Segment Reporting

12 Months Ended

Jan. 28, 2012

Segment Reporting [Abstract]

Segment Reporting

NOTE 16:  SEGMENT REPORTING

As of the end of 2011, we have two reportable segments: Retail and Credit. Our Retail segment includes our "Nordstrom" operating segment, which is composed of our Nordstrom full-line stores and our Nordstrom online store. Through our multi-channel initiatives, we have substantially integrated the operations, merchandising and technology of our Nordstrom full-line and online stores, consistent with our customers' expectations of a seamless shopping experience regardless of channel. Our internal reporting to our president, who is our chief operating decision maker, is consistent with these multi-channel initiatives. We aggregate our Nordstrom Rack operating segment into the Retail reporting segment, based on similar economic and other qualitative characteristics. Additionally, we include HauteLook, Jeffrey and treasure&bond in the Retail reporting segment.

Through our Credit segment, we provide our customers with a variety of payment products and services, including a Nordstrom private label card, two Nordstrom VISA credit cards and a debit card for Nordstrom purchases. Our credit and debit card products also include a loyalty program that provides benefits to our cardholders based on their level of spending.

Amounts in the Corporate/Other column include unallocated corporate expenses and 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.

In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated company. However, redemptions of our Nordstrom Notes^® are included in net sales for our Retail segment. The sales amount in our Corporate/Other column includes an entry to eliminate these transactions from our consolidated net sales. There is no impact to consolidated earnings before income taxes for this adjustment. In addition, our sales return reserve and other corporate adjustments are recorded in the Corporate/Other column. Other than as described above, the accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in Note 1: Nature of Operations and Summary of Significant Accounting Policies.

The following table sets forth information for our reportable segments:

	Retail		Credit		Corporate/Other		Total
Fiscal year 2011
Net sales		$10,656		–		$(159)		$10,497
Net sales increase		13.1%		N/A		N/A		12.7%
Credit card revenues		–		$380		–		380
Earnings (loss) before interest and income taxes		1,570		76		(397)		1,249
Interest expense, net		–		(13)		(117)		(130)
Earnings (loss) before income taxes		1,570		63		(514)		1,119
Capital expenditures		424		2		85		511
Depreciation and amortization		313		2		56		371
Goodwill		175		–		–		175
Assets1		3,642		2,135		2,714		8,491

Fiscal year 2010
Net sales	$9,420	–	$(110)	$9,310
Net sales increase	12.6%	N/A	N/A	12.7%
Credit card revenues	–	$390	–	390
Earnings (loss) before interest and income taxes	1,406	51	(339)	1,118
Interest expense, net	–	(21)	(106)	(127)
Earnings (loss) before income taxes	1,406	30	(445)	991
Capital expenditures	361	1	37	399
Depreciation and amortization	295	2	30	327
Goodwill	53	–	–	53
Assets1	3,234	2,060	2,168	7,462

Fiscal year 2009
Net sales	$8,363	–	$(105)	$8,258
Net sales decrease	(0.1%)	N/A	N/A	(0.2%)
Credit card revenues	–	$370	(1)	369
Earnings (loss) before interest and income taxes	1,191	(41)	(316)	834
Interest expense, net	–	(41)	(97)	(138)
Earnings (loss) before income taxes	1,191	(82)	(413)	696
Capital expenditures	341	7	12	360
Depreciation and amortization	281	2	30	313
Goodwill	53	–	–	53
Assets1	2,929	2,070	1,580	6,579

¹Assets in Corporate/Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets.

The following table summarizes net sales within our reportable segments:

Fiscal year	2011		2010		2009
Nordstrom		$8,426		$7,700		$6,923
Nordstrom Rack		2,045		1,691		1,411
Other retail1		185		29		29
Total Retail segment		10,656		9,420		8,363
Corporate/Other		(159)		(110)		(105)
Total net sales		$10,497		$9,310		$8,258

¹Other retail includes our HauteLook online private sale subsidiary, our Jeffrey stores and our treasure&bond store.

The following table summarizes net sales by merchandise category:

Fiscal year	2011				2010				2009
	Net sales		% of total		Net sales		% of total		Net sales		% of total
Women's apparel		$3,438		33%		$3,184		34%		$2,845		34%
Shoes		2,413		23%		2,094		23%		1,787		22%
Men's apparel		1,612		15%		1,415		15%		1,262		15%
Women's accessories		1,311		12%		1,101		12%		970		12%
Cosmetics		1,106		11%		972		10%		895		11%
Children's apparel		341		3%		303		3%		283		3%
Other		276		3%		241		3%		216		3%
Total net sales		$10,497		100%		$9,310		100%		$8,258		100%