Nordstrom 2013 Annual Report Download - page 47

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Nordstrom, Inc. and subsidiaries 47
NOTE 4: LAND, BUILDINGS AND EQUIPMENT
Land, buildings and equipment consist of the following:
February 1, 2014 February 2, 2013
Land and land improvements $80 $76
Buildings and building improvements 991 975
Leasehold improvements 2,330 2,209
Store fixtures and equipment 2,894 2,679
Capitalized software 628 518
Construction in progress 421 186
Land, buildings and equipment 7,344 6,643
Less: accumulated depreciation and amortization (4,395) (4,064)
Land, buildings and equipment, net $2,949 $2,579
The total cost of buildings and equipment held under capital lease obligations was $28 at the end of both 2013 and 2012, with related
accumulated amortization of $25 in 2013 and $24 in 2012. Depreciation expense was $444 in 2013, $410 in 2012 and $355 in 2011.
NOTE 5: SELF-INSURANCE
Our self-insurance reserves are summarized as follows:
February 1, 2014 February 2, 2013
Workers’ compensation $66 $63
Employee health and welfare 23 23
General liability 16 16
Total self-insurance reserve $105 $102
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 $30 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 $77, $83 and $88 in 2013, 2012 and 2011.
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 2013,
we had 59 participants in the plan, including 31 officers and select employees eligible for SERP benefits, 27 retirees and 1 beneficiary. This
plan is non-qualified and does not have a minimum funding requirement.
Table of Contents
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts