Nordstrom 2002 Annual Report Download - page 23

independent auditors’
and management reports
NORDSTROM INC. AND SUBSIDIARIES 21
Independent Auditors’ Report
We have audited the accompanying consolidated balance sheets
of Nordstrom, Inc. and subsidiaries (the “Company”) as of January
31, 2003 and 2002, and the related consolidated statements of
earnings, shareholders’ equity and cash flows for each of the three
years in the period ended January 31, 2003. These financial
statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the accompanying consolidated financial statements
present fairly, in all material respects, the financial position of
Nordstrom, Inc. and subsidiaries as of January 31, 2003 and 2002,
and the results of their operations and their cash flows for each of
the three years in the period ended January 31, 2003, in conformity
with accounting principles generally accepted in the United States
of America.
The Company changed its method of accounting for goodwill and
other intangible assets upon adoption of Statement of Financial
Accounting Standards No. 142, Goodwill and Other Intangible
Assets, for the year ended January 31, 2003, as discussed in
Note 2 to the consolidated financial statements.
Deloitte & Touche LLP
Seattle, Washington
March 28, 2003
Management Report
We are responsible for preparing our financial statements and the
other information that appears in the annual report. The financial
statements have been prepared in accordance with accounting
principles generally accepted in the United States of America
and include estimates based on our best judgment.
We maintain a comprehensive system of internal controls and
procedures designed to provide reasonable assurance that assets
are safeguarded and transactions are executed in accordance with
established procedures. The concept of reasonable assurance
is based on the recognition that the cost of maintaining the system
of internal accounting controls should not exceed the benefit
derived from the system.
Deloitte and Touche LLP audits our financial statements in
accordance with auditing standards generally accepted in the
United States of America and provides an objective, independent
review of our internal controls and the fairness of our reported
financial condition and results of operations.
The Audit Committee, which is comprised of six independent
directors, meets periodically with our management and the
independent auditors to ensure that each is properly fulfilling
its responsibilities. The Committee oversees our systems of
internal control, accounting practices, financial reporting and
audits to ensure their quality, integrity and objectivity are
sufficient to protect shareholders’ investments.
Michael G. Koppel
Executive Vice President and Chief Financial Officer