Nordstrom 2010 Annual Report Download - page 57

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Nordstrom, Inc. and subsidiaries 49
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
NOTE 3: LAND, BUILDINGS AND EQUIPMENT
Land, buildings and equipment consist of the following:
January 29, 2011 January 30, 2010
Land and land improvements $72 $70
Buildings and building improvements 919 924
Leasehold improvements 1,914 1,735
Store fixtures and equipment 2,341 2,267
Capitalized software 404 382
Construction in progress 188 180
5,838 5,558
Less: accumulated depreciation and amortization (3,520) (3,316)
Land, buildings and equipment, net $2,318 $2,242
The total cost of buildings and equipment held under capital lease obligations was $28 at the end of both 2010 and 2009, with related accumulated
amortization of $23 in 2010 and $22 in 2009. The amortization of capitalized leased buildings and equipment of $1 in both 2010 and 2009 was
recorded in depreciation expense.
NOTE 4: SELF INSURANCE
Our self insurance reserves are summarized as follows:
January 29, 2011 January 30, 2010
Workers’ compensation $50 $50
Employee health and welfare 18 20
General liability 11 10
Total $79 $80
Our workers’ compensation policies have a retention per claim of $1 or less and no policy limits.
We are self-insured for the majority of our employee health and welfare coverage, and we do not use stop-loss coverage. Participants contribute
to the cost of their coverage through both premiums and out-of-pocket expenses and are subject to certain plan limits and deductibles.
Our general liability policies, encompassing employment practices liability and commercial general liability, have a retention per claim of $1 or less
and a policy limit up to $25 and $150, respectively.
NOTE 5: 401(k) AND PROFIT SHARING
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. In February 2009, the plan was amended to replace our fixed company
matching contribution with a discretionary contribution in an amount determined by our Board of Directors. Our expense related to the profit
sharing component and the matching contributions of the 401(k) component totaled $86, $74 and $39 in 2010, 2009 and 2008.