Nordstrom 2001 Annual Report Download - page 29

Blk + 1 pms PAGE 27 pms
550
Cyan Mag Yelo Blk
20200324 NORDSTROM
2001 Annual Report • VERSION
8.375 x 10.875 • SCITEX • 175 lpi • Kodak 80# Cougar
Notes to Consolidated Financial Statements
NORDSTROM INC. AND SUBSIDIARIES 2 7
Note 12 : Long-Term Debt
A summary of long-term debt is as follows:
January 31, 2 0 0 2 2001
Receivable-backed PL Term, 4.82%,
due 2006 $ 3 0 0 ,0 0 0 —
Senior debentures, 6.95%,
due 2028 300,000 $300,000
Senior notes, 5.625%, due 2009 250,000 250,000
Senior notes, 8.950%, due 2005 300,000 300,000
Medium-term notes, 7.25%, due 2002 7 6 ,7 5 0 87,750
Notes payable, 6.7%, due 2005 100,000 100,000
Other 10 2 , 5 21 74,546
Total long-term debt 1,4 2 9 ,2 71 1,112,296
Less current portion (7 8 ,2 2 7 ) (12,586)
Total due beyond one year $ 1,3 51,0 4 4 $1,099,710
The Company entered into a variable interest rate swap agreement
in the third quarter of 2001. The swap has a $300 million notional
amount and a four-year term. Under the agreement, the Company
receives a fixed rate of 8.95% and pays a variable rate based on
LIBOR plus a margin of 4.44% set at six-month intervals (6.85%
at January 31, 2002). Any differences between the amounts paid
and received on interest rate swap agreements are recognized as
adjustments to interest expense over the life of the swap. The swap
agreement qualifies as a fair value hedge and is recorded at fair
value in other liabilities.
In November 2001, the Company issued $300 million of Class A
notes backed by Nordstrom Private Label Receivables (“ PL Term” ).
The PL Term bears a fixed interest rate of 4.82% and has a
maturity of five years. The Company will use the proceeds for
general corporate purposes and capital expansion.
The Company owns a 49% interest in a limited partnership that
completed construction on a new corporate office building in
which the Company is the primary occupant. Land, buildings
and equipment includes capitalized costs related to this building
of $92,952 and $57,270 as of January 31, 2002 and 2001
which includes noncash amounts of $78,003 and $41,883 as of
January 31, 2002 and 2001. The corresponding finance obligation
of $89,180 and $53,060 is included in other long-term debt.
This finance obligation will be amortized as rental payments are
made by the Company to the limited partnership over the life of
the permanent financing. The Company is a guarantor of a
$93,000 credit facility of the limited partnership. The credit
facility provides for interest at either the LIBOR rate plus 0.75%,
or the greater of the Federal Funds rate plus 0.5% and the prime
rate, and matures in August 2002 (2.63% and 6.36% at
January 31, 2002 and 2001).
The limited partnership is currently refinancing the $93,000 credit
facility and has signed a commitment agreement for an $85,000
mortgage secured by the property. The obligation will have a
fixed interest rate of 7.68% and a term of 18 years. The Company
expects the agreement to close in April 2002 subject to various
requirements. The dif ference between the amount outstanding
under the original credit facility and the new mortgage will be
funded by the Company.
Required principal payments on long-term debt, excluding capital
lease obligations and construction loan obligations, are as follows:
Year ended January 31,
2003 $77,730
2004 1,535
2005 1,463
2006 400,410
2007 300,188
Thereafter 549,332