Nordstrom 2002 Annual Report Download - page 31

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notes to consolidated
financial statements
NORDSTROM INC. AND SUBSIDIARIES 29
The changes in the carrying amount of our intangible assets for the
year ended January 31, 2003, are as follows:
Catalog/
Retail Stores Internet
Segment Segment
Goodwill Tradename Goodwill Total
February 1, 2002 $38,198 $100,133 $ — $138,331
Goodwill impairment (21,900) — — (21,900)
Goodwill acquired
through purchase of
minority interest
(see Note 21) — — 24,057 24,057
January 31, 2003 $16,298 $100,133 $24,057 $140,488
The following table shows the actual results of operations as well as
pro-forma results adjusted to exclude intangible amortization and the
cumulative effect of accounting change.
Year ended January 31, 2003 2002 2001
Reported net earnings $90,224 $124,688 $101,918
Intangible amortization,
net of tax —2,824 763
Cumulative effect of
accounting change,
net of tax 13,359 ——
Adjusted net earnings $103,583 $127,512 $102,681
Basic and diluted earnings per share:
Year ended January 31, 2003 2002 2001
Earnings per share: Basic Diluted Basic and Diluted
Reported net earnings $0.67 $0.66 $0.93 $0.78
Intangible amortization,
net of tax ——
0.02 —
Cumulative effect of
accounting change,
net of tax 0.10 0.10 ——
Adjusted net earnings $0.77 $0.76 $0.95 $0.78
Before adoption of SFAS No. 142, we amortized our intangible
assets over their estimated useful lives on a straight-line basis
ranging from 10 to 35 years. Accumulated amortization of
intangible assets was $5,881 as of January 31, 2003 and 2002.
Note 3: Acquisition
In 2000, we acquired Façonnable, S.A.S., of Nice, France, a
designer, wholesaler and retailer of high quality men’s and women’s
apparel and accessories. We paid $87,685 in cash and issued
5,074,000 shares of our common stock for a total consideration
of $168,868. The purchase provides for a contingent payment to
a former owner that may be paid after five years from the acquisition
date. If the former owner continues to have involvement in the
business and performance targets are met, the contingent payment
could approximate $12,000. The contingent payment will be
expensed when it becomes probable that the targets will be met.
Note 4: Employee Benefits
We provide a profit sharing plan and 401(k) plan for our employees.
The profit sharing plan is non-contributory and is fully funded by us.
The Board of Directors establishes our contribution to the profit
sharing plan each year. The 401(k) plan is funded by voluntary
employee contributions. In addition, we provide matching
contributions up to a stipulated percentage of employee
contributions. Our contributions to the profit sharing plan and
matching contributions to the 401(k) plan totaled $35,162,
$28,525 and $29,113 in 2002, 2001 and 2000.