Nordstrom 2001 Annual Report Download - page 28

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Blk + 1 pms PAGE 26 pms
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20200324 NORDSTROM
2001 Annual Report • VERSION
8.375 x 10.875 • SCITEX • 175 lpi • Kodak 80# Cougar
Notes to Consolidated Financial Statements
26 NORDSTROM INC. AND SUBSIDIARIES
Note 10: Land, Buildings and Equipment
Land, buildings and equipment consist of the following:
January 31, 2002 2001
Land and land improvements $59,141 $60,871
Buildings 683,926 760,029
Leasehold improvements 910,291 903,925
Capitalized software 46,603 38,642
Store fixtures and equipment 1,142,169 1,1 72, 914
2,842,130 2,936,381
Less accumulated depreciation
and amortization (1,663,409) (1,554,081)
1,178,721 1,382,300
Construction in progress 582,361 217,638
Land, buildings and
equipment, net $1,761,082 $1,599,938
Capitalized software includes external direct costs, capitalized
internal direct labor and other employee benefits, and capitalized
interest associated with the development of internal-use computer
software. Depreciation begins in the period in which the software
is ready for its intended use. Construction in progress includes
$127,847 and $46,696 of software in progress at January 31,
2002 and 2001.
At January 31, 2002, the Company has contractual commitments
of approximately $456,090 for the construction of new stores
or remodeling of existing stores.
Note 11: Notes Payable
A summary of notes payable is as follows:
Year ended January 31, 2002 2001 2000
Average daily short-
term borrowings $81,647 $192,392 $45,030
Maximum amount
outstanding 177,100 360,480 178,533
Weighted average
interest rate:
During the year 4.6% 6.6% 5.8%
At year-end —6.4% 6.0%
At January 31, 2002, the Company has an unsecured line of
credit totaling $300,000, which is available as liquidity support
for the Company’s commercial paper program, and expires in
November 2004. The line of credit agreement contains restrictive
covenants, which include maintaining certain financial ratios.
The Company pays a commitment fee for the line based on the
Company’s debt rating.
In November 2001, the Company issued a variable funding note
backed by Nordstrom Private Label Receivables (“PL VFN”) with
a $200 million capacity. Interest on the PL VFN varies based
on 30-day commercial paper rated at A1/P1. As of January 31,
2002, there have been no borrowings on the PL VFN.
Additionally, in connection with the purchase of foreign
merchandise, the Company has outstanding letters of credit
totaling $77,085 at January 31, 2002.