EX-99.1 3 d554113dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

 

Nordstrom 401(k) Plan &

Profit Sharing

Employer ID No: 91-0515058

Plan Number: 001

Financial Statements as of December 31, 2012 and 2011

and for the Year Ended December 31, 2012,

Supplemental Schedule as of December 31, 2012, and

Report of Independent Registered Public Accounting Firm

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

TABLE OF CONTENTS

 

 

     Page

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

          1

FINANCIAL STATEMENTS:

   

Statements of Net Assets Available for Benefits as of December 31, 2012 and 2011

          2

Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2012

          3

Notes to Financial Statements

          4

SUPPLEMENTAL SCHEDULE:

   

Form 5500, Schedule H, Part IV, Line 4i, Schedule of Assets (Held at End of Year) as of December 31, 2012

        14

All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Retirement Committee of

Nordstrom 401(k) Plan & Profit Sharing

Seattle, Washington

We have audited the accompanying statements of net assets available for benefits of Nordstrom 401(k) Plan & Profit Sharing (the “Plan”) as of December 31, 2012 and 2011, and the related statement of changes in net assets available for benefits for the year ended December 31, 2012. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2012 and 2011, and the changes in net assets available for benefits for the year ended December 31, 2012, in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2012 is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This schedule is the responsibility of the Plan’s management. Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2012 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/ Deloitte & Touche LLP

Seattle, Washington

June 21, 2013

 

- 1 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

(In thousands)

 

      December 31, 2012     December 31, 2011     

  Assets:

     

  Participant-directed investments – at fair value

      $2,057,313        $1,800,517      

  Employer contributions receivable

      81,828        80,570      

  Notes receivable from participants

      79,606        76,396      

  Accrued interest and dividends receivable

      2,418        1,080      

  Other assets

      2,050        2,147      

  Total assets

      2,223,215        1,960,710      

  Liabilities:

     

  Trustee and administrative fees payable

      900        1,025      

  Excess contributions payable to participants

      779        222      

  Due to broker for securities purchased

      2,242        1,127      

  Total liabilities

      3,921        2,374      

  Net assets available for benefits at fair value

      2,219,294        1,958,336      

  Adjustments from fair value to contract value for fully benefit-responsive stable value fund

      (6,139 )      (6,752)     

  Net assets available for benefits

      $2,213,155        $1,951,584      

 

 

The accompanying Notes to Financial Statements are an integral part of these statements.

 

- 2 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

(In thousands)

 

      2012     

  Additions:

   

  Contributions:

   

  Employer contributions

      $81,828      

  Participant contributions

      89,209      

  Total contributions

      171,037      

  Investment income:

   

  Net appreciation in fair value of investments

      192,617      

  Interest and dividends

      39,561      

  Total investment income

 

     

 

 232,178   

 

   

 

  Total additions

      403,215      

  Deductions:

   

  Benefit payments to participants

      (138,112)     

  Trustee fees, administrative expenses and other

      (3,532)     

  Total deductions

      (141,644)     

  Net additions

      261,571      

  Net assets available for benefits at beginning of year

      1,951,584      

  Net assets available for benefits at end of year

      $2,213,155      

 

 

 

 

The accompanying Notes to Financial Statements are an integral part of these statements.

 

- 3 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

1. THE PLAN AND SIGNIFICANT ACCOUNTING POLICIES

The Nordstrom 401(k) Plan & Profit Sharing (the “Plan”), as amended, was originally established on January 1, 1953. The Plan is an individual account profit sharing plan, which, since February 1, 1988, has included a 401(k) feature. The Plan operates on a calendar year basis.

The following describes the provisions of the Plan in effect on December 31, 2012 (except as noted), is for informational purposes only and does not bind the Plan. Participants should refer to the Plan documents for a more complete description of the Plan’s provisions.

General—The Plan covers substantially all eligible employees of Nordstrom, Inc. and its participating subsidiaries (the “Company”). For Company profit sharing and matching contributions, participation begins on the first of the month coinciding with or following the first anniversary of the employee’s original hire date. For elective salary deferrals (401(k) contributions), participation begins on their hire date.

The Plan also contains special eligibility provisions to ensure that all eligible employees enter the Plan by the latest participation date required under the applicable provisions of the Internal Revenue Code (“Code”). Eligible employees who neither make an affirmative salary deferral election nor affirmatively opt out of the Plan are automatically enrolled in the Plan beginning on the first of the month coinciding with or following the first anniversary of the employee’s original hire date with a salary deferral contribution equal to 2% of eligible compensation. Employees have the option to elect a zero percent salary deferral or to change their salary deferral percentage at any time in accordance with the Plan.

For the Plan years ended December 31, 2012 and 2011, to qualify for Company profit sharing and matching contributions, participants must work at least 1,000 hours during the payroll calendar year and be employed on the last day of the Plan year (the “last day” requirement is waived if the participant terminates employment due to retirement, disability or death).

Plan Contributions—Contributions to the Plan are made through employee 401(k) contributions, Company 401(k) matching contributions and Company profit sharing contributions.

Employee 401(k) Contributions—Eligible employees may elect to defer eligible compensation on a pre-tax basis, an after-tax (Roth) basis or a combination of both. The maximum elective salary deferral is 50% for non-highly compensated employees and 15% for highly compensated employees. Employees age 50 and over are allowed a catch-up contribution on a pre-tax basis, an after-tax (Roth) basis or a combination of both. For all employees, the Internal Revenue Service (“IRS”) limits participant contributions to a maximum of $17.0 and $16.5 ($22.5 and $22.0 for those age 50 and over) in 2012 and 2011.

Company 401(k) Matching Contributions—The Company intends to match employee 401(k) contributions dollar for dollar up to 4% of the participant’s eligible compensation, if approved and at the discretion of the Company’s Board of Directors. For Plan purposes, eligible compensation generally includes taxable salary and wages paid for employee service, including bonuses and commissions, and excludes reimbursements and expense allowances, employee awards, fringe and welfare benefits, moving expenses, severance and disability pay, contributions to a nonqualified deferred compensation program and amounts received as stock or under any stock-based compensation program, and is capped by limits set under the Code ($250 and $245 for the Plan years ended December 31, 2012 and 2011). Catch-up contributions are not eligible for matching.

 

- 4 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

Company Profit Sharing Contributions—The Company’s Board of Directors determines the Company profit sharing contribution, if any, each year. Profit sharing contributions are invested in participant-directed investments or, if the participant does not make an investment election, defaulted into a Nordstrom Target Retirement Date Fund based on a participant’s date of birth and an assumed retirement age of 65. The Company’s contribution for each Plan year is allocated among qualified participants based on their eligible compensation (as discussed above) and years of service.

Investment Programs—Participants are able to direct the investment of their accounts (including Company matching and profit sharing contributions) among any of the available funds. The available funds as of December 31, 2012 are listed in the supplemental Schedule of Assets (Held at End of Year). The available funds are regularly reviewed by the Retirement Committee (see “Trustees and Administrator of the Plan” section on page 6) and are subject to change at any time.

Participation in Investment Activity—Individual accounts are credited daily with a pro-rata share of investment income (loss) experienced by the respective funds into which their account balances have been directed.

Vesting in the Plan—Employees who terminate employment due to retirement, death or total disability are 100% vested in their Plan accounts, regardless of years of service. For purposes of the Plan, “retirement” is defined as ending employment at age 60 or older. On termination of employment for reasons other than retirement, death or total disability the amounts credited to the accounts of participants are vested as follows:

Employee 401(k) Contributions—Employee contributions (i.e., salary deferral, catch-up and rollover contributions) are always 100% vested.

Company 401(k) Matching Contributions—Company matching contributions for employees vest as follows: 33% after completing one year of service and 67% after two years of service. After three years of service, all Company matching contributions are immediately 100% vested.

Company Profit Sharing Contributions—Participants are immediately 100% vested in Company profit sharing contributions.

Forfeitures—At December 31, 2012 and 2011, forfeited nonvested accounts totaled $549 and $589. Forfeitures of unvested Company matching or profit sharing contributions from terminated participant accounts are used to offset future Company matching contributions, future Company profit sharing contributions, or to pay Plan administrative expenses, as determined by the Retirement Committee. During the years ended December 31, 2012 and 2011, employer contributions were offset by forfeitures of $556 and $608.

Benefits—On termination of service, a participant (or participant’s beneficiary in the case of death) may elect to receive the value of the vested interest in his or her account as a lump-sum distribution or elect to remain in the Plan, if the vested account balance (including the rollover account) exceeds $1. These distributions are subject to required distributions under Section 401(a)(9) of the Code. When an active participant reaches age 59  1/2 and continues to work for the Company, the participant is eligible to receive a partial or full distribution of his or her retirement benefits.

 

- 5 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

Payment of Benefits—Benefits are recorded when paid. Amounts allocated to former participants who have withdrawn from the Plan, but have not yet been paid as of December 31, 2012 and 2011 were $187 and $427.

Participant Loans—Participants may borrow from their fund accounts a minimum of $1 up to a maximum equal to the lesser of $50 or 50% of their vested account balance. Loan terms are a maximum of 60 months or, if for the purchase of a principal residence, up to 20 years. The loans are secured by the balance in the participant’s account and bear fixed interest at rates commensurate with prevailing rates but not less than 1% over the then current prime rate as published by the Wall Street Journal. Interest rates for participant loans outstanding at December 31, 2012 range from 4.25% to 10.5% and are determined at the time the loan is approved. Principal and interest is paid semi-monthly and weekly through payroll deductions. Participants may pay monthly upon separation or leave of absence. Payment obligations are suspended for participants during approved leaves of absence not longer than 12 months and during periods of qualified military service. A participant may have a maximum of two loans outstanding at any one time.

Trustees and Administrator of the Plan—The asset trustees of the Plan are Mercer Trust Company (all assets except the Nordstrom Target Retirement Date Funds) and The Bank of New York Mellon (Nordstrom Target Retirement Date Funds only).

The Plan is administered by the Company in conjunction with the Retirement Committee, a committee appointed by the Company’s Board of Directors composed of the following individuals as of December 31, 2012:

 

—

   Mary D. Amundson          Vice President, Employee Benefits

—

   Michael G. Koppel          Executive Vice President and Chief Financial Officer

—

   Robert B. Sari          Executive Vice President, General Counsel and Corporate Secretary

—

   Delena M. Sunday          Executive Vice President, Human Resources and Diversity Affairs

—

   Brooke F. White          Vice President, Corporate Communications

Mercer Human Resource Services provided administrative services for the year ended December 31, 2012.

Termination of the Plan—Although it has not expressed an intention to do so, the Company reserves the right to suspend, discontinue, or terminate the Plan at any time subject to the provisions set forth in the Employee Retirement Income Security Act of 1974 (“ERISA”). The Company may determine whether a suspension or discontinuance of contributions will or will not constitute termination of the Plan.

In the event the Plan is terminated, the respective accounts of the participants under the Plan shall become fully vested and nonforfeitable. After payment of expenses properly chargeable against the Plan, the trustees shall distribute all Plan assets to the participants in the proportions determined by their respective accounts.

Tax Status—The IRS has determined and informed the Company by a letter dated September 23, 2009, that the Plan is designed in conformity with the applicable requirements of the Code. The Company and Plan management believe that the Plan is currently designed and operated in compliance with the applicable requirements of the Code, and the Plan and related trust continue to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

 

- 6 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

Accounting principles generally accepted in the United States of America (“GAAP”) require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. As the Plan is tax-exempt, the Plan administrator has concluded that as of December 31, 2012 and 2011, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2009.

Basis of Accounting—The accompanying financial statements have been prepared in accordance with GAAP.

Use of Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein and disclosure of contingent assets and liabilities. Actual results could differ from those estimates and assumptions.

Risks and Uncertainties—The Plan holds various investment instruments, including common stock, mutual funds and a stable value fund. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and such changes could materially affect the amounts reported in the financial statements.

Other Assets—Prior to 1993, after five years in the Plan, participants were allowed to purchase life insurance with up to 25% of their annual contributions. This option was terminated in May 1992; however, the Plan still holds previously purchased life insurance for participants. The other assets balance is composed of these amounts recorded at the cash surrender value of the life insurance policy.

Investment Valuation and Income Recognition—The Plan’s investments are held by the trustees and are recorded at fair value, as follows:

 

  —  

Common stock is valued at quoted market prices as of the last trading day of the year.

 

  —  

Nordstrom common stock is valued at the quoted market price as of the last trading day of the year.

 

  —  

Shares of mutual funds are valued at quoted market prices as of the last trading day of the year, which represent the net asset value of shares held by the Plan at year end.

 

  —  

Common/collective trust funds are valued based on the year-end unit value. Unit values are determined by the issuer by dividing the fair values of the total net assets at year end by the outstanding units. The fair values of the total net assets are determined by the nature of the underlying investments. Each underlying investment is valued at fair value according to its investment type.

 

  —  

Investments in debt securities are valued using the market approach and observable inputs, such as observable trade prices, multiple broker/dealer quotes, related yield curves and other assumptions about the securities.

 

- 7 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

  —  

The stable value fund is stated at fair value then adjusted to contract value as described in Note 4. Fair value is the net asset value of its underlying investments, and contract value is principal plus accrued interest.

 

  —  

Self-directed brokerage accounts allow participants to invest all or a portion of their contributions into investments of their choice. The fair value is based on the underlying investments, which may include common stock, mutual funds, debt securities and common/collective trusts.

 

  —  

The Nordstrom Target Retirement Date Funds hold underlying investments which include common stock, mutual funds, debt securities and common/collective trusts. The fair values of the Nordstrom Target Retirement Date Funds are valued based on the underlying investments.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on an accrual basis. Dividends are recorded on the ex-dividend date.

Net realized gains or losses on investment sales represent the difference between the sale proceeds and cost of the investments. Net unrealized appreciation or depreciation on investments held at the end of the Plan year represents the net change in fair value of investments during the year. The Statement of Changes in Net Assets Available for Benefits presents the net appreciation in fair value of investments, which consists of realized and unrealized gains and losses.

Administrative and Recordkeeping Expenses—Substantially all of the administrative and recordkeeping expenses incurred in connection with the Plan are paid by the Plan and allocated per capita to each participant. The amount is reflected on each participant’s quarterly statement.

Recent Accounting Pronouncements— In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU’) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which was subsequently modified in January 2013 by ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU has requirements that are disclosure-only in nature. It requires disclosures about offsetting and related arrangements for certain financial instruments and derivative instruments, including gross and net information and evaluation of the effect of netting arrangements on the statement of financial position. The Plan does not expect the provisions of this ASU, which are effective for the Plan beginning January 1, 2013, to have a material impact on the Plan’s financial statements.

 

- 8 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

2. INVESTMENTS

The following table presents the value of investments that represent 5% or more of the Plan’s net assets available for benefits:

 

      December 31, 2012      December 31, 2011     

  Nordstrom common stock

      $277,434         $264,913      

  Putnam Stable Value Fund

      204,760         205,083      

  American Funds EuroPacific Growth Fund

      164,532         141,004      

  Dodge & Cox Stock Fund

      122,608         101,396      

During 2012, the Plan’s investments (including investments bought and sold, as well as held during the year) appreciated in value as follows:

 

  Plan year    2012   

  Nordstrom Target Retirement Date Funds

      $96,702    

  Mutual funds

      73,696    

  Nordstrom common stock

      20,787    

  Brokerage assets

      1,430    

  Common/collective trusts

      2    

  Net appreciation in fair value of investments

      $192,617    

 

3. FAIR VALUE MEASUREMENT

The Plan discloses its assets that are measured at fair value in its statement of net assets available for benefits by level within the fair value hierarchy as defined by applicable accounting standards:

 

Level 1:   Quoted market prices in active markets for identical assets or liabilities
Level 2:   Other observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3:   Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions

 

- 9 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

Transfers of investments between different levels of the fair value hierarchy are recorded as of the end of the reporting period. The following tables set forth, by level within the fair value hierarchy, a summary of the Plan’s investments that were measured at fair value on a recurring basis as of December 31, 2012 and 2011.

 

      December 31, 2012  
      Level 1            Level 2            Total    

  Equity securities:

         

    Nordstrom common stock

      $277,434               —               $277,434     

    Other domestic corporate stock

      133,564               —               133,564     

  Debt securities:

         

    U.S. Government

      —               $37,675               37,675     

    Corporate debt

      —               40,929               40,929     

    Other

      —               5,538               5,538     

  Mutual funds:

         

    Domestic

      712,058               —               712,058     

    International

      382,810               —               382,810     

    Fixed income

      196,567               —               196,567     

  Common collective trusts (CCTs):

         

    Putnam Stable Value Fund

      —               225,386               225,386     

    Treasury Inflation Protected Securities (TIPS)

      —               24,541               24,541     

    Other short-term investment funds

      333               4,177               4,510     

  Brokerage securities

      —               11,726               11,726     

  Other

      137               4,438               4,575     

  Total

      $1,702,903               $354,410               $2,057,313     

 

- 10 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

      December 31, 2011  
      Level 1            Level 2            Total    

  Equity securities:

         

    Nordstrom common stock

      $264,913               —               $264,913     

    Other domestic corporate stock

      107,216               —               107,216     

  Debt securities:

         

    U.S. Government

      —               $36,381               36,381     

    Corporate debt

      —               33,399               33,399     

    Other

      —               4,680               4,680     

  Mutual funds:

         

    Domestic

      605,239               —               605,239     

    International

      309,807               —               309,807     

    Fixed income

      92,974               77,893               170,867     

  Common collective trusts (CCTs):

         

    Putnam Stable Value Fund

      25,958               199,407               225,365     

    Treasury Inflation Protected Securities (TIPS)

      —               23,400               23,400     

    Other short-term investment funds

      —               5,291               5,291     

  Brokerage securities

      —               10,497               10,497     

  Other

      299               3,163               3,462     

  Total

      $1,406,406               $394,111               $1,800,517     

The Plan did not have any Level 3 measurements as of December 31, 2012 and 2011. For the years ended December 31, 2012 and 2011, there were no transfers in or out of Levels 1, 2 or 3.

 

- 11 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

4. STABLE VALUE FUND

The Putnam Stable Value Fund (the “Fund”) is a common collective trust fund. The Fund may invest in fixed interest insurance investment contracts, money market funds, corporate and government bonds, mortgage-backed securities, bond funds and other fixed income securities. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment in the Fund at contract value. Contract value represents contributions made to the fund, plus earnings, less participant withdrawals and administrative expenses.

The statements of net assets available for benefits present the Fund at fair value, as well as an additional line item showing an adjustment from fair value to contract value. Fair value of the underlying investments of the Fund is calculated by discounting the related cash flows based on current yields of similar instruments with comparable durations.

The average yield at fair value and weighted-average crediting rate for the Fund are as follows:

 

      December 31, 2012      December 31, 2011        

  Average yield at fair value

      1.75%         2.69%         

  Weighted-average crediting rate

      2.02%         3.23%         

Certain events may limit the ability of the Fund to transact at contract value. Such events include but are not limited to: complete or partial plan termination or merger with another plan; failure of the Plan or its trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA; transfer of assets from the Fund directly into a competing investment option; or any communication given to Plan participants designed to influence a participant not to invest in the Fund or to transfer assets out of the Fund. Plan management believes that the occurrence of events that would cause the Fund to transact at less than contract value is not probable.

 

5. EXEMPT PARTY-IN-INTEREST TRANSACTIONS

Mercer Trust Company (previously Putnam Fiduciary Trust Company) has been trustee of all assets of the Plan since January 1, 2005, with the exception of the Nordstrom Target Retirement Date Funds and the Nordstrom Select Funds (no longer available as an investment option in the Plan). The Bank of New York Mellon (previously Mellon Bank, N.A.) has been the trustee of the Nordstrom Target Retirement Date Funds since the inception of these Funds on September 6, 2011, and was the trustee of the Nordstrom Select Funds since April 1, 2005 prior to the Plan’s transfer to the Nordstrom Target Retirement Date Funds. Accordingly, Mercer Trust Company and The Bank of New York Mellon are each a party-in-interest with respect to the Plan.

The Plan invested in investment funds held by Mercer Trust Company and its affiliates during 2012. Transactions in these investments qualify as exempt party-in-interest transactions because an independent fiduciary (the Plan’s Retirement Committee) causes the Plan to make these investment decisions. Fees paid by the Plan to Mercer Trust Company were $1,751 for 2012. Fees paid by the Plan to The Bank of New York Mellon were $243 for 2012.

 

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NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

NOTES TO FINANCIAL STATEMENTS

(Dollar and share amounts in thousands)

 

 

As the Plan sponsor, the Company is a party-in-interest with respect to the Plan. The Company’s employer contributions to the Plan qualify as exempt party-in-interest transactions because a fiduciary does not cause the Plan to participate in the transactions. In addition, there were no reimbursements of direct expenses paid by the Plan to the Company for Plan operations and administration in 2012.

As of December 31, 2012 and 2011, the Plan held 5,178 and 5,319 shares of common stock of the Company, with a cost basis of $134,695 and $125,781. The Plan recorded dividend income of $5,677 during the year ended December 31, 2012.

 

6. EXCESS CONTRIBUTIONS PAYABLE TO PARTICIPANTS

The Plan is subject to certain non-discrimination rules under ERISA and the Code. For the Plan years ended December 31, 2012 and 2011, the Plan failed certain of the non-discrimination tests under the Code due to lower contribution percentages by non-highly compensated eligible employees relative to the contribution percentages of highly compensated eligible employees. In order to meet the requirements of the non-discrimination rules, the Plan refunded a portion of the contributions made by highly compensated participants, in accordance with applicable provisions of the Code. The refund for 2012, paid in March 2013, totaled $779 and included approximately $82 of investment earnings. The refund for 2011, paid in March 2012, totaled $222 and included approximately $2 of investment earnings. The refunds are recorded as “Excess contributions payable to participants” in the Statements of Net Assets Available for Benefits and included in “Benefit payments to participants” on the Statement of Changes in Net Assets Available for Benefits.

 

7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The following is a reconciliation of net assets available for benefits per the financial statements to the amounts reflected in the Form 5500 as filed by the Company with the Employee Benefits Security Administration (“EBSA”) as of:

 

      December 31, 2012        December 31, 2011     

  Net assets available for benefits per the financial statements

      $2,213,155           $1,951,584      

  Trustee and administrative fees payable

      649           764      

  Adjustments from contract value to fair value for fully
benefit-responsive stable value fund

      6,139           6,752      

  Net assets available for benefits per Form 5500

      $2,219,943           $1,959,100      

The following is a reconciliation of total net investment income per the financial statements to the amounts reflected in the Form 5500 as filed by the Company with the EBSA:

 

  Plan year    2012     

  Total net investment income per the financial statements

      $232,178      

  Investment management and custodian fees

      180      

  Change in the adjustment from contract value to fair
value for fully benefit-responsive stable value fund

      (613)      

  Total net investment income per Form 5500

      $231,745      

 

- 13 -

NORDSTROM 401(k) PLAN & PROFIT SHARING

PLAN YEAR ENDED DECEMBER 31, 2012

FORM 5500, SCHEDULE H, PART IV, LINE 4i, SCHEDULE OF ASSETS (HELD AT END OF YEAR)

AS OF DECEMBER 31, 2012

(Dollars in thousands)

 

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value      

  *

   

Nordstrom, Inc.

   

Common Stock

         $277,434       
  

Putnam Stable Value Fund

   

Common Collective Trust

         204,760       
  

Allianzgi RCM Large Cap Growth Fund

   

Mutual Fund

         64,076       
  

American Funds EuroPacific Growth Fund

   

Mutual Fund

         164,532       
  

Dodge & Cox Stock Fund

   

Mutual Fund

         122,608       
  

Neuberger & Berman Genesis Fund

   

Mutual Fund

         92,180       
  

PIMCO Total Return Fund

   

Mutual Fund

         109,066       
  

Rainier Small/Mid Cap Equity Fund

   

Mutual Fund

         100,095       
  

Vanguard Institutional Index Fund

   

Mutual Fund

         85,827       
  

Brokerage Securities

   

Self-directed Brokerage Securities

         11,726       
  

SDB Money Market Fund

   

Self-directed Brokerage Money Market Fund

         4,438       
  

Pending Account

   

Noninterest-bearing cash

         137       
  

New England Life Insurance

   

Life insurance policies

         2,050       

  *

   

Participant Loans

    Loan interest rates range from 4.25% to 10.5%. Loan repayment is made through regular payroll deductions for a period of up to 60 months for general loans and over a longer period for loans used to finance the purchase of a principal residence. If a participant’s employment terminates for any reason and the loan balances are not paid in full within 90 days of termination, the loan balances will be deemed distributed and become taxable income to the participant. Participants may continue to make loan repayments after termination of employment under procedures established by the Plan administrator.           79,606       

 

* Party-in-interest

**Cost information is not required for participant-directed investments and therefore is not included.

 

- 14 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value      
  Investments held within the Nordstrom Target Retirement Date Funds1:   
  

Aberdeen International Equity Fund

    Mutual Fund         105,350       
  

American Funds EuroPacific Growth Fund

    Mutual Fund         112,929       
  

Dodge & Cox Stock Fund

    Mutual Fund         91,185       
  

Neuberger Berman Genesis Fund/Institutional

    Mutual Fund         53,626       
  

PIMCO Asset Bkd Secs Portfolio

    Mutual Fund         1,972       
  

PIMCO Emerging Mkts Portfolio Instl

    Mutual Fund         2,865       
  

PIMCO High Yield Portfolio Inst

    Mutual Fund         1,754       
  

PIMCO Intl Port

    Mutual Fund         7,265       
  

PIMCO Invt Grade Corp Portfolio Ins

    Mutual Fund         13,930       
  

PIMCO Mtg Portfolio Inst

    Mutual Fund         28,093       
  

PIMCO Municipal Sector Portfolio

    Mutual Fund         948       
  

PIMCO Real Return Bd Port Inst

    Mutual Fund         12,606       
  

PIMCO Short Term Portfolio Inst

    Mutual Fund         1,824       
  

PIMCO U.S. Govt Sect Portfolio Instr

    Mutual Fund         13,476       
  

PIMCO Short Term Fltg NAV - Port II

    Mutual Fund         2,767       
  

Vanguard Institutional Index Fund

    Mutual Fund         102,460       
  

EB Temporary Investment Fund

    Common Collective Trust - due 12/31/2049 – variable         4,510       
  

Putnam Stable Value Fund

    Common Collective Trust         20,625       
  

SSGA TIPS Index

    Common Collective Trust         24,542       
  

FHLMC POOL #G3-0315

    U.S. Government Securities - due 1/1/2027 – 6.0%         597       
  

FHLMC POOL #G3-0320

    U.S. Government Securities - due 7/1/2025 – 6.0%         854       
  

FHLMC POOL #H0-1774

    U.S. Government Securities - due 9/1/2037 – 6.5%         305       
  

FHLMC POOL #G0-2993

    U.S. Government Securities - due 4/1/2037 – 6.0%         339       
  

FHLMC POOL #G0-6066

    U.S. Government Securities - due 5/1/2040 – 6.0%         630       
  

FHLMC POOL #C9-0981

    U.S. Government Securities - due 7/1/2026 – 6.5%         890       
  

FHLMC POOL #C9-1013

    U.S. Government Securities - due 1/1/2027 – 6.5%         549       
  

FHLMC POOL #1H-2592

    U.S. Government Securities - due 1/1/2036 – variable         284       
  

FHLMC POOL #H0-9197

    U.S. Government Securities - due 10/1/2038 – 6.5%         151       
  

FHLMC POOL #H0-9212

    U.S. Government Securities - due 5/1/2038 – 5.5%         267       
  

FHLMC POOL #78-1274

    U.S. Government Securities - due 2/1/2034 – variable         348       
  

FNMA POOL #0255779

    U.S. Government Securities - due 6/1/2025 – 6.0%         843       
  

FNMA POOL #0256653

    U.S. Government Securities - due 3/1/2027 – 6.5%         443       
  

FNMA POOL #0256851

    U.S. Government Securities - due 8/1/2037 – 7.0%         316       
  

FNMA POOL #0257007

    U.S. Government Securities - due 12/1/2027 – 6.0%         320       
  

FNMA POOL #0AL0406

    U.S. Government Securities - due 6/1/2038 – 6.0%         240       
  

FNMA POOL #0AL0852

    U.S. Government Securities - due 6/1/2038 – 6.0%         478       
  

FNMA POOL #0AL2689

    U.S. Government Securities - due 2/1/2027 – 4.0%         1,008       
  

FNMA GTD REMIC P/T 01-79 BA

    U.S. Government Securities - due 3/25/2045 – 7.0%         85       
  

FNMA GTD REMIC P/T 01-T10 A1

    U.S. Government Securities - due 12/25/2041 – 7.0%         514       
    

FNMA GTD REMIC P/T 04-W2 5A

    U.S. Government Securities - due 3/25/2044 – 7.5%           1,058       

 

1

The Plan has twelve Nordstrom Target Retirement Date Funds, including: Nordstrom Target Retirement Date Income Fund, Nordstrom Target Retirement Date 2000 Fund, Nordstrom Target Retirement Date 2005 Fund, Nordstrom Target Retirement Date 2010 Fund, Nordstrom Target Retirement Date 2015 Fund, Nordstrom Target Retirement Date 2020 Fund, Nordstrom Target Retirement Date 2025 Fund, Nordstrom Target Retirement Date 2030 Fund, Nordstrom Target Retirement Date 2035 Fund, Nordstrom Target Retirement Date 2040 Fund, Nordstrom Target Retirement Date 2045 Fund and Nordstrom Target Retirement Date 2050 Fund.

 

- 15 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value    
   FNMA GTD REMIC P/T 07-W10 2A    U.S. Government Securities - due 8/25/2047 – variable         801       
   FNMA POOL #0725457    U.S. Government Securities - due 4/1/2014 – 4.606%         681       
   FNMA POOL #0735503    U.S. Government Securities - due 4/1/2035 – 6.0%         509       
   FNMA POOL #0735608    U.S. Government Securities - due 3/1/2035 – variable         824       
   FNMA POOL #0745329    U.S. Government Securities - due 7/1/2035 – 6.0%         736       
   FNMA POOL #0884704    U.S. Government Securities - due 6/1/2036 – variable         253       
   FNMA POOL #0888154    U.S. Government Securities - due 11/1/2036 – variable         717       
   FNMA POOL #0888367    U.S. Government Securities - due 3/1/2037 – 7.0%         2,001       
   FNMA POOL #0888787    U.S. Government Securities - due 10/1/2037 – 6.5%         295       
   FNMA POOL #0889095    U.S. Government Securities - due 1/1/2038 – 6.5%         494       
   FNMA POOL #0889634    U.S. Government Securities - due 2/1/2023 – 6.0%         1,103       
   FNMA POOL #0889984    U.S. Government Securities - due 10/1/2038 – 6.5%         982       
   FNMA POOL #0945680    U.S. Government Securities - due 9/1/2037 – 6.0%         588       
   FNMA POOL #0995487    U.S. Government Securities - due 8/1/2037 – 6.0%         939       
   FNMA POOL #0AB8086    U.S. Government Securities - due 10/1/2037 – 6.0%         664       
   FNMA POOL #0AD0130    U.S. Government Securities - due 8/1/2039 – 6.5%         243       
   FNMA POOL #0AD0217    U.S. Government Securities - due 8/1/2037 – 6.0%         895       
   FNMA POOL #0AD0218    U.S. Government Securities - due 9/1/2036 – 6.0%         839       
   FNMA POOL #0AE0288    U.S. Government Securities - due 10/1/2037 – 6.0%         214       
   SBA GTD PARTN CTFS 2006-20E 1    U.S. Government Securities - due 5/1/2026 – 5.87%         687       
   SBA GTD PARTN CTFS 2007-20B 1    U.S. Government Securities - due 2/1/2027 – 5.49%         693       
   SBA GTD PARTN CTFS 2007-20D 1    U.S. Government Securities - due 4/1/2027 – 5.32%         389       
   U.S. Treasury Note    U.S. Government Securities - due 10/15/2013 – 0.5%         2,005       
   U.S. Treasury Note    U.S. Government Securities - due 1/31/2013 – 0.625%         2,526       
   U.S. Treasury Note    U.S. Government Securities - due 2/28/2013 – 0.625%         751       
   U.S. Treasury Note    U.S. Government Securities - due 7/31/2013 – 0.375%         926       
   U.S. Treasury Note    U.S. Government Securities - due 10/31/2013 – 0.25%         2,502       
   U.S. Treasury Note    U.S. Government Securities - due 1/31/2014 – 0.25%         2,902       
   Ally Financial, Inc.    Corporate Debt - due 2/11/2014 – 4.5%         1,183       
   American International Group, Inc.    Corporate Debt - due 8/15/2018 – 8.25%         920       
   BAC Capital Trust XI    Corporate Debt - due 5/23/2036 – 6.625%         1,020       
   Bank of America Corp.    Corporate Debt - due 6/1/2019 – 7.625%         166       
   Bank of America NA    Corporate Debt - due 3/15/2017 – 5.3%         984       
   Bank One Capital III    Corporate Debt - due 9/1/2030 – 8.75%         619       
   Boston Properties LP    Corporate Debt - due 2/1/2023 – 3.85%         289       
   Boston Properties LP    Corporate Debt - due 6/1/2015 – 5.0%         492       
   Boston Properties LP    Corporate Debt - due 10/15/2019 – 5.875%         358       
   Boston Scientific Corp.    Corporate Debt - due 6/15/2016 – 6.4%         718       
   Boston Scientific Corp.    Corporate Debt - due 1/15/2020 – 6.0%         146       
   Burlington Northern Santa Fe    Corporate Debt - due 1/15/2021 – 8.251%         865       
   Capital One Financial Corp.    Corporate Debt - due 9/15/2017 – 6.75%         855       
   Chase Issuance Trust A8 A8    Corporate Debt - due 10/16/2017 – 0.54%         869       
   CIGNA Corp.    Corporate Debt - due 5/15/2027 – 7.875%         213       
   CIGNA Corp.    Corporate Debt - due 11/15/2036 – 6.15%         396       
   CIGNA Corp.    Corporate Debt - due 5/1/2019 – 8.5%         263       
   CIGNA Corp.    Corporate Debt - due 6/15/2020 – 5.125%         86       
   CIGNA Corp.    Corporate Debt - due 2/15/2022 – 4.0%         164       
   Citigroup, Inc.    Corporate Debt - due 11/21/2017 – 6.125%         595       
   Citigroup, Inc.    Corporate Debt - due 5/15/2018 – variable         806       
   Comcast Corp.    Corporate Debt - due 2/15/2018 – 5.875%         693       
     Comcast Corp.    Corporate Debt - due 5/15/2018 – 5.7%           150       

 

- 16 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value    
   Cox Communications, Inc.    Corporate Debt - due 12/1/2016 – 5.875%         1,051       
   Cox Communications, Inc. 144A    Corporate Debt - due 12/15/2022 – 3.25%         129       
   CSX Transportation, Inc.    Corporate Debt - due 1/15/2023 – 6.251%         314       
   Dillard’s, Inc.    Corporate Debt - due 5/15/2027 – 7.75%         443       
   Dillard’s, Inc.    Corporate Debt - due 1/15/2018 – 6.625%         271       
   The Dow Chemical Co.    Corporate Debt - due 5/15/2019 – 8.55%         901       
   The Dow Chemical Co.    Corporate Debt - due 5/15/2039 – 9.4%         412       
   Enel Finance International 144A    Corporate Debt - due 10/7/2039 – 6.0%         218       
   Export-Import BK Korea    Corporate Debt - due 1/11/2017 – 4.0%         488       
   Federal Express Corp. 1998 Pass    Corporate Debt - due 1/15/2022 – 6.72%         138       
   Ford Motor Credit Co., LLC    Corporate Debt - due 2/1/2021 – 5.75%         1,554       
   General Electric Capital Corp.    Corporate Debt - due 1/8/2020 – 5.5%         888       
   General Electric Capital Corp.    Corporate Debt - due 9/16/2020 – 4.375%         446       
   HCA, Inc.    Corporate Debt - due 2/15/2013 – 6.25%         578       
   HCA, Inc.    Corporate Debt - due 7/15/2013 – 6.75%         615       
   HCA, Inc.    Corporate Debt - due 3/15/2014 – 5.75%         131       
   HCA, Inc.    Corporate Debt - due 2/15/2016 – 6.5%         517       
   Health Net, Inc.    Corporate Debt - due 6/1/2017 – 6.375%         425       
   Hewlett-Packard Co.    Corporate Debt - due 12/9/2016 – 3.3%         433       
   HSBC Holdings PLC    Corporate Debt - due 5/2/2036 – 6.5%         437       
   HSBC Holdings PLC    Corporate Debt - due 9/15/2037 – 6.5%         562       
   HSBC Holdings PLC    Corporate Debt - due 4/5/2021 – 5.1%         177       
   JPMorgan Chase & Co.    Corporate Debt - due 8/15/2021 – 4.35%         252       
   Kaupthing Bank HF    Corporate Debt - due 5/19/2016 – 7.125%         12       
   Lafarge S.A.    Corporate Debt - due 7/15/2016 – 6.5%         615       
   Lafarge S.A. 144A    Corporate Debt - due 7/9/2015 – variable         459       
   Legg Mason, Inc. 144A    Corporate Debt - due 5/21/2019 – step         458       
   Liberty Interactive LLC    Corporate Debt - due 2/1/2030 – 8.25%         57       
   Macy’s Retail Holdings, Inc.    Corporate Debt - due 9/15/2028 – 6.7%         1,250       
   Macy’s Retail Holdings, Inc.    Corporate Debt - due 7/15/2024 – 6.65%         310       
   News America, Inc.    Corporate Debt - due 12/15/2035 – 6.4%         93       
   News America, Inc.    Corporate Debt - due 11/15/2037 – 6.65%         355       
   Nordstrom, Inc.    Corporate Debt - due 3/15/2028 – 6.95%         230       
  

Petrobras International Finance Company

    Corporate Debt - due 1/27/2021 – 5.375%         422       
   Provident Cos, Inc.    Corporate Debt - due 3/15/2028 – 7.25%         353       
   Reed Elsevier Capital, Inc.    Corporate Debt - due 1/15/2019 – 8.625%         741       
   The Royal Bank of Scotland PLC    Corporate Debt - due 1/11/2021 – 6.125%         876       
  

The Royal Bank of Scotland Group PLC

    Corporate Debt - due 12/15/2022 – 6.125%         422       
   SLM Corp.    Corporate Debt - due 6/15/2018 – 8.45%         468       
   SLM Corp.    Corporate Debt - due 1/25/2017 – 6.0%         433       
   SLM Private Education C A2 144A    Corporate Debt - due 10/15/2046 – 3.31%         663       
   Sprint Nextel Corp.    Corporate Debt - due 12/1/2016 – 6.0%         598       
   Telecom Italia Capital S.A.    Corporate Debt - due 6/18/2019 – 7.175%         377       
   Telecom Italia Capital S.A.    Corporate Debt - due 9/30/2014 – 4.95%         339       
   Telecom Italia Capital S.A.    Corporate Debt - due 6/4/2018 – 6.999%         343       
   Time Warner Cable, Inc.    Corporate Debt - due 2/14/2019 – 8.75%         405       
   Time Warner Cable, Inc.    Corporate Debt - due 4/1/2019 – 8.25%         765       
   Time Warner Cable, Inc.    Corporate Debt - due 9/1/2021 – 4.0%         110       
   Time Warner, Inc.    Corporate Debt - due 5/1/2032 – 7.7%         1,258       
     Turlock Corp. 144A    Corporate Debt - due 11/2/2017 – 1.5%           75       

 

- 17 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value    
   Turlock Corp. 144A    Corporate Debt - due 11/2/2022 – 2.75%         199       
   Union Pacific Railroad Co. 1998    Corporate Debt - due 2/23/2019 – 6.7%         88       
   Union Pacific Railroad Co. 2006    Corporate Debt - due 7/2/2030 – 5.866%         1,474       
   Vulcan Materials Co.    Corporate Debt - due 12/1/2016 – 6.5%         221       
   Vulcan Materials Co.    Corporate Debt - due 6/15/2021 – 7.5%         513       
   Wachovia Bank NA    Corporate Debt - due 11/15/2017 – 6.0%         420       
   Xerox Corp.    Corporate Debt - due 12/15/2019 – 5.625%         223       
   Xerox Corp.    Corporate Debt - due 2/1/2017 – 6.75%         1,076       
   California State    Municipal Debt - due 4/1/2034 – 7.5%         1,865       
   California State    Municipal Debt - due 10/1/2039 – 7.3%         1,109       
   Illinois State    Municipal Debt - due 3/1/2017 – 5.365%         1,431       
   Illinois State    Municipal Debt - due 3/1/2018 – 5.665%         86       
   Los Angeles Calif Uni Sch Dist    Municipal Debt - due 7/1/2034 – 6.758%         434       
   New Jersey St Tpk Auth Tpk Rev    Municipal Debt - due 1/1/2041 – 7.102%         613       
   Citigroup Capital XIII    Preferred Stock - 7.875%         661       
   3D Systems Corp.    Common Stock         412       
   Accenture PLC    Common Stock         1,523       
   ACI Worldwide, Inc.    Common Stock         255       
   Affiliated Managers Group, Inc.    Common Stock         496       
   Airgas, Inc.    Common Stock         384       
   Akamai Technologies, Inc.    Common Stock         491       
   Alexion Pharmaceuticals, Inc.    Common Stock         233       
   Allegiant Travel Co.    Common Stock         268       
   Allergan, Inc./U.S.    Common Stock         1,648       
   Allete, Inc.    Common Stock         106       
   AMC Networks, Inc.    Common Stock         401       
   American Campus Communities, Inc.    Common Stock         256       
   American Water Works Co., Inc.    Common Stock         547       
   A.O. Smith Corp.    Common Stock         462       
   Apple Computer, Inc.    Common Stock         6,380       
   Ariad Pharmaceuticals, Inc.    Common Stock         254       
   Avago Technologies, Ltd.    Common Stock         507       
   B/E Aerospace, Inc.    Common Stock         732       
   Banner Corp.    Common Stock         187       
   Bed Bath & Beyond, Inc.    Common Stock         1,162       
   Bio-Reference Labs, Inc.    Common Stock         198       
   Bonanza Creek Energy, Inc.    Common Stock         242       
   Borgwarner, Inc.    Common Stock         1,110       
   Cameron International Corp.    Common Stock         1,130       
   Carpenter Technology Corp.    Common Stock         698       
   Carrizo Oil & Gas, Inc.    Common Stock         639       
   Catamaran Corp.    Common Stock         390       
   Caterpillar, Inc.    Common Stock         1,273       
   Cavium, Inc.    Common Stock         358       
   CBRE Group, Inc.    Common Stock         526       
   CBS Corp.    Common Stock         1,303       
   Celgene Corp.    Common Stock         1,049       
   Chicago Bridge & Iron Co. N.V.    Common Stock         705       
   Church & Dwight Co., Inc.    Common Stock         321       
     CIT Group, Inc.    Common Stock           383       

 

- 18 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value    
   Citrix Systems, Inc.    Common Stock         442       
   Coach, Inc.    Common Stock         801       
   Coca-Cola Enterprises, Inc.    Common Stock         1,034       
   Commvault Systems, Inc.    Common Stock         247       
   The Cooper Cos., Inc.    Common Stock         503       
   Cubesmart    Common Stock         163       
   Cubist Pharmaceuticals, Inc.    Common Stock         390       
   Danaher Corp.    Common Stock         1,175       
   Davita Healthcare Partners, Inc.    Common Stock         1,198       
   Delek US Holdings, Inc.    Common Stock         267       
   Dick’s Sporting Goods, Inc.    Common Stock         354       
   Dillard’s, Inc.    Common Stock         351       
   Dollar Tree, Inc.    Common Stock         1,159       
   DSW, Inc.    Common Stock         336       
   Dunkin’ Brands Group, Inc.    Common Stock         322       
   Eaton Corp. PLC    Common Stock         1,293       
   Edwards Lifesciences Corp.    Common Stock         1,518       
   Elizabeth Arden, Inc.    Common Stock         242       
   EMC Corp./Massachusetts    Common Stock         1,647       
   Energy XXI (Bermuda), Ltd.    Common Stock         816       
   Ensco PLC    Common Stock         229       
   The Estee Lauder Cos., Inc    Common Stock         1,305       
   Esterline Technologies Corp.    Common Stock         211       
   Euronet Worldwide, Inc.    Common Stock         405       
   Evercore Partners, Inc.    Common Stock         421       
   Express Scripts Holding Co.    Common Stock         988       
   Exxon Mobil Corp.    Common Stock         1,156       
   F5 Networks, Inc.    Common Stock         1,598       
   Fabrinet    Common Stock         204       
   Facebook, Inc.    Common Stock         1,652       
   First Republic Bank/California    Common Stock         122       
   Fleetcor Technologies, Inc.    Common Stock         618       
   Flowers Foods, Inc.    Common Stock         247       
   Fluor Corp.    Common Stock         418       
   Foot Locker, Inc.    Common Stock         398       
   Fortinet, Inc.    Common Stock         461       
   Fortune Brands Home & Security    Common Stock         690       
   Franklin Resources, Inc.    Common Stock         1,138       
   The Fresh Market, Inc.    Common Stock         317       
   Fusion-Io, Inc.    Common Stock         281       
   Genesee & Wyoming, Inc.    Common Stock         418       
   Glacier Bancorp, Inc.    Common Stock         72       
   GNC Holdings, Inc.    Common Stock         466       
   Google, Inc.    Common Stock         3,178       
   Greenhill & Co., Inc.    Common Stock         323       
   Group 1 Automotive, Inc.    Common Stock         289       
   HCA Holdings, Inc.    Common Stock         1,057       
   Healthcare Services Group, Inc.    Common Stock         250       
   Herbalife, Ltd.    Common Stock         165       
     The Hershey Co.    Common Stock           1,419       

 

- 19 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value    
   Hittite Microwave Corp.    Common Stock         154       
   Hologic, Inc.    Common Stock         606       
   Home Bancshares, Inc.    Common Stock         267       
   Ixia    Common Stock         277       
   Illumina, Inc.    Common Stock         700       
   Incyte Corp., Ltd.    Common Stock         220       
   Intel Corp.    Common Stock         1,254       
   Invesco, Ltd.    Common Stock         678       
   IPG Photonics Corp.    Common Stock         156       
   ITC Holdings Corp.    Common Stock         247       
   Jazz Pharmaceuticals PLC    Common Stock         303       
   Jones Lang Lasalle, Inc.    Common Stock         855       
   JPMorgan Chase & Co.    Common Stock         1,256       
   LaSalle Hotel Properties    Common Stock         607       
   La-Z-Boy, Inc.    Common Stock         225       
   LKQ Corp.    Common Stock         504       
   LSI Corp.    Common Stock         675       
   LyondellBasell Industries N.V.    Common Stock         1,206       
   Macy’s, Inc.    Common Stock         517       
   McDonald’s Corp.    Common Stock         1,280       
   Mead Johnson Nutrition Co.    Common Stock         1,140       
   Merck & Co., Inc.    Common Stock         1,350       
   Michael Kors Holdings, Ltd.    Common Stock         341       
   Microchip Technology, Inc.    Common Stock         959       
   Micros Systems, Inc.    Common Stock         342       
   Microsoft Corp.    Common Stock         2,815       
   Middleby Corp.    Common Stock         149       
   Mohawk Industries, Inc.    Common Stock         39       
   Monsanto Co.    Common Stock         1,723       
   Monster Beverage Corp.    Common Stock         1,145       
   National Oilwell Varco, Inc.    Common Stock         1,289       
   Nice Systems, Ltd.    Common Stock         291       
   Nike, Inc.    Common Stock         1,170       
   NiSource, Inc.    Common Stock         409       
   Nu Skin Enterprises, Inc.    Common Stock         373       
   Oceaneering International, Inc.    Common Stock         278       
   Ocwen Financial Corp.    Common Stock         539       
   Oracle Corp.    Common Stock         1,492       
   Orthofix International N.V.    Common Stock         305       
   PDC Energy, Inc.    Common Stock         417       
   PerkinElmer, Inc.    Common Stock         153       
   Perrigo Co.    Common Stock         446       
   Pfizer, Inc.    Common Stock         2,408       
   Pinnacle Financial Partners    Common Stock         255       
   Pioneer Natural Resources Co.    Common Stock         866       
   Potlatch Corp.    Common Stock         431       
   PPG Industries, Inc.    Common Stock         904       
   Precision Castparts Corp.    Common Stock         1,264       
   Prestige Brands Holdings, Inc.    Common Stock         144       
     Priceline.com, Inc.    Common Stock           1,121       

 

- 20 -

     

Identity of issue, borrower, lessor, or

similar party

   

Description of investment including maturity

date, rate of interest, collateral, par, or maturity

value

    **    Fair Value    
  

PulteGroup, Inc.

    Common Stock         382       
  

Quanta Services, Inc.

    Common Stock         432       
  

Raymond James Financial, Inc.

    Common Stock         732       
  

Red Hat, Inc.

    Common Stock         323       
  

Riverbed Technology, Inc.

    Common Stock         333       
  

Rockwell Automation, Inc.

    Common Stock         1,954       
  

Safeway, Inc.

    Common Stock         545       
  

Salesforce.com, Inc.

    Common Stock         1,520       
  

Salix Pharmaceuticals, Ltd.

    Common Stock         262       
  

SBA Communications Corp.

    Common Stock         668       
  

Schlumberger, Ltd.

    Common Stock         1,231       
  

Seattle Genetics, Inc.

    Common Stock         293       
  

Select Comfort Corp.

    Common Stock         782       
  

Sensient Technologies Corp.

    Common Stock         225       
  

Signature Bank/New York, NY

    Common Stock         153       
  

Signet Jewelers, Ltd.

    Common Stock         346       
  

Sirona Dental Systems, Inc.

    Common Stock         399       
  

SodaStream International, Ltd.

    Common Stock         548       
  

Starbucks Corp.

    Common Stock         1,105       
  

Stericycle, Inc.

    Common Stock         522       
  

Strategic Hotels & Resorts, Inc.

    Common Stock         220       
  

Texas Capital Bancshares, Inc.

    Common Stock         767       
  

Texas Instruments, Inc.

    Common Stock         1,226       
  

Time Warner, Inc.

    Common Stock         1,626       
  

Titan International, Inc.

    Common Stock         663       
  

Tractor Supply Co.

    Common Stock         1,389       
  

Trimble Navigation, Ltd.

    Common Stock         752       
  

TripAdvisor, Inc.

    Common Stock         355       
  

Triumph Group, Inc.

    Common Stock         807       
  

Tupperware Brands Corp.

    Common Stock         279       
  

UMB Financial Corp.

    Common Stock         372       
  

Under Armour, Inc.

    Common Stock         433       
  

Union Pacific Corp.

    Common Stock         1,745       
  

United Rentals, Inc.

    Common Stock         1,285       
  

United Technologies Corp.

    Common Stock         1,774       
  

UnitedHealth Group, Inc.

    Common Stock         834       
  

US Bancorp

    Common Stock         1,122       
  

Valmont Industries, Inc.

    Common Stock         508       
  

Valspar Corp.

    Common Stock         572       
  

Vantiv, Inc.

    Common Stock         309       
  

Visa, Inc.

    Common Stock         2,153       
  

Wabtec Corp./Delaware

    Common Stock         457       
  

Watson Pharmaceuticals, Inc.

    Common Stock         491       
  

Wells Fargo & Co.

    Common Stock         1,427       
  

Whitewave Foods Co.

    Common Stock         250       
                         

 

- 21 -