Segment Reporting

12 Months Ended

Feb. 02, 2013

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

As of the end of 2012, we have two reportable segments: Retail and Credit. Our Retail segment includes our "Nordstrom" operating segment, which is composed of our Nordstrom full-line stores and our online store at www.nordstrom.com. Through our multi-channel initiatives, we have integrated the operations, merchandising and technology of our Nordstrom full-line and online stores, consistent with our customers' expectations of a seamless shopping experience, regardless of channel. Our internal reporting to our president, who is our chief operating decision maker, is consistent with these multi-channel initiatives. We aggregate our Nordstrom Rack operating segment into the Retail reporting segment, based on similar economic and other qualitative characteristics. Additionally, we include HauteLook, Jeffrey and treasure&bond in the Retail reporting segment.

Through our Credit segment, we provide our customers with a variety of payment products and services, including a Nordstrom private label card, two Nordstrom VISA credit cards and a debit card for Nordstrom purchases. Our credit and debit card products also include a loyalty program that provides benefits to our cardholders based on their level of spending.

Amounts in the Corporate/Other column include unallocated corporate expenses and assets, inter-segment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with generally accepted accounting principles.

In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated company. However, redemptions of our Nordstrom Notes are included in net sales for our Retail segment. The sales amount in our Corporate/Other column includes an entry to eliminate these transactions from our consolidated net sales. There is no impact to consolidated earnings before income taxes for this adjustment. The related Nordstrom Notes expenses and other costs associated with the Fashion Rewards program are included in our Credit segment. In addition, our sales return reserve and other corporate adjustments are recorded in the Corporate/Other column. Other than as described above, the accounting policies of the operating segments are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies.

The following table sets forth information for our reportable segments:

	Retail		Credit			Corporate/Other			Total
Fiscal year 2012
Net sales		$11,949	—				($187	)		$11,762
Credit card revenues	—			$386		—			386
Earnings (loss) before interest and income taxes	1,757		67			(479		)	1,345
Interest expense, net	—		(26		)	(134		)	(160		)
Earnings (loss) before income taxes	1,757		41			(613		)	1,185
Capital expenditures	371		2			140			513
Depreciation and amortization	357		2			70			429
Goodwill	175		—			—			175
Assets1	3,922		2,201			1,966			8,089
Fiscal year 2011
Net sales		$10,656	—				($159	)		$10,497
Credit card revenues	—			$380		—			380
Earnings (loss) before interest and income taxes	1,570		76			(397		)	1,249
Interest expense, net	—		(13		)	(117		)	(130		)
Earnings (loss) before income taxes	1,570		63			(514		)	1,119
Capital expenditures	424		2			85			511
Depreciation and amortization	313		2			56			371
Goodwill	175		—			—			175
Assets1	3,642		2,135			2,714			8,491
Fiscal year 2010
Net sales		$9,420	—				($110	)		$9,310
Credit card revenues	—			$390		—			390
Earnings (loss) before interest and income taxes	1,406		51			(339		)	1,118
Interest expense, net	—		(21		)	(106		)	(127		)
Earnings (loss) before income taxes	1,406		30			(445		)	991
Capital expenditures	361		1			37			399
Depreciation and amortization	295		2			30			327
Goodwill	53		—			—			53
Assets1	3,234		2,060			2,168			7,462

¹ Assets in Corporate/Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets.

The following table summarizes net sales within our reportable segments:

Fiscal year	2012			2011			2010
Nordstrom full-line stores		$7,964			$7,513			$6,995
Direct	1,269			913			705
Nordstrom	9,233			8,426			7,700
Nordstrom Rack	2,445			2,045			1,691
Other retail1	271			185			29
Total Retail segment	11,949			10,656			9,420
Corporate/Other	(187		)	(159		)	(110		)
Total net sales		$11,762			$10,497			$9,310

¹ Other retail includes our HauteLook online private sale subsidiary, our Jeffrey stores and our treasure&bond store.

The following table summarizes net sales by merchandise category:

Fiscal year	2012				2011				2010
	Net sales		% of total		Net sales		% of total		Net sales		% of total
Women’s apparel		$3,684	31	%		$3,438	33	%		$3,184	34	%
Shoes	2,716		23	%	2,413		23	%	2,094		23	%
Men’s apparel	1,866		16	%	1,612		15	%	1,415		15	%
Women’s accessories	1,574		13	%	1,311		12	%	1,101		12	%
Cosmetics	1,255		11	%	1,106		11	%	972		10	%
Kids’ apparel	381		3	%	341		3	%	303		3	%
Other	286		3	%	276		3	%	241		3	%
Total net sales		$11,762	100	%		$10,497	100	%		$9,310	100	%