Nordstrom 1999 Annual Report Download - page 35

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33NORDSTROM, INC. AND SUBSIDIARIES
The Board of Directors has authorized an aggregate of
$1.1 billion of share repurchases since May 1995. As of
January 31, 2000, the Company had purchased approxi-
mately 35 million shares of its common stock for approx-
imately $931 million pursuant to these authorizations, and
had remaining share repurchase authority of $169 million.
Share repurchases have been financed, in part, through
additional borrowings, resulting in a planned increase in
the Company’s debt to capital (debt plus shareholders’
equity) ratio. At January 31, 2000, the Company’s debt to
capital ratio was .42.
In March 1998, the Company issued $300 million of
6.95% Senior Debentures due in 2028. The proceeds
were used to repay commercial paper and current matu-
rities of long-term debt. In January 1999, the Company
issued $250 million of 5.625% Senior Notes due in 2009,
the proceeds of which were used to repay short-term
debt and for general corporate purposes. A substantial
portion of the Company’s total debt of $876 million at
January 31, 2000, finances the Company’s credit card
portfolio, which aggregated $612 million at that date.
Year 2000
The Company transitioned into the Year 2000 without
any material negative effects on its business, operations or
financial condition. The Company’s accumulative Year
2000 expenses, through January 31, 2000, were $17 mil-
lion. Approximately $4 million of expense was incurred
in 1999, $7 million in 1998 and $5 million in 1997.
Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards
No. 133, “Accounting for Derivative Instruments and
Hedging Activities,” which will require an entity to
recognize all derivatives as either assets or liabilities in the
statement of financial position and measure those instru-
ments at fair value. Adoption of this standard, as amended
by the Company, beginning February 1, 2001, is not
expected to have a material impact on the Company’s
consolidated financial statements.
Southwest 32.7%
4,729,000
East Coast 25.3%
3,671,000
Northwest 19.1%
2,770,000
Central States 14 .4%
2,086,000
Rack 8.1%
1,174,000
Other 0.4%
57,000
Square Footage by Market
Segment at January 31 , 2000