Nordstrom 2015 Annual Report Download - page 61

NOTE 17:€€SEGMENT REPORTING
Segments
We have two reportable segments, which include Retail and Credit.
Our Retail segment includes our Nordstrom operating segment, which is composed of our Nordstrom U.S. full-line stores and
Nordstrom.com. Both of these divisions earn revenue by offering customers a wide range of apparel, shoes, cosmetics and accessories for
women, men, young adults and children. Through our multi-channel initiatives, we have integrated the operations, merchandising and
technology of our Nordstrom full-line and online stores, consistent with our customers€ expectations of a seamless shopping experience
regardless of channel. Our internal reporting to our principal executive officer, who is our chief operating decision maker, is consistent with
these multi-channel initiatives. Our Nordstrom Rack, Nordstromrack.com/HauteLook, Jeffrey, Canadian operations and Trunk Club operating
segments have similar economic and qualitative characteristics, including nature of products, method of distribution and type of customer or
the segment results are not significant to the operating results of Nordstrom. Therefore, the results of these operating segments have been
aggregated with our Nordstrom operating segment into the Retail reportable segment.
Through our Credit segment, our customers can access a variety of payment products and services, including a Nordstrom private label
card, two Nordstrom Visa credit cards and a debit card for Nordstrom purchases. These credit and debit cards also allow our customers to
participate in our loyalty program which provides benefits to cardholders based on their level of spending.
Amounts in the Corporate/Other column include unallocated corporate expenses and assets (including unallocated assets in corporate
headquarters, consisting primarily of cash, land, buildings and equipment and deferred tax assets), sales return reserve, inter-segment
eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with
generally accepted accounting principles.
Total Retail Business represents a subtotal of the Retail segment and Corporate/Other, and is consistent with our presentation in Item 7:
Management€s Discussion and Analysis of Financial Condition and Results of Operations. Total Retail Business is not a reportable segment.
Accounting Policy
In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated
Company. However, redemptions of our Nordstrom Notes are included in net sales for our Retail segment. The sales amount in our
Corporate/Other column includes an entry to eliminate these transactions from our consolidated net sales. The related Nordstrom Notes
expenses are included in our Retail segment at face value. Our Corporate/Other column includes an adjustment to reduce the Nordstrom
Notes expense from face value to their estimated cost. In addition, our sales return reserve and other corporate adjustments are recorded in
the Corporate/Other column. Other than as described above, the accounting policies of the operating segments are the same as those
described in Note 1: Nature of Operations and Summary of Significant Accounting Policies.
Reclassification
Reclassifications were made to our segment reporting to better reflect the way we view and measure our business. We reclassified certain
expenses related to our entry into Canada from our Corporate/Other column to our Retail segment. Historical results were also reclassified to
reflect the current period presentation.
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 61