Nordstrom 2010 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, per option and unit amounts
Assumptions
Weighted average assumptions used to determine benefit obligation and SERP expense are as follows:
Fiscal year 2010 2009 2008
Assumptions used to determine benefit obligation:
Discount rate 5.60% 5.95% 6.95%
Rate of compensation increase 3.00% 3.00% 3.00%
Assumptions used to determine SERP expense:
Discount rate 5.95% 6.95% 6.35%
Rate of compensation increase 3.00% 3.00% 3.00%
Future Benefit Payments and Contributions
As of January 29, 2011, the expected future benefit payments based upon the assumptions described above and including benefits attributable
to estimated future employee service are as follows:
Fiscal year
2011 $5
2012 6
2013 6
2014 7
2015 8
2016-2020 44
In 2011, we expect to make contributions to the plan of $5.
NOTE 7: DEBT AND CREDIT FACILITIES
Debt
A summary of our long-term debt is as follows:
January 29, 2011 January 30, 2010
Secured
Series 2007-1 Class A Notes, 4.92%, retired April 2010 - $326
Series 2007-1 Class B Notes, 5.02%, retired April 2010 - 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 55 60
Other 14 15
569 925
Unsecured
Senior notes, 6.75%, due June 2014, net of unamortized discount 399 399
Senior notes, 6.25%, due January 2018, net of unamortized discount 647 647
Senior notes, 4.75%, due May 2020, net of unamortized discount 498 -
Senior debentures, 6.95%, due March 2028 300 300
Senior notes, 7.00%, due January 2038, net of unamortized discount 343 343
Other 25 (1)
2,212 1,688
Total long-term debt 2,781 2,613
Less: current portion (6) (356)
Total due beyond one year $2,775 $2,257
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 $75 at the end of 2010.