Nordstrom 2013 Annual Report Download - page 50

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50
NOTE 8: DEBT AND CREDIT FACILITIES
Debt
A summary of our long-term debt is as follows:
February 1, 2014 February 2, 2013
Secured
Series 2011-1 Class A Notes, 2.28%, due October 2016 $325 325
Mortgage payable, 7.68%, due April 2020 42 47
Other 910
Total secured debt 376 382
Unsecured
Net of unamortized discount:
Senior notes, 6.75%, due June 2014 —400
Senior notes, 6.25%, due January 2018 648 648
Senior notes, 4.75%, due May 2020 499 498
Senior notes, 4.00%, due October 2021 499 499
Senior debentures, 6.95%, due March 2028 300 300
Senior notes, 7.00%, due January 2038 146 344
Senior notes, 5.00%, due January 2044 595 —
Unamortized fair value hedge and other 50 60
Total unsecured debt 2,737 2,749
Total long-term debt 3,113 3,131
Less: current portion (7) (7)
Total due beyond one year $3,106 $3,124
All of our Nordstrom private label card receivables and a 90% interest in our Nordstrom VISA credit card receivables serve as collateral for
various borrowings and credit facilities, including our Series 2011-1 Class A Notes.
In the fourth quarter of 2013, we issued $665 of 5.00% senior unsecured notes due January 2044 (“2044 Notes”). We used $400 of the
proceeds to retire all senior unsecured notes due June 2014. We exchanged $201 of the 7.00% senior unsecured notes due January 2038
(“2038 Notes”) for $265 of the 2044 Notes. The $64 in excess of the outstanding principal of 2038 Notes relates to the lower interest rate and
longer maturity of the new 2044 Notes, and we recorded it as part of the discount to be amortized over the term of the 2044 Notes. As of
February 1, 2014, we had $595 of outstanding 2044 Notes, net of a $70 discount. The 2044 Notes exchanged for the 2038 Notes and the
related discounts represented a non-cash activity of $201 that had no impact to our 2013 Consolidated Statements of Cash Flows for the
year ended February 1, 2014.
Our mortgage payable is secured by an office building that had a net book value of $67 at the end of 2013. Other secured debt as of
February 1, 2014 consisted primarily of capital lease obligations.
In 2011, we received proceeds of $72 from the sale of our interest rate swap agreements (collectively, the “swap”) with a $650 notional
amount maturing in 2018. We recorded the $72 on the sale date as an accumulated adjustment to our long-term debt, which will be
amortized as a reduction of interest expense over the remaining life of the debt. As of February 1, 2014, the accumulated adjustment to our
long-term debt was $48 and is included as part of unsecured debt in the table above. See Note 1: Nature of Operations and Summary of
Significant Accounting Policies for additional information related to our swap.
Table of Contents
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and unit amounts