
|
|
|
(311
|
)
|
||||
Balance at August 2, 2014
|
188.6
|
|
|
$
|
1,958
|
|
|
$
|
179
|
|
|
$
|
(36
|
)
|
|
$
|
2,101
|
|
|
Six Months Ended
|
||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||
Operating Activities
|
|
|
|
||||
Net earnings
|
$
|
339
|
|
|
$
|
323
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization expenses
|
277
|
|
|
244
|
|
||
Amortization of deferred property incentives and other, net
|
(41
|
)
|
|
(40
|
)
|
||
Deferred income taxes, net
|
(24
|
)
|
|
(43
|
)
|
||
Stock-based compensation expense
|
41
|
|
|
31
|
|
||
Tax benefit from stock-based compensation
|
13
|
|
|
10
|
|
||
Excess tax benefit from stock-based compensation
|
(13
|
)
|
|
(11
|
)
|
||
Bad debt expense
|
20
|
|
|
22
|
|
||
Credit transaction and other, net
|
(54
|
)
|
|
—
|
|
||
Change in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(216
|
)
|
|
(221
|
)
|
||
Merchandise inventories
|
(280
|
)
|
|
(263
|
)
|
||
Prepaid expenses and other assets
|
(19
|
)
|
|
(11
|
)
|
||
Accounts payable
|
240
|
|
|
241
|
|
||
Accrued salaries, wages and related benefits
|
(30
|
)
|
|
(35
|
)
|
||
Other current liabilities
|
56
|
|
|
68
|
|
||
Deferred property incentives
|
97
|
|
|
48
|
|
||
Other liabilities
|
9
|
|
|
6
|
|
||
Net cash provided by operating activities
|
415
|
|
|
369
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(521
|
)
|
|
(376
|
)
|
||
Change in credit card receivables originated at third parties
|
(64
|
)
|
|
(77
|
)
|
||
Other, net
|
4
|
|
|
(9
|
)
|
||
Net cash used in investing activities
|
(581
|
)
|
|
(462
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Proceeds from long-term borrowings, net of discounts
|
16
|
|
|
13
|
|
||
Principal payments on long-term borrowings
|
(4
|
)
|
|
(4
|
)
|
||
Increase in cash book overdrafts
|
49
|
|
|
15
|
|
||
Cash dividends paid
|
(142
|
)
|
|
(125
|
)
|
||
Payments for repurchase of common stock
|
(267
|
)
|
|
(326
|
)
|
||
Proceeds from issuances under stock compensation plans
|
71
|
|
|
91
|
|
||
Excess tax benefit from stock-based compensation
|
13
|
|
|
11
|
|
||
Other, net
|
26
|
|
|
(4
|
)
|
||
Net cash used in financing activities
|
(238
|
)
|
|
(329
|
)
|
||
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
(404
|
)
|
|
(422
|
)
|
||
Cash and cash equivalents at beginning of period
|
827
|
|
|
1,194
|
|
||
Cash and cash equivalents at end of period
|
$
|
423
|
|
|
$
|
772
|
|
|
|
|
|
||||
Supplemental Cash Flow Information
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Income taxes, net of refunds
|
$
|
209
|
|
|
$
|
219
|
|
Interest, net of capitalized interest
|
70
|
|
|
78
|
|
||
|
|
|
|
||||
Non-cash activities:
|
|
|
|
||||
Accounts receivable reclassified from held for investment to held for sale
|
2,391
|
|
|
—
|
|
|
August 1, 2015
|
|
January 31, 2015
|
|
August 2, 2014
|
||||||
Credit card receivables held for investment
|
$
|
120
|
|
|
$
|
2,284
|
|
|
$
|
2,420
|
|
Allowance for credit losses
|
(1
|
)
|
|
(75
|
)
|
|
(80
|
)
|
|||
Other accounts receivable
1
|
122
|
|
|
97
|
|
|
114
|
|
|||
Accounts receivable, net
|
$
|
241
|
|
|
$
|
2,306
|
|
|
$
|
2,454
|
|
|
|
|
|
|
|
||||||
Accounts receivable held for sale
|
$
|
2,391
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Allowance at beginning of period
|
$
|
70
|
|
|
$
|
80
|
|
|
$
|
75
|
|
|
$
|
80
|
|
Bad debt expense
|
10
|
|
|
7
|
|
|
20
|
|
|
22
|
|
||||
Write-offs
|
(18
|
)
|
|
(19
|
)
|
|
(38
|
)
|
|
(38
|
)
|
||||
Recoveries
|
3
|
|
|
12
|
|
|
8
|
|
|
16
|
|
||||
Reversal of allowance on receivables held for sale
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
||||
Allowance at end of period
|
$
|
1
|
|
|
$
|
80
|
|
|
$
|
1
|
|
|
$
|
80
|
|
|
August 1, 2015
|
|
January 31, 2015
|
|
August 2, 2014
|
||||||
Credit card receivables classified as TDRs
|
$
|
30
|
|
|
$
|
34
|
|
|
$
|
38
|
|
Percent of total credit card receivables classified as TDRs
|
1.2
|
%
|
|
1.5
|
%
|
|
1.6
|
%
|
|
August 1, 2015
|
|
January 31, 2015
|
|
August 2, 2014
|
|||||||||||||||
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
|||||||||
Current
|
$
|
2,377
|
|
|
94.7
|
%
|
|
$
|
2,134
|
|
|
93.4
|
%
|
|
$
|
2,301
|
|
|
95.1
|
%
|
1 – 29 days delinquent
|
91
|
|
|
3.6
|
%
|
|
103
|
|
|
4.5
|
%
|
|
82
|
|
|
3.4
|
%
|
|||
30 days or more delinquent:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
30 – 59 days delinquent
|
15
|
|
|
0.6
|
%
|
|
16
|
|
|
0.7
|
%
|
|
15
|
|
|
0.6
|
%
|
|||
60 – 89 days delinquent
|
10
|
|
|
0.4
|
%
|
|
10
|
|
|
0.5
|
%
|
|
9
|
|
|
0.4
|
%
|
|||
90 days or more delinquent
|
18
|
|
|
0.7
|
%
|
|
21
|
|
|
0.9
|
%
|
|
13
|
|
|
0.5
|
%
|
|||
Total 30 days or more delinquent
|
43
|
|
|
1.7
|
%
|
|
47
|
|
|
2.1
|
%
|
|
37
|
|
|
1.5
|
%
|
|||
Total credit card receivables
|
$
|
2,511
|
|
|
100.0
|
%
|
|
$
|
2,284
|
|
|
100.0
|
%
|
|
$
|
2,420
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Receivables not accruing finance charges
|
$
|
10
|
|
|
|
|
$
|
13
|
|
|
|
|
$
|
11
|
|
|
|
|||
Receivables 90 days or more delinquent and still accruing finance charges
|
12
|
|
|
|
|
13
|
|
|
|
|
7
|
|
|
|
|
August 1, 2015
|
|
January 31, 2015
|
|
August 2, 2014
|
|||||||||||||||
FICO Score Range
1
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
|
Balance
|
|
% of total
|
|||||||||
801+
|
$
|
497
|
|
|
19.8
|
%
|
|
$
|
369
|
|
|
16.2
|
%
|
|
$
|
481
|
|
|
19.8
|
%
|
660 – 800
|
1,513
|
|
|
60.3
|
%
|
|
1,435
|
|
|
62.8
|
%
|
|
1,478
|
|
|
61.1
|
%
|
|||
001 – 659
|
395
|
|
|
15.7
|
%
|
|
392
|
|
|
17.1
|
%
|
|
365
|
|
|
15.1
|
%
|
|||
Other
2
|
106
|
|
|
4.2
|
%
|
|
88
|
|
|
3.9
|
%
|
|
96
|
|
|
4.0
|
%
|
|||
Total credit card receivables
|
$
|
2,511
|
|
|
100.0
|
%
|
|
$
|
2,284
|
|
|
100.0
|
%
|
|
$
|
2,420
|
|
|
100.0
|
%
|
|
August 1, 2015
|
|
January 31, 2015
|
|
August 2, 2014
|
||||||
Secured
|
|
|
|
|
|
||||||
Series 2011-1 Class A Notes, 2.28%, due October 2016
|
$
|
325
|
|
|
$
|
325
|
|
|
$
|
325
|
|
Mortgage payable, 7.68%, due April 2020
|
33
|
|
|
36
|
|
|
39
|
|
|||
Other
|
9
|
|
|
7
|
|
|
8
|
|
|||
Total secured debt
|
367
|
|
|
368
|
|
|
372
|
|
|||
|
|
|
|
|
|
||||||
Unsecured
|
|
|
|
|
|
||||||
Net of unamortized discount:
|
|
|
|
|
|
||||||
Senior notes, 6.25%, due January 2018
|
649
|
|
|
649
|
|
|
649
|
|
|||
Senior notes, 4.75%, due May 2020
|
499
|
|
|
499
|
|
|
499
|
|
|||
Senior notes, 4.00%, due October 2021
|
499
|
|
|
499
|
|
|
499
|
|
|||
Senior debentures, 6.95%, due March 2028
|
300
|
|
|
300
|
|
|
300
|
|
|||
Senior notes, 7.00%, due January 2038
|
146
|
|
|
146
|
|
|
146
|
|
|||
Senior notes, 5.00%, due January 2044
|
599
|
|
|
598
|
|
|
596
|
|
|||
Other
|
82
|
|
|
72
|
|
|
57
|
|
|||
Total unsecured debt
|
2,774
|
|
|
2,763
|
|
|
2,746
|
|
|||
|
|
|
|
|
|
||||||
Total long-term debt
|
3,141
|
|
|
3,131
|
|
|
3,118
|
|
|||
Less: current portion
|
(333
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|||
Total due beyond one year
|
$
|
2,808
|
|
|
$
|
3,123
|
|
|
$
|
3,111
|
|
|
August 1, 2015
|
|
January 31, 2015
|
|
August 2, 2014
|
||||||
Carrying value of long-term debt
1
|
$
|
3,141
|
|
|
$
|
3,131
|
|
|
$
|
3,118
|
|
Fair value of long-term debt
|
3,526
|
|
|
3,693
|
|
|
3,551
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Stock options
|
$
|
10
|
|
|
$
|
11
|
|
|
$
|
19
|
|
|
$
|
21
|
|
Acquisition-related stock compensation
|
4
|
|
|
—
|
|
|
9
|
|
|
1
|
|
||||
Restricted stock units
|
6
|
|
|
4
|
|
|
10
|
|
|
6
|
|
||||
Performance share units
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Other
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Total stock-based compensation expense, before income tax benefit
|
22
|
|
|
18
|
|
|
41
|
|
|
31
|
|
||||
Income tax benefit
|
(7
|
)
|
|
(7
|
)
|
|
(13
|
)
|
|
(11
|
)
|
||||
Total stock-based compensation expense, net of income tax benefit
|
$
|
15
|
|
|
$
|
11
|
|
|
$
|
28
|
|
|
$
|
20
|
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||||||||
|
Granted
|
|
Weighted-average grant-date fair value per unit
|
|
Granted
|
|
Weighted-average grant-date fair value per unit
|
||||||
Stock options
|
1.7
|
|
|
$
|
21
|
|
|
1.9
|
|
|
$
|
16
|
|
Restricted stock units
|
0.4
|
|
|
78
|
|
|
0.5
|
|
|
62
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Net earnings
|
$
|
211
|
|
|
$
|
183
|
|
|
$
|
339
|
|
|
$
|
323
|
|
|
|
|
|
|
|
|
|
||||||||
Basic shares
|
189.4
|
|
|
189.6
|
|
|
190.0
|
|
|
189.7
|
|
||||
Dilutive effect of stock options and other
|
4.1
|
|
|
3.1
|
|
|
4.2
|
|
|
3.0
|
|
||||
Diluted shares
|
193.5
|
|
|
192.7
|
|
|
194.2
|
|
|
192.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per basic share
|
$
|
1.11
|
|
|
$
|
0.97
|
|
|
$
|
1.78
|
|
|
$
|
1.70
|
|
Earnings per diluted share
|
$
|
1.09
|
|
|
$
|
0.95
|
|
|
$
|
1.74
|
|
|
$
|
1.68
|
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive stock options and other
|
1.7
|
|
|
1.8
|
|
|
1.7
|
|
|
3.4
|
|
|
|
Retail
|
|
Corporate/Other
|
|
Retail
Business
1
|
|
Credit
|
|
Total
|
||||||||||
Quarter Ended August 1, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
3,775
|
|
|
$
|
(177
|
)
|
|
$
|
3,598
|
|
|
$
|
—
|
|
|
$
|
3,598
|
|
Credit card revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
103
|
|
|||||
Earnings (loss) before interest and income taxes
|
|
384
|
|
|
(121
|
)
|
|
263
|
|
|
114
|
|
|
377
|
|
|||||
Interest expense, net
|
|
—
|
|
|
(27
|
)
|
|
(27
|
)
|
|
(5
|
)
|
|
(32
|
)
|
|||||
Earnings (loss) before income taxes
|
|
384
|
|
|
(148
|
)
|
|
236
|
|
|
109
|
|
|
345
|
|
|||||
Goodwill
|
|
447
|
|
|
—
|
|
|
447
|
|
|
—
|
|
|
447
|
|
|||||
Assets
2
|
|
5,369
|
|
|
1,529
|
|
|
6,898
|
|
|
2,802
|
|
|
9,700
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Quarter Ended August 2, 2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
3,438
|
|
|
$
|
(142
|
)
|
|
$
|
3,296
|
|
|
$
|
—
|
|
|
$
|
3,296
|
|
Credit card revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
96
|
|
|||||
Earnings (loss) before interest and income taxes
|
|
367
|
|
|
(89
|
)
|
|
278
|
|
|
53
|
|
|
331
|
|
|||||
Interest expense, net
|
|
—
|
|
|
(30
|
)
|
|
(30
|
)
|
|
(5
|
)
|
|
(35
|
)
|
|||||
Earnings (loss) before income taxes
|
|
367
|
|
|
(119
|
)
|
|
248
|
|
|
48
|
|
|
296
|
|
|||||
Goodwill
|
|
175
|
|
|
—
|
|
|
175
|
|
|
—
|
|
|
175
|
|
|||||
Assets
2
|
|
4,480
|
|
|
1,901
|
|
|
6,381
|
|
|
2,525
|
|
|
8,906
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended August 1, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
6,966
|
|
|
$
|
(252
|
)
|
|
$
|
6,714
|
|
|
$
|
—
|
|
|
$
|
6,714
|
|
Credit card revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
202
|
|
|
202
|
|
|||||
Earnings (loss) before interest and income taxes
|
|
670
|
|
|
(209
|
)
|
|
461
|
|
|
161
|
|
|
622
|
|
|||||
Interest expense, net
|
|
—
|
|
|
(55
|
)
|
|
(55
|
)
|
|
(10
|
)
|
|
(65
|
)
|
|||||
Earnings (loss) before income taxes
|
|
670
|
|
|
(264
|
)
|
|
406
|
|
|
151
|
|
|
557
|
|
|||||
Goodwill
|
|
447
|
|
|
—
|
|
|
447
|
|
|
—
|
|
|
447
|
|
|||||
Assets
2
|
|
5,369
|
|
|
1,529
|
|
|
6,898
|
|
|
2,802
|
|
|
9,700
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six Months Ended August 2, 2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
6,348
|
|
|
$
|
(215
|
)
|
|
$
|
6,133
|
|
|
$
|
—
|
|
|
$
|
6,133
|
|
Credit card revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|
190
|
|
|||||
Earnings (loss) before interest and income taxes
|
|
677
|
|
|
(175
|
)
|
|
502
|
|
|
94
|
|
|
596
|
|
|||||
Interest expense, net
|
|
—
|
|
|
(61
|
)
|
|
(61
|
)
|
|
(9
|
)
|
|
(70
|
)
|
|||||
Earnings (loss) before income taxes
|
|
677
|
|
|
(236
|
)
|
|
441
|
|
|
85
|
|
|
526
|
|
|||||
Goodwill
|
|
175
|
|
|
—
|
|
|
175
|
|
|
—
|
|
|
175
|
|
|||||
Assets
2
|
|
4,480
|
|
|
1,901
|
|
|
6,381
|
|
|
2,525
|
|
|
8,906
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Nordstrom full-line stores - U.S.
|
$
|
2,097
|
|
|
$
|
2,074
|
|
|
$
|
3,796
|
|
|
$
|
3,757
|
|
Nordstrom.com
|
625
|
|
|
519
|
|
|
1,105
|
|
|
920
|
|
||||
Nordstrom
|
2,722
|
|
|
2,593
|
|
|
4,901
|
|
|
4,677
|
|
||||
Nordstrom Rack
|
857
|
|
|
759
|
|
|
1,688
|
|
|
1,500
|
|
||||
Nordstromrack.com/HauteLook
|
117
|
|
|
78
|
|
|
234
|
|
|
155
|
|
||||
Other retail
1
|
79
|
|
|
8
|
|
|
143
|
|
|
16
|
|
||||
Total Retail segment
|
3,775
|
|
|
3,438
|
|
|
6,966
|
|
|
6,348
|
|
||||
Corporate/Other
|
(177
|
)
|
|
(142
|
)
|
|
(252
|
)
|
|
(215
|
)
|
||||
Total net sales
|
$
|
3,598
|
|
|
$
|
3,296
|
|
|
$
|
6,714
|
|
|
$
|
6,133
|
|
•
|
successful execution of our customer strategy, including expansion into new domestic and international markets, acquisitions, investments in our stores and online, our ability to realize the anticipated benefits from growth initiatives and our ability to provide a seamless experience across all channels,
|
•
|
timely completion of construction associated with newly planned stores, relocations and remodels, all of which may be impacted by the financial health of third parties,
|
•
|
our ability to manage the investment opportunities in our online business and our ability to manage related organizational changes,
|
•
|
our ability to maintain relationships with our employees and to effectively attract, develop and retain our future leaders,
|
•
|
effective inventory management, disruptions in our supply chain and our ability to control costs,
|
•
|
the impact of any systems failures, cybersecurity and/or security breaches, including any security breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of customer, employee or company information or compliance with information security and privacy laws and regulations in the event of such an incident,
|
•
|
successful execution of our information technology strategy,
|
•
|
our ability to effectively utilize data in strategic planning and decision making,
|
•
|
efficient and proper allocation of our capital resources,
|
•
|
our ability to successfully close the U.S. Visa and private label credit card portfolio transaction,
|
•
|
our ability to safeguard our reputation and maintain our vendor relationships,
|
•
|
the impact of economic and market conditions and the resultant impact on consumer spending patterns,
|
•
|
our ability to respond to the business environment, fashion trends and consumer preferences, including changing expectations of service and experience in stores and online,
|
•
|
the effectiveness of planned advertising, marketing and promotional campaigns in the highly competitive retail industry,
|
•
|
weather conditions, natural disasters, health hazards, national security or other market disruptions, or the prospects of these events and the resulting impact on consumer spending patterns,
|
•
|
our compliance with applicable banking-related laws and regulations impacting our ability to extend credit to our customers, employment laws and regulations, certain international laws and regulations, other laws and regulations applicable to us, including the outcome of claims and litigation and resolution of tax matters, and ethical standards,
|
•
|
impact of the current regulatory environment and financial system and health care reforms,
|
•
|
compliance with debt covenants, availability and cost of credit, changes in interest rates, debt repayment patterns, personal bankruptcies and bad debt write-offs, and
|
•
|
the timing, price, manner and amounts of share repurchases by the company, if any, or any share issuances by the company, including issuances associated with option exercises or other matters.
|
•
|
The Anniversary Sale, which is our largest event of the year, contributed to our top-line strength and achieved our expectations.
|
•
|
Our growth investments, including our entry into Canada, the acquisition of Trunk Club and the Nordstromrack.com launch, collectively added over $100 to our top line, driving over one-third of our net sales growth.
|
•
|
Nordstrom Rack generated a net sales increase of 13%, which represented the 26th consecutive quarter of double-digit growth.
|
•
|
Our combined full-line and Nordstrom.com business delivered a 4.8% comparable sales increase, reflecting ongoing strength in our existing business and continued trends over the past year.
|
|
Quarter Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||||||||
|
Amount
|
|
% of net sales
1
|
|
Amount
|
|
% of net sales
1
|
||||||
Net sales
|
$
|
3,598
|
|
|
100.0
|
%
|
|
$
|
3,296
|
|
|
100.0
|
%
|
Cost of sales and related buying and occupancy costs
|
(2,326
|
)
|
|
(64.6
|
%)
|
|
(2,129
|
)
|
|
(64.6
|
%)
|
||
Gross profit
|
1,272
|
|
|
35.4
|
%
|
|
1,167
|
|
|
35.4
|
%
|
||
Selling, general and administrative expenses
|
(999
|
)
|
|
(27.8
|
%)
|
|
(889
|
)
|
|
(27.0
|
%)
|
||
Other loss
|
(10
|
)
|
|
(0.3
|
%)
|
|
—
|
|
|
—
|
|
||
Earnings before interest and income taxes
|
$
|
263
|
|
|
7.3
|
%
|
|
$
|
278
|
|
|
8.5
|
%
|
|
|||||||||||||
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||||||||
|
Amount
|
|
% of net sales
1
|
|
Amount
|
|
% of net sales
1
|
||||||
Net sales
|
$
|
6,714
|
|
|
100.0
|
%
|
|
$
|
6,133
|
|
|
100.0
|
%
|
Cost of sales and related buying and occupancy costs
|
(4,323
|
)
|
|
(64.4
|
%)
|
|
(3,949
|
)
|
|
(64.4
|
%)
|
||
Gross profit
|
2,391
|
|
|
35.6
|
%
|
|
2,184
|
|
|
35.6
|
%
|
||
Selling, general and administrative expenses
|
(1,920
|
)
|
|
(28.6
|
%)
|
|
(1,682
|
)
|
|
(27.4
|
%)
|
||
Other loss
|
(10
|
)
|
|
(0.1
|
%)
|
|
—
|
|
|
—
|
|
||
Earnings before interest and income taxes
|
$
|
461
|
|
|
6.9
|
%
|
|
$
|
502
|
|
|
8.2
|
%
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Net sales by channel:
|
|
|
|
|
|
|
|
||||||||
Nordstrom full-line stores - U.S.
|
$
|
2,097
|
|
|
$
|
2,074
|
|
|
$
|
3,796
|
|
|
$
|
3,757
|
|
Nordstrom.com
|
625
|
|
|
519
|
|
|
1,105
|
|
|
920
|
|
||||
Nordstrom
|
2,722
|
|
|
2,593
|
|
|
4,901
|
|
|
4,677
|
|
||||
Nordstrom Rack
|
857
|
|
|
759
|
|
|
1,688
|
|
|
1,500
|
|
||||
Nordstromrack.com/HauteLook
|
117
|
|
|
78
|
|
|
234
|
|
|
155
|
|
||||
Other retail
1
|
79
|
|
|
8
|
|
|
143
|
|
|
16
|
|
||||
Retail segment
|
3,775
|
|
|
3,438
|
|
|
6,966
|
|
|
6,348
|
|
||||
Corporate/Other
|
(177
|
)
|
|
(142
|
)
|
|
(252
|
)
|
|
(215
|
)
|
||||
Total net sales
|
$
|
3,598
|
|
|
$
|
3,296
|
|
|
$
|
6,714
|
|
|
$
|
6,133
|
|
|
|
|
|
|
|
|
|
||||||||
Net sales increase
|
9.2
|
%
|
|
6.2
|
%
|
|
9.5
|
%
|
|
6.4
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Comparable sales increase (decrease) by channel:
2
|
|
|
|
|
|
|
|
||||||||
Nordstrom full-line stores - U.S.
|
0.8
|
%
|
|
(1.2
|
%)
|
|
0.7
|
%
|
|
(1.5
|
%)
|
||||
Nordstrom.com
|
20.4
|
%
|
|
22.0
|
%
|
|
20.1
|
%
|
|
26.6
|
%
|
||||
Nordstrom
|
4.8
|
%
|
|
2.7
|
%
|
|
4.5
|
%
|
|
3.0
|
%
|
||||
Nordstrom Rack
|
1.7
|
%
|
|
4.0
|
%
|
|
0.8
|
%
|
|
5.2
|
%
|
||||
Nordstromrack.com/HauteLook
|
49.6
|
%
|
|
14.9
|
%
|
|
50.4
|
%
|
|
12.6
|
%
|
||||
Total company
|
4.9
|
%
|
|
3.3
|
%
|
|
4.6
|
%
|
|
3.6
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Sales per square foot:
3
|
|
|
|
|
|
|
|
||||||||
Total sales per square foot
|
$
|
131
|
|
|
$
|
125
|
|
|
$
|
245
|
|
|
$
|
233
|
|
4-wall sales per square foot
|
109
|
|
|
107
|
|
|
204
|
|
|
201
|
|
||||
U.S. full-line sales per square foot
|
102
|
|
|
100
|
|
|
185
|
|
|
182
|
|
||||
Nordstrom Rack sales per square foot
|
129
|
|
|
133
|
|
|
259
|
|
|
269
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Retail gross profit
1
|
$
|
1,272
|
|
|
$
|
1,167
|
|
|
$
|
2,391
|
|
|
$
|
2,184
|
|
Retail gross profit as a % of net sales
|
35.4
|
%
|
|
35.4
|
%
|
|
35.6
|
%
|
|
35.6
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Ending inventory per square foot
|
|
|
|
|
$
|
72.72
|
|
|
$
|
68.27
|
|
||||
Inventory turnover rate
2
|
|
|
|
|
4.49
|
|
|
4.83
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Selling, general and administrative expenses
|
$
|
999
|
|
|
$
|
889
|
|
|
$
|
1,920
|
|
|
$
|
1,682
|
|
Selling, general and administrative expenses as a % of net sales
|
27.8
|
%
|
|
27.0
|
%
|
|
28.6
|
%
|
|
27.4
|
%
|
|
Quarter Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||||||||
|
Amount
|
|
Annualized % of average credit card receivables
1
|
|
Amount
|
|
Annualized % of average credit card receivables
1
|
||||||
Credit card revenues
|
$
|
103
|
|
|
18.5
|
%
|
|
$
|
96
|
|
|
18.1
|
%
|
Credit expenses
|
(50
|
)
|
|
(9.0
|
%)
|
|
(43
|
)
|
|
(8.3
|
%)
|
||
Credit transaction, net
|
61
|
|
|
10.9
|
%
|
|
—
|
|
|
—
|
|
||
Earnings before interest and income taxes
2
|
114
|
|
|
20.5
|
%
|
|
53
|
|
|
9.8
|
%
|
||
Interest expense
|
(5
|
)
|
|
(0.9
|
%)
|
|
(5
|
)
|
|
(0.9
|
%)
|
||
Intercompany merchant fees
|
34
|
|
|
6.2
|
%
|
|
31
|
|
|
5.8
|
%
|
||
Credit segment contribution, before income taxes
|
$
|
143
|
|
|
25.8
|
%
|
|
$
|
79
|
|
|
14.8
|
%
|
|
|
|
|
|
|
|
|
||||||
Credit and debit card volume
3
:
|
|
|
|
|
|
|
|
||||||
Outside
|
$
|
1,097
|
|
|
|
|
$
|
1,095
|
|
|
|
||
Inside
|
1,730
|
|
|
|
|
1,571
|
|
|
|
||||
Total volume
|
$
|
2,827
|
|
|
|
|
$
|
2,666
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Average credit card receivables
|
$
|
2,219
|
|
|
|
|
$
|
2,132
|
|
|
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||||||||
|
Amount
|
|
Annualized % of average credit card receivables
1
|
|
Amount
|
|
Annualized % of average credit card receivables
1
|
||||||
Credit card revenues
|
$
|
202
|
|
|
18.6
|
%
|
|
$
|
190
|
|
|
18.2
|
%
|
Credit expenses
|
(102
|
)
|
|
(9.3
|
%)
|
|
(96
|
)
|
|
(9.3
|
%)
|
||
Credit transaction, net
|
61
|
|
|
5.6
|
%
|
|
—
|
|
|
—
|
|
||
Earnings before interest and income taxes
2
|
161
|
|
|
14.8
|
%
|
|
94
|
|
|
9.0
|
%
|
||
Interest expense
|
(10
|
)
|
|
(0.9
|
%)
|
|
(9
|
)
|
|
(0.9
|
%)
|
||
Intercompany merchant fees
|
60
|
|
|
5.5
|
%
|
|
54
|
|
|
5.2
|
%
|
||
Credit segment contribution, before income taxes
|
$
|
211
|
|
|
19.4
|
%
|
|
$
|
139
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
||||||
Credit and debit card volume
3
:
|
|
|
|
|
|
|
|
||||||
Outside
|
$
|
2,150
|
|
|
|
|
$
|
2,146
|
|
|
|
||
Inside
|
2,999
|
|
|
|
|
2,719
|
|
|
|
||||
Total volume
|
$
|
5,149
|
|
|
|
|
$
|
4,865
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Average credit card receivables
|
$
|
2,177
|
|
|
|
|
$
|
2,089
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Finance charge revenue
|
$
|
64
|
|
|
$
|
61
|
|
|
$
|
128
|
|
|
$
|
122
|
|
Interchange – third-party
|
23
|
|
|
22
|
|
|
44
|
|
|
44
|
|
||||
Late fees and other revenue
|
16
|
|
|
13
|
|
|
30
|
|
|
24
|
|
||||
Total Credit card revenues
|
$
|
103
|
|
|
$
|
96
|
|
|
$
|
202
|
|
|
$
|
190
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Operational expenses
|
$
|
39
|
|
|
$
|
35
|
|
|
$
|
79
|
|
|
$
|
72
|
|
Bad debt expense
|
10
|
|
|
7
|
|
|
20
|
|
|
22
|
|
||||
Occupancy expenses
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Total Credit expenses
|
$
|
50
|
|
|
$
|
43
|
|
|
$
|
102
|
|
|
$
|
96
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Allowance at beginning of period
|
$
|
70
|
|
|
$
|
80
|
|
|
$
|
75
|
|
|
$
|
80
|
|
Bad debt expense
|
10
|
|
|
7
|
|
|
20
|
|
|
22
|
|
||||
Write-offs
|
(18
|
)
|
|
(19
|
)
|
|
(38
|
)
|
|
(38
|
)
|
||||
Recoveries
|
3
|
|
|
12
|
|
|
8
|
|
|
16
|
|
||||
Reversal of allowance on receivables held for sale
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
||||
Allowance at end of period
|
$
|
1
|
|
|
$
|
80
|
|
|
$
|
1
|
|
|
$
|
80
|
|
|
|
|
|
|
|
|
|
||||||||
Annualized net write-offs as a % of average credit card receivables
|
2.7
|
%
|
|
1.4
|
%
|
|
2.7
|
%
|
|
2.1
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
30 days or more delinquent as a % of ending credit card receivables
|
|
|
|
|
1.7
|
%
|
|
1.5
|
%
|
||||||
Allowance as a % of ending credit card receivables
1
|
|
|
|
|
N/A
|
|
|
3.3
|
%
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
August 1, 2015
|
|
August 2, 2014
|
|
August 1, 2015
|
|
August 2, 2014
|
||||||||
Income tax expense
|
$
|
134
|
|
|
$
|
113
|
|
|
$
|
218
|
|
|
$
|
203
|
|
Effective tax rate
|
38.9
|
%
|
|
38.0
|
%
|
|
39.2
|
%
|
|
38.6
|
%
|
|
Prior Outlook
|
|
Current Outlook, excluding Credit transaction and other, net
|
|
Current Outlook
|
Net sales increase (percent)
|
7 to 9
|
|
8.5 to 9.5
|
|
8.5 to 9.5
|
Comparable sales increase (percent)
|
2 to 4
|
|
3.5 to 4.5
|
|
3.5 to 4.5
|
Gross profit % (basis points)
|
5 to 15 decrease
|
|
5 decrease to 5 increase
|
|
5 decrease to 5 increase
|
Selling, general and administrative expenses % (basis points)
|
55 to 65 increase
|
|
65 to 75 increase
|
|
65 to 75 increase
|
Credit transaction and other, net
|
--
|
|
--
|
|
$51 EBIT increase
|
Earnings per diluted share (excluding the impact of any future share repurchases)
|
$3.65 to $3.80
|
|
$3.70 to $3.80
|
|
$3.85 to $3.95
|
|
12 Fiscal months ended
|
||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||
Net earnings
|
$
|
736
|
|
|
$
|
727
|
|
Add: income tax expense
|
481
|
|
|
453
|
|
||
Add: interest expense
|
133
|
|
|
156
|
|
||
Earnings before interest and income tax expense
|
1,350
|
|
|
1,336
|
|
||
|
|
|
|
||||
Add: rent expense
|
154
|
|
|
133
|
|
||
Less: estimated depreciation on capitalized operating leases
1
|
(83
|
)
|
|
(71
|
)
|
||
Less: credit transaction and other, net
|
(51
|
)
|
|
—
|
|
||
Net operating profit
|
1,370
|
|
|
1,398
|
|
||
|
|
|
|
||||
Less: estimated income tax expense
2
|
(542
|
)
|
|
(536
|
)
|
||
Net operating profit after tax
|
$
|
828
|
|
|
$
|
862
|
|
|
|
|
|
||||
Average total assets
3
|
$
|
9,275
|
|
|
$
|
8,618
|
|
Less: average non-interest-bearing current liabilities
4
|
(2,892
|
)
|
|
(2,577
|
)
|
||
Less: average deferred property incentives
3
|
(521
|
)
|
|
(495
|
)
|
||
Add: average estimated asset base of capitalized operating leases
5
|
1,117
|
|
|
1,005
|
|
||
Average invested capital
|
$
|
6,979
|
|
|
$
|
6,551
|
|
|
|
|
|
||||
Return on assets
|
7.9
|
%
|
|
8.4
|
%
|
||
ROIC
|
11.9
|
%
|
|
13.2
|
%
|
|
Six Months Ended
|
||||||
|
August 1, 2015
|
|
August 2, 2014
|
||||
Net cash provided by operating activities
|
$
|
415
|
|
|
$
|
369
|
|
Less: capital expenditures
|
(521
|
)
|
|
(376
|
)
|
||
Less: cash dividends paid
|
(142
|
)
|
|
(125
|
)
|
||
Less: change in credit card receivables originated at third parties
|
(64
|
)
|
|
(77
|
)
|
||
Add: increase in cash book overdrafts
|
49
|
|
|
15
|
|
||
Free Cash Flow
|
$
|
(263
|
)
|
|
$
|
(194
|
)
|
|
|
|
|
||||
Net cash used in investing activities
|
$
|
(581
|
)
|
|
$
|
(462
|
)
|
Net cash used in financing activities
|
(238
|
)
|
|
(329
|
)
|
|
Credit
Ratings
|
|
Outlook
|
Moody's
|
Baa1
|
|
Stable
|
Standard & Poor's
|
A-
|
|
Stable
|
|
Base Interest
Rate
|
|
Applicable
Margin
|
Euro-Dollar Rate Loan
|
LIBOR
|
|
0.91%
|
Canadian Dealer Offer Rate Loan
|
CDOR
|
|
0.91%
|
Base Rate Loan
|
various
|
|
—
|
|
2015
1
|
|
2014
1
|
||||
Debt
|
$
|
3,141
|
|
|
$
|
3,118
|
|
Add: estimated capitalized operating lease liability
2
|
1,231
|
|
|
1,060
|
|
||
Less: fair value hedge adjustment included in long-term debt
|
(30
|
)
|
|
(42
|
)
|
||
Adjusted Debt
|
$
|
4,342
|
|
|
$
|
4,136
|
|
|
|
|
|
||||
Net earnings
|
$
|
736
|
|
|
$
|
727
|
|
Add: income tax expense
|
481
|
|
|
453
|
|
||
Add: interest expense, net
|
133
|
|
|
155
|
|
||
Earnings before interest and income taxes
|
1,350
|
|
|
1,335
|
|
||
|
|
|
|
||||
Add: depreciation and amortization expenses
|
541
|
|
|
478
|
|
||
Add: rent expense
|
154
|
|
|
133
|
|
||
Add: non-cash acquisition-related charges
|
16
|
|
|
5
|
|
||
EBITDAR
|
$
|
2,061
|
|
|
$
|
1,951
|
|
|
|
|
|
||||
Debt to Net Earnings
|
4.3
|
|
|
4.3
|
|
||
Adjusted Debt to EBITDAR
|
2.1
|
|
|
2.1
|
|
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value
of Shares that May
Yet Be Purchased Under
the Plans or Programs
1
|
||||||
May 2015
(May 3, 2015 to May 30, 2015) |
0.7
|
|
|
$
|
74.80
|
|
|
0.7
|
|
|
$
|
920
|
|
June 2015
(May 31, 2015 to July 4, 2015) |
1.7
|
|
|
74.42
|
|
|
1.7
|
|
|
790
|
|
||
July 2015
(July 5, 2015 to August 1, 2015) |
0.7
|
|
|
77.45
|
|
|
0.7
|
|
|
736
|
|
||
Total
|
3.1
|
|
|
$
|
75.18
|
|
|
3.1
|
|
|
|
NORDSTROM, INC.
|
|
(Registrant)
|
|
|
|
/s/ Michael G. Koppel
|
|
Michael G. Koppel
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
|
|
Date:
|
September 1, 2015
|
Exhibit
|
|
Method of Filing
|
||
3.1
|
|
Bylaws, as amended and restated on June 23, 2015
|
|
Incorporated by reference from the Registrant's Form 8-K filed on June 24, 2015, Exhibit 3.1
|
|
|
|
|
|
10.1
|
|
Purchase and Sale Agreement by and among Nordstrom, Inc., Nordstrom Credit, Inc., Nordstrom FSB and TD Bank USA, N.A. dated May 25, 2015
|
|
Filed herewith electronically
|
|
|
|
|
|
31.1
|
|
Certification of Co-President required by Section 302(a) of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith electronically
|
|
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer required by Section 302(a) of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith electronically
|
|
|
|
|
|
32.1
|
|
Certification of Co-President and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Furnished herewith electronically
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
Filed herewith electronically
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
Filed herewith electronically
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
Filed herewith electronically
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
Filed herewith electronically
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Filed herewith electronically
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
Filed herewith electronically
|
|
|
|
|
|
|
|
Page
|
|
ARTICLE I DEFINITIONS
|
2
|
|
|
Section 1.1
|
Definitions of Certain Terms
|
2
|
|
Section 1.2
|
Interpretation
|
12
|
|
ARTICL
E II PURCHASE, SALE AND ASSUMPTION
|
13
|
|
|
Section 2.1
|
Purchase and Sale
|
13
|
|
Section 2.2
|
Assumption of Liabilities
|
14
|
|
Section 2.3
|
Excluded Liabilities
|
14
|
|
Section 2.4
|
Purchase Price; Purchase Price Adjustment
|
14
|
|
Section 2.5
|
Allocation of Purchase Price
|
16
|
|
Section 2.6
|
Tax Treatment
|
17
|
|
Sectio
n 2.7
|
Master File
|
17
|
|
Section 2.8
|
Mischaracterized Accounts
|
17
|
|
ARTICLE III CLOSING AND ASSIGNMENT
|
17
|
|
|
Section 3.1
|
The Closing
|
17
|
|
ARTICLE
IV REPRESENTATIONS AND WARRANTIES OF THE PARTIES
|
18
|
|
|
Section 4.1
|
Representations and Warranties of the Company Entities
|
18
|
|
Section 4.2
|
Representations and Warranties of the Purchaser
|
24
|
|
Section 4.3
|
No Other Representations or Warranties
|
26
|
|
ARTICLE V COVENANTS
|
27
|
|
|
Section 5.1
|
Access and Confidentiality
|
27
|
|
Section 5.2
|
Conduct of Business.
|
27
|
|
Section 5.3
|
Reasonable Efforts; Other Filings
|
29
|
|
Section 5.4
|
Additional Instruments
|
30
|
|
Section 5.5
|
Company Licensed Marks; Branding
|
30
|
|
Section 5.6
|
Bulk Sales Law
|
30
|
|
Section 5.7
|
Cooperation in Litigation
|
30
|
|
Section 5.8
|
Post Closing Access
|
31
|
|
Section 5.9
|
Credit Balances
|
31
|
|
Section 5.10
|
Communications with Cardholders
|
31
|
|
ARTICLE VI TAX MATTERS
|
32
|
|
|
Section 6.1
|
Assistance and Cooperation
|
32
|
|
Section 6.2
|
Transfer Taxes
|
32
|
|
Sectio
n 6.3
|
Tax Payments
|
32
|
|
ARTICLE VII CONDITIONS
|
32
|
|
|
Section 7.1
|
Conditions to Each Party's Obligations to Effect the Purchase and Assumption
|
32
|
|
Section 7.2
|
Conditions to Obligations of the Purchaser
|
34
|
|
Section 7.3
|
Conditions to Obligations of the Company Entities
|
34
|
|
ARTICLE VIII TERMINATION
|
35
|
|
|
Section
8.1
|
Termination
|
35
|
|
Section 8.2
|
Effect of Termination
|
36
|
|
ARTICLE IX SURVIVAL; INDEMNIFICATION
|
36
|
|
|
Section 9.1
|
Survival
|
36
|
|
Section 9.2
|
Indemnification by Nordstrom
|
37
|
|
Section 9.3
|
Indemnification by the Purchaser.
|
37
|
|
Section 9.4
|
Notice, Settlements and Other Matters
|
38
|
|
ARTICLE X MISCELLANEOUS
|
40
|
|
|
Section 10.1
|
Notices
|
40
|
|
Section 10.2
|
Expenses
|
41
|
|
Section 10
.3
|
Successors and Assigns
|
42
|
|
Section 10.4
|
Entire Agreement; Amendment; Waiver
|
42
|
|
Section 10.5
|
Counterparts
|
42
|
|
Sectio
n 10.6
|
Governing Law
|
42
|
|
Section 10.7
|
WAIVER OF JURY TRIAL
|
42
|
|
Section 10.8
|
Severability
|
42
|
|
Section 10.9
|
Public Announcement
|
42
|
|
Section 10.10
|
Third-Party Beneficiaries
|
43
|
|
Section 10.11
|
Post-Closing Amounts Received and Paid
|
43
|
|
Section 10.12
|
Specific Performance
|
43
|
|
Section 10.13
|
Further Assurances
|
43
|
|
By:
|
/s/ David Boone
|
|
|
|
Name:
|
David Boone
|
|
|
Title:
|
EVP U.S. Partnerships & Shared Services
|
By:
|
/s/ Michael G. Koppel
|
|
|
|
Name:
|
Michael G. Koppel
|
|
|
Title:
|
Executive Vice President & Chief Financial Officer
|
By:
|
/s/ Steven C. Mattics
|
|
|
|
Name:
|
Steven C. Mattics
|
|
|
Title:
|
Chairman of the Board & Chief Executive Officer
|
By:
|
/s/ Michael G. Koppel
|
|
|
|
Name:
|
Michael G. Koppel
|
|
|
Title:
|
Vice President & Treasurer
|
/s/ Blake W. Nordstrom
|
|
Blake W. Nordstrom
Co-President of Nordstrom, Inc.
|
|
|
|
Date:
|
September 1, 2015
|
/s/ Michael G. Koppel
|
|
Michael G. Koppel
Executive Vice President and
Chief Financial Officer of Nordstrom, Inc.
|
|
|
|
Date:
|
September 1, 2015
|
•
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
•
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
September 1, 2015
|
|
/s/ Blake W. Nordstrom
|
Blake W. Nordstrom
|
Co-President of Nordstrom, Inc.
|
|
/s/ Michael G. Koppel
|
Michael G. Koppel
|
Executive Vice President and
|
Chief Financial Officer of Nordstrom, Inc.
|