Nordstrom 2013 Annual Report Download - page 27

Nordstrom, Inc. and subsidiaries 27
LIQUIDITY AND CAPITAL RESOURCES
We strive to maintain a level of liquidity sufficient to allow us to cover our seasonal cash needs and to maintain appropriate levels of short-
term borrowings. We believe that our operating cash flows, available credit facilities and potential future borrowings are sufficient to finance
our cash requirements for the next 12 months and beyond.
Over the long term, we manage our cash and capital structure to maximize shareholder return, maintain our financial position, manage
refinancing risk and allow flexibility for strategic initiatives. We regularly assess our debt and leverage levels, capital expenditure
requirements, debt service payments, dividend payouts, potential share repurchases and other future investments. We believe that as of
February 1, 2014, our existing cash and cash equivalents on-hand of $1,194, available credit facilities of $800 and potential future operating
cash flows and borrowings will be sufficient to fund these scheduled future payments and potential long-term initiatives.
Operating Activities
Net cash provided by operating activities was $1,320 in 2013 and $1,110 in 2012. The majority of our operating cash inflows are derived from
sales. We also receive cash payments for property incentives from developers. Our operating cash outflows generally consist of payments to
our merchandise vendors (net of vendor allowances), payments to our employees for wages, salaries and other employee benefits and
payments to our landlords for rent. Operating cash outflows also include payments for income taxes and interest payments on our short-term
and long-term borrowings.
Cash provided by operating activities increased in 2013 compared with 2012, resulting from less state tax payments made in 2013 due to
additional payments made in 2012 as a result of the 53rd week, along with increased property incentives received from developers and
changes in working capital.
Investing Activities
Net cash used in investing activities was $822 in 2013 and $369 in 2012. Our investing cash flows primarily consist of capital expenditures,
changes in restricted cash accumulated for debt maturities and changes in credit card receivables associated with cardholder purchases
outside of Nordstrom using our Nordstrom VISA credit cards.
CAPITAL EXPENDITURES
Our capital expenditures over the last three years totaled $1,827, with $803 in 2013, $513 in 2012 and $511 in 2011.
Capital expenditures increased in 2013 compared with 2012 as we continued to make progress executing our customer strategy through
increased investments in technology, e-commerce, remodels and new stores, including Nordstrom Rack and our Manhattan full-line store.
The following table summarizes our store count and square footage activity:
Store count Square footage
Fiscal year 2013 2012 2011 2013 2012 2011
Total, beginning of year 240 225 204 25.3 24.7 23.8
Store openings:
Nordstrom full-line stores —1 3 —0.1 0.4
Nordstrom Rack and other stores 22 15 19 0.7 0.6 0.7
Closed stores (2) (1) (1) —(0.1) (0.2)
Total, end of year 260 240 225 26.0 25.3 24.7
We relocated one Nordstrom full-line store and two Nordstrom Rack stores in 2013, compared with three Nordstrom Rack relocations in
2012. Our 2013 new store openings and relocations increased our square footage by 2.9%.
To date in 2014, we have opened two Nordstrom Rack stores. We plan to open 27 Nordstrom Rack stores and three full-line stores in 2014.
In February 2014, we announced our plans to close our full-line stores in Vancouver, Washington, and in Portland, Oregon, at the Lloyd
Center, in January 2015. The planned net store openings are expected to increase our retail square footage by approximately 4.4%.
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