Nordstrom 2003 Annual Report Download - page 27

independent auditors’ and management reports
NORDSTROM, INC. and SUBSIDIARIES
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INDEPENDENT AUDITORS' REPORT
We have audited the accompanying consolidated balance sheets of
Nordstrom, Inc. and subsidiaries (the "Company") as of January 31, 2004
and 2003, and the related consolidated statements of earnings, shareholders'
equity and cash flows for each of the three years in the period ended
January 31, 2004. 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, 2004 and 2003, and the results of
their operations and their cash flows for each of the three years in the period
ended January 31, 2004, 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 26, 2004
MANAGEMENT REPORT
We are responsible for the preparation, integrity and fair presentation of
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, at an appropriate cost-benefit
relationship, that our financial information is accurate and reliable, our
assets are safeguarded and transactions executed in accordance with
established procedures.
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 five independent directors,
meets regularly with our management, internal auditors 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
Blake W. Nordstrom
President