Nordstrom 2000 Annual Report Download - page 31

Cyan Mag Yelo Blk
20100444 Nordstrom
2001 Annual Report • 44pgs. + 4 covers pg. 29
8.375 x 10.875 • PDF • 150 lpi
PMS
5773
PMS
5503
29
NORDSTROM, INC. AND SUBSIDIARIES
$251,109 as of January 31, 2001. Credit losses and
delinquencies of these receivables are $12,955 and $7,471
for the year ended January 31, 2001.
The following table illustrates historical and future default
projections using net credit losses as a percentage of
average outstanding receivables in comparison to actual
performance:
Year ended January 31, 2001 2000 1999
Original projection 5.99% 5.39% 6.94%
Actual N/A% 5.46% 6.09%
Pursuant to the terms of operative documents of the trust, in
certain events the Company may be required to fund certain
amounts pursuant to a recourse obligation for credit losses.
Based on current cash flow projections, the Company does
not believe any additional funding will be required.
Note 9: Land, Buildings and Equipment
Land, buildings and equipment consist of the following
(at cost):
January 31, 2001 2000
Land and land improvements $60,871 $59,237
Buildings 760,029 650,414
Leasehold improvements 903,925 870,821
Capitalized software 38,642 20,150
Store fixtures and equipment 1,172,914 1,037,936
2,936,381 2,638,558
Less accumulated depreciation
and amortization (1,554,081) (1,370,726)
1,382,300 1,267,832
Construction in progress 217,638 161,660
Land, buildings and
equipment, net $1,599,938 $1,429,492
At January 31, 2001, the net book value of property located
in California is approximately $308,000. The Company
carries earthquake insurance in California with a $50,000
deductible.
At January 31, 2001, the Company has contractual
commitments of approximately $428,000 for the
construction of new stores or remodeling of existing stores.
Note 10: Notes Payable
A summary of notes payable is as follows:
Year ended January 31, 2001 2000 1999
Average daily short-
term borrowings $192,392 $45,030 $195,596
Maximum amount
outstanding 360,480 178,533 385,734
Weighted average
interest rate:
During the year 6.6% 5.8% 5.5%
At year-end 6.4% 6.0% 5.2%
At January 31, 2001, the Company has an unsecured line of
credit with a group of commercial banks totaling $500,000
which is available as liquidity support for the Company’s
commercial paper program, and expires in July 2002. The
line of credit agreement contains restrictive covenants
which, among other things, require the Company to maintain
a certain minimum level of net worth and a coverage ratio (as
defined) of no less than 2 to 1. The Company pays a
commitment fee for the unused portion of the line based on
the Company’s debt rating.