þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-0515058 | |
State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) | |
1617 Sixth Avenue, Seattle, Washington | 98101 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common stock, without par value | New York Stock Exchange |
Large accelerated filer þ | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
Emerging growth company ¨ |
TABLE OF CONTENTS | ||
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• | timely and effective implementation of evolving our business model and successful execution of our customer strategy to provide a differentiated and seamless experience across all Nordstrom channels, |
• | our ability to execute and manage the costs of our evolving business model, including the execution of new supply chain capabilities and enhancement of existing ones, development of applications for electronic devices, improvement of customer-facing technologies, timely delivery of products purchased digitally, enhancement of inventory management systems, more fluid inventory availability between our digital channels and retail stores through our local market strategy, and greater consistency in marketing strategies, |
• | our ability to respond to the business and retail environment, as well as fashion trends and consumer preferences, including changing expectations of service and experience in stores and online, |
• | our ability to properly balance our investments in existing and new store locations, technology and supply chain facilities, especially our investments in our Nordstrom Men’s Store NYC and Nordstrom NYC and our Los Angeles market integration, |
• | successful execution of our information technology strategy, including engagement with third-party service providers, |
• | our ability to effectively utilize internal and third-party data in strategic planning and decision making, |
• | our ability to maintain or expand our presence, including timely completion of construction associated with new, relocated and remodeled stores, and Supply Chain Network facilities, all of which may be impacted by third parties, consumer demand and other natural or man-made disruptions, |
• | efficient and proper allocation of our capital resources, |
• | effective inventory management processes and systems, fulfillment and supply chain processes and systems, disruptions in our supply chain and our ability to control costs, |
• | the impact of any systems or network failures, cybersecurity and/or security breaches, including any security breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of such an incident, |
• | our ability to safeguard our reputation and maintain relationships with our vendors and third-party service providers, |
• | our ability to maintain relationships with and motivate our employees and to effectively attract, develop and retain our future leaders, |
• | our ability to realize the expected benefits, respond to potential risks and appropriately manage costs associated with our program agreement with TD Bank, N.A. (“TD”), |
• | the effectiveness of planned advertising, marketing and promotional campaigns in the highly competitive and promotional retail industry, |
• | market fluctuations, increases in operating costs, exit costs and overall liabilities and losses associated with owning and leasing real estate, |
• | potential goodwill impairment charges, future impairment charges and fluctuations in the fair values of reporting units or of assets in the event projected financial results are not achieved within expected time frames, |
• | compliance with debt and operating covenants, availability and cost of credit, changes in our credit rating and changes in interest rates, |
• | the timing, price, manner and amounts of future share repurchases by us, if any, or any share issuances by us, |
• | the impact of the seasonal nature of our business and cyclical customer spending, |
• | the impact of economic and market conditions and the resultant impact on consumer spending and credit patterns, |
• | the impact of economic, environmental or political conditions in the U.S. and countries where our third-party vendors operate, |
• | weather conditions, natural disasters, health hazards, national security or other market and supply chain disruptions, including the effects of tariffs, or the prospects of these events and the resulting impact on consumer spending patterns or information technology systems and communications, |
• | our compliance with applicable domestic and international laws, regulations and ethical standards, including those related to employment and tax, information security and privacy, consumer credit and the outcome of any claims and litigation and resolution of such matters, |
• | the impact of the current regulatory environment and financial system, health care and tax reforms, |
• | the impact of changes in accounting rules and regulations, changes in our interpretation of the rules or regulations, or changes in underlying assumptions, estimates or judgments, |
• | the impact of claims, litigation and regulatory investigations, including those related to information security, privacy and consumer credit. |
• | 115 Nordstrom-branded full-line stores in the U.S. |
• | six full-line and six Rack stores in Canada |
• | Full-Price Nordstrom.com website and mobile application |
• | TrunkClub.com website and six Trunk Club clubhouses |
• | three Jeffrey boutiques |
• | three Nordstrom Local neighborhood hubs (“Nordstrom Local”) |
• | 239 Off-Price Nordstrom Rack stores in the U.S. |
• | Off-Price Nordstromrack.com/HauteLook website and mobile application |
• | two Last Chance clearance stores |
• | fulfillment centers that process and ship orders to our customers, located in Cedar Rapids, Iowa; Elizabethtown, Pennsylvania; and San Bernardino, California, |
• | distribution centers that process and ship merchandise to our stores and other facilities and |
• | future Omni-channel centers that both fulfill customer orders and ship merchandise to our stores. These will open in 2019 and include large-scale centers and smaller local hubs (Local Omni-channel Hub). |
Nordstrom Investor Relations |
1700 Seventh Avenue, Suite 1500 |
Seattle, Washington 98101 |
(206) 303-3200 |
invrelations@nordstrom.com |
Number of stores | |||||||||
Full-Price1 | Off-Price2 | % of total store square footage | |||||||
Leased stores on leased land | 43 | 239 | 44 | % | |||||
Owned stores on leased land | 63 | — | 37 | % | |||||
Owned stores on owned land | 32 | 1 | 18 | % | |||||
Partly owned and partly leased store | 1 | — | 1 | % | |||||
Total | 139 | 240 | 100 | % |
Store count | Square footage (000’s) | |||||||||||||||||
Fiscal year | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||
Total, beginning of year | 366 | 349 | 323 | 30,218 | 29,792 | 28,610 | ||||||||||||
Store openings1: | ||||||||||||||||||
Full-Price2 | 10 | 2 | 5 | 277 | 184 | 629 | ||||||||||||
Off-Price3 | 6 | 17 | 22 | 170 | 559 | 702 | ||||||||||||
Stores closed | (3 | ) | (2 | ) | (1 | ) | (280 | ) | (317 | ) | (149 | ) | ||||||
Total, end of year | 379 | 366 | 349 | 30,385 | 30,218 | 29,792 | ||||||||||||
Relocations and other1 | 1 | 3 | 3 | (5 | ) | 33 | (9 | ) |
Business | Full-Price1 | Off-Price2 | Total | ||||||||||||
Count | Square Footage (000’s) | Count | Square Footage (000’s) | Count | Square Footage (000’s) | ||||||||||
U.S. | |||||||||||||||
Alabama | — | — | 1 | 35 | 1 | 35 | |||||||||
Alaska | 1 | 97 | 1 | 35 | 2 | 132 | |||||||||
Arizona | 2 | 384 | 9 | 313 | 11 | 697 | |||||||||
California | 35 | 5,225 | 53 | 1,974 | 88 | 7,199 | |||||||||
Colorado | 3 | 559 | 6 | 213 | 9 | 772 | |||||||||
Connecticut | 1 | 189 | 1 | 36 | 2 | 225 | |||||||||
Delaware | 1 | 127 | 1 | 32 | 2 | 159 | |||||||||
Florida | 9 | 1,389 | 16 | 545 | 25 | 1,934 | |||||||||
Georgia | 3 | 395 | 4 | 153 | 7 | 548 | |||||||||
Hawaii | 1 | 195 | 2 | 78 | 3 | 273 | |||||||||
Idaho | — | — | 1 | 37 | 1 | 37 | |||||||||
Illinois | 5 | 973 | 16 | 594 | 21 | 1,567 | |||||||||
Indiana | 1 | 134 | 2 | 60 | 3 | 194 | |||||||||
Iowa | — | — | 1 | 35 | 1 | 35 | |||||||||
Kansas | 1 | 219 | 1 | 35 | 2 | 254 | |||||||||
Kentucky | — | — | 1 | 33 | 1 | 33 | |||||||||
Louisiana | — | — | 3 | 90 | 3 | 90 | |||||||||
Maine | — | — | 1 | 30 | 1 | 30 | |||||||||
Maryland | 4 | 765 | 5 | 186 | 9 | 951 | |||||||||
Massachusetts | 5 | 604 | 7 | 266 | 12 | 870 | |||||||||
Michigan | 3 | 552 | 5 | 178 | 8 | 730 | |||||||||
Minnesota | 2 | 380 | 5 | 173 | 7 | 553 | |||||||||
Missouri | 2 | 342 | 2 | 69 | 4 | 411 | |||||||||
Nevada | 1 | 207 | 3 | 101 | 4 | 308 | |||||||||
New Jersey | 5 | 991 | 8 | 284 | 13 | 1,275 | |||||||||
New Mexico | — | — | 1 | 34 | 1 | 34 | |||||||||
New York | 5 | 547 | 12 | 433 | 17 | 980 | |||||||||
North Carolina | 2 | 300 | 2 | 74 | 4 | 374 | |||||||||
Ohio | 3 | 549 | 6 | 224 | 9 | 773 | |||||||||
Oklahoma | — | — | 2 | 67 | 2 | 67 | |||||||||
Oregon | 3 | 484 | 6 | 218 | 9 | 702 | |||||||||
Pennsylvania | 2 | 381 | 7 | 240 | 9 | 621 | |||||||||
Puerto Rico | 1 | 143 | — | — | 1 | 143 | |||||||||
Rhode Island | — | — | 1 | 38 | 1 | 38 | |||||||||
South Carolina | — | — | 3 | 101 | 3 | 101 | |||||||||
Tennessee | 1 | 145 | 2 | 69 | 3 | 214 | |||||||||
Texas | 10 | 1,580 | 18 | 613 | 28 | 2,193 | |||||||||
Utah | 2 | 277 | 4 | 126 | 6 | 403 | |||||||||
Virginia | 4 | 746 | 7 | 268 | 11 | 1,014 | |||||||||
Washington | 7 | 1,392 | 9 | 354 | 16 | 1,746 | |||||||||
Washington D.C. | 1 | 8 | 3 | 107 | 4 | 115 | |||||||||
Wisconsin | 1 | 150 | 2 | 67 | 3 | 217 | |||||||||
Canada | |||||||||||||||
Alberta | 3 | 208 | — | — | 3 | 208 | |||||||||
British Columbia | 1 | 231 | — | — | 1 | 231 | |||||||||
Ontario | 8 | 899 | — | — | 8 | 899 | |||||||||
Total | 139 | 21,767 | 240 | 8,618 | 379 | 30,385 |
• | six owned distribution centers (Portland, Oregon; Dubuque, Iowa; Ontario, California; Newark, California; Upper Marlboro, Maryland and Gainesville, Florida), |
• | two owned fulfillment centers (Cedar Rapids, Iowa and Elizabethtown, Pennsylvania), |
• | one leased fulfillment center (San Bernardino, California), |
• | four leased office facilities (Chicago, Illinois; Centennial, Colorado; Los Angeles, California and New York City, New York) and |
• | one leased Omni-channel center (Riverside, California) and |
• | one leased Local Omni-channel Hub (Torrance, California) |
• | two full-line stores in the U.S. |
• | five Nordstrom Rack stores in the U.S. |
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||
November 2018 (November 4, 2018 to December 1, 2018) | 2.0 | $52.78 | 2.0 | $1,336 | |||||||||
December 2018 (December 2, 2018 to January 5, 2019) | 4.3 | $47.15 | 4.3 | $1,133 | |||||||||
January 2019 (January 6, 2019 to February 2, 2019) | 5.1 | $46.82 | 5.1 | $893 | |||||||||
Total | 11.4 | $47.97 | 11.4 |
End of fiscal year | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||
Nordstrom common stock | 100 | 136 | 96 | 87 | 100 | 97 | |||||||||||
S&P Retail | 100 | 123 | 143 | 169 | 239 | 253 | |||||||||||
S&P 500 | 100 | 117 | 115 | 139 | 171 | 171 |
Fiscal year | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||
Earnings Results | |||||||||||||||||||
Net sales | $15,480 | $15,137 | $14,498 | $14,095 | $13,110 | ||||||||||||||
Credit card revenues, net1 | 380 | 341 | 259 | 342 | 396 | ||||||||||||||
Gross profit | 5,325 | 5,247 | 5,058 | 4,927 | 4,704 | ||||||||||||||
Selling, general and administrative (“SG&A”) expenses2 | (4,868 | ) | (4,662 | ) | (4,315 | ) | (4,168 | ) | (3,777 | ) | |||||||||
Earnings before interest and income taxes (“EBIT”) | 837 | 926 | 805 | 1,101 | 1,323 | ||||||||||||||
Net earnings | 564 | 437 | 354 | 600 | 720 | ||||||||||||||
Balance Sheet and Cash Flow Data | |||||||||||||||||||
Cash and cash equivalents | $957 | $1,181 | $1,007 | $595 | $827 | ||||||||||||||
Merchandise inventories | 1,978 | 2,027 | 1,896 | 1,945 | 1,733 | ||||||||||||||
Land, property and equipment, net | 3,921 | 3,939 | 3,897 | 3,735 | 3,340 | ||||||||||||||
Total assets1 | 7,886 | 8,115 | 7,858 | 7,698 | 9,245 | ||||||||||||||
Total long-term debt1 | 2,685 | 2,737 | 2,774 | 2,805 | 3,131 | ||||||||||||||
Net cash provided by operating activities1 | 1,296 | 1,400 | 1,658 | 2,470 | 1,243 | ||||||||||||||
Capital expenditures | 654 | 731 | 846 | 1,082 | 861 | ||||||||||||||
Performance Metrics | |||||||||||||||||||
Net sales increase | 2.3 | % | 4.4 | % | 2.9 | % | 7.5 | % | 7.8 | % | |||||||||
Comparable sales increase (decrease)3 | 1.7 | % | 0.8 | % | (0.4 | %) | 2.7 | % | 4.0 | % | |||||||||
Digital sales as % of net sales4 | 30.0 | % | 27.0 | % | 24.0 | % | 21.0 | % | 18.0 | % | |||||||||
Gross profit % of net sales | 34.4 | % | 34.7 | % | 34.9 | % | 35.0 | % | 35.9 | % | |||||||||
SG&A % of net sales2 | 31.5 | % | 30.8 | % | 29.8 | % | 29.6 | % | 28.8 | % | |||||||||
EBIT % of net sales2 | 5.4 | % | 6.1 | % | 5.6 | % | 7.8 | % | 10.1 | % | |||||||||
Capital expenditures % of net sales | 4.2 | % | 4.8 | % | 5.8 | % | 7.7 | % | 6.6 | % | |||||||||
Return on assets | 6.8 | % | 5.4 | % | 4.5 | % | 6.6 | % | 8.1 | % | |||||||||
Adjusted return on invested capital (“Adjusted ROIC”)5 | 12.0 | % | 9.7 | % | 8.4 | % | 10.7 | % | 12.6 | % | |||||||||
Inventory turnover rate | 4.70 | 4.67 | 4.53 | 4.54 | 4.67 | ||||||||||||||
Per Share Information | |||||||||||||||||||
Earnings per diluted share2,6 | $3.32 | $2.59 | $2.02 | $3.15 | $3.72 | ||||||||||||||
Dividends declared per share1 | 1.48 | 1.48 | 1.48 | 6.33 | 1.32 |
• | We continue to see positive customer trends. We had over 35 million customers, an increase of 6% from last year. One-third of our customers shopped across our multiple channels, resulting in incremental customer spend. |
• | Our early investments to build a robust digital business gives us a competitive advantage. Digital sales increased 16% and made up 30% of net sales. Additionally, Nordstrom.com has achieved scale, with the profitability of Full-Price digital sales at parity with store sales. |
• | Generational investments continued to scale, contributing approximately $2 billion in sales and improvement in profitability. Nordstromrack.com/HauteLook became our fastest business to reach $1 billion in sales. Trunk Club delivered sales growth of 35%. We opened our Men’s Store in New York City and furthered our expansion into Canada with the introduction of six Nordstrom Rack stores. |
• | Comparable Sales – sales from stores that have been open at least one full year at the beginning of the year. In 2019, we expect net sales growth to approximate comparable sales. As a result, we will only report net sales growth |
• | Comparable sales include digital sales and actual returns. Our estimate for sales return allowance is not included in the comparable sales calculations. |
• | Due to the 53rd week in 2017, our 2018 comparable sales are reported on a like-for-like basis with no impact from calendar shifts or the new Revenue Standard (see Note 1: Nature of Operations and Summary of Significant Accounting Policies in Item 8). |
• | Digital Sales – online sales and digitally assisted store sales which include Buy Online, Pick Up in Store (“BOPUS”), Ship to Store, Reserve Online, Try in Store (Store Reserve) and Style Board, a digital selling tool |
• | Gross Profit – net sales less cost of sales and related buying and occupancy costs |
• | Inventory Turnover Rate – trailing 4-quarter cost of sales and related buying and occupancy costs divided by the trailing 4-quarter average inventory |
• | Full-Price – Nordstrom U.S. full-line stores, Nordstrom.com, Canada, Trunk Club, Jeffrey and Nordstrom Local |
• | Off-Price – Nordstrom U.S. Rack stores, Nordstromrack.com/HauteLook and Last Chance clearance stores |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net sales by business: | |||||||||||
Full-Price | 10,299 | 10,452 | 10,259 | ||||||||
Off-Price | 5,181 | 4,956 | 4,509 | ||||||||
Other | — | (271 | ) | (270 | ) | ||||||
Total net sales | $15,480 | $15,137 | $14,498 | ||||||||
Net sales increase | 2.3 | % | 4.4 | % | 2.9 | % | |||||
Comparable sales increase (decrease) by business: | |||||||||||
Full-Price | 0.9 | % | 0.1 | % | (2.2 | %) | |||||
Off-Price | 3.5 | % | 2.5 | % | 4.5 | % | |||||
Total Company | 1.7 | % | 0.8 | % | (0.4 | %) | |||||
Digital sales as % of total net sales | 30 | % | 27 | % | 24 | % |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Gross profit | $5,325 | $5,247 | $5,058 | ||||||||
Gross profit as a % of net sales | 34.4 | % | 34.7 | % | 34.9 | % | |||||
Inventory turnover rate | 4.70 | 4.67 | 4.53 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Selling, general and administrative expenses | $4,868 | $4,662 | $4,315 | ||||||||
Selling, general and administrative expenses as a % of net sales | 31.5 | % | 30.8 | % | 29.8 | % |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Earnings before interest and income taxes | $837 | $926 | $805 | ||||||||
Earnings before interest and income taxes as a % of net sales | 5.4 | % | 6.1 | % | 5.6 | % |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Interest on long-term debt and short-term borrowings | $146 | $168 | $147 | ||||||||
Less: | |||||||||||
Interest income | (15 | ) | (5 | ) | (1 | ) | |||||
Capitalized interest | (27 | ) | (27 | ) | (25 | ) | |||||
Interest expense, net | $104 | $136 | $121 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Income tax expense | $169 | $353 | $330 | ||||||||
Effective tax rate | 23.1 | % | 44.7 | % | 48.2 | % |
Fiscal year | 2018 | 2017 | 2016 | |||||
Statutory rate1 | 21.0 | % | 33.7 | % | 35.0 | % | ||
Tax Act impact | (0.1 | %) | 6.1 | % | — | |||
Goodwill impairment | — | — | 10.1 | % | ||||
State and local income taxes, net of federal income taxes | 5.8 | % | 4.5 | % | 5.1 | % | ||
Federal credits | (1.5 | %) | (0.7 | %) | (0.6 | %) | ||
Valuation allowance release | (1.2 | %) | — | — | ||||
Other, net | (0.9 | %) | 1.1 | % | (1.4 | %) | ||
Effective tax rate | 23.1 | % | 44.7 | % | 48.2 | % |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Basic | $3.37 | $2.62 | $2.05 | ||||||||
Diluted | $3.32 | $2.59 | $2.02 |
Net sales growth | 1 percent to 2 percent |
Credit card revenues, net | Mid to high single-digit growth |
EBIT | $915 to $970 million |
EBIT margin | 5.9 percent to 6.1 percent |
Earnings per diluted share (excluding the impact of any potential future share repurchase) | $3.65 to $3.90 |
• | We measure our performance through market share, customers and net sales metrics. As comparable sales growth is expected to approximate net sales growth in 2019, we will only report net sales growth. |
• | The effective tax rate is expected to be approximately 26%. |
• | Estimated outstanding shares are expected to be approximately 162, which excludes the impact of any potential future share repurchases. |
12 Fiscal Months Ended | |||||||||||||||||||
February 2, 2019 | February 3, 2018 | January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||
Net earnings | $564 | $437 | $354 | $600 | $720 | ||||||||||||||
Add: income tax expense | 169 | 353 | 330 | 376 | 465 | ||||||||||||||
Add: interest expense | 119 | 141 | 122 | 125 | 139 | ||||||||||||||
Earnings before interest and income tax expense | 852 | 931 | 806 | 1,101 | 1,324 | ||||||||||||||
Add: rent expense | 251 | 250 | 202 | 176 | 137 | ||||||||||||||
Less: estimated depreciation on capitalized operating leases1 | (134 | ) | (133 | ) | (108 | ) | (94 | ) | (74 | ) | |||||||||
Adjusted net operating profit | 969 | 1,048 | 900 | 1,183 | 1,387 | ||||||||||||||
Less: estimated income tax expense | (223 | ) | (468 | ) | (416 | ) | (456 | ) | (544 | ) | |||||||||
Adjusted net operating profit after tax | $746 | $580 | $484 | $727 | $843 | ||||||||||||||
Average total assets | $8,282 | $8,055 | $7,917 | $9,076 | $8,860 | ||||||||||||||
Less: average non-interest-bearing current liabilities2 | (3,479 | ) | (3,261 | ) | (3,012 | ) | (2,993 | ) | (2,730 | ) | |||||||||
Less: average deferred property incentives and deferred rent liability2 | (616 | ) | (644 | ) | (644 | ) | (548 | ) | (502 | ) | |||||||||
Add: average estimated asset base of capitalized operating leases1 | 2,018 | 1,805 | 1,512 | 1,236 | 1,058 | ||||||||||||||
Average invested capital | $6,205 | $5,955 | $5,773 | $6,771 | $6,686 | ||||||||||||||
Return on assets3 | 6.8 | % | 5.4 | % | 4.5 | % | 6.6 | % | 8.1 | % | |||||||||
Adjusted ROIC3 | 12.0 | % | 9.7 | % | 8.4 | % | 10.7 | % | 12.6 | % |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net cash provided by operating activities | $1,296 | $1,400 | $1,658 | ||||||||
Net cash used in investing activities | (653 | ) | (684 | ) | (791 | ) | |||||
Net cash used in financing activities | (867 | ) | (542 | ) | (455 | ) |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Capital expenditures | $654 | $731 | $846 | ||||||||
Less: deferred property incentives1 | (53 | ) | (64 | ) | (65 | ) | |||||
Capital expenditures, net | $601 | $667 | $781 | ||||||||
Capital expenditures % of net sales | 4.2 | % | 4.8 | % | 5.8 | % | |||||
Capital expenditures, net category allocation: | |||||||||||
Technology | 30 | % | 28 | % | 26 | % | |||||
Supply chain | 18 | % | 4 | % | 4 | % | |||||
Generational investments2 | 30 | % | 24 | % | 32 | % | |||||
New stores, relocations, remodels and other | 22 | % | 44 | % | 38 | % | |||||
Total | 100 | % | 100 | % | 100 | % |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net cash provided by operating activities | $1,296 | $1,400 | $1,658 | ||||||||
Less: capital expenditures | (654 | ) | (731 | ) | (846 | ) | |||||
Add: proceeds from sale of credit card receivables originated at third parties | — | 16 | — | ||||||||
(Less) Add: change in cash book overdrafts | — | (55 | ) | 4 | |||||||
Free Cash Flow | $642 | $630 | $816 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net earnings | $564 | $437 | $354 | ||||||||
Add: income tax expense | 169 | 353 | 330 | ||||||||
Add: interest expense, net | 104 | 136 | 121 | ||||||||
Earnings before interest and income taxes | 837 | 926 | 805 | ||||||||
Add: depreciation and amortization expenses | 669 | 666 | 645 | ||||||||
Less: amortization of deferred property incentives | (79 | ) | (79 | ) | (80 | ) | |||||
Adjusted EBITDA | $1,427 | $1,513 | $1,370 |
Credit Ratings | Outlook | |||
Moody’s | Baa1 | Stable | ||
Standard & Poor’s | BBB+ | Stable | ||
Base Interest Rate | Applicable Margin | |||
Euro-Dollar Rate Loan | LIBOR | 1.03 | % | |
Canadian Dealer Offer Rate Loan | CDOR | 1.03 | % | |
Base Rate Loan | various | 0.03 | % |
20181 | 20171 | ||||||
Debt | $2,685 | $2,737 | |||||
Add: estimated capitalized operating lease liability2 | 2,009 | 2,001 | |||||
Adjusted Debt | $4,694 | $4,738 | |||||
Net earnings | 564 | 437 | |||||
Add: income tax expense | 169 | 353 | |||||
Add: interest expense, net | 104 | 136 | |||||
Earnings before interest and income taxes | 837 | 926 | |||||
Add: depreciation and amortization expenses | 669 | 666 | |||||
Add: rent expense, net | 251 | 250 | |||||
Add: non-cash acquisition-related charges | — | 1 | |||||
Adjusted EBITDAR | $1,757 | $1,843 | |||||
Debt to Net Earnings3 | 4.8 | 6.3 | |||||
Adjusted Debt to EBITDAR3 | 2.7 | 2.6 |
Total | Less than 1 year | 1 – 3 years | 3 – 5 years | More than 5 years | |||||||||||||||
Long-term debt | $4,596 | $147 | $1,243 | $188 | $3,018 | ||||||||||||||
Operating leases | 2,609 | 322 | 607 | 520 | 1,160 | ||||||||||||||
Purchase obligations | 1,865 | 1,733 | 123 | 9 | — | ||||||||||||||
Other long-term liabilities | 363 | 59 | 60 | 43 | 201 | ||||||||||||||
Total | $9,433 | $2,261 | $2,033 | $760 | $4,379 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net sales | $15,480 | $15,137 | $14,498 | ||||||||
Credit card revenues, net | 380 | 341 | 259 | ||||||||
Total revenues | 15,860 | 15,478 | 14,757 | ||||||||
Cost of sales and related buying and occupancy costs | (10,155 | ) | (9,890 | ) | (9,440 | ) | |||||
Selling, general and administrative expenses | (4,868 | ) | (4,662 | ) | (4,315 | ) | |||||
Goodwill impairment | — | — | (197 | ) | |||||||
Earnings before interest and income taxes | 837 | 926 | 805 | ||||||||
Interest expense, net | (104 | ) | (136 | ) | (121 | ) | |||||
Earnings before income taxes | 733 | 790 | 684 | ||||||||
Income tax expense | (169 | ) | (353 | ) | (330 | ) | |||||
Net earnings | $564 | $437 | $354 | ||||||||
Earnings per share: | |||||||||||
Basic | $3.37 | $2.62 | $2.05 | ||||||||
Diluted | $3.32 | $2.59 | $2.02 | ||||||||
Weighted-average shares outstanding: | |||||||||||
Basic | 167.3 | 166.8 | 173.2 | ||||||||
Diluted | 170.0 | 168.9 | 175.6 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net earnings | $564 | $437 | $354 | ||||||||
Postretirement plan adjustments, net of tax of ($5), $2 and ($1) | 14 | (6 | ) | 1 | |||||||
Foreign currency translation adjustment | (17 | ) | 20 | 14 | |||||||
Comprehensive net earnings | $561 | $451 | $369 |
February 2, 2019 | February 3, 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $957 | $1,181 | |||||
Accounts receivable, net | 148 | 145 | |||||
Merchandise inventories | 1,978 | 2,027 | |||||
Prepaid expenses and other | 291 | 150 | |||||
Total current assets | 3,374 | 3,503 | |||||
Land, property and equipment, net | 3,921 | 3,939 | |||||
Goodwill | 249 | 238 | |||||
Other assets | 342 | 435 | |||||
Total assets | $7,886 | $8,115 | |||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $1,469 | $1,409 | |||||
Accrued salaries, wages and related benefits | 580 | 578 | |||||
Other current liabilities | 1,324 | 1,246 | |||||
Current portion of long-term debt | 8 | 56 | |||||
Total current liabilities | 3,381 | 3,289 | |||||
Long-term debt, net | 2,677 | 2,681 | |||||
Deferred property incentives, net | 457 | 495 | |||||
Other liabilities | 498 | 673 | |||||
Commitments and contingencies (Note 11) | |||||||
Shareholders’ equity: | |||||||
Common stock, no par value: 1,000 shares authorized; 157.6 and 167.0 shares issued and outstanding | 3,048 | 2,816 | |||||
Accumulated deficit | (2,138 | ) | (1,810 | ) | |||
Accumulated other comprehensive loss | (37 | ) | (29 | ) | |||
Total shareholders’ equity | 873 | 977 | |||||
Total liabilities and shareholders’ equity | $7,886 | $8,115 |
Accumulated | |||||||||||||||||||
Other | |||||||||||||||||||
Common Stock | Accumulated | Comprehensive | |||||||||||||||||
Shares | Amount | Deficit | Loss | Total | |||||||||||||||
Balance at January 30, 2016 | 173.5 | $2,539 | ($1,610 | ) | ($58 | ) | $871 | ||||||||||||
Net earnings | — | — | 354 | — | 354 | ||||||||||||||
Other comprehensive earnings | — | — | — | 15 | 15 | ||||||||||||||
Dividends ($1.48 per share) | — | — | (256 | ) | — | (256 | ) | ||||||||||||
Issuance of common stock under stock compensation plans | 2.1 | 83 | — | — | 83 | ||||||||||||||
Stock-based compensation | 0.3 | 85 | — | — | 85 | ||||||||||||||
Repurchase of common stock | (5.9 | ) | — | (282 | ) | — | (282 | ) | |||||||||||
Balance at January 28, 2017 | 170.0 | 2,707 | (1,794 | ) | (43 | ) | 870 | ||||||||||||
Net earnings | — | — | 437 | — | 437 | ||||||||||||||
Other comprehensive earnings | — | — | — | 14 | 14 | ||||||||||||||
Dividends ($1.48 per share) | — | — | (247 | ) | — | (247 | ) | ||||||||||||
Issuance of common stock under stock compensation plans | 1.1 | 39 | — | — | 39 | ||||||||||||||
Stock-based compensation | 0.5 | 70 | — | — | 70 | ||||||||||||||
Repurchase of common stock | (4.6 | ) | — | (206 | ) | — | (206 | ) | |||||||||||
Balance at February 3, 2018 | 167.0 | 2,816 | (1,810 | ) | (29 | ) | 977 | ||||||||||||
Cumulative effect of adopted accounting standards | — | — | 60 | (5 | ) | 55 | |||||||||||||
Net earnings | — | — | 564 | — | 564 | ||||||||||||||
Other comprehensive loss | — | — | — | (3 | ) | (3 | ) | ||||||||||||
Dividends ($1.48 per share) | — | — | (250 | ) | — | (250 | ) | ||||||||||||
Issuance of common stock under stock compensation plans | 4.0 | 163 | — | — | 163 | ||||||||||||||
Stock-based compensation | 0.9 | 69 | — | — | 69 | ||||||||||||||
Repurchase of common stock | (14.3 | ) | — | (702 | ) | — | (702 | ) | |||||||||||
Balance at February 2, 2019 | 157.6 | $3,048 | ($2,138 | ) | ($37 | ) | $873 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Operating Activities | |||||||||||
Net earnings | $564 | $437 | $354 | ||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expenses | 669 | 666 | 645 | ||||||||
Goodwill impairment | — | — | 197 | ||||||||
Amortization of deferred property incentives and other, net | (75 | ) | (82 | ) | (76 | ) | |||||
Deferred income taxes, net | (34 | ) | 11 | (15 | ) | ||||||
Stock-based compensation expense | 90 | 77 | 91 | ||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | (4 | ) | 1 | (3 | ) | ||||||
Proceeds from sale of credit card receivables originated at Nordstrom | — | 39 | — | ||||||||
Merchandise inventories | 15 | (62 | ) | 31 | |||||||
Prepaid expenses and other assets | (8 | ) | (21 | ) | 100 | ||||||
Accounts payable | 12 | 77 | 16 | ||||||||
Accrued salaries, wages and related benefits | 1 | 121 | 38 | ||||||||
Other current liabilities | 15 | 48 | 181 | ||||||||
Deferred property incentives | 53 | 64 | 65 | ||||||||
Other liabilities | (2 | ) | 24 | 34 | |||||||
Net cash provided by operating activities | 1,296 | 1,400 | 1,658 | ||||||||
Investing Activities | |||||||||||
Capital expenditures | (654 | ) | (731 | ) | (846 | ) | |||||
Proceeds from sale of credit card receivables originated at third parties | — | 16 | — | ||||||||
Other, net | 1 | 31 | 55 | ||||||||
Net cash used in investing activities | (653 | ) | (684 | ) | (791 | ) | |||||
Financing Activities | |||||||||||
Proceeds from long-term borrowings, net of discounts | — | 635 | — | ||||||||
Principal payments on long-term borrowings | (56 | ) | (661 | ) | (10 | ) | |||||
(Decrease) increase in cash book overdrafts | — | (55 | ) | 4 | |||||||
Cash dividends paid | (250 | ) | (247 | ) | (256 | ) | |||||
Payments for repurchase of common stock | (678 | ) | (211 | ) | (277 | ) | |||||
Proceeds from issuances under stock compensation plans | 163 | 39 | 83 | ||||||||
Tax withholding on share-based awards | (20 | ) | (7 | ) | (5 | ) | |||||
Other, net | (26 | ) | (35 | ) | 6 | ||||||
Net cash used in financing activities | (867 | ) | (542 | ) | (455 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (224 | ) | 174 | 412 | |||||||
Cash and cash equivalents at beginning of year | 1,181 | 1,007 | 595 | ||||||||
Cash and cash equivalents at end of year | $957 | $1,181 | $1,007 | ||||||||
Supplemental Cash Flow Information | |||||||||||
Cash paid during the year for: | |||||||||||
Income taxes, net of refunds | $280 | $363 | $112 | ||||||||
Interest, net of capitalized interest | 118 | 143 | 134 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Cosmetic expenses | $149 | $159 | $166 | ||||||||
Purchase price adjustments | 180 | 184 | 179 | ||||||||
Cooperative advertising | 115 | 107 | 114 | ||||||||
Other | 6 | 7 | 6 | ||||||||
Total vendor allowances | $450 | $457 | $465 |
Asset | Life (in years) |
Buildings and improvements | 5 – 40 |
Store fixtures and equipment | 3 – 15 |
Leasehold improvements | 5 – 40 |
Capitalized software | 3 – 7 |
Trunk Club | HauteLook | Other1 | Total | ||||||||||||
Balance at January 30, 2016 | $261 | $121 | $53 | $435 | |||||||||||
Impairment | (197 | ) | — | — | (197 | ) | |||||||||
Balance at January 28, 2017 | 64 | 121 | 53 | 238 | |||||||||||
Additions | — | — | — | — | |||||||||||
Balance at February 3, 2018 | 64 | 121 | 53 | 238 | |||||||||||
Additions | — | — | 11 | 11 | |||||||||||
Balance at February 2, 2019 | $64 | $121 | $64 | $249 |
• | Recognition of additional net assets and liabilities of approximately $1,500 to $2,000 as of February 3, 2019. |
• | We do not expect the provisions of this ASU to have a material impact on our Consolidated Statement of Earnings, Consolidated Statement of Cash Flows or Consolidated Statement of Shareholders’ Equity. |
February 2, 2019 | |||||||||||
As Reported | Revenue Standard Adjustment | Excluding Impact of Revenue Standard | |||||||||
Assets | |||||||||||
Merchandise inventories | $1,978 | $40 | $2,018 | ||||||||
Prepaid expenses and other | 291 | (128 | ) | 163 | |||||||
Other assets | 342 | 75 | 417 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Other current liabilities | 1,324 | (53 | ) | 1,271 | |||||||
Other liabilities | 498 | 99 | 597 | ||||||||
Accumulated deficit | (2,138 | ) | (59 | ) | (2,197 | ) |
Contract Liabilities | |||
Opening balance as of February 4, 2018 | $498 | ||
Ending balance as of February 2, 2019 | 548 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net sales by business1,2: | |||||||||||
Full-Price | 10,299 | 10,452 | 10,259 | ||||||||
Off-Price | 5,181 | 4,956 | 4,509 | ||||||||
Other | — | (271 | ) | (270 | ) | ||||||
Total net sales | $15,480 | $15,137 | $14,498 | ||||||||
Digital sales as % of net sales3 | 30 | % | 27 | % | 24 | % |
Fiscal year | 2018 | 2017 | 2016 | |||||
Women’s Apparel | 32 | % | 32 | % | 32 | % | ||
Shoes | 24 | % | 23 | % | 23 | % | ||
Men’s Apparel | 16 | % | 16 | % | 17 | % | ||
Women’s Accessories | 11 | % | 11 | % | 11 | % | ||
Beauty | 11 | % | 11 | % | 11 | % | ||
Kids’ Apparel | 4 | % | 4 | % | 3 | % | ||
Other | 2 | % | 3 | % | 3 | % | ||
Total net sales | 100 | % | 100 | % | 100 | % |
February 2, 2019 | February 3, 2018 | ||||||
Land and land improvements | $111 | $111 | |||||
Buildings and building improvements | 1,240 | 1,246 | |||||
Leasehold improvements | 3,152 | 3,099 | |||||
Store fixtures and equipment | 3,832 | 3,724 | |||||
Capitalized software | 1,492 | 1,280 | |||||
Construction in progress | 741 | 584 | |||||
Land, property and equipment | 10,568 | 10,044 | |||||
Less: accumulated depreciation and amortization | (6,647 | ) | (6,105 | ) | |||
Land, property and equipment, net | $3,921 | $3,939 |
February 2, 2019 | February 3, 2018 | ||||||
Workers’ compensation | $77 | $71 | |||||
Employee health and welfare | 25 | 26 | |||||
Other liability | 15 | 18 | |||||
Total self-insurance reserve | $117 | $115 |
February 2, 2019 | February 3, 2018 | ||||||
Change in benefit obligation: | |||||||
Benefit obligation at beginning of year | $200 | $188 | |||||
Participant service cost | 2 | 3 | |||||
Interest cost | 7 | 7 | |||||
Benefits paid | (9 | ) | (8 | ) | |||
Actuarial (gain) loss | (10 | ) | 10 | ||||
Benefit obligation at end of year | 190 | 200 | |||||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | — | — | |||||
Employer contribution | 9 | 8 | |||||
Benefits paid | (9 | ) | (8 | ) | |||
Fair value of plan assets at end of year | — | — | |||||
Underfunded status at end of year | ($190 | ) | ($200 | ) |
February 2, 2019 | February 3, 2018 | ||||||
Accrued salaries, wages and related benefits | $10 | $9 | |||||
Other liabilities (noncurrent) | 180 | 191 | |||||
Net amount recognized | $190 | $200 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Participant service cost | $2 | $3 | $3 | ||||||||
Interest cost | 7 | 7 | 7 | ||||||||
Amortization of net loss and other | 5 | 3 | 3 | ||||||||
Total SERP expense | $14 | $13 | $13 |
February 2, 2019 | February 3, 2018 | ||||||
Accumulated loss | ($30 | ) | ($46 | ) | |||
Prior service credit | 1 | 2 | |||||
Total accumulated other comprehensive loss | ($29 | ) | ($44 | ) |
Fiscal year | 2018 | 2017 | 2016 | |||||
Assumptions used to determine benefit obligation: | ||||||||
Discount rate | 4.27 | % | 3.95 | % | 4.31 | % | ||
Rate of compensation increase | 2.50 | % | 3.00 | % | 3.00 | % | ||
Assumptions used to determine SERP expense: | ||||||||
Discount rate | 3.95 | % | 4.31 | % | 4.55 | % | ||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % |
Fiscal year | |||
2019 | $10 | ||
2020 | 11 | ||
2021 | 11 | ||
2022 | 11 | ||
2023 | 12 | ||
2024 – 2028 | 61 |
February 2, 2019 | February 3, 2018 | ||||||
Secured | |||||||
Mortgage payable, 7.68%, due April 2020 | $10 | $17 | |||||
Other | — | 1 | |||||
Total secured debt | 10 | 18 | |||||
Unsecured | |||||||
Net of unamortized discount: | |||||||
Senior notes, 4.75%, due May 2020 | 500 | 500 | |||||
Senior notes, 4.00%, due October 2021 | 500 | 500 | |||||
Senior notes, 4.00%, due March 2027 | 349 | 349 | |||||
Senior debentures, 6.95%, due March 2028 | 300 | 300 | |||||
Senior notes, 7.00%, due January 2038 | 146 | 146 | |||||
Senior notes, 5.00%, due January 2044 | 895 | 892 | |||||
Other1 | (15 | ) | 32 | ||||
Total unsecured debt | 2,675 | 2,719 | |||||
Total long-term debt | 2,685 | 2,737 | |||||
Less: current portion | (8 | ) | (56 | ) | |||
Total due beyond one year | $2,677 | $2,681 |
Fiscal year | |||
2019 | $8 | ||
2020 | 502 | ||
2021 | 500 | ||
2022 | — | ||
2023 | — | ||
Thereafter | 1,764 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Interest on long-term debt and short-term borrowings | $146 | $168 | $147 | ||||||||
Less: | |||||||||||
Interest income | (15 | ) | (5 | ) | (1 | ) | |||||
Capitalized interest | (27 | ) | (27 | ) | (25 | ) | |||||
Interest expense, net | $104 | $136 | $121 |
February 2, 2019 | February 3, 2018 | ||||||
Carrying value of long-term debt | $2,685 | $2,737 | |||||
Fair value of long-term debt | 2,692 | 2,827 |
Fiscal year | Operating leases | |||
2019 | $322 | |||
2020 | 313 | |||
2021 | 294 | |||
2022 | 271 | |||
2023 | 249 | |||
Thereafter | 1,160 | |||
Total minimum lease payments | $2,609 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Minimum rent: | |||||||||||
Store locations | $283 | $274 | $230 | ||||||||
Other1 | 38 | 44 | 40 | ||||||||
Percentage rent | 9 | 11 | 12 | ||||||||
Property incentives | (79 | ) | (79 | ) | (80 | ) | |||||
Total rent expense | $251 | $250 | $202 |
Shares | Average price per share | Amount | ||||||||
Capacity at January 30, 2016 | $811 | |||||||||
Shares repurchased | 5.9 | $48 | (282 | ) | ||||||
Capacity at January 28, 2017 | 529 | |||||||||
February 2017 authorization (ended August 31, 2018) | 500 | |||||||||
Shares repurchased | 4.6 | $45 | (206 | ) | ||||||
Expiration of unused October 2015 authorization capacity in March 2017 | (409 | ) | ||||||||
Capacity at February 3, 2018 | 414 | |||||||||
August 2018 authorization (no expiration) | 1,500 | |||||||||
Shares repurchased | 14.3 | $49 | (702 | ) | ||||||
Expiration of unused February 2017 authorization capacity in August 2018 | (319 | ) | ||||||||
Capacity at February 2, 2019 | $893 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Restricted stock units | $71 | $51 | $34 | ||||||||
Stock options | 12 | 18 | 36 | ||||||||
Acquisition-related stock compensation | — | 1 | 15 | ||||||||
Other1 | 7 | 7 | 6 | ||||||||
Total stock-based compensation expense, before income tax benefit | 90 | 77 | 91 | ||||||||
Income tax benefit | (23 | ) | (20 | ) | (28 | ) | |||||
Total stock-based compensation expense, net of income tax benefit | $67 | $57 | $63 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Cost of sales and related buying and occupancy costs | $28 | $25 | $25 | ||||||||
Selling, general and administrative expenses | 62 | 52 | 66 | ||||||||
Total stock-based compensation expense, before income tax benefit | $90 | $77 | $91 |
Fiscal year | 2018 | |||||
Shares | Weighted-average grant date fair value per unit | |||||
Outstanding, beginning of year | 3.3 | $45 | ||||
Granted | 2.2 | 49 | ||||
Vested | (1.2 | ) | 46 | |||
Forfeited or cancelled | (0.4 | ) | 46 | |||
Outstanding, end of year | 3.9 | $47 |
Fiscal Year | 2017 | 2016 | ||||||
Assumptions | ||||||||
Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options. | 1.0% – 2.5% | 0.7% – 1.9% | ||||||
Weighted-average volatility: Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock. | 40.1 | % | 36.8 | % | ||||
Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 years. | 2.4 | % | 2.2 | % | ||||
Expected life in years: Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior. | 7.1 | 6.9 | ||||||
Grant Date Information | ||||||||
Date of grant | February 28, 2017 | February 29, 2016 | ||||||
Weighted-average fair value per option | $16 | $16 | ||||||
Exercise price per option | $47 | $51 |
Fiscal year | 2018 | |||||||||||||
Shares | Weighted- average exercise price | Weighted-average remaining contractual life (years) | Aggregate intrinsic value | |||||||||||
Outstanding, beginning of year | 12.3 | $49 | ||||||||||||
Exercised | (3.6 | ) | 40 | |||||||||||
Forfeited or cancelled | (0.3 | ) | 57 | |||||||||||
Outstanding, end of year | 8.4 | $53 | 5 | $62 | ||||||||||
Vested, end of year | 6.6 | $52 | 4 | $47 | ||||||||||
Vested or expected to vest, end of year | 8.0 | $53 | 5 | $57 | ||||||||||
Fiscal year | 2018 | 2017 | 2016 | |||||||||||
Aggregate intrinsic value of options exercised | $67 | $13 | $30 | |||||||||||
Fair value of stock options vested | $22 | $34 | $40 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
U.S. | $792 | $803 | $687 | ||||||||
Foreign | (59 | ) | (13 | ) | (3 | ) | |||||
Earnings before income taxes | $733 | $790 | $684 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Current income taxes: | |||||||||||
Federal | $147 | $291 | $290 | ||||||||
State and local | 56 | 51 | 54 | ||||||||
Foreign | — | — | 1 | ||||||||
Total current income tax expense | 203 | 342 | 345 | ||||||||
Deferred income taxes: | |||||||||||
Federal | (5 | ) | 10 | (17 | ) | ||||||
State and local | (3 | ) | 1 | (5 | ) | ||||||
Foreign | (26 | ) | — | 7 | |||||||
Total deferred income tax (benefit) expense | (34 | ) | 11 | (15 | ) | ||||||
Total income tax expense | $169 | $353 | $330 |
Fiscal year | 2018 | 2017 | 2016 | |||||
Statutory rate | 21.0 | % | 33.7 | % | 35.0 | % | ||
Tax Act impact | (0.1 | %) | 6.1 | % | — | |||
Goodwill impairment | — | — | 10.1 | % | ||||
State and local income taxes, net of federal income taxes | 5.8 | % | 4.5 | % | 5.1 | % | ||
Federal credits | (1.5 | %) | (0.7 | %) | (0.6 | %) | ||
Valuation allowance release | (1.2 | %) | — | — | ||||
Other, net | (0.9 | %) | 1.1 | % | (1.4 | %) | ||
Effective tax rate | 23.1 | % | 44.7 | % | 48.2 | % |
February 2, 2019 | February 3, 2018 | ||||||
Deferred tax assets: | |||||||
Compensation and benefits accruals | $139 | $148 | |||||
Allowance for sales returns | 52 | 50 | |||||
Credit card receivable transaction | (4 | ) | 8 | ||||
Accrued expenses | 28 | 27 | |||||
Merchandise inventories | 20 | 12 | |||||
Gift cards | 26 | 27 | |||||
Loyalty program | 12 | — | |||||
Federal benefit of state taxes | 7 | 16 | |||||
Net operating losses | 41 | 22 | |||||
Other | 2 | 2 | |||||
Total deferred tax assets | 323 | 312 | |||||
Valuation allowance | (43 | ) | (51 | ) | |||
Total net deferred tax assets | 280 | 261 | |||||
Deferred tax liabilities: | |||||||
Land, property and equipment basis and depreciation differences | (94 | ) | (109 | ) | |||
Debt exchange premium | (13 | ) | (14 | ) | |||
Total deferred tax liabilities | (107 | ) | (123 | ) | |||
Net deferred tax assets | $173 | $138 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Unrecognized tax benefit at beginning of year | $31 | $32 | $19 | ||||||||
Gross increase to tax positions in prior periods | 9 | 2 | 16 | ||||||||
Gross decrease to tax positions in prior periods | (14 | ) | (7 | ) | — | ||||||
Gross increase to tax positions in current period | 6 | 5 | 2 | ||||||||
Lapses in statute | (2 | ) | (1 | ) | (5 | ) | |||||
Unrecognized tax benefit at end of year | $30 | $31 | $32 |
Fiscal year | 2018 | 2017 | 2016 | ||||||||
Net earnings | $564 | $437 | $354 | ||||||||
Basic shares | 167.3 | 166.8 | 173.2 | ||||||||
Dilutive effect of common stock equivalents | 2.7 | 2.1 | 2.4 | ||||||||
Diluted shares | 170.0 | 168.9 | 175.6 | ||||||||
Earnings per basic share | $3.37 | $2.62 | $2.05 | ||||||||
Earnings per diluted share | $3.32 | $2.59 | $2.02 | ||||||||
Anti-dilutive common stock equivalents | 5.2 | 10.5 | 8.0 |
Retail | Corporate/Other | Total | |||||||||
Fiscal year 2018 | |||||||||||
Net sales | $15,480 | $— | $15,480 | ||||||||
Credit card revenues, net | — | 380 | 380 | ||||||||
Earnings (loss) before interest and income taxes | 1,095 | (258 | ) | 837 | |||||||
Interest expense, net | — | (104 | ) | (104 | ) | ||||||
Earnings (loss) before income taxes | 1,095 | (362 | ) | 733 | |||||||
Capital expenditures | 415 | 239 | 654 | ||||||||
Depreciation and amortization | 436 | 233 | 669 | ||||||||
Assets | 5,300 | 2,586 | 7,886 | ||||||||
Fiscal year 2017 | |||||||||||
Net sales1 | $15,408 | ($271 | ) | $15,137 | |||||||
Credit card revenues, net | — | 341 | 341 | ||||||||
Earnings (loss) before interest and income taxes | 1,111 | (185 | ) | 926 | |||||||
Interest expense, net | — | (136 | ) | (136 | ) | ||||||
Earnings (loss) before income taxes | 1,111 | (321 | ) | 790 | |||||||
Capital expenditures | 516 | 215 | 731 | ||||||||
Depreciation and amortization | 445 | 221 | 666 | ||||||||
Assets | 5,477 | 2,638 | 8,115 | ||||||||
Fiscal year 2016 | |||||||||||
Net sales1 | $14,768 | ($270 | ) | $14,498 | |||||||
Credit card revenues, net | — | 259 | 259 | ||||||||
Earnings (loss) before interest and income taxes | 917 | (112 | ) | 805 | |||||||
Interest expense, net | — | (121 | ) | (121 | ) | ||||||
Earnings (loss) before income taxes | 917 | (233 | ) | 684 | |||||||
Capital expenditures | 593 | 253 | 846 | ||||||||
Depreciation and amortization | 456 | 189 | 645 | ||||||||
Assets | 5,770 | 2,088 | 7,858 |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total | |||||||||||||||
Fiscal year 2018 | |||||||||||||||||||
Net sales | $3,469 | $3,980 | $3,648 | $4,383 | $15,480 | ||||||||||||||
Comparable sales increase2 | 0.6 | % | 4.0 | % | 2.3 | % | 0.1 | % | 1.7 | % | |||||||||
Credit card revenues, net | 92 | 87 | 100 | 101 | 380 | ||||||||||||||
Gross profit | 1,181 | 1,391 | 1,213 | 1,540 | 5,325 | ||||||||||||||
Selling, general and administrative expenses3 | (1,120 | ) | (1,232 | ) | (1,208 | ) | (1,308 | ) | (4,868 | ) | |||||||||
Earnings before interest and income taxes3 | 153 | 246 | 105 | 333 | 837 | ||||||||||||||
Net earnings | 87 | 162 | 67 | 248 | 564 | ||||||||||||||
Earnings per basic share3 | $0.52 | $0.97 | $0.40 | $1.50 | $3.37 | ||||||||||||||
Earnings per diluted share3 | $0.51 | $0.95 | $0.39 | $1.48 | $3.32 | ||||||||||||||
Dividends per share | $0.37 | $0.37 | $0.37 | $0.37 | $1.48 | ||||||||||||||
Fiscal year 2017 | |||||||||||||||||||
Net sales | $3,279 | $3,717 | $3,541 | $4,600 | $15,137 | ||||||||||||||
Comparable sales (decrease) increase2 | (0.8 | %) | 1.7 | % | (0.9 | %) | 2.6 | % | 0.8 | % | |||||||||
Credit card revenues, net | 75 | 76 | 88 | 102 | 341 | ||||||||||||||
Gross profit | 1,124 | 1,266 | 1,226 | 1,631 | 5,247 | ||||||||||||||
Selling, general and administrative expenses | (1,048 | ) | (1,125 | ) | (1,106 | ) | (1,383 | ) | (4,662 | ) | |||||||||
Earnings before interest and income taxes | 151 | 217 | 208 | 350 | 926 | ||||||||||||||
Net earnings | 63 | 110 | 114 | 151 | 437 | ||||||||||||||
Earnings per basic share | $0.38 | $0.66 | $0.68 | $0.90 | $2.62 | ||||||||||||||
Earnings per diluted share | $0.37 | $0.65 | $0.67 | $0.89 | $2.59 | ||||||||||||||
Dividends per share | $0.37 | $0.37 | $0.37 | $0.37 | $1.48 |
Page | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Statements of Earnings | |
Consolidated Statements of Comprehensive Earnings | |
Consolidated Balance Sheets | |
Consolidated Statements of Shareholders’ Equity | |
Consolidated Statements of Cash Flows | |
Management’s Report on Internal Control Over Financial Reporting | |
Report of Independent Registered Public Accounting Firm |
Exhibit | Method of Filing | ||
3.1 | Incorporated by reference from the Registrant’s Form 8-K filed on May 31, 2005, Exhibit 3.1 | ||
3.2 | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2019, Exhibit 3.1 | ||
4.1 | Incorporated by reference from Registration No. 333-47035, Exhibit 4.1 | ||
4.2 | Incorporated by reference from the Registrant’s Form S-4/A filed on April 29, 2014, Exhibit 4.1 | ||
4.3 | Incorporated by reference from the Registrant’s Form 8-K filed on April 23, 2010, Exhibit 4.1 | ||
4.4 | Incorporated by reference from the Registrant’s Form 8-K filed on October 11, 2011, Exhibit 4.1 | ||
4.5 | Incorporated by reference from the Registrant’s Form S-4 filed on March 28, 2014, Exhibit 4.2 | ||
4.6 | Incorporated by reference from the Registrant’s Form S-4 filed on March 28, 2014, Exhibit 4.3 | ||
4.7 | Incorporated by reference from the Registrant’s Form S-4 filed on March 28, 2014, Exhibit 4.4 | ||
4.8 | Incorporated by reference from the Registrant’s Form 8-K filed on March 9, 2017, Exhibit 4.1 | ||
4.9 | Incorporated by reference from the Registrant’s Form 8-K filed on March 9, 2017, Exhibit 4.2 | ||
4.10 | Incorporated by reference from the Registrant’s Form S-4 filed on March 28, 2014, Exhibit 4.5 | ||
4.11* | Incorporated by reference from the Registrant’s Form S-8 filed on August 27, 2014, Exhibit 4.1 | ||
10.1* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended May 2, 2015, Exhibit 10.2 | ||
10.2* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 2, 2014, Exhibit 10.6 | ||
10.3* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended November 1, 2014, Exhibit 10.2 | ||
10.4* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended November 1, 2014, Exhibit 10.3 | ||
10.5* | Filed herewith electronically | ||
10.6* | Incorporated by reference from the Registrant’s Form DEF 14A filed on April 8, 2016 | ||
10.7* | Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended February 3, 2018, Exhibit 10.7 | ||
10.8* | Incorporated by reference to Appendix A to the Registrant’s Form DEF 14A filed on March 31, 2011 | ||
*This exhibit is a management contract, compensatory plan or arrangement. |
Exhibit | Method of Filing | ||
10.9* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2016, Exhibit 10.1 | ||
10.10* | Incorporated by reference from the Registrant’s Form 8-K filed on March 3, 2009, Exhibit 10.2 | ||
10.11* | Incorporated by reference from the Registrant’s Form 8-K filed on November 24, 2009, Exhibit 10.1 | ||
10.12* | Incorporated by reference from the Registrant’s Form 8-K filed on November 19, 2010, Exhibit 10.1 | ||
10.13* | Incorporated by reference from the Registrant’s Form 8-K filed on November 18, 2011, Exhibit 10.1 | ||
10.14* | Incorporated by reference from the Registrant’s Form 8-K filed on November 14, 2012, Exhibit 10.1 | ||
10.15* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2014, Exhibit 10.1 | ||
10.16* | Incorporated by reference from the Registrant’s Form 8-K filed on February 19, 2015, Exhibit 10.1 | ||
10.17* | Incorporated by reference from the Registrant’s Form 8-K filed on March 1, 2016, Exhibit 10.1 | ||
10.18* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2016, Exhibit 10.2 | ||
10.19* | Incorporated by reference from the Registrant’s Form 8-K filed on February 23, 2017, Exhibit 10.1 | ||
10.20* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2019, Exhibit 10.1 | ||
10.21* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2019, Exhibit 10.2 | ||
10.22* | Incorporated by reference from the Registrant’s definitive proxy statement filed with the Commission on April 15, 2004 | ||
10.23* | Incorporated by reference from the Registrant’s Form 8-K filed on November 19, 2007, Exhibit 10.44 | ||
10.24* | Incorporated by reference from the Registrant’s Form 8-K filed on November 24, 2008, Exhibit 10.1 | ||
10.25* | Incorporated by reference to Appendix A to the Registrant’s Form DEF 14A filed on April 8, 2010 | ||
10.26* | Incorporated by reference to Appendix A to the Registrant’s Form DEF 14A filed on April 1, 2013 | ||
10.27* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2014, Exhibit 10.4 | ||
10.28* | Incorporated by reference to Appendix A to the Registrant’s Form DEF 14A filed on April 5, 2017 | ||
10.29* | Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended January 29, 2005, Exhibit 10.43 | ||
10.30* | Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended February 2, 2008, Exhibit 10.56 | ||
*This exhibit is a management contract, compensatory plan or arrangement. |
Exhibit | Method of Filing | ||
10.31* | Incorporated by reference from the Registrant’s Form 8-K filed on November 24, 2008, Exhibit 10.3 | ||
10.32* | Incorporated by reference from the Registrant’s Form 8-K filed on August 25, 2011, Exhibit 10.1 | ||
10.33* | Incorporated by reference from the Registrant’s Form 8-K filed on March 5, 2013, Exhibit 10.1 | ||
10.34* | Incorporated by reference from the Registrant’s Form 8-K filed on March 1, 2016, Exhibit 10.4 | ||
10.35* | Incorporated by reference from the Registrant’s Form 8-K filed on March 1, 2016, Exhibit 10.3 | ||
10.36* | Incorporated by reference from the Registrant’s Form 8-K filed on February 23, 2017, Exhibit 10.3 | ||
10.37* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2019, Exhibit 10.4 | ||
10.38* | Incorporated by reference from the Registrant’s Form 8-K filed on November 24, 2008, Exhibit 10.4 | ||
10.39* | Incorporated by reference from the Registrant’s Form 8-K filed on March 3, 2009, Exhibit 10.4 | ||
10.40* | Incorporated by reference from the Registrant’s Form 8-K filed on August 25, 2014, Exhibit 10.1 | ||
10.41* | Incorporated by reference from the Registrant’s Form 8-K filed on August 25, 2014, Exhibit 10.2 | ||
10.42 | Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended February 3, 2018, Exhibit 10.48 | ||
10.43 | Incorporated by reference from the Registrant’s Form 8-K filed on March 3, 2009, Exhibit 10.1 | ||
10.44 | Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended January 29, 2011, Exhibit 10.78 | ||
10.45 | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2002, Exhibit 10.1 | ||
10.46 | Incorporated by reference from the Registrant’s Form 8-K filed on November 19, 2007, Exhibit 10.39 | ||
10.47 | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended November 3, 2007, Exhibit 10.1 | ||
10.48* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2014, Exhibit 10.2 | ||
10.49* | Incorporated by reference from the Registrant’s Form 8-K filed on February 19, 2015, Exhibit 10.2 | ||
10.50* | Incorporated by reference from the Registrant’s Form 8-K filed on March 1, 2016, Exhibit 10.2 | ||
10.51* | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 30, 2016, Exhibit 10.3 | ||
*This exhibit is a management contract, compensatory plan or arrangement. |
Exhibit | Method of Filing | ||
10.52* | Incorporated by reference from the Registrant’s Form 8-K filed on February 23, 2017, Exhibit 10.2 | ||
10.53* | Incorporated by reference from the Registrant’s Annual Report on Form 10-K for the year ended January 28, 2017, Exhibit 10.67 | ||
10.54* | Incorporated by reference from the Registrant’s Form 8-K filed on March 8, 2018, Exhibit 10.1 | ||
10.55* | Incorporated by reference from the Registrant’s Form 8-K filed on March 4, 2019, Exhibit 10.3 | ||
10.56* | Incorporated by reference from the Registrant’s Form 8-K filed on March 8, 2018, Exhibit 10.2 | ||
10.57 | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2004, Exhibit 10.4 | ||
10.58 | Incorporated by reference from the Registrant’s Form 8-K filed on October 2, 2018, Exhibit 10.1 | ||
10.59 | Incorporated by reference from the Registrant’s Form 8-K filed on September 4, 2014, Exhibit 99.1 | ||
10.60 | Incorporated by reference from the Registrant’s Form 8-K filed on October 2, 2015, Exhibit 99.1 | ||
10.61 | Incorporated by reference from the Registrant’s Form 8-K filed on February 21, 2017, Exhibit 99.2 | ||
10.62 | Incorporated by reference from the Registrant’s Form 8-K filed on August 27, 2018, Exhibit 99.1 | ||
10.63 | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 1, 2015, Exhibit 10.1 | ||
10.64 | Incorporated by reference from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended October 31, 2015, Exhibit 10.1 | ||
10.65 | Incorporated by reference from the Registrant’s Form 8-K filed on June 8, 2017, Exhibit 99.2, and the Registrant’s SC 13D filed on June 8, 2017, Exhibit 3 | ||
21.1 | Filed herewith electronically | ||
23.1 | Filed as page 73 of this report | ||
31.1 | Filed herewith electronically | ||
31.2 | Filed herewith electronically | ||
*This exhibit is a management contract, compensatory plan or arrangement. |
Exhibit | Method of Filing | ||
32.1 | Furnished herewith electronically | ||
101.INS | XBRL Instance Document | Filed herewith electronically | |
101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith electronically | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith electronically | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | Filed herewith electronically | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith electronically | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith electronically | |
NORDSTROM, INC. | |||
(Registrant) | |||
/s/ | Anne L. Bramman | ||
Anne L. Bramman | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Principal Financial Officer: | Principal Executive Officer: | |||
/s/ | Anne L. Bramman | /s/ | Erik B. Nordstrom | |
Anne L. Bramman | Erik B. Nordstrom | |||
Chief Financial Officer | Co-President | |||
Principal Accounting Officer: | ||||
/s/ | Kelley K. Hall | |||
Kelley K. Hall | ||||
Chief Accounting Officer and Treasurer | ||||
Directors: | ||||
/s/ | Shellye L. Archambeau | /s/ | Stacy Brown-Philpot | |
Shellye L. Archambeau | Stacy Brown-Philpot | |||
Director | Director | |||
/s/ | Tanya L. Domier | /s/ | Kirsten A. Green | |
Tanya L. Domier | Kirsten A. Green | |||
Director | Director | |||
/s/ | Glenda G. McNeal | /s/ | Erik B. Nordstrom | |
Glenda G. McNeal | Erik B. Nordstrom | |||
Director | Director | |||
/s/ | Peter E. Nordstrom | /s/ | Philip G. Satre | |
Peter E. Nordstrom | Philip G. Satre | |||
Director | Director | |||
/s/ | Brad D. Smith | /s/ | Gordon A. Smith | |
Brad D. Smith | Gordon A. Smith | |||
Chairman of the Board of Directors | Director | |||
/s/ | Bradley D. Tilden | /s/ | B. Kevin Turner | |
Bradley D. Tilden | B. Kevin Turner | |||
Director | Director | |||
Date: | March 18, 2019 |
Name of Subsidiary | State of Incorporation | |
Nordstrom International Limited | Washington | |
Nordstrom Canada Holdings, LLC | Delaware | |
Trunk Club, Inc. | Delaware | |
Date: | March 18, 2019 |
/s/ Erik B. Nordstrom | |
Erik B. Nordstrom | |
Co-President of Nordstrom, Inc. |
Date: | March 18, 2019 |
/s/ Anne L. Bramman | |
Anne L. Bramman | |
Chief Financial Officer of Nordstrom, Inc. |
• | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 18, 2019 |
/s/ Erik B. Nordstrom | |
Erik B. Nordstrom | |
Co-President of Nordstrom, Inc. | |
/s/ Anne L. Bramman | |
Anne L. Bramman | |
Chief Financial Officer of Nordstrom, Inc. |
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Document And Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Mar. 11, 2019 |
Aug. 04, 2018 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Nordstrom Inc. | ||
Entity Central Index Key | 0000072333 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 02, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 155,002,755 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 6.6 |
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Income Statement [Abstract] | |||
Net sales | $ 15,480 | $ 15,137 | $ 14,498 |
Credit card revenues, net | 380 | 341 | 259 |
Total revenues | 15,860 | 15,478 | 14,757 |
Cost of sales and related buying and occupancy costs | (10,155) | (9,890) | (9,440) |
Selling, general and administrative expenses | (4,868) | (4,662) | (4,315) |
Goodwill impairment | 0 | 0 | (197) |
Earnings before interest and income taxes | 837 | 926 | 805 |
Interest expense, net | (104) | (136) | (121) |
Earnings before income taxes | 733 | 790 | 684 |
Income tax expense | (169) | (353) | (330) |
Net earnings | $ 564 | $ 437 | $ 354 |
Earnings per share: | |||
Basic (in dollars per share) | $ 3.37 | $ 2.62 | $ 2.05 |
Diluted (in dollars per share) | $ 3.32 | $ 2.59 | $ 2.02 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 167.3 | 166.8 | 173.2 |
Diluted (in shares) | 170.0 | 168.9 | 175.6 |
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 564 | $ 437 | $ 354 |
Postretirement plan adjustments, net of tax of ($5), $2 and ($1) | 14 | (6) | 1 |
Foreign currency translation adjustment | (17) | 20 | 14 |
Comprehensive net earnings | $ 561 | $ 451 | $ 369 |
Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Statement of Comprehensive Income [Abstract] | |||
Postretirement plan adjustments, tax | $ (5) | $ 2 | $ (1) |
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Shareholders’ equity | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 1,000.0 | 1,000.0 |
Common stock, shares issued | 157.6 | 167.0 |
Common stock, shares outstanding | 157.6 | 167.0 |
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 02, 2019 |
Nov. 03, 2018 |
Aug. 04, 2018 |
May 05, 2018 |
Feb. 03, 2018 |
Oct. 28, 2017 |
Jul. 29, 2017 |
Apr. 29, 2017 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||||||||
Dividends (in dollars per share) | $ 0.37 | [1] | $ 0.37 | [1] | $ 0.37 | [1] | $ 0.37 | [1] | $ 0.37 | [1] | $ 0.37 | [1] | $ 0.37 | [1] | $ 0.37 | [1] | $ 1.48 | [1] | $ 1.48 | [1] | $ 1.48 | ||
|
Nature Of Operations And Summary Of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature Of Operations And Summary Of Significant Accounting Policies | NOTE 1: NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Founded in 1901 as a retail shoe business in Seattle, Washington, Nordstrom, Inc. is now a leading fashion retailer that offers customers an extensive selection of high-quality fashion brands focused on apparel, shoes, cosmetics and accessories for women, men, young adults and children. This breadth of merchandise allows us to serve a wide range of customers who appreciate quality fashion and a superior shopping experience. We offer brand-name and private label merchandise through multiple retail channels, including 115 Nordstrom U.S. full-line stores and Nordstrom.com, six Canada full-line stores, 244 U.S. and Canadian Nordstrom Rack stores, Nordstromrack.com/HauteLook, three Jeffrey boutiques, two Last Chance clearance stores, six Trunk Club clubhouses and TrunkClub.com, and three Nordstrom Locals. Our stores are located in 40 states in the U.S., three provinces in Canada and Puerto Rico. Fiscal Year We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2018 and all years except 2017 within this document are based on a 52-week fiscal year, while 2017 is based on a 53-week fiscal year. Principles of Consolidation The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include revenue recognition, inventory valuation, long-lived asset recoverability and income taxes. Revenue During the first quarter of fiscal 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, and all related amendments (“Revenue Standard”), using the modified retrospective adoption method. Results for reporting periods beginning in the first quarter of 2018 are presented under the new Revenue Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Accounting Standards Codification 605 — Revenue Recognition. Upon adoption, we recorded a net cumulative effect adjustment of $55 which decreased beginning accumulated deficit. Net Sales We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped from our Supply Chain Network facilities, stores and directly from our vendors (“shipped revenues”), which includes shipping revenue when applicable, is recognized at shipping point, the point in time where control has transferred to the customer. Costs to ship orders to customers are expensed as a fulfillment activity at shipping point, commissions from sales at our Full-Price stores are expensed at the point of sale and both are recorded in selling, general and administrative expenses. Prior to 2018, shipped revenues were recognized upon estimated receipt by the customer and we recorded an estimated in-transit allowance for orders shipped prior to a period’s end, but not yet received by the customer. We reduce sales and cost of sales by an estimate of customer merchandise returns, which is calculated based on historical return patterns, and record a sales return allowance and an estimated returns asset. Our sales return allowance is classified in other current liabilities and our estimated returns asset, calculated based on the cost of merchandise sold, is classified in prepaid expenses and other on the Consolidated Balance Sheet. Due to the seasonality of our business, these balances typically increase with higher sales occurring in the last month of a period, such as the Anniversary Sale typically at the end of the second quarter, and decrease in the following period. Prior to 2018, the estimated cost of merchandise returned was netted with our sales return allowance in other current liabilities. Loyalty Program We evolved our customer loyalty program with the launch of The Nordy Club in October 2018, which incorporates a traditional point system and the favorite benefits of our previous program, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes (“Notes”), which can be redeemed for goods or services offered at Nordstrom full-line stores, Nordstrom.com, Nordstrom Rack and Nordstromrack.com/HauteLook. Nordstrom cardmembers can also earn rewards at Trunk Club. The Nordy Club member benefits will vary based on the level of customer spend, and include Bonus Points days and shopping and fashion events. We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards in the U.S. and Canada, as well as a Nordstrom-branded private label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, Nordstrom to You (an in-home stylist) and incremental accumulation of points toward Notes. As our customers earn points and Notes in The Nordy Club, a portion of underlying sales revenue is deferred based on an estimated stand-alone selling price of points, Notes and other loyalty benefits, such as alterations. We recognize the revenue and related cost of sale when the Notes are ultimately redeemed and reduce our contract liability. We include the deferred revenue in other current liabilities on the Consolidated Balance Sheet. We record breakage revenue of unused points and unredeemed Notes based on expected customer redemption. We estimate, based on historical usage, that 6% of Notes will be unredeemed and recognized as revenue. Other benefits of the loyalty program, including shopping and fashion events, are recorded in selling, general and administrative expenses as these are not a material right of the program. As of February 2, 2019, our outstanding performance obligation for The Nordy Club, which consists primarily of unredeemed points and Notes at retail value under the new Revenue Standard was $159. Almost all Notes are redeemed within approximately six months of issuance. Prior to 2018, we estimated the net cost of Notes to be issued and redeemed and recorded this cost as rewards points were accumulated. This cost, as well as reimbursed alterations, was recorded in cost of sales as we provided customers with products and services for these rewards. Our outstanding loyalty program liabilities as of February 3, 2018 were $69, recorded at cost before adoption of the new Revenue Standard. Credit Card Revenues, net Although the primary purpose of offering our credit cards is to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD, whereby TD is the exclusive issuer of our consumer credit cards and we perform account servicing functions. We completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD in 2015, and in November 2017, we sold the remaining balances to TD, which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards (see Note 3: Credit Card Receivable Transaction). Credit card revenues, net include our portion of the ongoing credit card revenue, net of credit losses, pursuant to our program agreement with TD. In 2017 and 2016, we also recorded asset amortization and deferred revenue recognition associated with the assets and liabilities recorded as part of the initial transaction to sell our U.S. Visa and private label credit card portfolio to TD. Upon adoption of the new Revenue Standard, the remaining unamortized balances of the investment in contract asset and deferred revenue associated with the sale of the credit card receivables were eliminated as part of a cumulative-effect adjustment, reducing the opening balance of accumulated deficit for 2018. As a result, the asset amortization and deferred revenue recognition are no longer recorded in credit card revenues, net. Prior to 2018, the investment in contract asset was classified in prepaid expenses and other and other assets, while the deferred revenue was classified in other current liabilities and other liabilities on the Consolidated Balance Sheet. Gift Cards We record deferred revenue from the sale of gift cards at the time of purchase. As gift cards are redeemed, we recognize revenue and reduce our contract liability. Although our gift cards do not have an expiration date, we include this deferred revenue in other current liabilities on the Consolidated Balance Sheet as customers can redeem gift cards at any time. As of February 2, 2019, our outstanding performance obligation for unredeemed gift cards was $389. Almost all gift cards are redeemed within two years of issuance. We record breakage revenue on unused gift cards based on expected customer redemption. We estimate, based on historical usage, that 2% will be unredeemed and recognized as revenue. Breakage income was $14 in 2018. Prior to 2018, gift card breakage was recorded in selling, general and administrative expenses and was estimated based on when redemption was considered remote. Breakage income was $16 and $12 in 2017 and 2016. Outstanding gift card liabilities was $425 as of February 3, 2018. Cost of Sales Cost of sales primarily includes the purchase cost of inventory sold (net of vendor allowances) and in-bound freight expense. Buying and Occupancy Costs Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center and Supply Chain Network facilities. Rent We recognize minimum rent expense, net of developer reimbursements, on a straight-line basis over the minimum lease term from the time that we control the leased property. For scheduled rent escalation clauses during the lease terms, we record minimum rent expense on a straight-line basis over the terms of the leases, with the adjustments accrued as current and noncurrent deferred rent and included in other current liabilities and other liabilities on our Consolidated Balance Sheet. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable. We receive incentives from developers to construct stores in certain developments. At the end of 2018 and 2017, liabilities of $452 and $485 were recorded within deferred property incentives, net on the Consolidated Balance Sheets and were recognized as a reduction of rent expense on a straight-line basis over the lease terms. Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of compensation and benefit costs, marketing, supply chain and technology. Estimated Non-recurring Charge We recognized an estimated non-recurring credit-related charge (“Estimated Non-recurring Charge”) of $72, or $49 net of tax, during the third quarter of 2018, resulting from some delinquent Nordstrom credit card accounts being charged higher interest in error. We estimate that less than 4% of Nordstrom cardmembers will receive a cash refund or credit to outstanding balances, with most receiving less than one hundred dollars. We have taken action, including the appropriate steps to address this issue and recorded an estimated charge representing our costs through 2018, which are comprised primarily of amounts we intend to refund to impacted cardmembers. The Estimated Non-recurring Charge increased our selling, general and administrative expenses on our Consolidated Statement of Earnings and other current liabilities on our Consolidated Balance Sheet. Of the $72 Estimated Non-recurring Charge, approximately $16 is a prior period misstatement recognized in the third quarter of 2018. As this out of period adjustment is not material to previously reported amounts in any prior periods, we recorded it all in the third quarter of 2018 instead of revising prior periods presented. Advertising Advertising production costs for internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $246, $261 and $241 in 2018, 2017 and 2016 were included in selling, general and administrative expenses. Vendor Allowances We receive allowances from merchandise vendors for cosmetic expenses, purchase price adjustments, cooperative advertising programs and various other expenses. Allowances for cosmetic expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for cooperative advertising programs and other expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Vendor allowances earned are as follows:
Shipping and Handling Costs Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our Supply Chain Network facilities, which we include in the cost of our inventory. Shipping and handling costs of $589, $523 and $453 in 2018, 2017 and 2016 were included in selling, general and administrative expenses. Stock-Based Compensation We grant stock-based awards under our 2010 Equity Incentive Plan (“2010 Plan”) and 2002 Nonemployee Director Stock Incentive Plan (“2002 Plan”), and employees may purchase our stock at a discount under our Employee Stock Purchase Plan (“ESPP”). We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. The total compensation expense is reduced by actual forfeitures as they occur over the vesting period of the awards. We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. The fair value of restricted stock is determined based on the number of shares granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. Performance share units granted are classified as equity and the fair value is determined using the Monte-Carlo valuation model. New Store Opening Costs Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and selling, general and administrative expenses, according to their nature as disclosed above. Income Taxes We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized. We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense. Income taxes require significant management judgment regarding applicable statutes and their related interpretation, the status of various income tax audits and our particular facts and circumstances. Also, as audits are completed or statutes of limitations lapse, it may be necessary to record adjustments to our taxes payable, deferred taxes, tax reserves or income tax expense. In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Among numerous other provisions, the Tax Act significantly revised the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21%. In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, we made a reasonable estimate of the Tax Act’s impact and provisionally recorded this estimate in our 2017 results. As of February 2, 2019, we completed our accounting for the impacts of the Tax Act, resulting in no material changes to previously recorded provisional amounts. Comprehensive Net Earnings Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects, and foreign currency translation adjustments. Cash Equivalents Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2018 and 2017, checks not yet presented for payment drawn in excess of our bank deposit balances were $102 and $101 and included within accounts payable on our Consolidated Balance Sheets. Accounts Receivable Accounts receivable, net includes receivables from non-Nordstrom-branded credit and debit cards. Merchandise Inventories Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling price. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We record obsolescence based on historical trends and specific identification. We take physical inventory counts and adjust our records accordingly. Following each physical inventory cycle, we adjust shrink to actual results and an estimate is recorded for shrink from the count date to year end. We evaluate and determine our estimated shrinkage rate, which is based on a percentage of sales, using the most recent physical inventory and historical results. Land, Property and Equipment Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation and amortization. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project. We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows:
Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancellable term of a lease, plus any renewal periods determined to be reasonably assured. We receive contributions from vendors for the construction of certain fixtures in our stores. These contributions offset the related capital expenditures. Goodwill Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment or when circumstances indicate that the carrying value may exceed the fair value. We perform this evaluation at the reporting unit level, comprised of the principal business units within our Retail segment, through the application of a two-step fair value test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach), or a combination of both. If fair value is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The following summarizes our goodwill activity for the past three fiscal years:
1 Other includes goodwill for Nordstrom.com, Jeffrey and two retail technology companies. We continue to make investments in evolving the customer experience, with a strong emphasis on integrating technology across our business. To support these efforts, we acquired two retail technology companies during 2018 and recorded $11 of goodwill from these acquisitions. We have allocated this goodwill to our Full-Price business as the investments will primarily benefit our Nordstrom full-line stores and Nordstrom.com. The goodwill impairment charge of $197 for the year ended January 28, 2017 related to Trunk Club resulted from changes to the long-term operating plan that reflected lower expectations for growth and profitability than previous expectations (see Note 9: Fair Value Measurements). Long-Lived Assets When facts and circumstances indicate that the carrying values of long-lived assets, including buildings, equipment and amortizable intangible assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment. Cash flows for our retail store assets are identified at the individual store level, while our intangible assets associated with HauteLook and Trunk Club are identified at their respective reporting unit levels. We did not record any material impairment losses for long-lived tangible or amortizable intangible assets in 2018, 2017 or 2016. Amortization expense for acquired intangibles was $11, $11 and $14 in 2018, 2017 and 2016. Future amortization expense of acquired intangible assets as of February 2, 2019, is expected to be $12 in 2019, $12 in 2020 and $4 in 2021. Self-Insurance We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors. Foreign Currency We have six full-line stores in Canada and six Nordstrom Rack stores in Canada. The functional currency of our Canadian operation is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using a weighted-average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. In addition, our U.S. operation incurs certain expenditures denominated in Canadian Dollars and our Canadian operation incurs certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations, which are recorded as gains or losses in the Consolidated Statements of Earnings. As of February 2, 2019, activities associated with foreign currency exchange risk have not had a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases, which was subsequently amended in July 2018 by ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”) (“Lease Standard”). This ASU increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as right-of-use assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification dictates whether lease expense is to be recognized based on an effective interest method or on a straight-line basis over the term of the lease. Additional qualitative and quantitative disclosures will be required to give financial statement users information on the amount, timing and judgments related to a reporting entity’s cash flows arising from leases. We elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. In addition, we elected the hindsight practical expedient approach to determine the lease term for existing leases. The guidance also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. This allows us to not record leases with an initial term of 12 months or less on the balance sheet but continue to expense on a straight-line basis over the lease term. On February 3, 2019, we adopted this ASU using the transition method provided in ASU 2018-11, which allows for the application of the guidance at the beginning of the period in which it is adopted by recognizing a cumulative-effect adjustment to the opening balance of retained earnings. In our ongoing evaluation of these ASU’s, we expect the impact of adoption will result in the following:
In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Under this new guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This guidance is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests. We do not expect adoption of this guidance to be material to our Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This new guidance allows a reclassification from accumulated other comprehensive loss to accumulated deficit for certain tax effects resulting from the Tax Act, which could not be recorded under prior guidance. We elected to early adopt this standard in the first quarter of 2018 and reclassified $5 of tax impacts resulting from the change in the federal corporate tax rate, decreasing the beginning accumulated deficit for the year ended February 2, 2019. In August 2018, the Securities and Exchange Commission (“SEC”) adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the Consolidated Statements of Shareholders’ Equity for interim financial statements. Under the amendments, a summary of changes in each caption of shareholders’ equity presented in the Consolidated Balance Sheets must be provided in a note or separate statement. The Consolidated Statements of Shareholders’ Equity should present a reconciliation of the beginning balance to the ending balance of each period for which the Consolidated Statement of Comprehensive Earnings is required to be filed. This final rule was effective for us in the fourth quarter of 2018. With respect to the Consolidated Statements of Shareholders’ Equity, the SEC provided relief on the effective date until the first quarter of 2019. The adoption of this final rule will not have a material effect on our Consolidated Financial Statements. |
Revenue |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | NOTE 2: REVENUE During the first quarter of fiscal 2018, we adopted the Revenue Standard using the modified retrospective adoption method. Results beginning in the first quarter of 2018 are presented under the new Revenue Standard, while prior period amounts are not adjusted. The impact of adopting the new Revenue Standard was not material to our Consolidated Statement of Earnings for the year ended February 2, 2019. The impact of adoption on our Consolidated Balance Sheet as of February 2, 2019 was as follows:
Contract Liabilities Under the new Revenue Standard, contract liabilities represent our obligation to transfer goods or services to customers and include deferred revenue for The Nordy Club (including points and Notes) and gift cards. Our contract liabilities are classified as current on the Consolidated Balance Sheet and are as follows:
The amount of revenue recognized from our beginning contract liability balance was $307 for the year ended February 2, 2019. Disaggregation of Revenue The following table summarizes our disaggregated net sales:
1 We present our sales in the way that management views our results internally, including presenting 2018 under the new Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017 and 2016, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017 and 2016, Full-Price net sales would decrease $211 and $214, Off-Price net sales would decrease $60 and $56 and Other net sales would increase $271 and $270. 2 For definitions of Full-Price and Off-Price, see Note 16: Segment Reporting. 3 Digital sales are online sales and digitally assisted store sales which include Buy Online, Pick Up in Store (“BOPUS”), Ship to Store, Reserve Online, Try in Store (Store Reserve) and Style Board, a digital selling tool. The following table summarizes the percent of net sales by merchandise category:
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Credit Card Receivable Transaction |
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Credit Card Receivable Transaction [Abstract] | |
Credit Card Receivable Transaction | NOTE 3: CREDIT CARD RECEIVABLE TRANSACTION In October 2015, we completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD. In November 2017, we sold the remaining balances, which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards to TD, for an amount equal to the gross value of the outstanding receivables. Additionally, we entered into an amended long-term program agreement whereby TD is the exclusive issuer of our consumer credit cards and we perform account servicing functions. At close of the November 2017 transaction, we received $55 in cash consideration reflecting the par value of the employee receivables sold. Pursuant to the agreement, we are obligated to offer and administer a loyalty program and perform other account servicing functions. In return, we receive a portion of the ongoing credit card revenue, net of credit losses, from both the sold and newly generated credit card receivables. In October 2015, we recorded certain assets and liabilities associated with the arrangement. The beneficial interest asset is amortized over approximately four years based primarily on the payment rate of the associated receivables. We record this asset amortization in credit card revenues, net in our Consolidated Statements of Earnings. The deferred revenue and investment in contract asset were being recognized/amortized over seven years on a straight-line basis, following the delivery of the contract obligations and expected life of the agreement. Upon adoption of the new Revenue Standard, the remaining unamortized balances of the deferred revenue and investment in contract asset were eliminated as a part of a cumulative effect adjustment (see Note 1: Nature of Operations and Summary of Significant Accounting Policies). Cash Flows Presentation Nordstrom private label credit and debit cards can be used at a majority of our U.S. retail businesses, while Nordstrom Visa credit cards also may be used for purchases outside of Nordstrom. Prior to the completion of the credit card receivable transactions in October 2015 and November 2017, cash flows from the use of both the private label and Nordstrom Visa credit cards for sales originating at our stores and our digital channels were treated as an operating activity within the Consolidated Statements of Cash Flows, as they related to sales at Nordstrom. Additionally, cash flows arising from the use of Nordstrom Visa credit cards outside of our stores were treated as an investing activity within the Consolidated Statements of Cash Flows, as they represented loans made to our customers for purchases at third parties. |
Land, Property And Equipment |
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Land, Property And Equipment | NOTE 4: LAND, PROPERTY AND EQUIPMENT Land, property and equipment consist of the following:
The total cost of property and equipment held under capital lease obligations was $26 at the end of 2018 and 2017, with related accumulated amortization of $26 and $25 in 2018 and 2017. Depreciation and amortization expense was $661, $655 and $631 in 2018, 2017 and 2016. |
Self-Insurance |
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Self Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Self-Insurance | NOTE 5: SELF-INSURANCE Our self-insurance reserves are summarized as follows:
Our workers’ compensation policies have a retention per claim of $1 or less and no policy limits. We are self-insured for the majority of our employee health and welfare coverage and we do not use stop-loss coverage. Participants contribute to the cost of their coverage through premiums and out-of-pocket expenses for deductibles, co-pays and co-insurance. Our liability policies, encompassing an employment practices liability, with a policy limit up to $30, and a commercial general liability, with a policy limit up to $151, have a retention per claim of $3 or less. |
401(k) Plan |
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Feb. 02, 2019 | |
Four Zero One K Plan [Abstract] | |
401(k) Plan | NOTE 6: 401(K) PLAN We provide a 401(k) plan for our employees that allows for employee elective contributions and discretionary Company contributions. Employee elective contributions are funded through voluntary payroll deductions. Our discretionary Company contribution is funded in an amount determined by our Board of Directors each year. Total expenses related to Company contributions of $102, $110 and $92 in 2018, 2017 and 2016 were included in both buying and occupancy costs and selling, general and administrative expenses on our Consolidated Statements of Earnings. The $110 in 2017 included $94 of matching contributions and $16 for a one-time discretionary profit-sharing contribution. |
Postretirement Benefits |
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Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefits | NOTE 7: POSTRETIREMENT BENEFITS During the fourth quarter of fiscal 2018, we early adopted ASU No. 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General: Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements. We have an unfunded defined benefit Supplemental Executive Retirement Plan (“SERP”), which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant’s role in the Company. At the end of 2018, we had 57 participants in the plan, including 13 officers and select employees eligible for SERP benefits, 42 retirees and two beneficiaries. This plan is non-qualified and does not have a minimum funding requirement. Benefit Obligations and Funded Status Our benefit obligation and funded status is as follows:
The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $188 and $197 at the end of 2018 and 2017. Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following:
Components of SERP Expense The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows:
Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:
Assumptions Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows:
Future Benefit Payments and Contributions As of February 2, 2019, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows:
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Debt And Credit Facilities |
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Debt And Credit Facilities | NOTE 8: DEBT AND CREDIT FACILITIES Debt A summary of our long-term debt, including capital leases, is as follows:
1 Other unsecured debt includes deferred bond issue costs as of February 2, 2019. As of February 3, 2018, Other included our Puerto Rico unsecured borrowing facility partially offset by deferred bond issue costs. Our mortgage payable is secured by an office building that had a net book value of $53 at the end of 2018. Required principal payments on long-term debt, excluding capital lease obligations, are as follows:
During the first quarter of 2017, we issued $350 aggregate principal amount of 4.00% senior unsecured notes due March 2027 and $300 aggregate principal amount of 5.00% senior unsecured notes due January 2044. With the proceeds of these new notes, we retired our $650 senior unsecured notes that were due January 2018. We incurred $18 of net interest expense related to the refinancing, which included the write-off of unamortized balances associated with the debt discount, issue costs and fair value hedge adjustment resulting from the sale of our interest rate swap agreements in 2012. It also included a one-time payment of $24 to 2018 Senior Note holders under a make-whole provision, which represents the net present value of the expected coupon payments had the notes been outstanding through the original maturity date. Interest Expense The components of interest expense, net are as follows:
Credit Facilities As of February 2, 2019, we had total short-term borrowing capacity of $800. In September 2018, we renewed our existing $800 senior unsecured revolving credit facility (“revolver”), extending the expiration from April 2020 to September 2023. Our revolver contains customary representations, warranties, covenants and terms, which are substantially similar to our 2015 revolver. Under the terms of our revolver, we pay a variable rate of interest and a commitment fee based on our debt rating. The revolver is available for working capital, capital expenditures and general corporate purposes. Provided that we obtain written consent from our lenders, we have the option to increase the revolving commitment by up to $200, to a total of $1,000, and two options to extend the revolving commitment by one year. The revolver requires that we maintain an adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) leverage ratio of no more than four times. As of February 2, 2019 and February 3, 2018, we were in compliance with this covenant. Our $800 commercial paper program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance of commercial paper has the effect, while it is outstanding, of reducing available liquidity under the revolver by an amount equal to the principal amount of commercial paper. As of February 2, 2019 and February 3, 2018, we had no issuances outstanding under our commercial paper program and no borrowings outstanding under our revolver. Our wholly owned subsidiary in Puerto Rico maintained a $52 unsecured borrowing facility to support our expansion into that market. Borrowings on this facility incurred interest at an annual rate based upon LIBOR plus 1.275% and also incurred a fee based on any unused commitment. In 2018, we fully repaid $47 outstanding on this facility, which was included in the current portion of long-term debt. This facility expired in the fourth quarter of 2018. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | NOTE 9: FAIR VALUE MEASUREMENTS We disclose our financial assets and liabilities that are measured at fair value in our Consolidated Balance Sheets 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 Financial Instruments Not Measured at Fair Value Financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable and accounts payable, which approximate fair value due to their short-term nature, and long-term debt. We estimate the fair value of long-term debt using quoted market prices of the same or similar issues and, as such, this is considered a Level 2 fair value measurement. The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities:
Non-financial Assets Measured at Fair Value on a Nonrecurring Basis We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill and long-lived tangible and intangible assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. There were no material impairment charges for these assets for fiscal years 2018 and 2017. In 2016, the long-term operating plan for Trunk Club was updated to reflect current expectations for future growth and profitability, which were lower than previous expectations. Due to lowered expectations, we tested Trunk Club goodwill for impairment one quarter prior to the annual evaluation. Step 1 test results indicated that the estimated fair value of the reporting unit was less than the carrying value. In our Step 2 analysis, we used a combination of the expected present value of future cash flows (income approach) and comparable public companies (market approach) to determine the fair value of the reporting unit. These approaches use primarily unobservable inputs, including discount, sales growth and profit margin rates, which are considered Level 3 fair value measurements. The fair value analysis took into account recent and expected operating performance as well as the overall decline in the retail industry. Within our Retail Segment, we recognized a goodwill impairment charge of $197 in 2016, reducing Trunk Club goodwill to $64 as of January 28, 2017, from $261 as of January 30, 2016. For additional information related to goodwill, intangible assets, long-lived assets and impairments, see Note 1: Nature of Operations and Summary of Significant Accounting Policies. |
Leases |
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Leases | NOTE 10: LEASES We lease the land or the land and buildings at many of our stores. Additionally, we lease office facilities, Supply Chain Network facilities and equipment. Most of these leases are classified as operating leases and they expire at various dates through 2080. The majority of our fixed, non-cancellable lease terms are 15 to 30 years for Nordstrom full-line stores, 10 to 15 years for Nordstrom Rack stores and 5 to 20 years for other facilities. Many of our leases include options that allow us to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Most of our leases also provide for payment of operating expenses, such as common area charges, real estate taxes and other executory costs, and some real estate leases require additional payments based on sales, referred to as “percentage rent.” Future minimum lease payments as of February 2, 2019 are as follows:
Rent expense for 2018, 2017 and 2016 was as follows:
1 Other includes Supply Chain Network facilities, Trunk Club clubhouses, Jeffrey boutiques, office facilities and equipment. The rent expense above does not include common area charges, real estate taxes and other executory costs, which were $138 in 2018, $121 in 2017 and $112 in 2016. |
Commitments And Contingencies |
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Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 11: COMMITMENTS AND CONTINGENCIES Our estimated total purchase obligations, which primarily consist of capital expenditure commitments and inventory purchase orders, were $1,865 as of February 2, 2019. In connection with the purchase of foreign merchandise, we have no outstanding trade letters of credit as of February 2, 2019. Plans for our Nordstrom NYC store, which we currently expect to open in October 2019, ultimately include owning a condominium interest in a mixed-use tower and leasing certain nearby properties. As of February 2, 2019, we had approximately $302 of fee interest in land, which is expected to convert to the condominium interest once the store is constructed. We have committed to make future installment payments based on the developer meeting pre-established construction and development milestones. In the event that this project is not completed, the opening may be delayed and we may be subject to future losses or capital commitments in order to complete construction or to monetize our investment. |
Shareholders' Equity |
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Shareholders' Equity | NOTE 12: SHAREHOLDERS’ EQUITY The following is a summary of the activity related to our share repurchase programs in 2016, 2017 and 2018:
The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to market and economic conditions and applicable SEC rules. We paid dividends of $1.48 per share in 2018, 2017 and 2016. In February 2019, subsequent to year end, we declared a quarterly dividend of $0.37 per share, which will be paid on March 26, 2019 to holders of record as of March 11, 2019. |
Stock-Based Compensation |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | NOTE 13: STOCK-BASED COMPENSATION We currently grant stock-based awards under our 2010 Plan and 2002 Plan, and employees may purchase our stock at a discount under our ESPP. In 2010, our shareholders approved the adoption of the 2010 Plan, which replaced the 2004 Equity Incentive Plan (“2004 Plan”). The 2010 Plan authorizes the grant of stock options, restricted stock, performance share units, stock appreciation rights and unrestricted shares of common stock to employees. On May 16, 2017, our shareholders approved an amendment to the 2010 Plan. The amendment increased common stock available for issuance by 6.2. The aggregate number of shares to be issued under the 2010 Plan may not exceed 30.4 plus any shares currently outstanding under the 2004 Plan that are forfeited or expire during the term of the 2010 Plan. No future grants will be made under the 2004 Plan. As of February 2, 2019, we have 84.1 shares authorized, 59.1 shares issued and outstanding and 12.5 shares remaining available for future grants under the 2010 Plan. The 2002 Plan authorizes the grant of stock awards to our nonemployee directors. These awards may be deferred or issued in the form of restricted or unrestricted stock, non-qualified stock options or stock appreciation rights. As of February 2, 2019, we had 0.9 shares authorized and 0.3 shares available for issuance under this plan. In 2018, total expense on deferred shares was less than $1. The Trunk Club Value Creation Plan (“VCP”) was a performance-based plan that provided for three payout scenarios based on the results of Trunk Club’s business meeting minimum or exceeding maximum 2018 sales and earnings metrics. As of February 2, 2019, we granted 0.5 of the 1.0 units available for grant. As Trunk Club’s business did not meet the minimum performance metrics in 2018, there was no unrecognized stock-based compensation expense related to nonvested VCP units and no payout occurred. Under the ESPP, employees may make payroll deductions of up to 10% of their base and bonus compensation for the purchase of Nordstrom common stock. At the end of each six-month offering period, participants apply their accumulated payroll deductions toward the purchase of shares of our common stock at 90% of the fair market value on the last day of the offer period. As of February 2, 2019, we had 12.6 shares authorized and 1.8 shares available for issuance under the ESPP. We issued 0.4 shares under the ESPP during 2018 and 2017. At the end of 2018 and 2017, we had current liabilities of $6 for future purchases of shares under the ESPP. The following table summarizes our stock-based compensation expense:
1 Other stock-based compensation expense includes performance share units, ESPP and nonemployee director stock awards. The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows:
Restricted Stock Our Compensation Committee of our Board of Directors approves grants of restricted stock units to employees. The number of units granted to an individual are determined based upon a percentage of the recipient’s base salary and the fair value of the restricted stock. Restricted stock units typically vest over four years. A summary of restricted stock unit activity for 2018 is presented below:
The aggregate fair value of restricted stock units vested during 2018, 2017 and 2016 was $54, $26 and $17. As of February 2, 2019, the total unrecognized stock-based compensation expense related to nonvested restricted stock units was $99, which is expected to be recognized over a weighted-average period of 30 months. Stock Options Our Compensation Committee of our Board of Directors approves annual grants of nonqualified stock options to employees. There were no stock options granted in 2018. We used the following assumptions to estimate the fair value for stock options at each grant date (excluding options granted in connection with the Trunk Club acquisition):
Supplemental nonqualified stock options were also granted to certain company leaders on June 7, 2016, at an exercise price per option of $41. The assumptions used to estimate the fair value for the supplemental stock options were similar to the 2016 annual grant assumptions. The weighted-average fair value per option at the grant date was $13. In 2016, we also granted stock options to certain qualified employees outside of the annual and supplemental grant dates, which were insignificant in aggregate. The number of awards granted to an individual are determined based upon a percentage of the recipient’s base salary and the fair value of the stock options. Options typically vest over four years, and expire 10 years after the date of grant. A summary of stock option activity for 2018 is presented below:
As of February 2, 2019, the total unrecognized stock-based compensation expense related to nonvested stock options was $7, which is expected to be recognized over a weighted-average period of 13 months. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | NOTE 14: INCOME TAXES In December 2017, the Tax Act was signed into law. Among numerous other provisions, the Tax Act significantly revised the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21%. In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, we made a reasonable estimate of the Tax Act’s impact and provisionally recorded this estimate in our 2017 results. As of February 2, 2019, we completed our accounting for the impacts of the Tax Act, resulting in no material changes to previously recorded provisional amounts. U.S. and foreign components of earnings before income taxes were as follows:
Income tax expense consists of the following:
A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows:
The decrease in the effective tax rate for 2018 compared with 2017 was primarily due to the lower statutory tax rate enacted under the Tax Act, the benefit of certain current year foreign losses and release of a foreign valuation allowance. The components of deferred tax assets and liabilities are as follows:
As of February 2, 2019, our state and foreign net operating loss carryforwards for income tax purposes were approximately $12 and $132. As of February 3, 2018, our state and foreign net operating loss carryforwards for income tax purposes were approximately $11 and $64. The net operating loss carryforwards are subject to certain statutory limitations of applicable state and foreign laws. If not utilized, a portion of our state and foreign net operating loss carryforwards will begin to expire in 2031 and 2033. As of February 2, 2019, we believe certain foreign net operating loss carryforwards and deferred tax assets will be realized and therefore we released $9 of related valuation allowance. As of February 2, 2019 and February 3, 2018, we believe there are certain other foreign net operating loss carryforwards and deferred tax assets that will not be realized in the foreseeable future. As such, valuation allowances of $43 and $51 have been recorded as of February 2, 2019 and February 3, 2018. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
At the end of 2018 and 2017, $26 and $18 of the ending gross unrecognized tax benefit related to items which, if recognized, would affect the effective tax rate. There were no significant changes to expense for interest and penalties in 2018, 2017 and 2016. At the end of 2018 and 2017, our liability for interest and penalties was $3 and $3. We file income tax returns in the U.S. and a limited number of foreign jurisdictions. With few exceptions, we are no longer subject to federal, state and local, or non-U.S. income tax examinations for years before 2013. Unrecognized tax benefits related to federal, state and local tax positions may decrease by $14 by February 1, 2020, due to the completion of examinations and the expiration of various statutes of limitations. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | NOTE 15: EARNINGS PER SHARE Earnings per basic share is computed using the weighted-average number of common shares outstanding during the year. Earnings per diluted share uses the weighted-average number of common shares outstanding during the year plus dilutive common stock equivalents, primarily restricted stock and stock options. Dilutive common stock is calculated using the treasury stock method and includes unvested RSUs and outstanding options that would reduce the amount of earnings for which each share is entitled. Anti-dilutive shares (including stock options and other shares) are excluded from the calculation of diluted shares and earnings per diluted share because their impact could increase earnings per diluted share. The computation of earnings per share is as follows:
Net earnings in 2018 included the Estimated Non-recurring Charge of $72, which had an impact of $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies). Net earnings in 2016 included the Trunk Club goodwill impairment charge of $197, which had an impact of $1.12 per diluted share. |
Segment Reporting |
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Segment Reporting | NOTE 16: SEGMENT REPORTING Segments We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine whether any changes have occurred that would impact our reportable segments. In the first quarter of 2018, as a result of the evolution of our operations, our reportable segments have become progressively more integrated such that we have changed to one reportable “Retail” segment to align with how management operates and evaluates and views the results of our operations. Our principal executive officer, who is our chief operating decision maker (“CODM”), reviews results on a total company, Full-Price and Off-Price basis and uses earnings before interest and taxes as a measure of profitability. We completed the reporting and budgeting in the first quarter of 2018 to better align with how the CODM allocates resources and assesses business performance. As part of this evolution, we now allocate our previous Credit segment assets, loss before interest and income taxes and loss before income taxes to the Retail segment. Our Retail reportable segment aggregates our two operating segments, Full-Price and Off-Price. Full-Price consists of Nordstrom U.S. Full-Price stores, Nordstrom.com, Canada, Trunk Club, Jeffrey and Nordstrom Local. Off-Price consists of Nordstrom U.S. Rack stores, Nordstromrack.com/HauteLook and Last Chance clearance stores. Our Full-Price and Off-Price operating segments both generate revenue by offering customers an extensive selection of high-quality, brand-name and private label merchandise, which includes apparel, shoes, cosmetics and accessories for women, men, young adults and children. We continue to focus on omni-channel initiatives by integrating the operations, merchandising and technology necessary to be consistent with our customers’ expectations of a seamless shopping experience regardless of channel or business. Full-Price and Off-Price have historically had similar economic characteristics and are expected to have similar economic characteristics and long-term financial performance in future periods. They also have other similar qualitative characteristics, including suppliers, method of distribution, type of customer and regulatory environment. Due to their similar qualitative and economic characteristics, we have aggregated our Full-Price and Off-Price operating segments into a single reportable segment. Amounts in the Corporate/Other column include unallocated corporate expenses and assets (including unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets), inter-segment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with generally accepted accounting principles. Accounting Policy We present our segment results for all years in the way that management views our results internally, including presenting 2018 under the new Revenue Standard while prior period amounts are not adjusted. For 2018, we generally use the same methodology to compute earnings before income taxes for our reportable segment as we do for the consolidated Company. As a result, for our Retail segment in 2018, we defer a portion of underlying sales revenue as customers earn points and Notes in the Nordy Club, based on an estimated stand-alone selling price of primarily points and Notes, and recognize the deferred revenue and related cost of sales when the Notes are ultimately redeemed. For 2017 and 2016, prior to the adoption of the new Revenue Standard, we estimated the net cost of Notes to be issued and redeemed. We recorded this cost as reward points were accumulated in cost of sales in our total company results. The related Notes expenses were included at face value in the Retail segment. As a result, our Corporate/Other column included an adjustment to reduce the Notes expense from face value to their estimated cost. In addition, the full amount of redemptions of our Notes were included in net sales for our Retail segment. The net sales amount in our Corporate/Other column primarily related to an entry to eliminate these transactions from our consolidated net sales. If we allocated these types of Corporate/Other adjustments in 2017 and 2016, Retail segment earnings before interest and income taxes would increase $1 and $8 and Corporate/Other loss before interest and income taxes would increase $1 and $8. Other than as described above, the accounting policies of our reportable segment are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies. The following table sets forth information for our reportable segment:
1 If we applied the sales return allowance allocation and the loyalty related adjustments in 2017 and 2016, Retail segment net sales would decrease $271 and $270 and Corporate/Other would increase $271 and $270. For information about disaggregated revenues, see Note 2: Revenue. |
Selected Quarterly Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Data (Unaudited) | NOTE 17: SELECTED QUARTERLY DATA1 (UNAUDITED)
1 Quarterly totals may not foot across due to rounding. 2 Comparable sales are sales from stores that have been open for at least one full year at the beginning of the year. Comparable sales include digital sales and actual returns and exclude our estimate for sales return allowance and the 53rd week (see Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information about the 53rd week). Due to the 53rd week in 2017, our 2018 comparable sales are reported on a like-for-like basis with no impact from calendar shifts or the new Revenue Standard. 3 Results in the third quarter include the Estimated Non-recurring Charge of $72, or $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies). |
Nature Of Operations And Summary Of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal Year We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2018 and all years except 2017 within this document are based on a 52-week fiscal year, while 2017 is based on a 53-week fiscal year. |
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Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include revenue recognition, inventory valuation, long-lived asset recoverability and income taxes. |
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Revenue | Revenue During the first quarter of fiscal 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, and all related amendments (“Revenue Standard”), using the modified retrospective adoption method. Results for reporting periods beginning in the first quarter of 2018 are presented under the new Revenue Standard while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Accounting Standards Codification 605 — Revenue Recognition. Upon adoption, we recorded a net cumulative effect adjustment of $55 which decreased beginning accumulated deficit. Net Sales We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped from our Supply Chain Network facilities, stores and directly from our vendors (“shipped revenues”), which includes shipping revenue when applicable, is recognized at shipping point, the point in time where control has transferred to the customer. Costs to ship orders to customers are expensed as a fulfillment activity at shipping point, commissions from sales at our Full-Price stores are expensed at the point of sale and both are recorded in selling, general and administrative expenses. Prior to 2018, shipped revenues were recognized upon estimated receipt by the customer and we recorded an estimated in-transit allowance for orders shipped prior to a period’s end, but not yet received by the customer. We reduce sales and cost of sales by an estimate of customer merchandise returns, which is calculated based on historical return patterns, and record a sales return allowance and an estimated returns asset. Our sales return allowance is classified in other current liabilities and our estimated returns asset, calculated based on the cost of merchandise sold, is classified in prepaid expenses and other on the Consolidated Balance Sheet. Due to the seasonality of our business, these balances typically increase with higher sales occurring in the last month of a period, such as the Anniversary Sale typically at the end of the second quarter, and decrease in the following period. Prior to 2018, the estimated cost of merchandise returned was netted with our sales return allowance in other current liabilities. Loyalty Program We evolved our customer loyalty program with the launch of The Nordy Club in October 2018, which incorporates a traditional point system and the favorite benefits of our previous program, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes (“Notes”), which can be redeemed for goods or services offered at Nordstrom full-line stores, Nordstrom.com, Nordstrom Rack and Nordstromrack.com/HauteLook. Nordstrom cardmembers can also earn rewards at Trunk Club. The Nordy Club member benefits will vary based on the level of customer spend, and include Bonus Points days and shopping and fashion events. We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards in the U.S. and Canada, as well as a Nordstrom-branded private label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, Nordstrom to You (an in-home stylist) and incremental accumulation of points toward Notes. As our customers earn points and Notes in The Nordy Club, a portion of underlying sales revenue is deferred based on an estimated stand-alone selling price of points, Notes and other loyalty benefits, such as alterations. We recognize the revenue and related cost of sale when the Notes are ultimately redeemed and reduce our contract liability. We include the deferred revenue in other current liabilities on the Consolidated Balance Sheet. We record breakage revenue of unused points and unredeemed Notes based on expected customer redemption. We estimate, based on historical usage, that 6% of Notes will be unredeemed and recognized as revenue. Other benefits of the loyalty program, including shopping and fashion events, are recorded in selling, general and administrative expenses as these are not a material right of the program. As of February 2, 2019, our outstanding performance obligation for The Nordy Club, which consists primarily of unredeemed points and Notes at retail value under the new Revenue Standard was $159. Almost all Notes are redeemed within approximately six months of issuance. Prior to 2018, we estimated the net cost of Notes to be issued and redeemed and recorded this cost as rewards points were accumulated. This cost, as well as reimbursed alterations, was recorded in cost of sales as we provided customers with products and services for these rewards. Our outstanding loyalty program liabilities as of February 3, 2018 were $69, recorded at cost before adoption of the new Revenue Standard. Credit Card Revenues, net Although the primary purpose of offering our credit cards is to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD, whereby TD is the exclusive issuer of our consumer credit cards and we perform account servicing functions. We completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD in 2015, and in November 2017, we sold the remaining balances to TD, which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards (see Note 3: Credit Card Receivable Transaction). Credit card revenues, net include our portion of the ongoing credit card revenue, net of credit losses, pursuant to our program agreement with TD. In 2017 and 2016, we also recorded asset amortization and deferred revenue recognition associated with the assets and liabilities recorded as part of the initial transaction to sell our U.S. Visa and private label credit card portfolio to TD. Upon adoption of the new Revenue Standard, the remaining unamortized balances of the investment in contract asset and deferred revenue associated with the sale of the credit card receivables were eliminated as part of a cumulative-effect adjustment, reducing the opening balance of accumulated deficit for 2018. As a result, the asset amortization and deferred revenue recognition are no longer recorded in credit card revenues, net. Prior to 2018, the investment in contract asset was classified in prepaid expenses and other and other assets, while the deferred revenue was classified in other current liabilities and other liabilities on the Consolidated Balance Sheet. Gift Cards We record deferred revenue from the sale of gift cards at the time of purchase. As gift cards are redeemed, we recognize revenue and reduce our contract liability. Although our gift cards do not have an expiration date, we include this deferred revenue in other current liabilities on the Consolidated Balance Sheet as customers can redeem gift cards at any time. As of February 2, 2019, our outstanding performance obligation for unredeemed gift cards was $389. Almost all gift cards are redeemed within two years of issuance. We record breakage revenue on unused gift cards based on expected customer redemption. We estimate, based on historical usage, that 2% will be unredeemed and recognized as revenue. Breakage income was $14 in 2018. Prior to 2018, gift card breakage was recorded in selling, general and administrative expenses and was estimated based on when redemption was considered remote. Breakage income was $16 and $12 in 2017 and 2016. Outstanding gift card liabilities was $425 as of February 3, 2018. |
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Cost of Sales | Cost of Sales Cost of sales primarily includes the purchase cost of inventory sold (net of vendor allowances) and in-bound freight expense. |
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Buying and Occupancy Costs | Buying and Occupancy Costs Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center and Supply Chain Network facilities. |
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Rent | Rent We recognize minimum rent expense, net of developer reimbursements, on a straight-line basis over the minimum lease term from the time that we control the leased property. For scheduled rent escalation clauses during the lease terms, we record minimum rent expense on a straight-line basis over the terms of the leases, with the adjustments accrued as current and noncurrent deferred rent and included in other current liabilities and other liabilities on our Consolidated Balance Sheet. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable. We receive incentives from developers to construct stores in certain developments. At the end of 2018 and 2017, liabilities of $452 and $485 were recorded within deferred property incentives, net on the Consolidated Balance Sheets and were recognized as a reduction of rent expense on a straight-line basis over the lease terms. |
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Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of compensation and benefit costs, marketing, supply chain and technology. Estimated Non-recurring Charge We recognized an estimated non-recurring credit-related charge (“Estimated Non-recurring Charge”) of $72, or $49 net of tax, during the third quarter of 2018, resulting from some delinquent Nordstrom credit card accounts being charged higher interest in error. We estimate that less than 4% of Nordstrom cardmembers will receive a cash refund or credit to outstanding balances, with most receiving less than one hundred dollars. We have taken action, including the appropriate steps to address this issue and recorded an estimated charge representing our costs through 2018, which are comprised primarily of amounts we intend to refund to impacted cardmembers. The Estimated Non-recurring Charge increased our selling, general and administrative expenses on our Consolidated Statement of Earnings and other current liabilities on our Consolidated Balance Sheet. Of the $72 Estimated Non-recurring Charge, approximately $16 is a prior period misstatement recognized in the third quarter of 2018. As this out of period adjustment is not material to previously reported amounts in any prior periods, we recorded it all in the third quarter of 2018 instead of revising prior periods presented. |
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Advertising | Advertising Advertising production costs for internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $246, $261 and $241 in 2018, 2017 and 2016 were included in selling, general and administrative expenses. |
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Vendor Allowances | Vendor Allowances We receive allowances from merchandise vendors for cosmetic expenses, purchase price adjustments, cooperative advertising programs and various other expenses. Allowances for cosmetic expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for cooperative advertising programs and other expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Vendor allowances earned are as follows:
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Shipping and Handling Costs | Shipping and Handling Costs Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our Supply Chain Network facilities, which we include in the cost of our inventory. Shipping and handling costs of $589, $523 and $453 in 2018, 2017 and 2016 were included in selling, general and administrative expenses. |
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Stock-Based Compensation | Stock-Based Compensation We grant stock-based awards under our 2010 Equity Incentive Plan (“2010 Plan”) and 2002 Nonemployee Director Stock Incentive Plan (“2002 Plan”), and employees may purchase our stock at a discount under our Employee Stock Purchase Plan (“ESPP”). We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. The total compensation expense is reduced by actual forfeitures as they occur over the vesting period of the awards. We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. The fair value of restricted stock is determined based on the number of shares granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. Performance share units granted are classified as equity and the fair value is determined using the Monte-Carlo valuation model. |
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New Store Opening Costs | New Store Opening Costs Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and selling, general and administrative expenses, according to their nature as disclosed above. |
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Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized. We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense. Income taxes require significant management judgment regarding applicable statutes and their related interpretation, the status of various income tax audits and our particular facts and circumstances. Also, as audits are completed or statutes of limitations lapse, it may be necessary to record adjustments to our taxes payable, deferred taxes, tax reserves or income tax expense. In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Among numerous other provisions, the Tax Act significantly revised the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21%. In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, we made a reasonable estimate of the Tax Act’s impact and provisionally recorded this estimate in our 2017 results. As of February 2, 2019, we completed our accounting for the impacts of the Tax Act, resulting in no material changes to previously recorded provisional amounts. |
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Comprehensive Net Earnings | Comprehensive Net Earnings Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects, and foreign currency translation adjustments. |
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Cash Equivalents | Cash Equivalents Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2018 and 2017, checks not yet presented for payment drawn in excess of our bank deposit balances were $102 and $101 and included within accounts payable on our Consolidated Balance Sheets. |
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Accounts Receivable | Accounts Receivable Accounts receivable, net includes receivables from non-Nordstrom-branded credit and debit cards. |
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Merchandise Inventories | Merchandise Inventories Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling price. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We record obsolescence based on historical trends and specific identification. We take physical inventory counts and adjust our records accordingly. Following each physical inventory cycle, we adjust shrink to actual results and an estimate is recorded for shrink from the count date to year end. We evaluate and determine our estimated shrinkage rate, which is based on a percentage of sales, using the most recent physical inventory and historical results. |
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Land, Property and Equipment | Land, Property and Equipment Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation and amortization. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project. We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred. Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows:
Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancellable term of a lease, plus any renewal periods determined to be reasonably assured. We receive contributions from vendors for the construction of certain fixtures in our stores. These contributions offset the related capital expenditures. |
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Goodwill | Goodwill Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment or when circumstances indicate that the carrying value may exceed the fair value. We perform this evaluation at the reporting unit level, comprised of the principal business units within our Retail segment, through the application of a two-step fair value test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach), or a combination of both. If fair value is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The following summarizes our goodwill activity for the past three fiscal years:
1 Other includes goodwill for Nordstrom.com, Jeffrey and two retail technology companies. We continue to make investments in evolving the customer experience, with a strong emphasis on integrating technology across our business. To support these efforts, we acquired two retail technology companies during 2018 and recorded $11 of goodwill from these acquisitions. We have allocated this goodwill to our Full-Price business as the investments will primarily benefit our Nordstrom full-line stores and Nordstrom.com. The goodwill impairment charge of $197 for the year ended January 28, 2017 related to Trunk Club resulted from changes to the long-term operating plan that reflected lower expectations for growth and profitability than previous expectations (see Note 9: Fair Value Measurements). |
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Long-Lived Assets | Long-Lived Assets When facts and circumstances indicate that the carrying values of long-lived assets, including buildings, equipment and amortizable intangible assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses. Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment. Cash flows for our retail store assets are identified at the individual store level, while our intangible assets associated with HauteLook and Trunk Club are identified at their respective reporting unit levels. We did not record any material impairment losses for long-lived tangible or amortizable intangible assets in 2018, 2017 or 2016. Amortization expense for acquired intangibles was $11, $11 and $14 in 2018, 2017 and 2016. Future amortization expense of acquired intangible assets as of February 2, 2019, is expected to be $12 in 2019, $12 in 2020 and $4 in 2021. |
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Self-Insurance | Self-Insurance We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors. |
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Foreign Currency | Foreign Currency We have six full-line stores in Canada and six Nordstrom Rack stores in Canada. The functional currency of our Canadian operation is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using a weighted-average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets. In addition, our U.S. operation incurs certain expenditures denominated in Canadian Dollars and our Canadian operation incurs certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations, which are recorded as gains or losses in the Consolidated Statements of Earnings. As of February 2, 2019, activities associated with foreign currency exchange risk have not had a material impact on our Consolidated Financial Statements. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases, which was subsequently amended in July 2018 by ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”) (“Lease Standard”). This ASU increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as right-of-use assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification dictates whether lease expense is to be recognized based on an effective interest method or on a straight-line basis over the term of the lease. Additional qualitative and quantitative disclosures will be required to give financial statement users information on the amount, timing and judgments related to a reporting entity’s cash flows arising from leases. We elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. In addition, we elected the hindsight practical expedient approach to determine the lease term for existing leases. The guidance also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. This allows us to not record leases with an initial term of 12 months or less on the balance sheet but continue to expense on a straight-line basis over the lease term. On February 3, 2019, we adopted this ASU using the transition method provided in ASU 2018-11, which allows for the application of the guidance at the beginning of the period in which it is adopted by recognizing a cumulative-effect adjustment to the opening balance of retained earnings. In our ongoing evaluation of these ASU’s, we expect the impact of adoption will result in the following:
In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Under this new guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This guidance is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests. We do not expect adoption of this guidance to be material to our Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This new guidance allows a reclassification from accumulated other comprehensive loss to accumulated deficit for certain tax effects resulting from the Tax Act, which could not be recorded under prior guidance. We elected to early adopt this standard in the first quarter of 2018 and reclassified $5 of tax impacts resulting from the change in the federal corporate tax rate, decreasing the beginning accumulated deficit for the year ended February 2, 2019. In August 2018, the Securities and Exchange Commission (“SEC”) adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the Consolidated Statements of Shareholders’ Equity for interim financial statements. Under the amendments, a summary of changes in each caption of shareholders’ equity presented in the Consolidated Balance Sheets must be provided in a note or separate statement. The Consolidated Statements of Shareholders’ Equity should present a reconciliation of the beginning balance to the ending balance of each period for which the Consolidated Statement of Comprehensive Earnings is required to be filed. This final rule was effective for us in the fourth quarter of 2018. With respect to the Consolidated Statements of Shareholders’ Equity, the SEC provided relief on the effective date until the first quarter of 2019. The adoption of this final rule will not have a material effect on our Consolidated Financial Statements. |
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Earnings Per Share | NOTE 15: EARNINGS PER SHARE Earnings per basic share is computed using the weighted-average number of common shares outstanding during the year. Earnings per diluted share uses the weighted-average number of common shares outstanding during the year plus dilutive common stock equivalents, primarily restricted stock and stock options. Dilutive common stock is calculated using the treasury stock method and includes unvested RSUs and outstanding options that would reduce the amount of earnings for which each share is entitled. Anti-dilutive shares (including stock options and other shares) are excluded from the calculation of diluted shares and earnings per diluted share because their impact could increase earnings per diluted share. |
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Segment Reporting | Accounting Policy We present our segment results for all years in the way that management views our results internally, including presenting 2018 under the new Revenue Standard while prior period amounts are not adjusted. For 2018, we generally use the same methodology to compute earnings before income taxes for our reportable segment as we do for the consolidated Company. As a result, for our Retail segment in 2018, we defer a portion of underlying sales revenue as customers earn points and Notes in the Nordy Club, based on an estimated stand-alone selling price of primarily points and Notes, and recognize the deferred revenue and related cost of sales when the Notes are ultimately redeemed. For 2017 and 2016, prior to the adoption of the new Revenue Standard, we estimated the net cost of Notes to be issued and redeemed. We recorded this cost as reward points were accumulated in cost of sales in our total company results. The related Notes expenses were included at face value in the Retail segment. As a result, our Corporate/Other column included an adjustment to reduce the Notes expense from face value to their estimated cost. In addition, the full amount of redemptions of our Notes were included in net sales for our Retail segment. The net sales amount in our Corporate/Other column primarily related to an entry to eliminate these transactions from our consolidated net sales. If we allocated these types of Corporate/Other adjustments in 2017 and 2016, Retail segment earnings before interest and income taxes would increase $1 and $8 and Corporate/Other loss before interest and income taxes would increase $1 and $8. Other than as described above, the accounting policies of our reportable segment are the same as those described in Note 1: Nature of Operations and Summary of Significant Accounting Policies. |
Nature Of Operations And Summary Of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vendor Allowances | Vendor allowances earned are as follows:
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Estimated Useful Life Of Land, Property And Equipment By Asset Category | Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows:
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Summary Of Goodwill Activity | The following summarizes our goodwill activity for the past three fiscal years:
1 Other includes goodwill for Nordstrom.com, Jeffrey and two retail technology companies. |
Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact Of Adoption Of New Revenue Standard | The impact of adoption on our Consolidated Balance Sheet as of February 2, 2019 was as follows:
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Summary Of Contract Liabilities | Our contract liabilities are classified as current on the Consolidated Balance Sheet and are as follows:
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Disaggregated Net Sales | The following table summarizes our disaggregated net sales:
1 We present our sales in the way that management views our results internally, including presenting 2018 under the new Revenue Standard while prior period amounts are not adjusted and allocating our sales return allowance and loyalty related adjustments to Full-Price and Off-Price. For 2017 and 2016, Other primarily included unallocated sales return, in-transit and loyalty related adjustments necessary to reconcile sales by business to total net sales. If we applied the sales return allowance allocation and the loyalty related adjustments to 2017 and 2016, Full-Price net sales would decrease $211 and $214, Off-Price net sales would decrease $60 and $56 and Other net sales would increase $271 and $270. 2 For definitions of Full-Price and Off-Price, see Note 16: Segment Reporting. 3 Digital sales are online sales and digitally assisted store sales which include Buy Online, Pick Up in Store (“BOPUS”), Ship to Store, Reserve Online, Try in Store (Store Reserve) and Style Board, a digital selling tool. |
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Percent Of Net Sales By Merchandise Category Summary | The following table summarizes the percent of net sales by merchandise category:
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Land, Property And Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Land, Property And Equipment | Land, property and equipment consist of the following:
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Self-Insurance (Tables) |
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Self Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Self-Insurance Reserves | Our self-insurance reserves are summarized as follows:
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Postretirement Benefits (Tables) |
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Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Obligations And Funded Status | Our benefit obligation and funded status is as follows:
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Amounts Recognized As Liabilities In The Consolidated Balance Sheets | Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following:
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Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings | The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows:
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Amounts Not Yet Reflected In SERP Expense And Included In Accumulated Other Comprehensive Loss (Pre-Tax) | Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:
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Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense | Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows:
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Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service | As of February 2, 2019, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows:
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Debt And Credit Facilities (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Long-Term Debt | A summary of our long-term debt, including capital leases, is as follows:
1 Other unsecured debt includes deferred bond issue costs as of February 2, 2019. As of February 3, 2018, Other included our Puerto Rico unsecured borrowing facility partially offset by deferred bond issue costs. |
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Schedule Of Required Principal Payments On Long-Term Debt | Required principal payments on long-term debt, excluding capital lease obligations, are as follows:
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Components Of Interest Expense, Net | The components of interest expense, net are as follows:
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Fair Value Measurements (Tables) |
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Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt, Including Current Maturities | The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities:
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Leases (Tables) |
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Future Minimum Lease Payments | Future minimum lease payments as of February 2, 2019 are as follows:
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Schedule Of Rent Expense | Rent expense for 2018, 2017 and 2016 was as follows:
1 Other includes Supply Chain Network facilities, Trunk Club clubhouses, Jeffrey boutiques, office facilities and equipment. |
Shareholders' Equity (Tables) |
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Summary Of Share Repurchase Activity | The following is a summary of the activity related to our share repurchase programs in 2016, 2017 and 2018:
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Stock-Based Compensation (Tables) |
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Summary Of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense:
1 Other stock-based compensation expense includes performance share units, ESPP and nonemployee director stock awards. |
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Stock-Based Compensation Expense Before Income Tax Benefit | The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows:
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Summary Of Restricted Stock Unit Activity | A summary of restricted stock unit activity for 2018 is presented below:
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Assumptions To Estimate The Fair Value For Stock Options At Grant Date | We used the following assumptions to estimate the fair value for stock options at each grant date (excluding options granted in connection with the Trunk Club acquisition):
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Summary Of Stock Option Activity | A summary of stock option activity for 2018 is presented below:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. And Foreign Components Of Earnings Before Income Taxes | U.S. and foreign components of earnings before income taxes were as follows:
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Components Of Income Tax Expense | Income tax expense consists of the following:
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Reconciliation Of Statutory To Effective Tax Rate | A reconciliation of the statutory federal income tax rate to the effective tax rate on earnings before income taxes is as follows:
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Components Of Deferred Tax Assets And Liabilities | The components of deferred tax assets and liabilities are as follows:
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Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation Of Earnings Per Share | The computation of earnings per share is as follows:
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Segment Reporting (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information By Reportable Segment | The following table sets forth information for our reportable segment:
1 If we applied the sales return allowance allocation and the loyalty related adjustments in 2017 and 2016, Retail segment net sales would decrease $271 and $270 and Corporate/Other would increase $271 and $270. |
Selected Quarterly Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Quarterly Financial Information |
1 Quarterly totals may not foot across due to rounding. 2 Comparable sales are sales from stores that have been open for at least one full year at the beginning of the year. Comparable sales include digital sales and actual returns and exclude our estimate for sales return allowance and the 53rd week (see Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information about the 53rd week). Due to the 53rd week in 2017, our 2018 comparable sales are reported on a like-for-like basis with no impact from calendar shifts or the new Revenue Standard. 3 Results in the third quarter include the Estimated Non-recurring Charge of $72, or $0.28 per diluted share (see Note 1: Nature of Operations and Summary of Significant Accounting Policies). |
Nature Of Operations And Summary Of Significant Accounting Policies (Vendor Allowances) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | $ 450 | $ 457 | $ 465 |
Cosmetic expenses [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 149 | 159 | 166 |
Purchase price adjustments [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 180 | 184 | 179 |
Cooperative advertising [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | 115 | 107 | 114 |
Other [Member] | |||
Nature Of Retail Operations [Line Items] | |||
Total vendor allowances | $ 6 | $ 7 | $ 6 |
Nature Of Operations And Summary Of Significant Accounting Policies (Summary Of Goodwill Activity) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
||||
Goodwill [Line Items] | |||||||
Goodwill | $ 249 | $ 238 | $ 238 | $ 435 | |||
Additions | 11 | 0 | |||||
Impairment | 0 | 0 | (197) | ||||
Trunk Club [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 261 | ||||||
Goodwill | 64 | 64 | |||||
Additions | 0 | 0 | |||||
Impairment | (197) | ||||||
HauteLook [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | 121 | 121 | 121 | 121 | |||
Additions | 0 | 0 | |||||
Impairment | 0 | ||||||
Other [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | [1] | 64 | 53 | 53 | $ 53 | ||
Additions | [1] | $ 11 | $ 0 | ||||
Impairment | [1] | $ 0 | |||||
|
Revenue (Impact Of Adoption Of New Revenue Standard) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Merchandise inventories | $ 1,978 | $ 2,027 |
Prepaid expenses and other | 291 | 150 |
Other assets | 342 | 435 |
Other current liabilities | 1,324 | 1,246 |
Other liabilities | 498 | 673 |
Accumulated deficit | (2,138) | $ (1,810) |
Revenue Standard Adjustment [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Merchandise inventories | 40 | |
Prepaid expenses and other | (128) | |
Other assets | 75 | |
Other current liabilities | (53) | |
Other liabilities | 99 | |
Accumulated deficit | (59) | |
Excluding Impact of Revenue Standard [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Merchandise inventories | 2,018 | |
Prepaid expenses and other | 163 | |
Other assets | 417 | |
Other current liabilities | 1,271 | |
Other liabilities | 597 | |
Accumulated deficit | $ (2,197) |
Revenue (Summary Of Contract Liabilities) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 548 | $ 498 |
Revenue (Disaggregated Net Sales) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 02, 2019 |
[1] | Nov. 03, 2018 |
[1] | Aug. 04, 2018 |
[1] | May 05, 2018 |
[1] | Feb. 03, 2018 |
[1] | Oct. 28, 2017 |
[1] | Jul. 29, 2017 |
[1] | Apr. 29, 2017 |
[1] | Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | $ 4,383 | $ 3,648 | $ 3,980 | $ 3,469 | $ 4,600 | $ 3,541 | $ 3,717 | $ 3,279 | $ 15,480 | $ 15,137 | $ 14,498 | |||||||||||||||||||||
% of net sales | 100.00% | 100.00% | 100.00% | |||||||||||||||||||||||||||||
Digital Sales [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
% of net sales | [2] | 30.00% | 27.00% | 24.00% | ||||||||||||||||||||||||||||
Full-Price [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | [3],[4] | $ 10,299 | $ 10,452 | $ 10,259 | ||||||||||||||||||||||||||||
Full-Price [Member] | Increase/(decrease) affecting comparability [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | (211) | (214) | ||||||||||||||||||||||||||||||
Off-Price [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | [3],[4] | 5,181 | 4,956 | 4,509 | ||||||||||||||||||||||||||||
Off-Price [Member] | Increase/(decrease) affecting comparability [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | (60) | (56) | ||||||||||||||||||||||||||||||
Other [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | [3],[4] | $ 0 | (271) | [5] | (270) | [5] | ||||||||||||||||||||||||||
Other [Member] | Increase/(decrease) affecting comparability [Member] | ||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||
Net sales | $ 271 | $ 270 | ||||||||||||||||||||||||||||||
|
Revenue (Percent Of Net Sales By Merchandise Category Summary) (Details) |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Disaggregation of Revenue [Line Items] | |||
% of net sales | 100.00% | 100.00% | 100.00% |
Women's Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 32.00% | 32.00% | 32.00% |
Shoes [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 24.00% | 23.00% | 23.00% |
Men's Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 16.00% | 16.00% | 17.00% |
Women's Accessories [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 11.00% | 11.00% | 11.00% |
Beauty [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 11.00% | 11.00% | 11.00% |
Kids' Apparel [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 4.00% | 4.00% | 3.00% |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
% of net sales | 2.00% | 3.00% | 3.00% |
Revenue (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Feb. 02, 2019
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized from beginning contract liability balance | $ 307 |
Credit Card Receivable Transaction (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 02, 2019 |
Nov. 01, 2017 |
|
Credit Card Receivable Transaction [Line Items] | ||
Cash acquired for credit transaction | $ 55 | |
Beneficial interest asset, useful life (in years) | 4 years | |
Deferred revenue, useful life (in years) | 7 years | |
Investment in contract asset, useful life (in years) | 7 years |
Land, Property And Equipment (Schedule Of Land, Property And Equipment) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $ 10,568 | $ 10,044 |
Less: accumulated depreciation and amortization | (6,647) | (6,105) |
Land, property and equipment, net | 3,921 | 3,939 |
Land and land improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 111 | 111 |
Buildings and building improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 1,240 | 1,246 |
Leasehold improvements [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 3,152 | 3,099 |
Store fixtures and equipment [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 3,832 | 3,724 |
Capitalized software [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | 1,492 | 1,280 |
Construction in progress [Member] | ||
Land, Property and Equipment [Line Items] | ||
Land, property and equipment | $ 741 | $ 584 |
Land, Property And Equipment (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Land, Property and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 661 | $ 655 | $ 631 |
Property and equipment [Member] | |||
Land, Property and Equipment [Line Items] | |||
Capital lease obligations | 26 | 26 | |
Accumulated amortization on capital lease obligations | $ 26 | $ 25 |
Self-Insurance (Summary Of Self-Insurance Reserves) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | $ 117 | $ 115 |
Workers' compensation [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | 77 | 71 |
Employee health and welfare [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | 25 | 26 |
Other liability [Member] | ||
Self-insurance reserve [Line Items] | ||
Total self-insurance reserve | $ 15 | $ 18 |
Self-Insurance (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Feb. 02, 2019
USD ($)
| |
Workers' compensation [Member] | |
Self-insurance reserve [Line Items] | |
Self-insurance policy retention per claim | $ 1 |
Workers' compensation policy limit | 0 |
Employment practices liability [Member] | |
Self-insurance reserve [Line Items] | |
Self-insurance policy limit | 30 |
Commercial general liability [Member] | |
Self-insurance reserve [Line Items] | |
Self-insurance policy limit | 151 |
Other liability [Member] | |
Self-insurance reserve [Line Items] | |
Self-insurance policy retention per claim | $ 3 |
401(k) Plan (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
401(K) Plan [Line Items] | |||
Expense related to Company 401(k) plan contributions | $ 102 | $ 110 | $ 92 |
Matching Contributions [Member] | |||
401(K) Plan [Line Items] | |||
Expense related to Company 401(k) plan contributions | 94 | ||
Profit-Sharing Contributions [Member] | |||
401(K) Plan [Line Items] | |||
Expense related to Company 401(k) plan contributions | $ 16 |
Postretirement Benefits (Benefit Obligations And Funded Status) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
|
Postretirement Benefits Disclosure [Line Items] | ||
Underfunded status at end of year | $ (190) | $ (200) |
Change In Benefit Obligation [Member] | ||
Postretirement Benefits Disclosure [Line Items] | ||
Benefit obligation at beginning of year | 200 | 188 |
Benefit obligation at end of year | 190 | 200 |
Participant service cost | 2 | 3 |
Interest cost | 7 | 7 |
Benefits paid | (9) | (8) |
Actuarial (gain) loss | (10) | 10 |
Change In Plan Assets [Member] | ||
Postretirement Benefits Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 |
Employer contribution | 9 | 8 |
Benefits paid | $ (9) | $ (8) |
Postretirement Benefits (Amounts Recognized As Liabilities In The Consolidated Balance Sheets) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Accrued salaries, wages and related benefits | $ 10 | $ 9 |
Other liabilities (noncurrent) | 180 | 191 |
Net amount recognized | $ 190 | $ 200 |
Postretirement Benefits (Components Of SERP Expense Recognized In The Consolidated Statements Of Earnings) (Details) - Components of SERP expense [Member] - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Postretirement Benefits Disclosure [Line Items] | |||
Participant service cost | $ 2 | $ 3 | $ 3 |
Interest cost | 7 | 7 | 7 |
Amortization of net loss and other | 5 | 3 | 3 |
Total SERP expense | $ 14 | $ 13 | $ 13 |
Postretirement Benefits (Amounts Not Yet Reflected In SERP Expense And Included In Accumulated Other Comprehensive Loss (Pre-tax)) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Accumulated loss | $ (30) | $ (46) |
Prior service credit | 1 | 2 |
Total accumulated other comprehensive loss | $ (29) | $ (44) |
Postretirement Benefits (Weighted-Average Assumptions Used To Determine Benefit Obligations And SERP Expense) (Details) |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Assumptions used to determine benefit obligation: | |||
Discount rate | 4.27% | 3.95% | 4.31% |
Rate of compensation increase | 2.50% | 3.00% | 3.00% |
Assumptions used to determine SERP expense: | |||
Discount rate | 3.95% | 4.31% | 4.55% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Postretirement Benefits (Expected Future Benefit Payments Including Benefits Attributable To Estimated Future Employee Service) (Details) $ in Millions |
Feb. 02, 2019
USD ($)
|
---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
2019 | $ 10 |
2020 | 11 |
2021 | 11 |
2022 | 11 |
2023 | 12 |
2024 – 2028 | $ 61 |
Postretirement Benefits (Narrative) (Details) $ in Millions |
Feb. 02, 2019
USD ($)
officer
beneficiary
participant
retiree
|
Feb. 03, 2018
USD ($)
|
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Number of total participants in SERP benefits plan | participant | 57 | |
Number of officers and select employees eligible for SERP benefits | officer | 13 | |
Number of retirees eligible for SERP benefits | retiree | 42 | |
Number of beneficiaries eligible for SERP benefits | beneficiary | 2 | |
Accumulated benefit obligation | $ | $ 188 | $ 197 |
Debt And Credit Facilities (Summary Of Long-Term Debt) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
|
Debt Instrument [Line Items] | ||
Total secured debt | $ 10 | $ 18 |
Total unsecured debt | 2,675 | 2,719 |
Total long-term debt | 2,685 | 2,737 |
Less: current portion | (8) | (56) |
Total due beyond one year | 2,677 | 2,681 |
Mortgage payable, 7.68%, due April 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total secured debt | $ 10 | $ 17 |
Debt instrument interest rate | 7.68% | 7.68% |
Maturity date | April 2020 | April 2020 |
Other secured debt [Member] | ||
Debt Instrument [Line Items] | ||
Total secured debt | $ 0 | $ 1 |
Senior notes, 4.75%, due May 2020, net of unamortized discount [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ 500 | $ 500 |
Debt instrument interest rate | 4.75% | 4.75% |
Maturity date | May 2020 | May 2020 |
Senior notes, 4.00%, due October 2021, net of unamortized discount [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ 500 | $ 500 |
Debt instrument interest rate | 4.00% | 4.00% |
Maturity date | October 2021 | October 2021 |
Senior notes, 4.00%, due March 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ 349 | $ 349 |
Debt instrument interest rate | 4.00% | 4.00% |
Maturity date | March 2027 | March 2027 |
Senior debentures, 6.95%, due March 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ 300 | $ 300 |
Debt instrument interest rate | 6.95% | 6.95% |
Maturity date | March 2028 | March 2028 |
Senior notes, 7.00%, due January 2038, net of unamortized discount [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ 146 | $ 146 |
Debt instrument interest rate | 7.00% | 7.00% |
Maturity date | January 2038 | January 2038 |
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ 895 | $ 892 |
Debt instrument interest rate | 5.00% | 5.00% |
Maturity date | January 2044 | January 2044 |
Other unsecured debt [Member] | ||
Debt Instrument [Line Items] | ||
Total unsecured debt | $ (15) | $ 32 |
Debt And Credit Facilities (Schedule Of Required Principal Payments On Long-Term Debt) (Details) $ in Millions |
Feb. 02, 2019
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2019 | $ 8 |
2020 | 502 |
2021 | 500 |
2022 | 0 |
2023 | 0 |
Thereafter | $ 1,764 |
Debt And Credit Facilities (Components Of Interest Expense, Net) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Debt Disclosure [Abstract] | |||
Interest on long-term debt and short-term borrowings | $ 146 | $ 168 | $ 147 |
Less: | |||
Interest income | (15) | (5) | (1) |
Capitalized interest | (27) | (27) | (25) |
Interest expense, net | $ 104 | $ 136 | $ 121 |
Debt And Credit Facilities (Narrative) (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019
USD ($)
|
Feb. 03, 2018
USD ($)
|
Jan. 28, 2017
USD ($)
|
|
Debt Instrument [Line Items] | |||
Book value of office building used to secure mortgage payable | $ 53 | ||
Proceeds from long-term borrowings, net of discounts | 0 | $ 635 | $ 0 |
Total unsecured debt | 56 | 661 | 10 |
Interest expense, net | 104 | 136 | 121 |
Interest paid, net | $ 118 | 143 | $ 134 |
Basis spread on variable rate | 1.275% | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Borrowing capacity of current facility | $ 800 | ||
Outstanding borrowings or issuances | $ 0 | ||
2017 Refinancing [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense, net | 18 | ||
Interest paid, net | $ 24 | ||
Senior notes, 4.00%, due March 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 4.00% | 4.00% | |
Maturity date | March 2027 | March 2027 | |
Senior notes, 4.00%, due March 2027 [Member] | 2017 Refinancing [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from long-term borrowings, net of discounts | $ 350 | ||
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 5.00% | 5.00% | |
Maturity date | January 2044 | January 2044 | |
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member] | 2017 Refinancing [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from long-term borrowings, net of discounts | $ 300 | ||
Senior notes, 6.25%, due January 2018, net of unamortized discount [Member] | 2017 Refinancing [Member] | |||
Debt Instrument [Line Items] | |||
Total unsecured debt | $ 650 | ||
Unsecured revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | September 2023 | ||
Option to increase the maximum capacity of revolving credit facility | $ 200 | ||
Maximum borrowing capacity | $ 1,000 | ||
Option to Extend Revolver | 2 | ||
Debt covenant leverage ratio | 4 | ||
Outstanding borrowings or issuances | $ 0 | $ 0 | |
Unsecured revolving credit facility [Member] | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Total short-term borrowing capacity | 800 | ||
Puerto Rico unsecured borrowing facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 52 | ||
Debt Instrument, Interest Rate Terms | LIBOR plus 1.275% | ||
Repayments of Debt | $ 47 |
Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt, Including Current Maturities) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Fair Value Measurements, Long-term Debt [Line Items] | ||
Carrying value of long-term debt | $ 2,685 | $ 2,737 |
Level 2 [Member] | ||
Fair Value Measurements, Long-term Debt [Line Items] | ||
Fair value of long-term debt | $ 2,692 | $ 2,827 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Jan. 30, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset impairment charges | $ 0 | $ 0 | ||
Goodwill impairment | 0 | 0 | $ 197 | |
Goodwill, net | 249 | $ 238 | 238 | $ 435 |
Trunk Club [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Goodwill impairment | 197 | |||
Goodwill, net | $ 64 | $ 64 | ||
Goodwill, gross | $ 261 |
Leases (Future Minimum Lease Payments) (Details) $ in Millions |
Feb. 02, 2019
USD ($)
|
---|---|
Operating leases | |
2019 | $ 322 |
2020 | 313 |
2021 | 294 |
2022 | 271 |
2023 | 249 |
Thereafter | 1,160 |
Total minimum lease payments | $ 2,609 |
Leases (Schedule Of Rent Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Operating Leased Assets [Line Items] | |||
Percentage rent | $ 9 | $ 11 | $ 12 |
Property incentives | (79) | (79) | (80) |
Total rent expense | 251 | 250 | 202 |
Store locations [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rent | 283 | 274 | 230 |
Other [Member] | |||
Operating Leased Assets [Line Items] | |||
Minimum rent | $ 38 | $ 44 | $ 40 |
Leases (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Leases [Line Items] | |||
Charges not included in rent expense | $ 138 | $ 121 | $ 112 |
Full-line store [Member] | Minimum [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 15 years | ||
Full-line store [Member] | Maximum [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 30 years | ||
Nordstrom Rack [Member] | Minimum [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 10 years | ||
Nordstrom Rack [Member] | Maximum [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 15 years | ||
Other facilities [Member] | Minimum [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 5 years | ||
Other facilities [Member] | Maximum [Member] | |||
Leases [Line Items] | |||
Non-cancelable lease terms (in years) | 20 years |
Commitments And Contingencies (Narrative) (Details) $ in Millions |
Feb. 02, 2019
USD ($)
|
---|---|
Long-term purchase commitment [Line Items] | |
Purchase obligations, capital expenditure contractual commitments and inventory purchase orders | $ 1,865 |
Manhattan full-line store [Member] | |
Long-term purchase commitment [Line Items] | |
Fee interest in land | 302 |
Outstanding trade letters of credit [Member] | |
Long-term purchase commitment [Line Items] | |
Outstanding trade letters of credit amount | $ 0 |
Shareholders' Equity (Summary Of Share Repurchase Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Stockholders' Equity Note [Abstract] | |||
Capacity beginning balance | $ 414 | $ 529 | $ 811 |
Share Repurchase Program [Line Items] | |||
Shares repurchased (in shares) | 14.3 | 4.6 | 5.9 |
Shares repurchased, average price per share (in dollars per share) | $ 49 | $ 45 | $ 48 |
Shares repurchased (amount) | $ (702) | $ (206) | $ (282) |
Capacity ending balance | 893 | 414 | $ 529 |
2017 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | 500 | ||
Expiration of unused capacity | (319) | ||
2015 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Expiration of unused capacity | $ (409) | ||
2018 Program [Member] | |||
Share Repurchase Program [Line Items] | |||
Share repurchase authorization | $ 1,500 |
Shareholders' Equity (Narrative) (Details) |
2 Months Ended |
---|---|
Mar. 18, 2019
$ / shares
| |
Subsequent Event [Member] | |
Retained Earnings Adjustments [Line Items] | |
Quarterly dividend per share declared and paid subsequent quarter | $ 0.37 |
Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 90 | $ 77 | $ 91 |
Income tax benefit | (23) | (20) | (28) |
Total stock-based compensation expense, net of income tax benefit | 67 | 57 | 63 |
Acquisition-related stock compensation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 0 | 1 | 15 |
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 71 | 51 | 34 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 12 | 18 | 36 |
Other [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 7 | $ 7 | $ 6 |
Stock-Based Compensation (Stock-Based Compensation Expense Before Income Tax Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 90 | $ 77 | $ 91 |
Cost of sales and related buying and occupancy costs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | 28 | 25 | 25 |
Selling, general and administrative expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense, before income tax benefit | $ 62 | $ 52 | $ 66 |
Stock-Based Compensation (Summary Of Restricted Stock Unit Activity) (Details) shares in Millions |
12 Months Ended |
---|---|
Feb. 02, 2019
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning of year (in shares or units) | shares | 3.3 |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 45 |
Granted (in shares or units) | shares | 2.2 |
Granted (in dollars per share) | $ / shares | $ 49 |
Vested (in shares or units) | shares | (1.2) |
Vested (in dollars per share) | $ / shares | $ 46 |
Forfeited or cancelled (in shares or units) | shares | (0.4) |
Forfeited or cancelled (in dollars per share) | $ / shares | $ 46 |
Outstanding, end of year (in shares or units) | shares | 3.9 |
Outstanding, end of year (in dollars per share) | $ / shares | $ 47 |
Stock-Based Compensation (Assumptions To Estimate The Fair Value For Stock Options At Grant Date) (Details) - $ / shares |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Assumptions | |||||
Weighted-average volatility | 40.10% | 36.80% | |||
Weighted-average expected dividend yield | 2.40% | 2.20% | |||
Expected life in years | 7 years 1 month | 6 years 11 months | |||
Minimum [Member] | |||||
Assumptions | |||||
Risk-free interest rate | 1.00% | 0.70% | |||
Maximum [Member] | |||||
Assumptions | |||||
Risk-free interest rate | 2.50% | 1.90% | |||
Stock options [Member] | |||||
Grant Date Information | |||||
Weighted-average fair value per option at grant date | $ 16 | $ 16 | |||
Exercise price per option | $ 47 | $ 51 | |||
2010 Equity Incentive Plan [Member] | Stock options [Member] | |||||
Assumptions | |||||
Option expiration period | 10 years |
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock options [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning of year (in shares) | 12.3 | ||
Outstanding, beginning of year (in dollars per share) | $ 49 | ||
Exercised (in shares) | (3.6) | ||
Exercised (in dollars per share) | $ 40 | ||
Forfeited or cancelled (in shares) | (0.3) | ||
Forfeited or cancelled (in dollars per share) | $ 57 | ||
Outstanding, end of year (in shares) | 8.4 | 12.3 | |
Outstanding, end of year (in dollars per share) | $ 53 | $ 49 | |
Outstanding, end of year, weighted-average remaining contractual life (years) | 5 years | ||
Outstanding, end of year, aggregate intrinsic value | $ 62 | ||
Vested, end of year (in shares) | 6.6 | ||
Vested, end of year (in dollars per share) | $ 52 | ||
Vested, end of year, weighted-average remaining contractual life (years) | 4 years | ||
Vested, end of year, aggregate intrinsic value | $ 47 | ||
Vested or expected to vest, end of year (in shares) | 8.0 | ||
Vested or expected to vest, end of year (in dollars per share) | $ 53 | ||
Vested or expected to vest, end of year, weighted-average remaining contractual life (years) | 5 years | ||
Vested or expected to vest, end of year, aggregate intrinsic value | $ 57 | ||
Aggregate intrinsic value of options exercised | 67 | $ 13 | $ 30 |
Fair value of stock options vested | $ 22 | $ 34 | $ 40 |
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 28, 2017 |
Feb. 29, 2016 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of additional shares authorized to be issued under equity incentive plan | 1,000.0 | 1,000.0 | |||
Common stock, shares outstanding | 157.6 | 167.0 | |||
Granted (in shares or units) | 2.2 | ||||
Other current liabilities | $ 1,324 | $ 1,246 | |||
Employee stock purchase plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum percentage of employee payroll deductions under ESPP | 10.00% | ||||
ESPP offering period | 6 months | ||||
Percentage of fair market value for purchase of shares of common stock in ESPP | 90.00% | ||||
Shares authorized under Employee Stock Purchase Plan | 12.6 | ||||
Shares available for issuance under Employee Stock Purchase Plan | 1.8 | ||||
Shares issued under Employee Stock Purchase Plan | 0.4 | 0.4 | |||
Other current liabilities | $ 6 | $ 6 | |||
Supplemental award stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average exercise price per stock option granted (in dollars per share) | $ 41 | ||||
Weighted-average fair value per option at grant date | 13 | ||||
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | $ 7 | ||||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 13 months | ||||
Stock options granted (in shares) | 0.0 | ||||
Weighted-average exercise price per stock option granted (in dollars per share) | 47 | $ 51 | |||
Weighted-average fair value per option at grant date | $ 16 | $ 16 | |||
Restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | $ 99 | ||||
Vesting period, in years | 4 years | ||||
Total fair value of units vested | $ 54 | $ 26 | $ 17 | ||
Weighted-average period that unrecognized stock-based compensation expense is expected to be recognized | 30 months | ||||
Trunk Club [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Trunk Club Value Creation Plan payout | $ 0 | ||||
Trunk Club [Member] | Value Creation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant under equity incentive plan | 1.0 | ||||
Granted (in shares or units) | 0.5 | ||||
Total unrecognized stock-based compensation expense related to nonvested share-based awards | $ 0 | ||||
2010 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of additional shares authorized to be issued under equity incentive plan | 84.1 | ||||
Shares or units authorized under equity incentive plan | 30.4 | ||||
Common stock, shares outstanding | 59.1 | ||||
Shares available for grant under equity incentive plan | 12.5 | ||||
2010 Equity Incentive Plan [Member] | Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, in years | 4 years | ||||
Option expiration period | 10 years | ||||
2010 Equity Incentive Plan [Member] | 2017 Amendment [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate number of additional shares authorized to be issued under equity incentive plan | 6.2 | ||||
2004 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant under equity incentive plan | 0.0 | ||||
2002 Nonemployee Director Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized under nonemployee director stock incentive plan | 0.9 | ||||
Remaining shares available for issuance under nonemployee director stock incentive plan | 0.3 | ||||
Expense recognized on deferred shares awarded under the nonemployee director stock incentive plan (less than $1 as of February 3, 2018) | $ 1 |
Income Taxes (U.S. And Foreign Components Of Earnings Before Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Income Tax Disclosure [Abstract] | |||
U.S. | $ 792 | $ 803 | $ 687 |
Foreign | (59) | (13) | (3) |
Earnings before income taxes | $ 733 | $ 790 | $ 684 |
Income Taxes (Components Of Income Tax Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Current income taxes: | |||
Federal | $ 147 | $ 291 | $ 290 |
State and local | 56 | 51 | 54 |
Foreign | 0 | 0 | 1 |
Total current income tax expense | 203 | 342 | 345 |
Deferred income taxes: | |||
Federal | (5) | 10 | (17) |
State and local | (3) | 1 | (5) |
Foreign | (26) | 0 | 7 |
Total deferred income tax (benefit) expense | (34) | 11 | (15) |
Total income tax expense | $ 169 | $ 353 | $ 330 |
Income Taxes (Reconciliation Of Statutory To Effective Tax Rate) (Details) |
1 Months Ended | 11 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Feb. 03, 2018 |
Dec. 31, 2017 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Statutory rate | 21.00% | 35.00% | 21.00% | 33.70% | 35.00% |
Tax Act impact | (0.10%) | 6.10% | 0.00% | ||
Goodwill impairment | 0.00% | 0.00% | 10.10% | ||
State and local income taxes, net of federal income taxes | 5.80% | 4.50% | 5.10% | ||
Federal credits | (1.50%) | (0.70%) | (0.60%) | ||
Valuation allowance release | (1.20%) | 0.00% | 0.00% | ||
Other, net | (0.90%) | 1.10% | (1.40%) | ||
Effective tax rate | 23.10% | 44.70% | 48.20% |
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions |
Feb. 02, 2019 |
Feb. 03, 2018 |
---|---|---|
Deferred tax assets: | ||
Compensation and benefits accruals | $ 139 | $ 148 |
Allowance for sales returns | 52 | 50 |
Credit card receivable transaction | (4) | 8 |
Accrued expenses | 28 | 27 |
Merchandise inventories | 20 | 12 |
Gift cards | 26 | 27 |
Loyalty program | 12 | 0 |
Federal benefit of state taxes | 7 | 16 |
Net operating losses | 41 | 22 |
Other | 2 | 2 |
Total deferred tax assets | 323 | 312 |
Valuation allowance | (43) | (51) |
Total net deferred tax assets | 280 | 261 |
Deferred tax liabilities: | ||
Land, property and equipment basis and depreciation differences | (94) | (109) |
Debt exchange premium | (13) | (14) |
Total deferred tax liabilities | (107) | (123) |
Net deferred tax assets | $ 173 | $ 138 |
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit at beginning of year | $ 31 | $ 32 | $ 19 |
Gross increase to tax positions in prior periods | 9 | 2 | 16 |
Gross decrease to tax positions in prior periods | (14) | (7) | 0 |
Gross increase to tax positions in current period | 6 | 5 | 2 |
Lapses in statute | (2) | (1) | (5) |
Unrecognized tax benefit at end of year | $ 30 | $ 31 | $ 32 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
1 Months Ended | 11 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Feb. 03, 2018 |
Dec. 31, 2017 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
Feb. 03, 2019 |
|
Tax Credit Carryforward [Line Items] | ||||||
U.S. federal corporate income tax statutory rate | 21.00% | 35.00% | 21.00% | 33.70% | 35.00% | |
Valuation allowance release | $ 9 | |||||
Valuation allowance | $ 51 | 43 | $ 51 | |||
Unrecognized tax benefits that would affect the effective tax rate | 18 | 26 | 18 | |||
Liability for interest and penalties | 3 | 3 | 3 | |||
Forecast [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Estimated unrecognized tax benefits, decrease in tax position | $ 14 | |||||
State [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Operating loss carryforwards | 11 | 12 | 11 | |||
Foreign [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Operating loss carryforwards | $ 64 | $ 132 | $ 64 |
Earnings Per Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 02, 2019 |
[1] | Nov. 03, 2018 |
[1] | Aug. 04, 2018 |
[1] | May 05, 2018 |
[1] | Feb. 03, 2018 |
[1] | Oct. 28, 2017 |
[1] | Jul. 29, 2017 |
[1] | Apr. 29, 2017 |
[1] | Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||
Net earnings | $ 248 | $ 67 | $ 162 | $ 87 | $ 151 | $ 114 | $ 110 | $ 63 | $ 564 | $ 437 | $ 354 | ||||||||||||
Basic shares (in shares) | 167.3 | 166.8 | 173.2 | ||||||||||||||||||||
Dilutive effect of common stock equivalents (in shares) | 2.7 | 2.1 | 2.4 | ||||||||||||||||||||
Diluted shares (in shares) | 170.0 | 168.9 | 175.6 | ||||||||||||||||||||
Earnings per basic share (in dollars per share) | $ 1.50 | [2] | $ 0.40 | [2] | $ 0.97 | [2] | $ 0.52 | [2] | $ 0.90 | $ 0.68 | $ 0.66 | $ 0.38 | $ 3.37 | $ 2.62 | $ 2.05 | ||||||||
Earnings per diluted share (in dollars per share) | $ 1.48 | [2] | $ 0.39 | [2] | $ 0.95 | [2] | $ 0.51 | [2] | $ 0.89 | $ 0.67 | $ 0.65 | $ 0.37 | $ 3.32 | $ 2.59 | $ 2.02 | ||||||||
Anti-dilutive stock options and other equity instruments | 5.2 | 10.5 | 8.0 | ||||||||||||||||||||
|
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Nov. 03, 2018 |
Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|
Goodwill impairment | $ 0 | $ 0 | $ 197 | |
Trunk Club [Member] | ||||
Goodwill impairment | $ 197 | |||
Diluted EPS [Member] | ||||
EPS impact of Estimated Non-recurring Charge on earnings per share | $ 0.28 | |||
Impact of Trunk Club impairment charge on earnings per share | $ 1.12 | |||
Post-Tax [Member] | ||||
Pre-tax dollar impact of Estimated Non-recurring Charge | $ 49 |
Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 02, 2019 |
Nov. 03, 2018 |
[1] | Aug. 04, 2018 |
[1] | May 05, 2018 |
[1] | Feb. 03, 2018 |
Oct. 28, 2017 |
[1] | Jul. 29, 2017 |
[1] | Apr. 29, 2017 |
[1] | Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
|||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Net sales | $ 4,383 | [1] | $ 3,648 | $ 3,980 | $ 3,469 | $ 4,600 | [1] | $ 3,541 | $ 3,717 | $ 3,279 | $ 15,480 | $ 15,137 | $ 14,498 | ||||||||||||||||||
Credit card revenues, net | 101 | [1] | 100 | 87 | 92 | 102 | [1] | 88 | 76 | 75 | 380 | 341 | 259 | ||||||||||||||||||
Earnings (loss) before interest and income taxes | 333 | [1],[2] | $ 105 | [2] | $ 246 | [2] | $ 153 | [2] | 350 | [1] | $ 208 | $ 217 | $ 151 | 837 | 926 | 805 | |||||||||||||||
Interest expense, net | (104) | (136) | (121) | ||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 733 | 790 | 684 | ||||||||||||||||||||||||||||
Capital expenditures | 654 | 731 | 846 | ||||||||||||||||||||||||||||
Depreciation and amortization | 669 | 666 | 645 | ||||||||||||||||||||||||||||
Assets | 7,886 | 8,115 | 7,886 | 8,115 | 7,858 | ||||||||||||||||||||||||||
Retail [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Net sales | 15,480 | 15,408 | [3] | 14,768 | [3] | ||||||||||||||||||||||||||
Credit card revenues, net | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Earnings (loss) before interest and income taxes | 1,095 | 1,111 | 917 | ||||||||||||||||||||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||||||||||||||||||||||
Earnings (loss) before income taxes | 1,095 | 1,111 | 917 | ||||||||||||||||||||||||||||
Capital expenditures | 415 | 516 | 593 | ||||||||||||||||||||||||||||
Depreciation and amortization | 436 | 445 | 456 | ||||||||||||||||||||||||||||
Assets | 5,300 | 5,477 | 5,300 | 5,477 | 5,770 | ||||||||||||||||||||||||||
Corporate/Other [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Net sales | [4],[5] | 0 | (271) | [3] | (270) | [3] | |||||||||||||||||||||||||
Credit card revenues, net | 380 | 341 | 259 | ||||||||||||||||||||||||||||
Earnings (loss) before interest and income taxes | (258) | (185) | (112) | ||||||||||||||||||||||||||||
Interest expense, net | (104) | (136) | (121) | ||||||||||||||||||||||||||||
Earnings (loss) before income taxes | (362) | (321) | (233) | ||||||||||||||||||||||||||||
Capital expenditures | 239 | 215 | 253 | ||||||||||||||||||||||||||||
Depreciation and amortization | 233 | 221 | 189 | ||||||||||||||||||||||||||||
Assets | $ 2,586 | $ 2,638 | $ 2,586 | 2,638 | 2,088 | ||||||||||||||||||||||||||
Increase/(decrease) affecting comparability [Member] | Retail [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Net sales | (271) | (270) | |||||||||||||||||||||||||||||
Earnings (loss) before interest and income taxes | 1 | 8 | |||||||||||||||||||||||||||||
Increase/(decrease) affecting comparability [Member] | Corporate/Other [Member] | |||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
Net sales | 271 | 270 | |||||||||||||||||||||||||||||
Earnings (loss) before interest and income taxes | $ 1 | $ 8 | |||||||||||||||||||||||||||||
|
Segment Reporting (Narrative) (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 02, 2019
USD ($)
|
[1],[2] |
Nov. 03, 2018
USD ($)
|
[1],[2] |
Aug. 04, 2018
USD ($)
|
[1],[2] |
May 05, 2018
USD ($)
|
[1],[2] |
Feb. 03, 2018
USD ($)
|
[1] |
Oct. 28, 2017
USD ($)
|
[1] |
Jul. 29, 2017
USD ($)
|
[1] |
Apr. 29, 2017
USD ($)
|
[1] |
Feb. 02, 2019
USD ($)
segment
|
Feb. 03, 2018
USD ($)
|
Jan. 28, 2017
USD ($)
|
|||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Number of reportable segments | segment | 1 | ||||||||||||||||||||||
Number of operating segments | segment | 2 | ||||||||||||||||||||||
Earnings (loss) before interest and income taxes | $ 333 | $ 105 | $ 246 | $ 153 | $ 350 | $ 208 | $ 217 | $ 151 | $ 837 | $ 926 | $ 805 | ||||||||||||
Retail [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Earnings (loss) before interest and income taxes | 1,095 | 1,111 | 917 | ||||||||||||||||||||
Retail [Member] | Increase/(decrease) affecting comparability [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Earnings (loss) before interest and income taxes | 1 | 8 | |||||||||||||||||||||
Corporate/Other [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Earnings (loss) before interest and income taxes | $ (258) | (185) | (112) | ||||||||||||||||||||
Corporate/Other [Member] | Increase/(decrease) affecting comparability [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Earnings (loss) before interest and income taxes | $ 1 | $ 8 | |||||||||||||||||||||
|
Selected Quarterly Data (Unaudited) (Schedule Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 02, 2019 |
[1] | Nov. 03, 2018 |
Aug. 04, 2018 |
[1] | May 05, 2018 |
[1] | Feb. 03, 2018 |
[1] | Oct. 28, 2017 |
[1] | Jul. 29, 2017 |
[1] | Apr. 29, 2017 |
[1] | Feb. 02, 2019 |
Feb. 03, 2018 |
Jan. 28, 2017 |
||||||||||
Net sales | $ 4,383 | $ 3,648 | [1] | $ 3,980 | $ 3,469 | $ 4,600 | $ 3,541 | $ 3,717 | $ 3,279 | $ 15,480 | $ 15,137 | $ 14,498 | |||||||||||||||
Comparable sales (decrease) increase | 0.10% | [2] | 2.30% | [1],[2] | 4.00% | [2] | 0.60% | [2] | 2.60% | [2] | (0.90%) | [2] | 1.70% | [2] | (0.80%) | [2] | 1.70% | 0.80% | |||||||||
Credit card revenues, net | $ 101 | $ 100 | [1] | $ 87 | $ 92 | $ 102 | $ 88 | $ 76 | $ 75 | $ 380 | $ 341 | 259 | |||||||||||||||
Gross profit | 1,540 | 1,213 | [1] | 1,391 | 1,181 | 1,631 | 1,226 | 1,266 | 1,124 | 5,325 | 5,247 | ||||||||||||||||
Selling, general and administrative expenses | (1,308) | [3] | (1,208) | [1],[3] | (1,232) | [3] | (1,120) | [3] | (1,383) | (1,106) | (1,125) | (1,048) | (4,868) | (4,662) | (4,315) | ||||||||||||
Earnings before interest and income taxes | 333 | [3] | 105 | [1],[3] | 246 | [3] | 153 | [3] | 350 | 208 | 217 | 151 | 837 | 926 | 805 | ||||||||||||
Net earnings | $ 248 | $ 67 | [1] | $ 162 | $ 87 | $ 151 | $ 114 | $ 110 | $ 63 | $ 564 | $ 437 | $ 354 | |||||||||||||||
Earnings per basic share (in dollars per share) | $ 1.50 | [3] | $ 0.40 | [1],[3] | $ 0.97 | [3] | $ 0.52 | [3] | $ 0.90 | $ 0.68 | $ 0.66 | $ 0.38 | $ 3.37 | $ 2.62 | $ 2.05 | ||||||||||||
Earnings per diluted share (in dollars per share) | 1.48 | [3] | 0.39 | [1],[3] | 0.95 | [3] | 0.51 | [3] | 0.89 | 0.67 | 0.65 | 0.37 | 3.32 | 2.59 | 2.02 | ||||||||||||
Dividends (in dollars per share) | $ 0.37 | $ 0.37 | [1] | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | 1.48 | [1] | $ 1.48 | [1] | $ 1.48 | |||||||||||||
Diluted EPS [Member] | |||||||||||||||||||||||||||
EPS impact of Estimated Non-recurring Charge on earnings per share | $ 0.28 | ||||||||||||||||||||||||||
Pre-Tax [Member] | |||||||||||||||||||||||||||
Pre-tax dollar impact of Estimated Non-recurring Charge | $ 72 | ||||||||||||||||||||||||||
Post-Tax [Member] | |||||||||||||||||||||||||||
Pre-tax dollar impact of Estimated Non-recurring Charge | $ 49 | ||||||||||||||||||||||||||
|
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