Nordstrom 2007 Annual Report Download - page 59

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Nordstrom, Inc. and subsidiaries 51
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share and per option amounts
The following table reflects the effects of the adoption of SFAS 158 on our consolidated balance sheet as of February 3, 2007.
Before Application After Application
of Statement 158 Adjustments of Statement 158
Other assets $185 $2 $187
Total assets 4,820 2 4,822
Other liabilities 228 12 240
Accumulated other comprehensive earnings (loss), net 1 (10) (9)
Total shareholders’ equity 2,179 (10) 2,169
Total liabilities and shareholders’ equity $4,820 $2 $4,822
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive earnings (pre-tax) included
prior service cost of $(3) and $(4) and accumulated loss of $(28) and $(39) at the end of 2007 and 2006.
The change in benefit obligation and plan assets for 2007 and 2006 are as follows:
February 2, 2008 February 3, 2007
Change in benefit obligation:
Benefit obligation at beginning of year $98 $91
Participant service cost 32
Interest cost 66
Benefits paid (4) (3)
Actuarial (gain)/loss (8) 2
Benefit obligation at end of year $95 $98
Change in plan assets:
Fair value of plan assets at beginning of year ——
Employer contribution $4 $3
Distributions (4) (3)
Fair value of plan assets at end of year — —
Underfunded status $(95) $(98)
The accumulated benefit obligation was $86 at February 2, 2008 and at February 3, 2007.
Amounts recognized as liabilities in the consolidated balance sheets consist of:
February 2, 2008 February 3, 2007
Current liabilities $5 $5
Noncurrent liabilities 90 93
Net amount recognized $95 $98
The components of SERP expense are as follows:
Fiscal year 2007 2006 2005
Participant service cost $2 $2 $2
Interest cost 66 5
Amortization of net loss 33 2
Amortization of prior service cost 11 1
Total expense $12 $12 $10