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NORDSTROM, INC. and SUBSIDIARIES
[34 ]
The components of SERP expense and a summary of significant assumptions
are as follows:
Fiscal Year 2003 2002 2001
Service cost $819 $1,447 $1,092
Interest cost 3,420 3,537 2,668
Amortization of adjustments 1,444 2,941 1,821
Total SERP expense $5,683 $7,925 $5,581
Assumption percentages:
Discount rate 6.25% 7.00% 7.25%
Rate of compensation increase 4.00% 4.00% 5.00%
Measurement date 10/31/03 10/31/02 12/1/01
Note 5: Interest Expense, Net
The components of interest expense, net are as follows:
Fiscal Year 2003 2002 2001
Short-term debt $652 $677 $3,741
Long-term debt 99,866 89,850 83,225
Total interest expense 100,518 90,527 86,966
Less:
Interest income (5,981) (4,254) (1,545)
Capitalized interest (3,585) (4,352) (10,383)
Interest expense, net $90,952 $81,921 $75,038
Note 6: Income Taxes
Income tax expense consists of the following:
Fiscal Year 2003 2002 2001
Current income taxes:
Federal $118,559 $76,901 $58,122
State and local 15,516 10,633 6,142
Total current
income taxes 134,075 87,534 64,264
Deferred income taxes:
Current (7,904) (4,225) (7,217)
Non-current 29,129 8,732 22,753
Total deferred
income taxes 21,225 4,507 15,536
Total before cumulative effect
of accounting change 155,300 92,041 79,800
Deferred income taxes on
cumulative effect of
accounting change —(8,541) —
Total income taxes $155,300 $83,500 $79,800
notes to consolidated financial statements