Nordstrom 2002 Annual Report Download - page 41

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notes to consolidated
financial statements
NORDSTROM INC. AND SUBSIDIARIES 39
For Nordstrom.com, we used the following weighted-average
assumptions:
Year ended January 31, 2003 2002 2001
Risk-free interest rate —4.5% 6.2%
Volatility —127.0% 121.0%
Dividend yield —0.0% 0.0%
Expected life in years —4.0 4.0
Weighted-average fair value
at grant date —$1.56 $1.39
Note 18: Supplementary Cash Flow Information
We capitalize certain property, plant and equipment during the
construction period of commercial buildings which is subsequently
derecognized and reclassed to prepaid rent or deferred lease credits.
We also had noncash activity related to the construction of our
corporate office building. The noncash activity is as follows:
Year ended January 31, 2003 2002 2001
Noncash activity:
Reclassification
of new stores $61,792 $75,555 —
Corporate office construction (3,951) 36,120 —
Supplementary cash flow information includes the following:
Year ended January 31, 2003 2002 2001
Cash paid during the year for:
Interest (net of
capitalized interest) $84,898 $77,025 $58,190
Income taxes 48,386 80,689 88,911
Note 19: Segment Reporting
We have four segments: Retail Stores, Credit Operations,
Catalog/Internet, and Corporate and Other.
The Retail Stores segment derives its revenues from sales of high-
quality apparel, shoes and accessories. It includes our full-line,
Nordstrom Rack and Façonnable stores as well as our product
development group, which coordinates the design and production
of private label merchandise sold in our retail stores.
The Credit Operations segment revenues consist primarily of finance
charges earned through issuance of the Nordstrom private label and
VISA credit cards.
The Catalog/Internet segment generates revenues from direct
mail catalogs and the Nordstrom.com website.
We use the same measurements to compute net earnings for
reportable segments as we do for the consolidated company.
The accounting policies of the operating segments are the same
as those described in the summary of significant accounting
policies in Note 1.