XML 13 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Reporting
6 Months Ended
Aug. 03, 2013
Segment Reporting [Abstract]  
Segment Reporting
SEGMENT REPORTING
As discussed in Note 1: Basis of Presentation, beginning in the first quarter of 2013, we reclassified amounts in our financial statements to better reflect the way we view and measure our business. As we continue to execute our long-term growth strategy and make investments across operating segments, aligning expenses with the associated benefits enhances our ability to evaluate segment performance. Historical results were also reclassified to match the current period presentation. These reclassifications did not impact net earnings, earnings per share, financial position or cash flows.
We previously recorded all of our Fashion Rewards loyalty program expenses in our Credit segment. We now allocate all of our Fashion Rewards expenses to the Retail segment, including the face value of Nordstrom Notes, which customers earn based on their level of spending and which can be redeemed for goods or services. Consistent with our previous segment reporting, our Retail segment net sales include sales from the redemption of Nordstrom Notes. In order to present the consolidated financial results in accordance with generally accepted accounting principles, our Corporate/Other column includes the elimination of net sales when customers used Nordstrom Notes and also includes an adjustment to reduce the Nordstrom Notes expense from face value to their estimated cost.
In addition, certain technology expenses we previously included in Corporate/Other are now allocated to the Retail and Credit segments.
In our Credit segment, we previously presented bad debt expense associated with finance charges and fees as part of selling, general and administrative expenses. We reclassified these amounts and now present them as a reduction of credit card revenue. There was no impact to Credit earnings before income taxes for this reclassification.
The following tables set forth information for our reportable segments: 
 
 
Retail
 
Corporate/Other
 
Total Retail Business1
 
Credit
 
Total
Quarter Ended August 3, 2013
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
3,245

 
$
(141
)
 
$
3,104

 

 
$
3,104

Credit card revenues
 

 

 

 
$
92

 
92

Earnings (loss) before interest and income taxes
 
375

 
(80
)
 
295

 
40

 
335

Interest expense, net
 

 
(31
)
 
(31
)
 
(6
)
 
(37
)
Earnings (loss) before income taxes
 
375

 
(111
)
 
264

 
34

 
298

 
 
 
 
 
 
 
 
 
 
 
Quarter Ended July 28, 2012
 
 
 
 
 
 
 
 
 

Net sales
 
$
3,063

 
$
(145
)
 
$
2,918

 

 
$
2,918

Credit card revenues
 

 

 

 
$
88

 
88

Earnings (loss) before interest and income taxes
 
361

 
(99
)
 
262

 
28

 
290

Interest expense, net
 

 
(33
)
 
(33
)
 
(7
)
 
(40
)
Earnings (loss) before income taxes
 
361

 
(132
)
 
229

 
21

 
250

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended August 3, 2013
 
 
 
 
 
 
 
 
 

Net sales
 
$
5,958

 
$
(197
)
 
$
5,761

 

 
$
5,761

Credit card revenues
 

 

 

 
$
184

 
184

Earnings (loss) before interest and income taxes
 
675

 
(149
)
 
526

 
84

 
610

Interest expense, net
 

 
(64
)
 
(64
)
 
(12
)
 
(76
)
Earnings (loss) before income taxes
 
675

 
(213
)
 
462

 
72

 
534

 
 
 
 
 
 

 
 
 

Six Months Ended July 28, 2012
 
 
 
 
 

 
 
 

Net sales
 
$
5,639

 
$
(186
)
 
$
5,453

 

 
$
5,453

Credit card revenues
 

 

 

 
$
178

 
178

Earnings (loss) before interest and income taxes
 
666

 
(171
)
 
495

 
75

 
570

Interest expense, net
 

 
(67
)
 
(67
)
 
(13
)
 
(80
)
Earnings (loss) before income taxes
 
666

 
(238
)
 
428

 
62

 
490

1Total Retail Business is not a reportable segment, but represents a subtotal of the Retail segment and Corporate/Other, and is consistent with our presentation in Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following table summarizes net sales within our reportable segments:
 
Quarter Ended
 
Six Months Ended
 
August 3, 2013
 
July 28, 2012
 
August 3, 2013
 
July 28, 2012
Nordstrom full-line stores
$
2,098

 
$
2,114

 
$
3,815

 
$
3,830

Direct
425

 
309

 
726

 
551

Nordstrom
2,523

 
2,423

 
4,541


4,381

Nordstrom Rack
645

 
577

 
1,261

 
1,134

HauteLook and Jeffrey
77

 
63

 
156

 
124

Total Retail segment
3,245

 
3,063

 
5,958

 
5,639

Corporate/Other
(141
)
 
(145
)
 
(197
)
 
(186
)
Total net sales
$
3,104

 
$
2,918

 
$
5,761

 
$
5,453