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Segment Reporting
9 Months Ended
Nov. 02, 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 Nordstrom Rewards loyalty program expenses in our Credit segment. We now allocate all of our Nordstrom 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 November 2, 2013
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
2,749

 
$
42

 
$
2,791

 
$

 
$
2,791

Credit card revenues
 

 

 

 
93

 
93

Earnings (loss) before interest and income taxes
 
274

 
(66
)
 
208

 
45

 
253

Interest expense, net
 

 
(29
)
 
(29
)
 
(6
)
 
(35
)
Earnings (loss) before income taxes
 
274

 
(95
)
 
179

 
39

 
218

 
 
 
 
 
 
 
 
 
 
 
Quarter Ended October 27, 2012
 
 
 
 
 
 
 
 
 

Net sales
 
$
2,657

 
$
56

 
$
2,713

 
$

 
$
2,713

Credit card revenues
 

 

 

 
92

 
92

Earnings (loss) before interest and income taxes
 
257

 
(31
)
 
226

 
51

 
277

Interest expense, net
 

 
(32
)
 
(32
)
 
(6
)
 
(38
)
Earnings (loss) before income taxes
 
257

 
(63
)
 
194

 
45

 
239

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended November 2, 2013
 
 
 
 
 
 
 
 
 

Net sales
 
$
8,707

 
$
(155
)
 
$
8,552

 
$

 
$
8,552

Credit card revenues
 

 

 

 
277

 
277

Earnings (loss) before interest and income taxes
 
949

 
(215
)
 
734

 
129

 
863

Interest expense, net
 

 
(93
)
 
(93
)
 
(18
)
 
(111
)
Earnings (loss) before income taxes
 
949

 
(308
)
 
641

 
111

 
752

 
 
 
 
 
 

 
 
 

Nine Months Ended October 27, 2012
 
 
 
 
 

 
 
 

Net sales
 
$
8,296

 
$
(130
)
 
$
8,166

 
$

 
$
8,166

Credit card revenues
 

 

 

 
270

 
270

Earnings (loss) before interest and income taxes
 
923

 
(202
)
 
721

 
126

 
847

Interest expense, net
 

 
(99
)
 
(99
)
 
(19
)
 
(118
)
Earnings (loss) before income taxes
 
923

 
(301
)
 
622

 
107

 
729

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
 
Nine Months Ended
 
November 2, 2013
 
October 27, 2012
 
November 2, 2013
 
October 27, 2012
Nordstrom full-line stores
$
1,657

 
$
1,730

 
$
5,472

 
$
5,560

Direct
305

 
248

 
1,031

 
799

Nordstrom
1,962

 
1,978

 
6,503


6,359

Nordstrom Rack
709

 
613

 
1,970

 
1,747

HauteLook and Jeffrey
78

 
66

 
234

 
190

Total Retail segment
2,749

 
2,657

 
8,707

 
8,296

Corporate/Other
42

 
56

 
(155
)
 
(130
)
Total net sales
$
2,791

 
$
2,713

 
$
8,552

 
$
8,166