DEBT AND CREDIT FACILITIES

Debt

A summary of our long-term debt is as follows:



	February 2, 2013			January 28, 2012
Secured
Series 2007-2 Class A Notes, one-month LIBOR plus 0.06% per year, due April 2012	—				$454
Series 2007-2 Class B Notes, one-month LIBOR plus 0.18% per year, due April 2012	—			46
Series 2011-1 Class A Notes, 2.28%, due October 2016		$325		325
Mortgage payable, 7.68%, due April 2020	47			51
Other	10			12
	382			888
Unsecured
Senior notes, 6.75%, due June 2014, net of unamortized discount	400			399
Senior notes, 6.25%, due January 2018, net of unamortized discount	648			648
Senior notes, 4.75%, due May 2020, net of unamortized discount	498			498
Senior notes, 4.00%, due October 2021, net of unamortized discount	499			499
Senior debentures, 6.95%, due March 2028	300			300
Senior notes, 7.00%, due January 2038, net of unamortized discount	344			343
Other	60			72
	2,749			2,759

Total long-term debt	3,131			3,647
Less: current portion	(7		)	(506		)
Total due beyond one year		$3,124			$3,141

All of our Nordstrom private label card receivables and a 90% interest in our Nordstrom VISA credit card receivables serve as collateral for various borrowings and credit facilities, including our Series 2011-1 Class A Notes and our Variable Funding Note facility ("2007-A VFN"). Upon maturity in April 2012, we retired our Series 2007-2 Class A & B Notes ("the Notes") totaling $500, which had also been secured by our restricted receivables. The Notes were retired using cash that had been accumulated monthly into a restricted account beginning in December 2011. Prior to the retirement, the accumulated cash was included in our consolidated balance sheet in prepaid expenses and other.

Our mortgage payable is secured by an office building that had a net book value of $70 at the end of 2012. Other secured debt as of February 2, 2013 consisted primarily of capital lease obligations.

During 2011, we received proceeds of $72 from the sale of our interest rate swap agreements (collectively, the "swap") with a $650 notional amount maturing in 2018. Under the swap, we received a fixed rate of 6.25% and paid a variable rate based on one-month LIBOR plus a margin of 2.9%. As of February 2, 2013, the accumulated adjustment to our long-term debt was $60, which will be amortized as a reduction of interest expense over the remaining life of the related debt, and is included as part of other unsecured debt in the table above. See Note 1: Nature of Operations and Summary of Significant Accounting Policies for additional information related to our swap.

Required principal payments on long-term debt, excluding capital lease obligations, are as follows:



Fiscal year
2013		$5
2014	406
2015	6
2016	331
2017	7
Thereafter	2,318

Interest Expense

The components of interest expense, net are as follows:



Fiscal year	2012			2011			2010
Interest on long-term debt and short-term borrowings		$167			$139			$133
Less:
Interest income	(2		)	(2		)	(1		)
Capitalized interest	(5		)	(7		)	(5		)
Interest expense, net		$160			$130			$127

Credit Facilities

As of February 2, 2013, we had total short-term borrowing capacity available for general corporate purposes of $800. Of the total capacity, we had $600 under our commercial paper program, which is backed by our unsecured revolving credit facility ("revolver") that expires in June 2016, and $200 under our 2007-A Variable Funding Note ("2007-A VFN") that expires in January 2014.

Under the terms of our $600 revolver, we pay a variable rate of interest and a commitment fee based on our debt rating. The revolver is available for working capital, capital expenditures and general corporate purposes, including liquidity support for our commercial paper program. We have the option to increase the revolving commitment by up to $100, to a total of $700, provided that we obtain written consent from the lenders.

The revolver requires that we maintain a leverage ratio, defined as Adjusted Debt to Earnings before Interest, Income Taxes, Depreciation, Amortization and Rent ("EBITDAR"), of less than four times. As of February 2, 2013, we were in compliance with this covenant.

Our $600 commercial paper program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance of commercial paper has the effect, while it is outstanding, of reducing borrowing capacity under our revolver by an amount equal to the principal amount of commercial paper.

During 2012 and 2011, we had no borrowings under our revolver and no issuances under our commercial paper program.

The 2007-A VFN has a capacity of $200 and is backed by all of the Nordstrom private label card receivables and a 90% interest in the co-branded Nordstrom VISA credit card receivables. Borrowings under the 2007-A VFN incur interest based upon one-month LIBOR plus 35 basis points. We pay a commitment fee for the facility based on the size of the commitment. During 2012 and 2011, we had no borrowings against this facility.

Our wholly owned federal savings bank, Nordstrom fsb, also maintains a variable funding facility with a short-term credit capacity of $100. This facility is backed by the remaining 10% interest in the Nordstrom VISA credit card receivables and is available, if needed, to provide liquidity support to Nordstrom fsb. Borrowings under the facility incur interest at an agreed upon rate with investors in the facility. During 2012 and 2011, Nordstrom fsb had no outstanding borrowings against this facility.