Stock Compensation Plans

9 Months Ended

Oct. 29, 2011

Stock Compensation Plans [Abstract]

Stock Compensation Plans

NOTE 8: STOCK COMPENSATION PLANS

The following table summarizes our stock-based compensation expense:

	Quarter Ended				Nine Months Ended
	October 29, 2011		October 30, 2010		October 29, 2011		October 30, 2010
Stock options	$	8	$	8	$	26	$	25
HauteLook stock compensation		3		—		9		—
Performance share units		3		1		4		2
Employee stock purchase plan		—		—		1		1
Other		—		—		2		1
Total stock-based compensation expense, before income tax benefit	$	14	$	9	$	42	$	29
Income tax benefit		(5)		(4)		(16)		(11)
Total stock-based compensation expense, net of income tax benefit	$	9	$	5	$	26	$	18

During the nine months ended October 29, 2011 and October 30, 2010, we granted 2.7 and 2.6 options with weighted average grant-date fair values per option of $15 and $13.

As discussed in Note 2: Acquisition, portions of both the upfront and earn-out consideration for our acquisition of HauteLook are payable in Nordstrom stock, subject to ongoing vesting requirements for HauteLook's employees. These amounts will therefore be recorded as compensation expense as the related service is performed over the respective employee vesting periods of up to four years after the acquisition date (subject also to HauteLook's financial performance in the case of the earn-out consideration). These shares are not issued from our 2010 Equity Incentive Plan, but rather from our unallocated and unissued shares.