Nordstrom 2002 Annual Report Download - page 36

notes to consolidated
financial statements
34 NORDSTROM INC. AND SUBSIDIARIES
Our continuing involvement in the securitization of private label
receivables will include pledging new receivables to the master note
trust, accounting for the transaction as a secured financing and
servicing the portfolio.
Note 13: Land, Buildings and Equipment
Land, buildings and equipment consist of the following:
January 31, 2003 2002
Land and land improvements $60,692 $59,141
Buildings 829,885 683,926
Leasehold improvements 943,555 910,291
Capitalized software 150,655 46,603
Store fixtures and equipment 1,222,842 1,142,169
Construction in progress 436,891 582,361
3,644,520 3,424,491
Less accumulated depreciation
and amortization (1,882,976) (1,663,409)
Land, buildings and equipment, net $1,761,544 $1,761,082
Capitalized software includes external direct costs, internal direct
labor and employee benefits, as well as interest associated with
the development of the computer software. Depreciation begins
in the period in which the software is ready for its intended use.
Construction in progress includes $61,384 and $127,847 of
software in progress at January 31, 2003 and 2002.
The total cost of capitalized leased buildings was $13,884 at
January 31, 2003 and 2002, with related accumulated amortization
of $9,261 and $8,854. The amortization of capitalized leased
buildings was recorded in depreciation expense.
In January 2003, we sold our Denver Credit facility for $20,000
and subsequently leased it back. A gain of $103 was recorded at
the time of the sale, while the remaining gain of $15,919 will be
recognized as a reduction to rent expense evenly over the 15 year
life of the lease.
At January 31, 2003, we have contractual commitments of
approximately $227,340 primarily for the construction of new
stores or remodeling of existing stores.
Note 14: Notes Payable
A summary of notes payable is as follows:
Year ended January 31, 2003 2002 2001
Average daily short-
term borrowings $370 $81,647 $192,392
Maximum amount
outstanding 15,000 177,100 360,480
Weighted average
interest rate:
During the year 2.0% 4.6% 6.6%
At year-end —— 6.4%
Short-term borrowings during the year represent amounts drawn
on our variable funding note, which is described in Note 12.
We have an unsecured line of credit totaling $300,000, which
is available as liquidity support for our commercial paper program,
and expires in November 2004. The line of credit agreement
contains restrictive covenants, which include maintaining certain
financial ratios. We pay a commitment fee for the line based on
our debt rating. At January 31, 2003 and 2002, there were no
borrowings on the line of credit.
Additionally, in connection with the purchase of foreign
merchandise, we have outstanding import letters of credit
totaling $58,059 and standby letters of credit totaling $20,649
at January 31, 2003.