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56
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
NOTE 14: SEGMENT REPORTING
As of January 30, 2010, we have identified four reportable segments: Retail Stores, Direct, Credit and Other. Our Retail Stores segment includes our
Nordstrom full-line stores and our Nordstrom Rack off-price stores, which meet the aggregation criteria set forth in ASC 280,
Segment Reporting
.
Through our Direct segment, we operate our Nordstrom branded online store. With our multi-channel initiative, we are increasingly integrating our
Nordstrom full-line stores and online store. Our goal is to create a seamless, consistent merchandise offering and service experience for our
customers regardless of how they choose to shop.
Through our Credit segment, we offer our customers a variety of payment products and services, including a Nordstrom private label card, two
Nordstrom VISA credit cards and a debit card for Nordstrom purchases. Our card products also include a loyalty program that provides benefits to
our cardholders based on their level of spending.
The Other segment includes our product development group, which coordinates the design and production of private label merchandise sold in our
retail stores, and our distribution network. This segment also includes our corporate center operations. During the time that we owned it, this
segment also included the operations of our Façonnable business.
The following table summarizes net sales by merchandise category:
Fiscal year 2009 2008 2007
Women’s apparel $2,845 $2,812 $3,063
Shoes 1,787 1,721 1,784
Men’s apparel 1,262 1,362 1,571
Women’s accessories 970 963 941
Cosmetics 895 921 950
Children’s apparel 283 269 285
Other 216 224 234
Total $8,258 $8,272 $8,828
The following table presents our sales by merchandise category as a percentage of net sales:
Fiscal year 2009 2008 2007
Women’s apparel 34% 34% 35%
Shoes 22% 21% 20%
Men’s apparel 15% 16% 18%
Women’s accessories 12% 12% 11%
Cosmetics 11% 11% 11%
Children’s apparel 3% 3% 3%
Other 3% 3% 2%
Total 100% 100% 100%
In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated
company. However, redemptions of our Nordstrom Notes® are included in net sales for our Retail Stores segment. The sales amount in our Other
segment includes an entry to eliminate these transactions from our consolidated net sales. There is no impact to consolidated earnings before
income taxes for this adjustment. In addition, our sales return reserve and other corporate adjustments are recorded in the Other segment. Other
than described above, the accounting policies of the operating segments are the same as those described in the summary of significant accounting
policies in Note 1.