Nordstrom 2002 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2002 Nordstrom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

notes to consolidated
financial statements
NORDSTROM INC. AND SUBSIDIARIES 35
Note 15: Long-Term Debt
A summary of long-term debt is as follows:
January 31, 2003 2002
Receivable-backed PL Term, 4.82%,
due 2006 $300,000 $300,000
Senior debentures, 6.95%,
due 2028 300,000 300,000
Senior notes, 5.625%, due 2009 250,000 250,000
Senior notes, 8.95%, due 2005 300,000 300,000
Medium-term notes, 7.25%, due 2002 — 76,750
Notes payable, 6.7%, due 2005 100,000 100,000
Other 97,371 102,521
Total long-term debt 1,347,371 1,429,271
Less current portion (5,545) (78,227)
Total due beyond one year $1,341,826 $1,351,044
In the third quarter of 2002, we sold the interest rate swap that
converted our $300,000, 8.95% fixed-rate debt to variable rate.
We received cash of $4,931, which will be recognized as interest
income evenly over the remaining life of the related debt.
We entered into a variable interest rate swap agreement effective
in the fourth quarter of 2002. The swap had a $250 million
notional amount and a six-year term. Under the agreement, we
received a fixed rate of 5.63% and paid a variable rate based on
LIBOR plus a margin of 1.31% set at six-month intervals (3.25%
at January 31, 2003). The swap agreement qualified as a fair value
hedge and was recorded at fair value in other assets at January 31,
2003. Subsequent to January 31, 2003, we sold the interest rate
swap and received cash of $2,341, which will be recognized as
interest income evenly over the remaining life of the related debt.
We own a 49% interest in a limited partnership which
constructed a new corporate office building in which we are the
primary occupant. During the first quarter of 2002, the limited
partnership refinanced its construction loan obligation with an
$85,000 mortgage secured by the property, of which $79,319
was included on our balance sheet at January 31, 2003. This
financial obligation will be amortized as we make rental payments
to the limited partnership over the 18 year life of the permanent
financing. The obligation has a fixed interest rate of 7.68% and
a term of 18 years.
Required principal payments on long-term debt, excluding capital
lease obligations, are as follows:
Year ended January 31,
2004 $5,226
2005 4,683
2006 403,171
2007 303,538
2008 3,584
Thereafter 618,232