Nordstrom 2014 Annual Report Download - page 55

Table of Contents
Nordstrom, Inc.
Notes to Consolidated Financial Statements
Dollar and share amounts in millions except per share, per option and per unit amounts
Nordstrom, Inc. and subsidiaries 55
Rent expense for 2014, 2013 and 2012 was as follows:
Fiscal year 2014 2013 2012
Minimum rent:
Store locations $170 $145 $124
Offices, warehouses and equipment 36 35 32
Percentage rent 14 14 14
Property incentives (83) (69) (65)
Total rent expense $137 $125 $105
The rent expense above does not include common area charges, real estate taxes and other executory costs, which were $88 in 2014, $81 in
2013 and $74 in 2012.
NOTE 11: COMMITMENTS AND CONTINGENT LIABILITIES
Our estimated total purchase obligations, capital expenditure contractual commitments and inventory purchase orders were $2,092 as of
January 31, 2015. In connection with the purchase of foreign merchandise, we have outstanding trade letters of credit totaling $1 as of
January 31, 2015.
Plans for our Manhattan full-line store, which we currently expect to open in late 2018 to 2019, ultimately include owning a condominium
interest in a mixed-use tower and leasing certain nearby properties. As of January 31, 2015, we had approximately $125 of fee interest in
land, which is expected to convert to the condominium interest once the store is constructed. We have committed to make future installment
payments based on the developer meeting pre-established construction and development milestones. Our fee interest in the land is currently
and will continue to be subject to lien by project development lenders until project completion or fulfillment of our existing installment payment
commitment. In the unlikely event that this project is not completed, the opening may be delayed and we may potentially be subject to future
losses or capital commitments in order to complete construction or to monetize our previous investments in the land.
NOTE 12: SHAREHOLDERS’ EQUITY
In February 2013, our Board of Directors authorized a program to repurchase up to $800 of our outstanding common stock, through March 1,
2015. In September 2014, our Board of Directors authorized a new program to repurchase up to $1,000 of our outstanding common stock
through March 1, 2016, in addition to the remaining amount available for repurchase under the previously authorized program. The following
is a summary of the activity related to our share repurchase programs in 2012, 2013 and 2014:
Shares Average price per share Amount
Capacity at January 28, 2012 $310
February 2012 authorization (ended February 1, 2014) 800
Shares repurchased 14.0 $51 (717)
Capacity at February 2, 2013 393
February 2013 authorization (ends March 1, 2015) 800
Shares repurchased 9.1 $57 (523)
Capacity at February 1, 2014 670
September 2014 authorization (ends March 1, 2016) 1,000
Shares repurchased 8.9 $66 (595)
Capacity at January 31, 2015 $1,075
The actual number and timing of future share repurchases, if any, will be subject to market and economic conditions and applicable SEC
rules.
We paid dividends of $1.32 per share in 2014, $1.20 per share in 2013 and $1.08 per share in 2012. In February 2015, we declared a
quarterly dividend of $0.37 per share, increased from a quarterly dividend of $0.33 per share in 2014.