Nordstrom 2007 Annual Report Download - page 54

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46
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share and per option amounts
The following table summarizes certain income, expenses and cash flows received from and paid to the VISA Trust prior to the transaction:
3 months ended 12 months ended
Period May 1, 2007 February 3, 2007 January 28, 2006
Principal collections reinvested in new receivables $819 $3,094 $2,597
Gains on sales of receivables 320 20
Income earned on beneficial interests 21 75 54
Cash flows (used in) provided by beneficial interests:
Investment in asset backed securities (457) 494 130
Servicing fees 216 13
Net credit losses were $9, $22 and $25 for 2007, 2006 and 2005, and receivables past due for more than 30 days were $16 at the end of 2006.
NOTE 5: LAND, BUILDINGS AND EQUIPMENT
Land, buildings and equipment consist of the following:
February 2, 2008 February 3, 2007
Land and land improvements $65 $65
Buildings and building improvements 842 812
Leasehold improvements 1,313 1,269
Store fixtures and equipment 1,995 1,984
Software 303 285
Construction in progress 391 132
4,909 4,547
Less accumulated depreciation and amortization (2,926) (2,790)
Land, buildings and equipment, net $1,983 $1,757
The total cost of buildings and equipment held under capital lease obligations was $28 and $20, at the end of 2007 and 2006, with related
accumulated amortization of $20 and $17. The amortization of capitalized leased buildings and equipment of $1 in both 2007 and 2006 was recorded
in depreciation expense.
NOTE 6: EMPLOYEE BENEFITS
We provide a 401(k) and profit sharing plan for our employees. Our Board of Directors establishes our profit sharing contribution each year.
The 401(k) component is funded by voluntary employee contributions and our matching contributions up to a fixed percentage of employee
contributions. Our expense related to the profit sharing component and matching contributions to the 401(k) component totaled $50, $73
and $67 in 2007, 2006 and 2005.