Nordstrom 2000 Annual Report Download - page 19

Cyan Mag Yelo Blk
20100444 Nordstrom
2001 Annual Report • 44pgs. + 4 covers pg. 17
8.375 x 10.875 • PDF • 150 lpi
PMS
5773
PMS
5503
17
NORDSTROM, INC. AND SUBSIDIARIES
be met. Assuming Façonnable performed at 100% of the
plan, the contingent payments would be approximately $20
million. For the fiscal year ended January 31, 2000, net
cash used in investing activities decreased approximately
$68 million compared to the fiscal year ended January 31,
1999, primarily due to an increase in funds provided by
developers to defray part of the Company’s costs of
constructing new stores.
The Company’s capital expenditures aggregated
approximately $652 million over the last three years, net of
developer reimbursements, principally to add new stores and
facilities and to improve existing stores and facilities. Over
3.4 million square feet of retail store space has been added
during this time period, representing an increase of 27%
since January 31, 1998.
The Company plans to spend approximately $1.2 billion, net
of developer reimbursements, on capital projects during the
next three years, including new stores, the remodeling of
existing stores, new systems and technology, and other
items. At January 31, 2001, approximately $428 million
has been contractually committed for the construction of new
stores, buildings or the remodel of existing stores. Although
the Company has made commitments for stores opening in
2001 and beyond, it is possible that some stores may not be
opened as scheduled because of delays inherent in the
development process, or because of the termination of store
site negotiations.
In addition to its cash flow from operations, the Company
has $500 million available under its revolving credit facility.
Management believes that the Company’s current financial
strength and credit position enable it to maintain its existing
stores and to take advantage of attractive growth
opportunities. The Company has senior unsecured debt
ratings of Baa1 and A- and commercial paper ratings of P-2
and A-2 from Moody’s and Standard and Poor’s, respectively.
The Company owns a 49% interest in a limited partnership
which is constructing a new corporate office building in
which the Company will be the primary occupant. In
accordance with Emerging Issues Task Force Issue No.
97-10 "The Effect of Lessee Involvement in Asset
Construction", the Company is considered to be the owner of
the property. Construction in progress includes capitalized
costs related to this building of $57 million as of January
31, 2001. The Company is a guarantor of a $93 million
SQUARE FOOTAGE BY MARKET AREA AT JANUARY 31, 2001
2,942,000
18.3% Northwest
1,568,000
9.8% Rack
4,036,000
25.1% East Coast
4,878,000
30.4% Southwest
2,506,000
15.6% Central States
126,000
0.8% Other