Nordstrom (JWN) 10-Q 31 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Apr. 29, 2017	May 24, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Apr. 29, 2017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--02-03
Document Fiscal Year Focus	2,017
Amendment Flag	false
Entity Registrant Name	Nordstrom Inc.
Entity Central Index Key	72,333
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		166,052,065

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Income Statement [Abstract]
Net sales	$ 3,279	$ 3,192
Credit card revenues, net	75	57
Total revenues	3,354	3,249
Cost of sales and related buying and occupancy costs	(2,155)	(2,100)
Selling, general and administrative expenses	(1,048)	(1,043)
Earnings before interest and income taxes	151	106
Interest expense, net	(48)	(31)
Earnings before income taxes	103	75
Income tax expense	(40)	(29)
Net earnings	$ 63	$ 46
Earnings per share:
Basic (in dollars per share)	$ 0.38	$ 0.27
Diluted (in dollars per share)	$ 0.37	$ 0.26
Weighted-average shares outstanding:
Basic (in shares)	167.3	173.1
Diluted (in shares)	169.1	175.7

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net earnings	$ 63	$ 46
Foreign currency translation adjustment	(12)	27
Postretirement plan adjustments, net of tax	1	1
Comprehensive net earnings	$ 52	$ 74

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Assets
Cash and cash equivalents	$ 653	$ 1,007	$ 470
Accounts receivable, net	209	199	224
Merchandise inventories	2,160	1,896	2,125
Prepaid expenses and other	147	140	173
Total current assets	3,169	3,242	2,992
Land, property and equipment (net of accumulated depreciation of $5,742, $5,596 and $5,170)	3,872	3,897	3,789
Goodwill	238	238	435
Other assets	492	481	483
Total assets	7,771	7,858	7,699
Liabilities and Shareholders' Equity
Accounts payable	1,590	1,340	1,456
Accrued salaries, wages and related benefits	319	455	320
Other current liabilities	1,225	1,223	1,150
Current portion of long-term debt	11	11	10
Total current liabilities	3,145	3,029	2,936
Long-term debt, net	2,731	2,763	2,776
Deferred property incentives, net	530	521	536
Other liabilities	688	675	576
Commitments and contingencies (Note 4)
Shareholders' equity:
Common stock, no par value: 1,000 shares authorized; 166.0, 170.0 and 173.4 shares issued and outstanding	2,730	2,707	2,582
Accumulated deficit	(1,999)	(1,794)	(1,677)
Accumulated other comprehensive loss	(54)	(43)	(30)
Total shareholders' equity	677	870	875
Total liabilities and shareholders' equity	$ 7,771	$ 7,858	$ 7,699

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Assets
Accumulated depreciation	$ 5,742	$ 5,596	$ 5,170
Shareholders' equity
Common stock, no par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares authorized	1,000	1,000	1,000
Common stock, shares issued	166	170	173.4
Common stock, shares outstanding	166	170	173.4

Condensed Consolidated Stateme6

Condensed Consolidated Statements Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Jan. 30, 2016	$ 871	$ 2,539	$ (1,610)	$ (58)
Beginning balance (in shares) at Jan. 30, 2016		173.5
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net earnings	46		46
Other comprehensive earnings (loss)	28			28
Dividends	(63)		(63)
Issuance of common stock under stock compensation plans	28	$ 28
Issuance of common stock under stock compensation plans (in shares)		0.7
Stock-based compensation	15	$ 15
Stock-based compensation (in shares)		0.2
Repurchase of common stock	(50)		(50)
Repurchase of common stock (in shares)		(1)
Ending balance at Apr. 30, 2016	$ 875	$ 2,582	(1,677)	(30)
Ending balance (in shares) at Apr. 30, 2016	173.4	173.4
Beginning balance at Jan. 28, 2017	$ 870	$ 2,707	(1,794)	(43)
Beginning balance (in shares) at Jan. 28, 2017	170	170
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net earnings	$ 63		63
Other comprehensive earnings (loss)	(11)			(11)
Dividends	(62)		(62)
Issuance of common stock under stock compensation plans	11	$ 11
Issuance of common stock under stock compensation plans (in shares)		0.3
Stock-based compensation	12	$ 12
Stock-based compensation (in shares)		0.3
Repurchase of common stock	$ (206)		(206)
Repurchase of common stock (in shares)	(4.6)	(4.6)
Ending balance at Apr. 29, 2017	$ 677	$ 2,730	$ (1,999)	$ (54)
Ending balance (in shares) at Apr. 29, 2017	166	166

Condensed Consolidated Stateme7

Condensed Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Statement of Stockholders' Equity [Abstract]
Dividends (in dollars per share)	$ 0.37	$ 0.37

Condensed Consolidated Stateme8

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Operating Activities
Net earnings	$ 63	$ 46
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization expenses	161	155
Amortization of deferred property incentives and other, net	(26)	(17)
Deferred income taxes, net	(21)	6
Stock-based compensation expense	16	20
Change in operating assets and liabilities:
Accounts receivable	(10)	(27)
Merchandise inventories	(266)	(212)
Prepaid expenses and other assets	(11)	94
Accounts payable	272	192
Accrued salaries, wages and related benefits	(136)	(96)
Other current liabilities	9	(6)
Deferred property incentives	32	13
Other liabilities	6	8
Net cash provided by operating activities	89	176
Investing Activities
Capital expenditures	(153)	(205)
Other, net	9	31
Net cash used in investing activities	(144)	(174)
Financing Activities
Proceeds from long-term borrowings, net of discounts	635	0
Principal payments on long-term borrowings	(653)	(2)
Decrease in cash book overdrafts	(21)	(33)
Cash dividends paid	(62)	(63)
Payments for repurchase of common stock	(211)	(50)
Proceeds from issuances under stock compensation plans	11	28
Tax withholding on share-based awards	(5)	(4)
Other, net	7	(3)
Net cash used in financing activities	(299)	(127)
Net decrease in cash and cash equivalents	(354)	(125)
Cash and cash equivalents at beginning of period	1,007	595
Cash and cash equivalents at end of period	653	470
Cash paid during the period for:
Income taxes (refund), net	4	(83)
Interest, net of capitalized interest	$ 50	$ 17

Basis Of Presentation

Basis Of Presentation	3 Months Ended
	Apr. 29, 2017
Basis of Presentation [Abstract]
Basis Of Presentation	NOTE 1: BASIS OF PRESENTATION The accompanying Condensed Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries (the “Company”). All intercompany transactions and balances are eliminated in consolidation. The interim Condensed Consolidated Financial Statements have been prepared on a basis consistent in all material respects with the accounting policies described and applied in our 2016 Annual Report on Form 10-K (“Annual Report”), and reflect all adjustments of a normal recurring nature that are, in management’s opinion, necessary for the fair presentation of the results of operations, financial position and cash flows for the periods presented. The Condensed Consolidated Financial Statements as of and for the periods ended April 29, 2017 and April 30, 2016 are unaudited. The Condensed Consolidated Balance Sheet as of January 28, 2017 has been derived from the audited Consolidated Financial Statements included in our 2016 Annual Report. The interim Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and related footnote disclosures contained in our 2016 Annual Report. The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. Our business, like that of other retailers, is subject to seasonal fluctuations. Our sales are typically higher during our Anniversary Sale and the holidays in the fourth quarter. Consistent with the timing in 2016 , our 2017 Anniversary Sale will take place during the last week of July and the first week of August, spanning the second and third quarters. Results for any quarter are not indicative of the results that may be achieved for a full fiscal year. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date . The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016, the FASB issued additional ASUs which clarify the implementation guidance on principal versus agent considerations, on identifying performance obligations and licensing, on the revenue recognition criteria and other technical corrections. In our ongoing evaluation of this ASU, we have determined that the new standard will primarily impact the following areas: gift card breakage will be estimated based on the historical pattern of gift card redemption, rather than when redemption is considered remote; sales attributable to the loyalty program benefits (e.g., points, alterations) will be deferred rather than recorded as an increase to cost of sales; revenue related to our online sales will be recognized at the shipping point rather than receipt by the customer; and estimated costs of returns will be recorded as a current asset rather than netted with our sales return reserve. We plan to adopt this ASU in the first quarter of 2018 and are continuing to evaluate the impacts this ASU and related disclosures will have on our Consolidated Financial Statements, as well as our preferred transition method. In February 2016, the FASB issued ASU No. 2016-02, Leases . This ASU increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification dictates whether lease expense is to be recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for us beginning in the first quarter of 2019. Though we are currently evaluating the impact of these provisions, we expect they will have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation — Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payments and presentation within the financial statements. We adopted ASU No. 2016-09 with an effective date of January 29, 2017. The impact of the adoption resulted in the following: • Excess tax benefits and deficiencies resulting from stock-based compensation arrangements are now recorded within income tax expense on the Condensed Consolidated Statement of Earnings when the awards vest or are settled, rather than within equity. Additionally, excess tax benefits are now excluded from assumed future proceeds in our calculation of diluted shares for purposes of determining diluted earnings per share. The prospective adoption of this provision did not have a material effect on the Condensed Consolidated Financial Statements for the quarter ended April 29, 2017 . We had no previously unrecognized excess tax benefits that would have resulted in a cumulative-effect adjustment to beginning retained earnings. • Forfeitures on share-based awards are recorded as they occur, rather than our historical method of estimating forfeitures at the grant date. In evaluating the impact of this change, the adjustment to adopt on a modified retrospective basis was immaterial, therefore no adjustment has been made to beginning retained earnings. • Excess tax benefits from stock-based compensation arrangements are classified as cash flows from operations, rather than as cash flows from financing activities. We adopted this change retrospectively, which resulted in an increase to net cash provided by operating activities and an increase in cash flows used in financing activities of $1 for the quarter ended April 30, 2016 . Additionally, cash flows related to withholding shares for tax purposes on net-settled awards are classified as financing activities, rather than operating activities. This classification change was also adopted retrospectively, resulting in an increase of $4 to net cash provided by operating activities with an offsetting increase to net cash used in financing activities on the Condensed Consolidated Statement of Cash Flows for the quarter ended April 30, 2016 .

Debt And Credit Facilities

Debt And Credit Facilities	3 Months Ended
	Apr. 29, 2017
Debt Disclosure [Abstract]
Debt And Credit Facilities	NOTE 2: DEBT AND CREDIT FACILITIES Debt A summary of our long-term debt, including capital leases, is as follows: April 29, 2017 January 28, 2017 April 30, 2016 Secured Mortgage payable, 7.68%, due April 2020 $23 $24 $29 Other 2 3 4 Total secured debt 25 27 33 Unsecured Net of unamortized discount: Senior notes, 6.25%, due January 2018 — 650 649 Senior notes, 4.75%, due May 2020 499 499 499 Senior notes, 4.00%, due October 2021 500 500 500 Senior notes, 4.00%, due March 2027 349 — — Senior debentures, 6.95%, due March 2028 300 300 300 Senior notes, 7.00%, due January 2038 146 146 146 Senior notes, 5.00%, due January 2044 890 602 601 Other 33 50 58 Total unsecured debt 2,717 2,747 2,753 Total long-term debt 2,742 2,774 2,786 Less: current portion (11 ) (11 ) (10 ) Total due beyond one year $2,731 $2,763 $2,776 During the first quarter, we issued $350 aggregate principal amount of 4.00% senior unsecured notes due March 2027 and $300 aggregate principal amount of 5.00% senior unsecured notes due January 2044 . With the proceeds of these new notes, we retired our $650 senior unsecured notes that were due January 2018. For the quarter ended April 29, 2017, we incurred $18 of net interest expense related to the refinancing, which included the write-off of unamortized balances associated with the debt discount, issue costs and fair value hedge adjustment resulting from the sale of our interest rate swap agreements in 2012. It also included a one-time payment of $24 to 2018 Senior Note holders under a make-whole provision, which represents the net present value of expected coupon payments had the notes been outstanding through the original maturity date. Credit Facilities As of April 29, 2017 , we had total short-term borrowing capacity of $800 under our senior unsecured revolving credit facility (“revolver”) that expires in April 2020 . 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. As of April 29, 2017 , we had no issuances outstanding under our commercial paper program and no borrowings outstanding under our revolver. The revolver requires that we maintain an adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) leverage ratio of no more than four times. As of April 29, 2017 , we were in compliance with this covenant.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 29, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 3: FAIR VALUE MEASUREMENTS We disclose our financial assets and liabilities that are measured at fair value in our Condensed Consolidated Balance Sheets by level within the fair value hierarchy as defined by applicable accounting standards: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Other observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that cannot be corroborated by market data that reflect the reporting entity’s own assumptions Financial Instruments Not Measured at Fair Value Financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and certificates of deposit, which approximate fair value due to their short-term nature, and long-term debt. We estimate the fair value of our long-term debt using quoted market prices of the same or similar issues and, as such, this is considered a Level 2 fair value measurement. The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: April 29, 2017 January 28, 2017 April 30, 2016 Carrying value of long-term debt $2,742 $2,774 $2,786 Fair value of long-term debt 2,921 2,949 3,085 Non-financial Assets Measured at Fair Value on a Nonrecurring Basis We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill, investment in contract asset and long-lived tangible and intangible assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. There were no material impairment charges for these assets for the quarters ended April 29, 2017 and April 30, 2016 .

Commitments And Contingencies

Commitments And Contingencies	3 Months Ended
	Apr. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	NOTE 4: COMMITMENTS AND CONTINGENCIES Plans for our Manhattan full-line store, which we currently expect to open in 2019, ultimately include owning a condominium interest in a mixed-use tower and leasing certain nearby properties. As of April 29, 2017 , we had approximately $249 of fee interest in land, which is expected to convert to a 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. In the event that this project is not completed, the opening may be delayed and we may be subject to future losses or capital commitments in order to complete construction or to monetize our investment in the land.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Apr. 29, 2017
Stockholders' Equity Note [Abstract]
Shareholders' Equity	NOTE 5: SHAREHOLDERS’ EQUITY In February 2017 , our Board of Directors authorized a program to repurchase up to $500 of our outstanding common stock, through August 31, 2018 . Our October 1, 2015 Board authorized share repurchase program expired in March 2017, which had $409 of unused capacity upon program expiration. During the quarter ended April 29, 2017 , we repurchased 4.6 shares of our common stock for an aggregate purchase price of $206 and had $414 remaining in share repurchase capacity as of April 29, 2017 . The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to market and economic conditions and applicable Securities and Exchange Commission (“SEC”) rules. In May 2017 , subsequent to quarter end, we declared a quarterly dividend of $0.37 per share, which will be paid on June 12, 2017 .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 29, 2017
Share-based Compensation [Abstract]
Stock-Based Compensation	NOTE 6: STOCK-BASED COMPENSATION The following table summarizes our stock-based compensation expense: Quarter Ended April 29, 2017 April 30, 2016 Restricted stock units $12 $6 Stock options 3 8 Acquisition-related stock compensation — 4 Other 1 2 Total stock-based compensation expense, before income tax benefit 16 20 Income tax benefit (6 ) (6 ) Total stock-based compensation expense, net of income tax benefit $10 $14 In 2014, restricted stock units became a growing component of our stock-based compensation mix. In the first quarter of 2017, this trend continued as our annual grant allocation shifted towards more restricted stock units and less options to better align with our compensation program’s guiding principles. The following table summarizes our grants: Quarter Ended April 29, 2017 April 30, 2016 Granted Weighted-average grant-date fair value per unit Granted Weighted-average grant-date fair value per unit Restricted stock units 1.7 $43 0.7 $49 Stock options 0.3 $16 2.5 $16 Performance share units 0.1 $40 0.1 $44

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 29, 2017
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 7: EARNINGS PER SHARE The computation of earnings per share is as follows: Quarter Ended April 29, 2017 April 30, 2016 Net earnings $63 $46 Basic shares 167.3 173.1 Dilutive effect of common stock equivalents 1.8 2.6 Diluted shares 169.1 175.7 Earnings per basic share $0.38 $0.27 Earnings per diluted share $0.37 $0.26 Anti-dilutive common stock equivalents 12.1 6.8

Segment Reporting

Segment Reporting	3 Months Ended
	Apr. 29, 2017
Segment Reporting [Abstract]
Segment Reporting	NOTE 8: SEGMENT REPORTING The following table sets forth information for our reportable segments: Retail Corporate/Other Retail Business Credit Total Quarter Ended April 29, 2017 Net sales $3,308 ($29 ) $3,279 $— $3,279 Credit card revenues, net — — — 75 75 Earnings (loss) before interest and income taxes 212 (97 ) 115 36 151 Interest expense, net — (48 ) (48 ) — (48 ) Earnings (loss) before income taxes 212 (145 ) 67 36 103 Quarter Ended April 30, 2016 Net sales $3,258 ($66 ) $3,192 $— $3,192 Credit card revenues, net — — — 57 57 Earnings (loss) before interest and income taxes 189 (99 ) 90 16 106 Interest expense, net — (31 ) (31 ) — (31 ) Earnings (loss) before income taxes 189 (130 ) 59 16 75 The following table summarizes net sales within our reportable segments: Quarter Ended April 29, 2017 April 30, 2016 Nordstrom full-line stores - U.S. $1,482 $1,582 Nordstrom.com 548 495 Nordstrom 2,030 2,077 Nordstrom Rack 954 894 Nordstromrack.com/HauteLook 198 166 Off-price 1,152 1,060 Other retail 1 126 121 Retail segment 3,308 3,258 Corporate/Other (29 ) (66 ) Total net sales $3,279 $3,192 1 Other retail includes Nordstrom Canada full-line stores, Trunk Club and Jeffrey boutiques (see Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations ).

Basis Of Presentation (Policies

Basis Of Presentation (Policies)	3 Months Ended
	Apr. 29, 2017
Basis of Presentation [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date . The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016, the FASB issued additional ASUs which clarify the implementation guidance on principal versus agent considerations, on identifying performance obligations and licensing, on the revenue recognition criteria and other technical corrections. In our ongoing evaluation of this ASU, we have determined that the new standard will primarily impact the following areas: gift card breakage will be estimated based on the historical pattern of gift card redemption, rather than when redemption is considered remote; sales attributable to the loyalty program benefits (e.g., points, alterations) will be deferred rather than recorded as an increase to cost of sales; revenue related to our online sales will be recognized at the shipping point rather than receipt by the customer; and estimated costs of returns will be recorded as a current asset rather than netted with our sales return reserve. We plan to adopt this ASU in the first quarter of 2018 and are continuing to evaluate the impacts this ASU and related disclosures will have on our Consolidated Financial Statements, as well as our preferred transition method. In February 2016, the FASB issued ASU No. 2016-02, Leases . This ASU increases transparency and comparability by recognizing a lessee’s rights and obligations resulting from leases by recording them on the balance sheet as lease assets and lease liabilities. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification dictates whether lease expense is to be recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for us beginning in the first quarter of 2019. Though we are currently evaluating the impact of these provisions, we expect they will have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation — Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payments and presentation within the financial statements. We adopted ASU No. 2016-09 with an effective date of January 29, 2017. The impact of the adoption resulted in the following: • Excess tax benefits and deficiencies resulting from stock-based compensation arrangements are now recorded within income tax expense on the Condensed Consolidated Statement of Earnings when the awards vest or are settled, rather than within equity. Additionally, excess tax benefits are now excluded from assumed future proceeds in our calculation of diluted shares for purposes of determining diluted earnings per share. The prospective adoption of this provision did not have a material effect on the Condensed Consolidated Financial Statements for the quarter ended April 29, 2017 . We had no previously unrecognized excess tax benefits that would have resulted in a cumulative-effect adjustment to beginning retained earnings. • Forfeitures on share-based awards are recorded as they occur, rather than our historical method of estimating forfeitures at the grant date. In evaluating the impact of this change, the adjustment to adopt on a modified retrospective basis was immaterial, therefore no adjustment has been made to beginning retained earnings. • Excess tax benefits from stock-based compensation arrangements are classified as cash flows from operations, rather than as cash flows from financing activities. We adopted this change retrospectively, which resulted in an increase to net cash provided by operating activities and an increase in cash flows used in financing activities of $1 for the quarter ended April 30, 2016 . Additionally, cash flows related to withholding shares for tax purposes on net-settled awards are classified as financing activities, rather than operating activities. This classification change was also adopted retrospectively, resulting in an increase of $4 to net cash provided by operating activities with an offsetting increase to net cash used in financing activities on the Condensed Consolidated Statement of Cash Flows for the quarter ended April 30, 2016 .

Debt And Credit Facilities (Tab

Debt And Credit Facilities (Tables)	3 Months Ended
	Apr. 29, 2017
Debt Disclosure [Abstract]
Summary Of Long-Term Debt	A summary of our long-term debt, including capital leases, is as follows: April 29, 2017 January 28, 2017 April 30, 2016 Secured Mortgage payable, 7.68%, due April 2020 $23 $24 $29 Other 2 3 4 Total secured debt 25 27 33 Unsecured Net of unamortized discount: Senior notes, 6.25%, due January 2018 — 650 649 Senior notes, 4.75%, due May 2020 499 499 499 Senior notes, 4.00%, due October 2021 500 500 500 Senior notes, 4.00%, due March 2027 349 — — Senior debentures, 6.95%, due March 2028 300 300 300 Senior notes, 7.00%, due January 2038 146 146 146 Senior notes, 5.00%, due January 2044 890 602 601 Other 33 50 58 Total unsecured debt 2,717 2,747 2,753 Total long-term debt 2,742 2,774 2,786 Less: current portion (11 ) (11 ) (10 ) Total due beyond one year $2,731 $2,763 $2,776

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 29, 2017
Fair Value Disclosures [Abstract]
Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt	The following table summarizes the carrying value and fair value estimate of our long-term debt, including current maturities: April 29, 2017 January 28, 2017 April 30, 2016 Carrying value of long-term debt $2,742 $2,774 $2,786 Fair value of long-term debt 2,921 2,949 3,085

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 29, 2017
Share-based Compensation [Abstract]
Summary Of Stock-Based Compensation Expense	The following table summarizes our stock-based compensation expense: Quarter Ended April 29, 2017 April 30, 2016 Restricted stock units $12 $6 Stock options 3 8 Acquisition-related stock compensation — 4 Other 1 2 Total stock-based compensation expense, before income tax benefit 16 20 Income tax benefit (6 ) (6 ) Total stock-based compensation expense, net of income tax benefit $10 $14
Summary Of Grants	The following table summarizes our grants: Quarter Ended April 29, 2017 April 30, 2016 Granted Weighted-average grant-date fair value per unit Granted Weighted-average grant-date fair value per unit Restricted stock units 1.7 $43 0.7 $49 Stock options 0.3 $16 2.5 $16 Performance share units 0.1 $40 0.1 $44

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 29, 2017
Earnings Per Share [Abstract]
Computation Of Earnings Per Share	The computation of earnings per share is as follows: Quarter Ended April 29, 2017 April 30, 2016 Net earnings $63 $46 Basic shares 167.3 173.1 Dilutive effect of common stock equivalents 1.8 2.6 Diluted shares 169.1 175.7 Earnings per basic share $0.38 $0.27 Earnings per diluted share $0.37 $0.26 Anti-dilutive common stock equivalents 12.1 6.8

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Apr. 29, 2017
Segment Reporting [Abstract]
Information By Reportable Segment	The following table sets forth information for our reportable segments: Retail Corporate/Other Retail Business Credit Total Quarter Ended April 29, 2017 Net sales $3,308 ($29 ) $3,279 $— $3,279 Credit card revenues, net — — — 75 75 Earnings (loss) before interest and income taxes 212 (97 ) 115 36 151 Interest expense, net — (48 ) (48 ) — (48 ) Earnings (loss) before income taxes 212 (145 ) 67 36 103 Quarter Ended April 30, 2016 Net sales $3,258 ($66 ) $3,192 $— $3,192 Credit card revenues, net — — — 57 57 Earnings (loss) before interest and income taxes 189 (99 ) 90 16 106 Interest expense, net — (31 ) (31 ) — (31 ) Earnings (loss) before income taxes 189 (130 ) 59 16 75
Summary Of Net Sales Within Reportable Segments	The following table summarizes net sales within our reportable segments: Quarter Ended April 29, 2017 April 30, 2016 Nordstrom full-line stores - U.S. $1,482 $1,582 Nordstrom.com 548 495 Nordstrom 2,030 2,077 Nordstrom Rack 954 894 Nordstromrack.com/HauteLook 198 166 Off-price 1,152 1,060 Other retail 1 126 121 Retail segment 3,308 3,258 Corporate/Other (29 ) (66 ) Total net sales $3,279 $3,192 1 Other retail includes Nordstrom Canada full-line stores, Trunk Club and Jeffrey boutiques (see Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations ).

Basis of Presentation (Narrativ

Basis of Presentation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in net cash provided by operating activities related to tax withholding on share-based awards	$ (136)	$ (96)
Increase in net cash used in financing activities related to tax withholding on share-based awards	$ 5	4
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in net cash provided by operating activities related to excess tax benefit from stock-based compensation		1
Increase in net cash used in financing activities related to excess tax benefit from stock-based compensation		1
Increase in net cash provided by operating activities related to tax withholding on share-based awards		4
Increase in net cash used in financing activities related to tax withholding on share-based awards		$ 4

Debt And Credit Facilities (Sum

Debt And Credit Facilities (Summary Of Long-Term Debt) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 29, 2017	Apr. 30, 2016	Jan. 28, 2017
Debt Instrument [Line Items]
Total secured debt	$ 25	$ 33	$ 27
Total unsecured debt	2,717	2,753	2,747
Total long-term debt	2,742	2,786	2,774
Less: current portion	(11)	(10)	(11)
Total due beyond one year	2,731	2,776	2,763
Mortgage payable, 7.68%, due April 2020 [Member]
Debt Instrument [Line Items]
Total secured debt	$ 23	$ 29	$ 24
Debt instrument interest rate	7.68%	7.68%	7.68%
Maturity date	April 2,020	April 2,020	April 2,020
Other [Member]
Debt Instrument [Line Items]
Total secured debt	$ 2	$ 4	$ 3
Senior notes, 6.25%, due January 2018, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 0	$ 649	$ 650
Debt instrument interest rate	6.25%	6.25%	6.25%
Maturity date	January 2,018	January 2,018	January 2,018
Senior notes, 4.75%, due May 2020, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 499	$ 499	$ 499
Debt instrument interest rate	4.75%	4.75%	4.75%
Maturity date	May 2,020	May 2,020	May 2,020
Senior notes, 4.00%, due October 2021, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 500	$ 500	$ 500
Debt instrument interest rate	4.00%	4.00%	4.00%
Maturity date	October 2,021	October 2,021	October 2,021
Senior notes, 4.00%, due March 2027, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 349	$ 0	$ 0
Debt instrument interest rate	4.00%	4.00%	4.00%
Maturity date	March 2,027	March 2,027	March 2,027
Senior debentures, 6.95%, due March 2028, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 300	$ 300	$ 300
Debt instrument interest rate	6.95%	6.95%	6.95%
Maturity date	March 2,028	March 2,028	March 2,028
Senior notes, 7.00%, due January 2038, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 146	$ 146	$ 146
Debt instrument interest rate	7.00%	7.00%	7.00%
Maturity date	January 2,038	January 2,038	January 2,038
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 890	$ 601	$ 602
Debt instrument interest rate	5.00%	5.00%	5.00%
Maturity date	January 2,044	January 2,044	January 2,044
Other [Member]
Debt Instrument [Line Items]
Total unsecured debt	$ 33	$ 58	$ 50

Debt And Credit Facilities (Nar

Debt And Credit Facilities (Narrative) (Details) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 29, 2017USD ($)	Apr. 30, 2016USD ($)	Jan. 28, 2017
Debt Instrument [Line Items]
Proceeds from long-term borrowings	$ 635	$ 0
Principal payments on long-term borrowings	653	2
Interest expense, net	48	31
Interest paid under the make-whole provision	50	$ 17
Commercial paper [Member]
Debt Instrument [Line Items]
Issuances or borrowings	0
2017 Refinancing [Member]
Debt Instrument [Line Items]
Interest expense, net	18
Interest paid under the make-whole provision	24
Senior notes, 4.00%, due March 2027, net of unamortized discount [Member]
Debt Instrument [Line Items]
Proceeds from long-term borrowings	$ 350
Debt instrument interest rate	4.00%	4.00%	4.00%
Maturity date	March 2,027	March 2,027	March 2,027
Senior notes, 5.00%, due January 2044, net of unamortized discount [Member]
Debt Instrument [Line Items]
Proceeds from long-term borrowings	$ 300
Debt instrument interest rate	5.00%	5.00%	5.00%
Maturity date	January 2,044	January 2,044	January 2,044
Senior notes, 6.25%, due January 2018, net of unamortized discount [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	6.25%	6.25%	6.25%
Maturity date	January 2,018	January 2,018	January 2,018
Principal payments on long-term borrowings	$ 650
Unsecured revolving credit facility [Member]
Debt Instrument [Line Items]
Maturity date	April 2,020
Option to increase the maximum capacity of revolving credit facility	$ 200
Maximum borrowing capacity with option	1,000
Issuances or borrowings	$ 0
Debt covenant leverage ratio	4
Unsecured revolving credit facility [Member] | Commercial paper [Member]
Debt Instrument [Line Items]
Total short-term borrowing capacity	$ 800

Fair Value Measurements (Summar

Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt) (Details) - USD ($) $ in Millions	Apr. 29, 2017	Jan. 28, 2017	Apr. 30, 2016
Fair Value Measurements, Long-term Debt [Line Items]
Carrying value of long-term debt	$ 2,742	$ 2,774	$ 2,786
Level 2 [Member]
Fair Value Measurements, Long-term Debt [Line Items]
Fair value of long-term debt	$ 2,921	$ 2,949	$ 3,085

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Fair Value Disclosures [Abstract]
Impairment charges	$ 0	$ 0

Commitments And Contingencies (

Commitments And Contingencies (Narrative) (Details) $ in Millions	Apr. 29, 2017USD ($)
Manhattan full-line store [Member]
Property Assets Subject to Lien [Line Items]
Amount of property assets subject to lien	$ 249

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	May 31, 2017	Apr. 29, 2017	Apr. 30, 2016
Retained Earnings Adjustments [Line Items]
Shares repurchased (in shares)		4.6
Repurchase of common stock, amount		$ 206	$ 50
Remaining share repurchase capacity		414
Subsequent Event [Member]
Retained Earnings Adjustments [Line Items]
Quarterly dividend declared and paid in subsequent quarter	$ 0.37
2017 Program [Member]
Retained Earnings Adjustments [Line Items]
Share repurchase authorization		500
2015 Program [Member]
Retained Earnings Adjustments [Line Items]
Expiration of unused share repurchase program capacity		$ 409

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit	$ 16	$ 20
Income tax benefit	(6)	(6)
Total stock-based compensation expense, net of income tax benefit	10	14
Acquisition-related stock compensation [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit	0	4
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit	12	6
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit	3	8
Other [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, before income tax benefit	$ 1	$ 2

Stock-Based Compensation (Sum31

Stock-Based Compensation (Summary Of Grants) (Details) - $ / shares shares in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	0.3	2.5
Weighted-average grant-date fair value per stock option (in dollars per share)	$ 16	$ 16
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	1.7	0.7
Weighted-average grant-date fair value per unit (in dollars per share)	$ 43	$ 49
Performance share units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	0.1	0.1
Weighted-average grant-date fair value per unit (in dollars per share)	$ 40	$ 44

Earnings Per Share (Computation

Earnings Per Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Earnings Per Share [Abstract]
Net earnings	$ 63	$ 46
Basic shares (in shares)	167.3	173.1
Dilutive effect of common stock equivalents (in shares)	1.8	2.6
Diluted shares (in shares)	169.1	175.7
Earnings per basic share (in dollars per share)	$ 0.38	$ 0.27
Earnings per diluted share (in dollars per share)	$ 0.37	$ 0.26
Anti-dilutive common stock equivalents (in shares)	12.1	6.8

Segment Reporting (Information

Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 29, 2017	Apr. 30, 2016
Segment Reporting Information [Line Items]
Net sales	$ 3,279	$ 3,192
Credit card revenues, net	75	57
Earnings (loss) before interest and income taxes	151	106
Interest expense, net	(48)	(31)
Earnings (loss) before income taxes	103	75
Retail [Member]
Segment Reporting Information [Line Items]
Net sales	3,308	3,258
Credit card revenues, net	0	0
Earnings (loss) before interest and income taxes	212	189
Interest expense, net	0	0
Earnings (loss) before income taxes	212	189
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Net sales	(29)	(66)
Credit card revenues, net	0	0
Earnings (loss) before interest and income taxes	(97)	(99)
Interest expense, net	(48)	(31)
Earnings (loss) before income taxes	(145)	(130)
Retail Business [Member]
Segment Reporting Information [Line Items]
Net sales	3,279	3,192
Credit card revenues, net	0	0
Earnings (loss) before interest and income taxes	115	90
Interest expense, net	(48)	(31)
Earnings (loss) before income taxes	67	59
Credit [Member]
Segment Reporting Information [Line Items]
Net sales	0	0
Credit card revenues, net	75	57
Earnings (loss) before interest and income taxes	36	16
Interest expense, net	0	0
Earnings (loss) before income taxes	$ 36	$ 16

Segment Reporting (Summary Of N

Segment Reporting (Summary Of Net Sales Within Reportable Segments) (Details) - USD ($) $ in Millions		3 Months Ended
		Apr. 29, 2017	Apr. 30, 2016
Segment Reporting Information [Line Items]
Net sales		$ 3,279	$ 3,192
Nordstrom full-line stores - U.S. [Member]
Segment Reporting Information [Line Items]
Net sales		1,482	1,582
Nordstrom.com [Member]
Segment Reporting Information [Line Items]
Net sales		548	495
Nordstrom [Member]
Segment Reporting Information [Line Items]
Net sales		2,030	2,077
Nordstrom Rack [Member]
Segment Reporting Information [Line Items]
Net sales		954	894
Nordstromrack.com/HauteLook [Member]
Segment Reporting Information [Line Items]
Net sales		198	166
Off-price [Member]
Segment Reporting Information [Line Items]
Net sales		1,152	1,060
Other retail [Member]
Segment Reporting Information [Line Items]
Net sales	[1]	126	121
Retail segment [Member]
Segment Reporting Information [Line Items]
Net sales		3,308	3,258
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Net sales		$ (29)	$ (66)
[1]	Other retail includes Nordstrom Canada full-line stores, Trunk Club and Jeffrey boutiques (see Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations).