Nordstrom 2011 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2011 Nordstrom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 77

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77

50
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts
NOTE 5: SELF-INSURANCE
Our self-insurance reserves are summarized as follows:
January 28, 2012 January 29, 2011
Workers’ compensation $53 $50
Employee health and welfare 19 18
General liability 14 11
Total $86 $79
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 $3 or less
and a policy limit up to $25 and $150, respectively.
NOTE 6: 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 and our discretionary company 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 $88, $86
and $74 in 2011, 2010 and 2009.
NOTE 7: POSTRETIREMENT BENEFITS
We have an unfunded defined benefit Supplemental Executive Retirement Plan (“SERP”), which provides retirement benefits to certain officers and
select employees. The SERP has different benefit levels depending on the participant’s role in the company. At the end of 2011, we had 61 participants
in the plan, including 36 officers and select employees eligible for SERP benefits, 24 retirees and 1 beneficiary. This plan is non-qualified and does
not have a minimum funding requirement.
Benefit Obligations and Funded Status
January 28, 2012 January 29, 2011
Change in benefit obligation:
Benefit obligation at beginning of year $122 $102
Participant service cost 3 2
Interest cost 7 6
Benefits paid (5) (4)
Actuarial loss 25 16
Benefit obligation at end of year $152 $122
Change in plan assets:
Fair value of plan assets at beginning of year — —
Employer contribution $5 $4
Benefits paid (5) (4)
Fair value of plan assets at end of year — —
Underfunded status at end of year $(152) $(122)
The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $144 and $116 at the end
of 2011 and 2010.
Amounts recognized as liabilities in the consolidated balance sheets consist of the following:
January 28, 2012 January 29, 2011
Current liabilities $6 $5
Noncurrent liabilities 146 117
Net amount recognized $152 $122