Nordstrom 2015 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2015 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

Interest Expense
The components of interest expense, net are as follows:
Fiscal year 2015 2014 2013
Interest on long-term debt and short-term borrowings $153 $156 $176
Less:
Interest income —(1)(1)
Capitalized interest (28)(17)(14)
Interest expense, net $125 $138 $161
Credit Facilities
As of January•30, 2016, we had total short-term borrowing capacity of $800, which is our five-year $800 senior unsecured revolving credit
facility (‚revolverƒ) that expires in April 2020, with an option to extend for an additional year. In April 2015, we terminated our•previous
$800•senior unsecured revolving credit facility that was scheduled to expire March 2018. Under the terms of our revolver, we pay a variable
rate of interest and a commitment fee based on our debt rating. The revolver is available for working capital, capital expenditures and general
corporate purposes. We have the option to increase the revolving commitment by up to $200, to a total of $1,000, provided that we obtain
written consent from the lenders.
The revolver requires that we maintain an adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent
(‚EBITDARƒ) leverage ratio of less than four times. As of January•30, 2016 and January•31, 2015, we were in compliance with this covenant.
Our $800 commercial paper program allows us to use the proceeds to fund operating cash requirements. Under the terms of the commercial
paper agreement, we pay a rate of interest based on, among other factors, the maturity of the issuance and market conditions. The issuance
of commercial paper has the effect, while it is outstanding, of reducing available liquidity under the revolver by an amount equal to the
principal amount of commercial paper.
As of January•30, 2016 and January•31, 2015, we had no issuances outstanding under our commercial paper program and no borrowings
outstanding under our revolver.
Our wholly owned subsidiary in Puerto Rico maintains a $52 unsecured borrowing facility to support our expansion into that market. The
facility expires in November 2018 and borrowings on this facility incur interest based upon the LIBOR plus 1.275% per annum and also incurs
a fee based on our unused commitment. As of January•30, 2016 and January•31, 2015, we had $52 and $37 outstanding on this facility which
is included as a component in other unsecured debt.
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
52