Nordstrom 2000 Annual Report Download - page 28

Cyan Mag Yelo Blk
20100444 Nordstrom
2001 Annual Report • 44pgs. + 4 covers pg. 26
8.375 x 10.875 • PDF • 150 lpi
PMS
5773
PMS
5503
26
NORDSTROM, INC. AND SUBSIDIARIES
The following unaudited pro forma information presents the
results of the Company’s operations assuming the
Façonnable acquisition occurred at the beginning of each
period presented:
Year ended January 31, 2001 2000
Net sales $5,575,000 $5,205,000
Net earnings 101,000 199,000
Basic earnings per share 0.75 1.39
Diluted earnings per share $0.75 $1.39
The pro forma financial information is not necessarily
indicative of the operating results that would have occurred
had the acquisition been consummated as of the beginning
of each period presented, nor is it necessarily indicative of
future operating results.
A summary of the Façonnable acquisition is as follows:
Fair value of assets acquired $48,677
Intangible assets recorded 144,724
Liabilities assumed (24,021)
Total consideration $169,380
Note 3: Employee Benefits
The Company provides a profit sharing plan for employees.
The plan is fully funded by the Company and is non-
contributory except for voluntary employee contributions
made under Section 401(k) of the Internal Revenue Code.
Under this provision of the plan, the Company provides
matching contributions up to a stipulated percentage of
employee contributions. Prior to 2000, the Company’s
contributions to the profit sharing portion of the plan vested
over a seven-year period. Effective January 1, 2000, the
Company’s subsequent contributions to the plan vest
immediately. The Company’s contribution is established
each year by the Board of Directors and totaled $31,330,
$47,500 and $50,000 in 2000, 1999 and 1998.
Note 4: Interest Expense, Net
The components of interest expense, net are as follows:
Year ended January 31, 2001 2000 1999
Short-term debt $12,682 $2,584 $10,707
Long-term debt 58,988 56,831 43,601
Total interest expense 71,670 59,415 54,308
Less: Interest income (1,330) (3,521) (1,883)
Capitalized interest (7,642) (5,498) (5,334)
Interest expense, net $62,698 $50,396 $47,091
Note 5: Income Taxes
Income taxes consist of the following:
Year ended January 31, 2001 2000 1999
Current income taxes:
Federal $79,778 $130,524 $113,270
State and local 11,591 21,835 19,672
Total current
income taxes 91,369 152,359 132,942
Deferred income taxes:
Current (11,215) (18,367) (1,357)
Non-current (15,054) (4,492) (585)
Total deferred
income taxes (26,269) (22,859) (1,942)
Total income taxes $65,100 $129,500 $131,000
A reconciliation of the statutory Federal income tax rate to
the effective tax rate is as follows:
Year ended January 31, 2001 2000 1999
Statutory rate 35.00% 35.00% 35.00%
State and local
income taxes, net of
Federal income taxes 3.93 4.06 4.03
Other, net .05 (.06) (0.24)
Effective tax rate 38.98% 39.00% 38.79%