Nordstrom 2009 Annual Report Download - page 56

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48
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
NOTE 7: DEBT AND CREDIT FACILITIES
Debt
A summary of our long-term debt is as follows:
January 30, 2010 January 31, 2009
Secured
Series 2007-1 Class A Notes, 4.92%, due April 2010 $326 $326
Series 2007-1 Class B Notes, 5.02%, due April 2010 24 24
Series 2007-2 Class A Notes, one-month LIBOR plus 0.06%
per year, due April 2012 454 454
Series 2007-2 Class B Notes, one-month LIBOR plus 0.18%
per year, due April 2012 46 46
Mortgage payable, 7.68%, due April 2020 60 63
Other 15 17
925 930
Unsecured
Senior notes, 6.75%, due June 2014, net of unamortized discount 399 -
Senior notes, 6.25%, due January 2018, net of unamortized discount 647 646
Senior debentures, 6.95%, due March 2028 300 300
Senior notes, 7.00%, due January 2038, net of unamortized discount 343 343
Other (1) 19
1,688 1,308
Total long-term debt 2,613 2,238
Less: current portion (356) (24)
Total due beyond one year $2,257 $2,214
Both the Series 2007-1 Class A & B Notes and the Series 2007-2 Class A & B Notes are secured by substantially all of the Nordstrom private label card
receivables and a 90% interest in the Nordstrom VISA credit card receivables. Our mortgage payable is secured by an office building which had a net
book value of $78 at the end of 2009.
During 2009, we issued $400 of senior unsecured notes at 6.75%, due June 2014. After deducting the original issue discount of $1 and other fees and
expenses of $3, net proceeds from the offering were $396. We used a portion of the proceeds from the issuance to repay the $140 in outstanding
issuances of commercial paper as of May 26, 2009, the date the senior notes were issued. During 2009, we also repaid $19 in unsecured debt related
to the acquisition of Jeffrey.
Other secured debt as of January 30, 2010 consists primarily of capital lease obligations. Other unsecured debt as of January 30, 2010 consists
primarily of an adjustment to the carrying value of our long-term debt associated with the fair value of our interest rate swap.
During 2009, we entered into interest rate swap agreements (collectively, the “swap”) with a $650 notional amount maturing in 2018. Under the swap
we receive a fixed rate of 6.25% and pay a variable rate based on one month LIBOR plus a margin of 2.9% (3.1% at January 30, 2010).
Required principal payments on long-term debt, excluding capital lease obligations, are as follows:
Fiscal year
2010 $355
2011 5
2012 505
2013 5
2014 404
Thereafter 1,328