NOTE 3: ACCOUNTS RECEIVABLE

The components of accounts receivable are as follows:


	January 28, 2012			January 29, 2011
Credit card receivables:
Nordstrom VISA credit card receivables		$1,347			$1,431
Nordstrom private label card receivables		727			672
Total credit card receivables		2,074			2,103
Allowance for credit losses		(115	)		(145	)
Credit card receivables, net		1,959			1,958
Other accounts receivable		74			68
Accounts receivable, net		$2,033			$2,026

Our credit card receivables are restricted under our securitization program. Our Series 2007-2 Class A & B Notes, Series 2011-1 Class A Notes and the 2007-A Variable Funding Note are secured by 100% of the Nordstrom private label credit card receivables and 90% of the Nordstrom VISA credit card receivables, while the remaining 10% of the Nordstrom VISA credit card receivables secure the variable funding credit facility held by our wholly owned federal savings bank, Nordstrom fsb. As of January 28, 2012 and January 29, 2011, our restricted credit card receivables included more receivables than necessary to collateralize our outstanding secured debt and variable funding facilities, and as such can be utilized to increase the current usage of our securitization program. Our credit card securitization agreements set a maximum percentage of receivables that can be associated with various receivable categories, such as employee or foreign receivables, and as of January 28, 2012 and January 29, 2011 these maximums were not exceeded.

Other accounts receivable consist primarily of credit and debit card receivables due from third-party financial institutions.

Activity in the allowance for credit losses for the past three fiscal years is as follows:

		00000000000000			00000000000000			00000000000000
Fiscal year	2011			2010			2009
Allowance at beginning of year		$145			$190			$138
Bad debt provision		101			149			251
Write-offs		(153	)		(211	)		(209	)
Recoveries		22			17			10
Allowance at end of year		$115			$145			$190

For purposes of determining impairment and recording the associated allowance for credit losses, we evaluate our credit card receivables on a collective basis as they are composed of large groups of smaller-balance homogeneous loans and, therefore, are not individually evaluated for impairment.

Under certain circumstances, we may make modifications to payment terms for a customer experiencing financial difficulties in an effort to help the customer avoid bankruptcy and to maximize our recovery of the outstanding balance. These modifications, which meet the definition of troubled debt restructurings ("TDRs"), include reduced or waived fees and finance charges, and/or reduced minimum payments. Receivables classified as TDRs were $58, or 2.8% of our total credit card receivables as of January 28, 2012 and $56, or 2.7% of our total credit card receivables as of January 29, 2011. As with other aged receivables in our portfolio, the allowance for credit losses related to receivables classified as TDRs is primarily based on our historical aging and delinquency trends and write-off experience, with qualitative consideration of factors affecting the credit quality of our portfolio, including amounts of and trends in TDRs.

Credit Quality

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

		000000000000		000000000000		000000000000		000000000000
	January 28, 2012				January 29, 2011
	Balance		% of Total		Balance		% of Total
Current		$1,928		93.0%		$1,942		92.4%
1 - 29 days delinquent		92		4.4%		97		4.6%
30+ days delinquent:
30 - 59 days delinquent		20		1.0%		24		1.1%
60 - 89 days delinquent		13		0.6%		17		0.8%
90 days or more delinquent		21		1.0%		23		1.1%
Total 30+ days delinquent		54		2.6%		64		3.0%
Total credit card receivables		$2,074		100.0%		$2,103		100.0%

Receivables not accruing finance charges		$15				$14
Receivables 90 days or more delinquent and still accruing finance charges		$11				$21

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

		000000000000		000000000000		000000000000		000000000000
	January 28, 2012				January 29, 2011
FICO Score Range¹	Balance		% of Total		Balance		% of Total
801+		$307		14.8%		$314		14.9%
720 - 800		741		35.7%		731		34.8%
660 - 719		572		27.6%		558		26.5%
600 - 659		270		13.0%		274		13.0%
001 - 599		120		5.8%		155		7.4%
Other²		64		3.1%		71		3.4%
Total credit card receivables		$2,074		100.0%		$2,103		100.0%

¹Credit scores for our cardholders are updated at least every 60 days. Amounts listed in the table reflect the most recently obtained credit scores as of the dates indicated.

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