Accounts Receivable

3 Months Ended

May 02, 2015

Accounts Receivable, Net [Abstract]

Accounts Receivable

ACCOUNTS RECEIVABLE

The components of accounts receivable are as follows:

	May 2, 2015			January 31, 2015			May 3, 2014
Credit card receivables:
Nordstrom Visa credit card receivables	$	1,273		$	1,310		$	1,301
Nordstrom private label credit card receivables	954			974			839
Total credit card receivables	2,227			2,284			2,140
Allowance for credit losses	(70		)	(75		)	(80		)
Credit card receivables, net	2,157			2,209			2,060
Other accounts receivable1	109			97			107
Accounts receivable, net	$	2,266		$	2,306		$	2,167

¹ Other accounts receivable consist primarily of debit card receivables and third-party receivables.

Activity in the allowance for credit losses is as follows:

	Quarter Ended
	May 2, 2015			May 3, 2014
Allowance at beginning of period	$	75		$	80
Bad debt expense	10			15
Write-offs	(19		)	(19		)
Recoveries	4			4
Allowance at end of period	$	70		$	80

Under certain circumstances, we may make modifications to payment terms for a customer experiencing financial difficulties in an effort to help the customer avoid a charge-off or bankruptcy and to maximize our recovery of the outstanding balance. These modifications, which meet the accounting definition of troubled debt restructurings ("TDRs"), include reduced or waived fees and finance charges, and/or reduced minimum payments. Receivables classified as TDRs are as follows:

	May 2, 2015			January 31, 2015			May 3, 2014
Credit card receivables classified as TDRs	$	32		$	34		$	40
Percent of total credit card receivables classified as TDRs	1.4		%	1.5		%	1.9		%

Credit Quality

The primary indicators of the credit quality of our credit card receivables are aging and delinquency, particularly the levels of account balances delinquent 30 days or more, as these are the accounts most likely to be written off. The following table illustrates the aging and delinquency status of our credit card receivables:

	May 2, 2015				January 31, 2015				May 3, 2014
	Balance		% of total		Balance		% of total		Balance		% of total
Current	$	2,108	94.6	%	$	2,134	93.4	%	$	2,036	95.1	%
1 – 29 days delinquent	80		3.6	%	103		4.5	%	70		3.3	%
30 days or more delinquent:
30 – 59 days delinquent	11		0.5	%	16		0.7	%	12		0.6	%
60 – 89 days delinquent	8		0.4	%	10		0.5	%	9		0.4	%
90 days or more delinquent	20		0.9	%	21		0.9	%	13		0.6	%
Total 30 days or more delinquent	39		1.8	%	47		2.1	%	34		1.6	%
Total credit card receivables	$	2,227	100.0	%	$	2,284	100.0	%	$	2,140	100.0	%
Receivables not accruing finance charges	$	11			$	13			$	11
Receivables 90 days or more delinquent and still accruing finance charges	13				13				7

We also evaluate credit quality using FICO credit scores. The following table illustrates the distribution of our credit card receivables across FICO score ranges:

	May 2, 2015				January 31, 2015				May 3, 2014
FICO Score Range1	Balance		% of total		Balance		% of total		Balance		% of total
801+	$	366	16.4	%	$	369	16.2	%	$	366	17.1	%
660 – 800	1,375		61.8	%	1,435		62.8	%	1,326		62.0	%
001 – 659	392		17.6	%	392		17.1	%	358		16.8	%
Other2	94		4.2	%	88		3.9	%	90		4.1	%
Total credit card receivables	$	2,227	100.0	%	$	2,284	100.0	%	$	2,140	100.0	%

¹ Credit scores for our credit cardholders are updated at least every 90 days. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated.

² Other consists of amounts not yet posted to customers' accounts and receivables from customers for whom FICO scores are temporarily unavailable.