Document And Entity Information - USD ($) $ in Billions	12 Months Ended
Document And Entity Information - USD ($) $ in Billions	Feb. 03, 2018	Mar. 12, 2018	Jul. 29, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Nordstrom Inc.
Entity Central Index Key	0000072333
Document Type	10-K
Document Period End Date	Feb. 03, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--02-03
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		167,790,511
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 6.4

Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Income Statement [Abstract]
Net sales	$ 15,137	$ 14,498	$ 14,095
Credit card revenues, net	341	259	342
Total revenues	15,478	14,757	14,437
Cost of sales and related buying and occupancy costs	(9,890)	(9,440)	(9,168)
Selling, general and administrative expenses	(4,662)	(4,315)	(4,168)
Goodwill impairment	0	(197)	0
Earnings before interest and income taxes	926	805	1,101
Interest expense, net	(136)	(121)	(125)
Earnings before income taxes	790	684	976
Income tax expense	(353)	(330)	(376)
Net earnings	$ 437	$ 354	$ 600
Earnings per share:
Basic (in dollars per share)	$ 2.62	$ 2.05	$ 3.22
Diluted (in dollars per share)	$ 2.59	$ 2.02	$ 3.15
Weighted-average shares outstanding:
Basic (in shares)	166.8	173.2	186.3
Diluted (in shares)	168.9	175.6	190.1

Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Statement of Comprehensive Income [Abstract]
Net earnings	$ 437	$ 354	$ 600
Postretirement plan adjustments, net of tax of $2, ($1) and ($15)	(6)	1	24
Foreign currency translation adjustment	20	14	(18)
Comprehensive net earnings	$ 451	$ 369	$ 606

Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 03, 2018	Jan. 28, 2017
Assets
Cash and cash equivalents	$ 1,181	$ 1,007
Accounts receivable, net	145	199
Merchandise inventories	2,027	1,896
Prepaid expenses and other	150	140
Total current assets	3,503	3,242
Land, property and equipment, net	3,939	3,897
Goodwill	238	238
Other assets	435	481
Total assets	8,115	7,858
Liabilities and Shareholders’ Equity
Accounts payable	1,409	1,340
Accrued salaries, wages and related benefits	578	455
Other current liabilities	1,246	1,223
Current portion of long-term debt	56	11
Total current liabilities	3,289	3,029
Long-term debt, net	2,681	2,763
Deferred property incentives, net	495	521
Other liabilities	673	675
Commitments and contingencies (Note 10)
Shareholders’ equity:
Common stock, no par value: 1,000 shares authorized; 167.0 and 170.0 shares issued and outstanding	2,816	2,707
Accumulated deficit	(1,810)	(1,794)
Accumulated other comprehensive loss	(29)	(43)
Total shareholders’ equity	977	870
Total liabilities and shareholders’ equity	$ 8,115	$ 7,858

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Feb. 03, 2018	Jan. 28, 2017
Shareholders’ equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	1,000.0	1,000.0
Common stock, shares issued	167.0	170.0
Common stock, shares outstanding	167.0	170.0

Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Loss
Balance at Jan. 31, 2015	$ 2,440	$ 2,338	$ 166	$ (64)
Balance (in shares) at Jan. 31, 2015		190.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	600		600
Other comprehensive earnings (loss)	6			6
Dividends \| Recurring Dividend [Member]	(280)		(280)
Dividends \| Special Dividend related to the sale of credit card receivables [Member]	(905)		(905)
Issuance of common stock for Trunk Club acquisition	23	$ 23
Issuance of common stock for Trunk Club acquisition (in shares)		0.3
Issuance of common stock under stock compensation plans	108	$ 108
Issuance of common stock under stock compensation plans (in shares)		2.0
Stock-based compensation	70	$ 70
Stock-based compensation (in shares)		0.2
Repurchase of common stock	$ (1,191)		(1,191)
Repurchase of common stock (in shares)	(19.1)	(19.1)
Balance at Jan. 30, 2016	$ 871	$ 2,539	(1,610)	(58)
Balance (in shares) at Jan. 30, 2016		173.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	354		354
Other comprehensive earnings (loss)	15			15
Dividends \| Recurring Dividend [Member]	(256)
Dividends			(256)
Issuance of common stock under stock compensation plans	83	$ 83
Issuance of common stock under stock compensation plans (in shares)		2.1
Stock-based compensation	85	$ 85
Stock-based compensation (in shares)		0.3
Repurchase of common stock	$ (282)		(282)
Repurchase of common stock (in shares)	(5.9)	(5.9)
Balance at Jan. 28, 2017	$ 870	$ 2,707	(1,794)	(43)
Balance (in shares) at Jan. 28, 2017	170.0	170.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	$ 437		437
Other comprehensive earnings (loss)	14			14
Dividends	(247)		(247)
Issuance of common stock under stock compensation plans	39	$ 39
Issuance of common stock under stock compensation plans (in shares)		1.1
Stock-based compensation	70	$ 70
Stock-based compensation (in shares)		0.5
Repurchase of common stock	$ (206)		(206)
Repurchase of common stock (in shares)	(4.6)	(4.6)
Balance at Feb. 03, 2018	$ 977	$ 2,816	$ (1,810)	$ (29)
Balance (in shares) at Feb. 03, 2018	167.0	167.0

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Operating Activities
Net earnings	$ 437	$ 354	$ 600
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization expenses	666	645	576
Goodwill impairment	0	197	0
Amortization of deferred property incentives and other, net	(82)	(76)	(64)
Deferred income taxes, net	11	(15)	142
Stock-based compensation expense	77	91	70
Bad debt expense	0	0	26
Change in operating assets and liabilities:
Accounts receivable	1	(3)	(56)
Proceeds from sale of credit card receivables originated at Nordstrom	39	0	1,297
Merchandise inventories	(62)	31	(203)
Prepaid expenses and other assets	(21)	100	(126)
Accounts payable	77	16	(2)
Accrued salaries, wages and related benefits	121	38	2
Other current liabilities	48	181	50
Deferred property incentives	64	65	156
Other liabilities	24	34	2
Net cash provided by operating activities	1,400	1,658	2,470
Investing Activities
Capital expenditures	(731)	(846)	(1,082)
Change in credit card receivables originated at third parties	0	0	34
Proceeds from sale of credit card receivables originated at third parties	16	0	890
Other, net	31	55	14
Net cash used in investing activities	(684)	(791)	(144)
Financing Activities
Proceeds from long-term borrowings, net of discounts	635	0	16
Principal payments on long-term borrowings	(661)	(10)	(8)
Defeasance of long-term debt	0	0	(339)
(Decrease) increase in cash book overdrafts	(55)	4	23
Cash dividends paid	(247)	(256)	(1,185)
Payments for repurchase of common stock	(211)	(277)	(1,192)
Proceeds from issuances under stock compensation plans	39	83	94
Tax withholding on share-based awards	(7)	(5)	(4)
Other, net	(35)	6	37
Net cash used in financing activities	(542)	(455)	(2,558)
Net increase (decrease) in cash and cash equivalents	174	412	(232)
Cash and cash equivalents at beginning of year	1,007	595	827
Cash and cash equivalents at end of year	1,181	1,007	595
Cash paid during the year for:
Income taxes, net of refunds	363	112	383
Interest, net of capitalized interest	143	134	136
Non-cash investing and financing activities:
Beneficial interest asset acquired from the sale of credit card receivables	0	0	62
Issuance of common stock for Trunk Club acquisition	$ 0	$ 0	$ 23

Nature Of Operations And Summary Of Significant Accounting Policies

12 Months Ended

Feb. 03, 2018

Accounting Policies [Abstract]

Nature Of Operations And Summary Of Significant Accounting Policies

NOTE 1: NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

Founded in 1901 as a retail shoe business in Seattle, Washington, Nordstrom, Inc. is now a leading fashion retailer that offers customers a well-edited selection of high-quality fashion brands focused on apparel, shoes, cosmetics and accessories for women, men, young adults and children. This breadth of merchandise allows us to serve a wide range of customers who appreciate quality fashion and a superior shopping experience. We offer an extensive selection of high-quality brand-name and private label merchandise through multiple retail channels, including 117 Nordstrom U.S. full-line stores, including Nordstrom Local and Nordstrom.com, six Canada full-line stores, 232 off-price Nordstrom Rack stores, Nordstromrack.com/HauteLook, seven Trunk Club clubhouses and TrunkClub.com, two Jeffrey boutiques and two Last Chance clearance stores. Our stores are located in 40 states throughout the U.S and in three provinces in Canada.

Through our Credit segment, our customers can access a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards in the U.S. and Canada, as well as a Nordstrom-branded private label credit card and a debit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in our loyalty program that provides benefits based on their level of spending. Although the primary purposes of our Credit segment are to foster greater customer loyalty and drive more sales, we also receive credit card revenue through our program agreement with TD Bank, N.A. (“TD”) (see Note 2: Credit Card Receivable Transaction).

Fiscal Year

We operate on a 52/53-week fiscal year ending on the Saturday closest to January 31st. References to 2017 relate to the 53-week fiscal year ended February 3, 2018. References to any other years included within this document are based on a 52-week fiscal year.

Principles of Consolidation

The Consolidated Financial Statements include the balances of Nordstrom, Inc. and its subsidiaries. All intercompany transactions and balances are eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. 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 during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from these estimates and assumptions. Our most significant accounting judgments and estimates include revenue recognition, inventory, long-lived assets, goodwill, stock-based compensation and income taxes.

Net Sales

We recognize sales revenue net of estimated returns and excluding sales taxes. Revenue from sales to customers shipped directly from our stores and fulfillment centers, which includes shipping revenue when applicable, is recognized upon estimated receipt by the customer. We estimate customer merchandise returns based on historical return patterns and reduce sales and cost of sales accordingly. Activity in the allowance for sales returns, net, for the past three fiscal years is as follows:



Fiscal year	2017			2016			2015
Allowance at beginning of year		$187			$170			$160
Charged to costs and expenses	3,307			3,023			2,720
Deductions¹	(3,310		)	(3,006		)	(2,710		)
Allowance at end of year		$184			$187			$170

¹Deductions consist of actual returns, net of the value of the merchandise returned and any sales commission.

Credit Card Revenues, net

In October 2015, we completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD. In November 2017, we sold the remaining balances which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards to TD (see Note 2: Credit Card Receivable Transaction). Credit program revenues, net include our portion of the ongoing credit card revenue, net of credit losses, from both sold and newly generated credit card receivables pursuant to our program agreement with TD. Asset amortization and deferred revenue recognition associated with the assets and liabilities recorded as part of the transaction are also recorded in credit program revenues, net.

Cost of Sales

Cost of sales includes the purchase cost of inventory sold (net of vendor allowances), in-bound freight and certain costs of our loyalty program benefits.

Loyalty Program

In 2016, our Nordstrom Rewards loyalty program, which allows customers to accumulate points based on their level of spending, was expanded to enable any customer interested in participating to earn benefits regardless of how they choose to pay. Prior to 2016, our loyalty program was only offered to Nordstrom cardholders. Upon reaching certain point thresholds, customers receive Nordstrom Notes (“Notes”), which can be redeemed for goods or services offered at Nordstrom full-line stores, Nordstrom.com, Nordstrom Rack and Nordstromrack.com/HauteLook. Nordstrom cardholders can also earn rewards at Trunk Club. Customers who participate in our loyalty program through our credit and debit cards receive additional benefits including reimbursements for alterations, Personal Triple Points days, shopping and fashion events and early access to the Anniversary Sale. Nordstrom Rewards loyalty program liabilities of $69 and $62 were included in other current liabilities at the end of 2017 and 2016.

We estimate the net cost of Notes that will be issued and redeemed and record this cost as rewards points are accumulated. These costs, as well as reimbursed alterations, are recorded in cost of sales as we provide customers with products and services for these rewards. Other benefits of our Nordstrom Rewards loyalty program, including shopping and fashion events, are recorded in selling, general and administrative expenses. Total costs related to the Nordstrom Rewards loyalty program were $175, $162 and $164 in 2017, 2016 and 2015.

Buying and Occupancy Costs

Buying costs consist primarily of compensation and other costs incurred by our merchandising and product development groups. Occupancy costs include rent, depreciation, property taxes and facility operating costs of our retail, corporate center, fulfillment facilities and distribution operations.

Rent

We recognize minimum rent expense, net of developer reimbursements, on a straight-line basis over the minimum lease term from the time that we control the leased property. For scheduled rent escalation clauses during the lease terms, we record minimum rent expense on a straight-line basis over the terms of the leases, with the adjustments accrued as current and noncurrent deferred rent and included in other current liabilities and other liabilities on our Consolidated Balance Sheet for the year ended February 3, 2018. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable.

We receive incentives from developers to construct stores in certain developments. At the end of 2017 and 2016, liabilities of $485 and $507 were recorded within deferred property incentives, net on the Consolidated Balance Sheets and were recognized as a reduction of rent expense on a straight-line basis over the lease terms.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of compensation and benefit costs, marketing, supply chain, technology and, prior to our credit card receivable transactions in October 2015 and November 2017, bad debt expense related to our credit card operations.

Advertising

Advertising production costs for internet, magazines, store events and other media are expensed the first time the advertisement is run. Online marketing costs are expensed when incurred. Total advertising expenses, net of vendor allowances, of $261, $241 and $227 in 2017, 2016 and 2015 were included in selling, general and administrative expenses.

Vendor Allowances

We receive allowances from merchandise vendors for cosmetic expenses, purchase price adjustments, cooperative advertising programs and various other expenses. Allowances for cosmetic expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Purchase price adjustments are recorded as a reduction of cost of sales at the point they have been earned and the related merchandise has been marked down or sold. Allowances for cooperative advertising programs and other expenses are recorded in selling, general and administrative expenses as a reduction of the related costs when incurred. Any allowances in excess of actual costs incurred that are included in selling, general and administrative expenses are recorded as a reduction of cost of sales. Vendor allowances earned are as follows:



Fiscal year	2017		2016		2015
Cosmetic expenses		$159		$166		$161
Purchase price adjustments	184		179		178
Cooperative advertising	107		114		109
Other	7		6		7
Total vendor allowances		$457		$465		$455

Shipping and Handling Costs

Our shipping and handling costs include payments to third-party shippers and costs to hold, move and prepare merchandise for shipment. These costs do not include in-bound freight to our distribution centers, which we include in the cost of our inventory. Shipping and handling costs of $523, $453 and $428 in 2017, 2016 and 2015 were included in selling, general and administrative expenses.

Stock-Based Compensation

We grant stock-based awards under our 2010 Equity Incentive Plan (“2010 Plan”), 2002 Nonemployee Director Stock Incentive Plan (“2002 Plan”) and Trunk Club Value Creation Plan (“VCP”), and employees may purchase our stock at a discount under our Employee Stock Purchase Plan (“ESPP”). We predominantly recognize stock-based compensation expense related to stock-based awards at their estimated grant date fair value, recorded on a straight-line basis over the requisite service period. Compensation expense for certain award holders is accelerated based upon age and years of service. The total compensation expense is reduced by actual forfeitures as they occur over the vesting period of the awards.

We estimate the grant date fair value of stock options using the Binomial Lattice option valuation model. Stock-based compensation expense related to the VCP is based on the grant date fair value of the payout scenario we believe is probable using the Black-Scholes valuation model and is recognized on an accelerated basis due to performance criteria and graded vesting features of the plan. The fair value of restricted stock is determined based on the number of shares granted and the quoted price of our common stock on the date of grant, less the estimated present value of dividends over the vesting period. Performance share units granted prior to 2016 are classified as liabilities and revalued using the quoted price of our common stock as of each reporting date. Performance share units granted in 2016 and beyond are classified as equity and the fair value is determined using the Monte-Carlo valuation model.

New Store Opening Costs

Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and occupancy costs, are charged to expense as incurred. These costs are included in both buying and occupancy costs and selling, general and administrative expenses according to their nature as disclosed above.

Gift Cards

We recognize revenue from the sale of gift cards when the gift card is redeemed by the customer, or we recognize breakage income when the likelihood of redemption, based on historical experience, is deemed to be remote. Based on an analysis of our program since its inception in 1999, we determined that balances remaining on cards issued beyond five years are unlikely to be redeemed and therefore are recognized as income. Breakage income was $16, $12 and $11 in 2017, 2016 and 2015. To date, our breakage rate is approximately 2% of the amount initially issued as gift cards. Gift card breakage income is included in selling, general and administrative expenses. We had outstanding gift card liabilities of $425 and $389 at the end of 2017 and 2016, which are included in other current liabilities.

Income Taxes

We use the asset and liability method of accounting for income taxes. Using this method, deferred tax assets and liabilities are recorded based on differences between the financial reporting and tax basis of assets and liabilities and for operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, it is determined that some portion of the tax benefit will not be realized.

We regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal, state and foreign filings by considering all relevant facts, circumstances and information available. If we believe it is more likely than not that our position will be sustained, we recognize a benefit at the largest amount that we believe is cumulatively greater than 50% likely to be realized. Interest and penalties related to income tax matters are classified as a component of income tax expense.

Income taxes require significant management judgment regarding applicable statutes and their related interpretation, the status of various income tax audits and our particular facts and circumstances. Also, as audits are completed or statutes of limitations lapse, it may be necessary to record adjustments to our taxes payable, deferred taxes, tax reserves or income tax expense.

In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Among numerous other provisions, the Tax Act significantly revises the U.S. federal corporate income tax by reducing the statutory rate from 35% to 21%. Net earnings included $42 related to the Tax Act, which includes a provisional one-time, non-cash charge of $51 related to the revaluation of our net deferred tax assets for the change in statutory tax rate and for the impacts associated with the future limitations on executive compensation, partially offset by cash tax savings from a lower federal tax rate. As we complete our analysis of the Tax Act and interpret any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service (“IRS”) and other standard-setting bodies, we may make adjustments to the provisional amounts, which may materially impact our provision for income taxes in the period in which the adjustments are recorded (see Note 13: Income Taxes).

Comprehensive Net Earnings

Comprehensive net earnings consist of net earnings and other gains and losses affecting equity that are excluded from net earnings. These consist of postretirement plan adjustments, net of related income tax effects and foreign currency translation adjustments.

Cash Equivalents

Cash equivalents are short-term investments with a maturity of three months or less from the date of purchase and are carried at cost, which approximates fair value. At the end of 2017 and 2016, checks not yet presented for payment drawn in excess of our bank deposit balances were $101 and $156 and included within accounts payable on our Consolidated Balance Sheets.

Accounts Receivable

Accounts receivable, net includes receivables from non-Nordstrom-branded credit and debit cards and, prior to our credit card receivable sale transaction in November 2017, employee credit card receivables.

Merchandise Inventories

Merchandise inventories are generally stated at the lower of cost or market value using the retail inventory method. Under the retail method, the valuation of inventories is determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of our inventory on the balance sheet is then reduced by a charge to cost of sales for retail inventory markdowns taken on the selling floor. To determine if the retail value of our inventory should be marked down, we consider current and anticipated demand, customer preferences, age of the merchandise and fashion trends. We reserve for obsolescence based on historical trends and specific identification.

Physical inventories are taken and inventory records are adjusted accordingly. We evaluate and determine our shrinkage rate using the most recent physical inventory and historical results as the basis for the shrinkage reserve following each physical inventory cycle and reporting date. The shrinkage reserve is based on a percentage of sales.

Land, Property and Equipment

Land is recorded at historical cost, while property and equipment are recorded at cost less accumulated depreciation and amortization. Capitalized software includes the costs of developing or obtaining internal-use software, including external direct costs of materials and services and internal payroll costs related to the software project.

We capitalize interest on construction in progress and software projects during the period in which expenditures have been made, activities are in progress to prepare the asset for its intended use and actual interest costs are being incurred.

Depreciation and amortization are computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows:



Asset	Life (in years)
Buildings and improvements	5 – 40
Store fixtures and equipment	3 – 15
Leasehold improvements	5 – 40
Capitalized software	3 – 7

Leasehold improvements and leased property and equipment that are purchased at the inception of the lease, or during the lease term, are amortized over the shorter of the lease term or the asset life. Lease terms include the fixed, non-cancellable term of a lease, plus any renewal periods determined to be reasonably assured.

We receive contributions from vendors for the construction of certain fixtures in our stores. These contributions offset the related capital expenditures.

Goodwill

Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired and is not subject to amortization. We review our goodwill annually for impairment or when circumstances indicate that the carrying value may exceed the fair value. We perform this evaluation at the reporting unit level, comprised of the principal business units within our Retail segment, through the application of a two-step fair value test. The first step compares the carrying value of the reporting unit to its estimated fair value, which is based on the expected present value of future cash flows (income approach), comparable public companies and acquisitions (market approach) or a combination of both. If fair value is lower than the carrying value, then a second step is performed to quantify the amount of the impairment. The following summarizes our goodwill activity for the past three fiscal years:



	Trunk Club			HauteLook		Other¹		Total
Balance at January 31, 2015		$261			$121		$53		$435
Additions	—			—		—		—
Balance at January 30, 2016	261			121		53		435
Impairment	(197		)	—		—		(197		)
Balance at January 28, 2017	64			121		53		238
Additions	—			—		—		—
Balance at February 3, 2018		$64			$121		$53		$238

¹ Other includes Nordstrom.com and Jeffrey goodwill.

The goodwill impairment charge of $197 for the year ended January 28, 2017 related to Trunk Club resulted from changes to the long-term operating plan that reflected lower expectations for growth and profitability than previous expectations (see Note 8: Fair Value Measurements).

Long-Lived Assets

When facts and circumstances indicate that the carrying values of long-lived assets, including buildings, equipment and amortizable intangible assets, may be impaired, we perform an evaluation of recoverability by comparing the carrying values of the net assets to their related projected undiscounted future cash flows, in addition to other quantitative and qualitative analyses.

Land, property and equipment are grouped at the lowest level at which there are identifiable cash flows when assessing impairment. Cash flows for our retail store assets are identified at the individual store level, while our intangible assets associated with HauteLook and Trunk Club are identified at their respective reporting unit levels. The assets recorded in connection with the credit card receivable transaction are individually evaluated against the anticipated cash flows under the program agreement (see Note 2: Credit Card Receivable Transaction).

We did not record any material impairment losses for long-lived tangible or amortizable intangible assets in 2017 or 2016. In 2015, our cash flow analyses resulted in retail store impairment charges of $24 and other various impairment losses of $23. The 2015 retail store impairment of $24 related to our full-line store in Puerto Rico and was primarily driven by a challenging retail market in this territory.

Amortization expense for acquired intangibles was $11, $14 and $16 in 2017, 2016 and 2015. Future amortization expense of acquired intangible assets as of February 3, 2018, are expected to be $7 in 2018 and $7 in 2019.

Self-Insurance

We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and other liability claims. Liabilities associated with these losses include undiscounted estimates of both losses reported and losses incurred but not yet reported. We estimate our ultimate cost using an actuarially-based analysis of claims experience, regulatory changes and other relevant factors.

Foreign Currency

We have six full-line stores in Canada and have announced plans to open the first six Nordstrom Rack stores in Canada in 2018. The functional currency of our Canadian operation is the Canadian Dollar. We translate assets and liabilities into U.S. Dollars using the exchange rate in effect at the balance sheet date, while we translate revenues and expenses using a weighted-average exchange rate for the period. We record these translation adjustments as a component of accumulated other comprehensive loss on the Consolidated Balance Sheets.

In addition, our U.S. operation incurs certain expenditures denominated in Canadian Dollars and our Canadian operation incurs certain expenditures denominated in U.S. Dollars. This activity results in transaction gains and losses that arise from exchange rate fluctuations, which are recorded as gains or losses in the Consolidated Statements of Earnings. As of February 3, 2018, activities associated with foreign currency exchange risk have not had a material impact on our Consolidated Financial Statements.

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. We plan to adopt this ASU in the first quarter of 2018 using the modified retrospective adoption method. In our ongoing evaluation of this ASU, we have determined that the new standard will result in a net cumulative effect adjustment to decrease beginning accumulated deficit by approximately $55, as well as the following impacts:


•	Gift card breakage will be recorded in sales, rather than selling, general, and administrative expenses. It will be estimated based on expected customer redemption periods, rather than when redemption is considered remote.


•	Loyalty sales attributable to our Nordstrom Rewards loyalty program benefits (for example, Notes, alterations) will be deferred rather than recording the loyalty program expenses as an increase to cost of sales.


•	Remaining unamortized balances of deferred revenue and investment in contract asset related to the sale of our receivables to TD will be written off as a cumulative-effect adjustment reducing accumulated deficit.


•	Revenue related to our online sales will be recognized at the shipping point rather than upon receipt by the customer.


•	Estimated costs of returns will be recorded as a current asset rather than netted with our sales return reserve.

We do not expect the provisions of this ASU to have a material impact on our Consolidated Financial Statements beyond our initial adoption.

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 right-of-use 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. Additional qualitative and quantitative disclosures will be required to give financial statement users information on the amount, timing and judgments related to a reporting entity’s cash flows arising from leases. This ASU is effective for Nordstrom beginning in the first quarter of 2019. We are currently evaluating the impact of the standard, which will require recognizing and measuring leases at the beginning of the earliest period presented using a modified retrospective approach. We expect adoption of this standard 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 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 Consolidated Financial Statements for the year ended February 3, 2018. 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 $5 for 2016 and $15 for 2015. 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 $5 for 2016 and $4 for 2015 to net cash provided by operating activities with an offsetting increase to net cash used in financing activities on the Consolidated Statement of Cash Flows for 2016 and 2015.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Under this new guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact this guidance would have on our Consolidated Financial Statements.

In December 2017, the Securities and Exchange Commission (“SEC”) released Staff Accounting Bulletin No. 118 (the “Bulletin”), which provides accounting guidance regarding accounting for income taxes for the reporting period that includes the enactment of the Tax Act. The Bulletin provides guidance in those situations where the accounting for certain income tax effects of the Tax Act will be incomplete by the time financial statements are issued for the reporting period that includes the enactment date. For those elements of the Tax Act that cannot be reasonably estimated, no effect will be recorded.

The SEC has provided in the Bulletin that in situations where the accounting is incomplete for certain effects of the Tax Act, a measurement period which begins in the reporting period that includes the enactment of the Tax Act and ends when the entity has obtained, prepared and analyzed the information is needed in order to complete the accounting requirements. The measurement period shall not exceed one year from enactment. In accordance with SAB 118, we have recorded provisional tax expense associated with the impacts of the Tax Act (see Note 13: Income Taxes for additional information).

In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This new guidance will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The ASU is effective for us beginning in the first quarter of 2019, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our Consolidated Financial Statements.

Credit Card Receivable Transaction	12 Months Ended
Credit Card Receivable Transaction	Feb. 03, 2018
Credit Card Receivable Transaction [Abstract]
Credit Card Receivable Transaction	NOTE 2: CREDIT CARD RECEIVABLE TRANSACTION In October 2015, we completed the sale of a substantial majority of our U.S. Visa and private label credit card portfolio to TD. In November 2017, we sold the remaining balances which consisted of employee credit card receivables for the U.S. Visa and Nordstrom private label credit cards to TD for an amount equal to the gross value of the outstanding receivables. Additionally, we entered into an amended long-term program agreement under which TD is the exclusive issuer of our U.S. consumer credit cards and we perform account servicing functions. In connection with the close of the credit card receivable transaction in October 2015, we defeased $325 in secured Series 2011-1 Class A Notes in order to provide the credit card receivables to TD free and clear. At close, we received $2.2 billion in cash consideration reflecting the par value of the receivables sold, and incurred $32 in transaction-related expenses during the third quarter of 2015. Pursuant to the agreement, we are obligated to offer and administer our Nordstrom Rewards loyalty program and perform other account servicing functions. In return, we receive a portion of the ongoing credit card revenue, net of credit losses, from both the sold and newly generated credit card receivables. At close of the November 2017 transaction, we received $55 in cash consideration reflecting the par value of the employee receivables sold. In October 2015, we recorded certain assets and liabilities associated with the arrangement. The beneficial interest asset is amortized over approximately four years based primarily on the payment rate of the associated receivables. The deferred revenue and investment in contract asset are recognized/amortized over seven years on a straight-line basis, following the delivery of the contract obligations and expected life of the agreement. We record each of these items in credit card revenue, net in our Consolidated Statements of Earnings. Cash Flows Presentation Nordstrom private label credit and debit cards can be used at a majority of our U.S. retail businesses, while Nordstrom Visa credit cards also may be used for purchases outside of Nordstrom. Prior to the completion of the credit card receivable transactions in October 2015 and November 2017, cash flows from the use of both the private label and Nordstrom Visa credit cards for sales originating at our stores and our digital channels were treated as an operating activity within the Consolidated Statements of Cash Flows, as they related to sales at Nordstrom. Additionally, cash flows arising from the use of Nordstrom Visa credit cards outside of our stores were treated as an investing activity within the Consolidated Statements of Cash Flows, as they represented loans made to our customers for purchases at third parties.

Land, Property And Equipment

12 Months Ended

Feb. 03, 2018

Property, Plant and Equipment [Abstract]

Land, Property And Equipment

NOTE 3: LAND, PROPERTY AND EQUIPMENT

Land, property and equipment consist of the following:



	February 3, 2018			January 28, 2017
Land and land improvements		$111			$107
Buildings and building improvements	1,246			1,198
Leasehold improvements	3,099			2,938
Store fixtures and equipment	3,724			3,513
Capitalized software	1,280			1,183
Construction in progress	584			554
Land, property and equipment	10,044			9,493
Less: accumulated depreciation and amortization	(6,105		)	(5,596		)
Land, property and equipment, net		$3,939			$3,897

The total cost of property and equipment held under capital lease obligations was $26 at the end of 2017 and 2016, with related accumulated amortization of $25 in 2017 and 2016. Depreciation and amortization expense was $655, $631 and $560 in 2017, 2016 and 2015.

Postretirement Benefits

12 Months Ended

Feb. 03, 2018

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Postretirement Benefits

NOTE 6: POSTRETIREMENT BENEFITS

We have an unfunded defined benefit Supplemental Executive Retirement Plan (“SERP”), which provides retirement benefits to certain officers and select employees. The SERP has different benefit levels depending on the participant’s role in the Company. At the end of 2017, we had 57 participants in the plan, including 16 officers and select employees eligible for SERP benefits, 40 retirees and one beneficiary. This plan is non-qualified and does not have a minimum funding requirement.

Benefit Obligations and Funded Status

Our benefit obligation and funded status is as follows:



	February 3, 2018			January 28, 2017
Change in benefit obligation:
Benefit obligation at beginning of year		$188			$181
Participant service cost	3			3
Interest cost	7			7
Benefits paid	(8		)	(7		)
Actuarial gain	10			4
Benefit obligation at end of year	200			188
Change in plan assets:
Fair value of plan assets at beginning of year	—			—
Employer contribution	8			7
Benefits paid	(8		)	(7		)
Fair value of plan assets at end of year	—			—
Underfunded status at end of year		($200	)		($188	)

The accumulated benefit obligation, which is the present value of benefits, assuming no future compensation changes, was $197 and $184 at the end of 2017 and 2016.

Amounts recognized as liabilities in the Consolidated Balance Sheets consist of the following:



	February 3, 2018		January 28, 2017
Accrued salaries, wages and related benefits		$9		$8
Other liabilities (noncurrent)	191		180
Net amount recognized		$200		$188

Components of SERP Expense

The components of SERP expense recognized in the Consolidated Statements of Earnings are as follows:



Fiscal year	2017		2016		2015
Participant service cost		$3		$3		$3
Interest cost	7		7		7
Amortization of net loss and other	3		3		11
Total SERP expense		$13		$13		$21

Amounts not yet reflected in SERP expense and included in accumulated other comprehensive loss (pre-tax) consist of the following:



	February 3, 2018			January 28, 2017
Accumulated loss		($46	)		($41	)
Prior service credit	2			4
Total accumulated other comprehensive loss		($44	)		($37	)

In 2018, we expect $4 of costs currently in accumulated other comprehensive loss to be recognized as components of SERP expense.

Assumptions

Weighted-average assumptions used to determine our benefit obligation and SERP expense are as follows:



Fiscal year	2017		2016		2015
Assumptions used to determine benefit obligation:
Discount rate	3.95	%	4.31	%	4.55	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%
Assumptions used to determine SERP expense:
Discount rate	4.31	%	4.55	%	3.70	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%

Future Benefit Payments and Contributions

As of February 3, 2018, the expected future benefit payments based upon the assumptions described above and including benefits attributable to estimated future employee service are as follows:



Fiscal year
2018		$9
2019	10
2020	11
2021	11
2022	11
2023 – 2027	61

Debt And Credit Facilities

12 Months Ended

Feb. 03, 2018

Debt Disclosure [Abstract]

Debt And Credit Facilities

NOTE 7: DEBT AND CREDIT FACILITIES

Debt

A summary of our long-term debt, including capital leases, is as follows:



	February 3, 2018			January 28, 2017
Secured
Mortgage payable, 7.68%, due April 2020		$17			$24
Other	1			3
Total secured debt	18			27
Unsecured
Net of unamortized discount:
Senior notes, 6.25%, due January 2018	—			650
Senior notes, 4.75%, due May 2020	500			499
Senior notes, 4.00%, due October 2021	500			500
Senior notes, 4.00%, due March 2027	349			—
Senior debentures, 6.95%, due March 2028	300			300
Senior notes, 7.00%, due January 2038	146			146
Senior notes, 5.00%, due January 2044	892			602
Other¹	32			50
Total unsecured debt	2,719			2,747

Total long-term debt	2,737			2,774
Less: current portion	(56		)	(11		)
Total due beyond one year		$2,681			$2,763

¹Other unsecured debt includes our Puerto Rico unsecured borrowing facility partially offset by deferred bond issue costs.

Our mortgage payable is secured by an office building that had a net book value of $56 at the end of 2017.

Required principal payments on long-term debt, excluding capital lease obligations, are as follows:



Fiscal year
2018		$56
2019	8
2020	502
2021	500
2022	—
Thereafter	1,764

During 2017, 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. 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 the expected coupon payments had the notes been outstanding through the original maturity date.

Interest Expense

The components of interest expense, net are as follows:



Fiscal year	2017			2016			2015
Interest on long-term debt and short-term borrowings		$168			$147			$153
Less:
Interest income	(5		)	(1		)	—
Capitalized interest	(27		)	(25		)	(28		)
Interest expense, net		$136			$121			$125

Credit Facilities

As of February 3, 2018, 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.

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 February 3, 2018 and January 28, 2017, 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 February 3, 2018 and January 28, 2017, 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 Fall 2018 and borrowings on this facility incur interest based upon the LIBOR plus 1.275% per annum and also incurred a fee based on any unused commitment. As of February 3, 2018 and January 28, 2017, we had $48 and $50 outstanding on this facility, which is included as a component in other unsecured debt and the current portion of debt.

Fair Value Measurements

12 Months Ended

Feb. 03, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 8: FAIR VALUE MEASUREMENTS

We disclose our financial assets and liabilities that are measured at fair value in our 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 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:



	February 3, 2018		January 28, 2017
Carrying value of long-term debt		$2,737		$2,774
Fair value of long-term debt	2,827		2,949

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 fiscal year 2017.

In the third quarter of 2016, the long-term operating plan for Trunk Club was updated to reflect current expectations for future growth and profitability, which were lower than previous expectations. Due to lowered expectations, we tested Trunk Club goodwill for impairment one quarter prior to the annual evaluation. Step 1 test results indicated that the estimated fair value of the reporting unit was less than the carrying value.

In our Step 2 analysis, we used a combination of the expected present value of future cash flows (income approach) and comparable public companies (market approach) to determine the fair value of the reporting unit. These approaches use primarily unobservable inputs, including discount, sales growth and profit margin rates, which are considered Level 3 fair value measurements. The fair value analysis took into account recent and expected operating performance as well as the overall decline in the retail industry. Within our Retail Segment, we recognized a goodwill impairment charge of $197 in 2016, reducing Trunk Club goodwill to $64 as of January 28, 2017, from $261 as of January 30, 2016.

In 2015, we recorded asset impairment charges of $59, which are included in our Retail Business selling, general and administrative expenses. For additional information related to goodwill, intangible assets, long-lived assets and impairments, see Note 1: Nature of Operations and Summary of Significant Accounting Policies.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases

12 Months Ended

Feb. 03, 2018

Leases [Abstract]

Leases

NOTE 9: LEASES

We lease the land or the land and buildings at many of our stores. Additionally, we lease office facilities, warehouses and equipment. Most of these leases are classified as operating leases and they expire at various dates through 2080. The majority of our fixed, non-cancellable lease terms are 15 to 30 years for Nordstrom full-line stores and 10 to 15 years for Nordstrom Rack stores. Many of our leases include options that allow us to extend the lease term beyond the initial commitment period, subject to terms agreed to at lease inception. Most of our leases also provide for payment of operating expenses, such as common area charges, real estate taxes and other executory costs, and some leases require additional payments based on sales, referred to as “percentage rent.”

Future minimum lease payments as of February 3, 2018 are as follows:



Fiscal year	Operating leases
2018		$309
2019	312
2020	293
2021	269
2022	247
Thereafter	1,310
Total minimum lease payments		$2,740

Rent expense for 2017, 2016 and 2015 was as follows:



Fiscal year	2017			2016			2015
Minimum rent:
Store locations		$274			$230			$204
Offices, warehouses and equipment	44			40			41
Percentage rent	11			12			13
Property incentives	(79		)	(80		)	(82		)
Total rent expense		$250			$202			$176

The rent expense above does not include common area charges, real estate taxes and other executory costs, which were $121 in 2017, $112 in 2016 and $97 in 2015.

Commitments And Contingencies	12 Months Ended
Commitments And Contingencies	Feb. 03, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	NOTE 10: COMMITMENTS AND CONTINGENCIES Our estimated total purchase obligations, capital expenditure contractual commitments and inventory purchase orders were $1,462 as of February 3, 2018. In connection with the purchase of foreign merchandise, we have no outstanding trade letters of credit as of February 3, 2018. Plans for our Nordstrom NYC 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 February 3, 2018, we had approximately $289 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. 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

12 Months Ended

Feb. 03, 2018

Stockholders' Equity Note [Abstract]

Shareholders' Equity

NOTE 11: SHAREHOLDERS’ EQUITY

The following is a summary of the activity related to our share repurchase programs in 2015, 2016 and 2017:



	Shares	Average price per share		Amount
Capacity at January 31, 2015					$1,075
October 2015 authorization (ended March 1, 2017)				1,000
Shares repurchased	19.1		$63	(1,191		)
Expiration of unused capacity in March 2015¹				(73		)
Capacity at January 30, 2016				811
Shares repurchased	5.9		$48	(282		)
Capacity at January 28, 2017				529
February 2017 authorization (ending August 31, 2018)				500
Shares repurchased	4.6		$45	(206		)
Expiration of unused October 2015 authorization capacity in March 2017				(409		)
Capacity at February 3, 2018					$414

¹Expiration relates to the February 2013 program.

The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to market and economic conditions and applicable SEC rules.

We paid dividends of $1.48 per share in 2017 and 2016 and $6.33 per share in 2015. Dividends paid in 2015 included a special cash dividend of $905, or $4.85 per share of outstanding common stock, in addition to our quarterly dividends totaling $1.48 per share. The special dividend was authorized by our Board of Directors on October 1, 2015, and was paid using proceeds from the sale of our credit card receivables (see Note 2: Credit Card Receivable Transaction).

In February 2018, subsequent to year end, we declared a quarterly dividend of $0.37 per share, which will be paid on March 20, 2018.

Stock-Based Compensation

12 Months Ended

Feb. 03, 2018

Share-based Compensation [Abstract]

Stock-Based Compensation

NOTE 12: STOCK-BASED COMPENSATION

We currently grant stock-based awards under our 2010 Plan, 2002 Plan and Trunk Club VCP, and employees may purchase our stock at a discount under our employee stock purchase plan (“ESPP”).

In 2010, our shareholders approved the adoption of the 2010 Plan, which replaced the 2004 Equity Incentive Plan (“2004 Plan”). The 2010 Plan authorizes the grant of stock options, restricted stock, performance share units, stock appreciation rights and unrestricted shares of common stock to employees. On May 16, 2017, our shareholders approved an amendment to the 2010 Equity Incentive Plan. The amendment increases common stock available for issuance by 6.2. The aggregate number of shares to be issued under the 2010 Plan may not exceed 30.4 plus any shares currently outstanding under the 2004 Plan that are forfeited or expire during the term of the 2010 Plan. No future grants will be made under the 2004 Plan. As of February 3, 2018, we have 77.5 shares authorized, 52.8 shares issued and outstanding and 8.7 shares remaining available for future grants under the 2010 Plan.

The 2002 Plan authorizes the grant of stock awards to our nonemployee directors. These awards may be deferred or issued in the form of restricted or unrestricted stock, non-qualified stock options or stock appreciation rights. As of February 3, 2018, we had 0.9 shares authorized and 0.4 shares available for issuance under this plan. In 2017, total expense on deferred shares was less than $1.

The Trunk Club VCP is a performance-based plan that provides for three payout scenarios based on the results of Trunk Club’s business meeting minimum or exceeding maximum 2018 sales and earnings metrics. As of February 3, 2018, we granted 0.6 of the 1.0 units available for grant. There is no unrecognized stock-based compensation expense related to nonvested VCP units as no payout is expected. If at any time it becomes probable that another outcome will be achieved, compensation expense will be cumulatively adjusted based on the grant date fair value associated with that payout scenario.

Under the ESPP, employees may make payroll deductions of up to 10% of their base and bonus compensation for the purchase of Nordstrom common stock. At the end of each six-month offering period, participants apply their accumulated payroll deductions toward the purchase of shares of our common stock at 90% of the fair market value on the last day of the offer period. As of February 3, 2018, we had 12.6 shares authorized and 2.2 shares available for issuance under the ESPP. We issued 0.4 shares under the ESPP during 2017 and 2016. At the end of 2017 and 2016, we had current liabilities of $6 for future purchases of shares under the ESPP.

The following table summarizes our stock-based compensation expense:



Fiscal year	2017			2016			2015
Stock options		$18			$36			$33
Restricted stock units	51			34			18
Acquisition-related stock compensation	1			15			17
Performance share units	2			1			(3		)
Other	5			5			5
Total stock-based compensation expense, before income tax benefit	77			91			70
Income tax benefit	(20		)	(28		)	(21		)
Total stock-based compensation expense, net of income tax benefit		$57			$63			$49

The stock-based compensation expense before income tax benefit was recorded in our Consolidated Statements of Earnings as follows:



Fiscal year	2017		2016		2015
Cost of sales and related buying and occupancy costs		$25		$25		$20
Selling, general and administrative expenses	52		66		50
Total stock-based compensation expense, before income tax benefit		$77		$91		$70

The benefit of tax deductions in excess of the compensation cost recognized for stock-based awards is classified as operating cash inflows and is reflected as excess tax benefit from stock-based compensation in the Consolidated Statements of Cash Flows.

Special Dividend Adjustment

In connection with the closing of our credit card receivable transaction on October 1, 2015, our Board of Directors authorized a special cash dividend of $4.85 per share (see Note 11: Shareholders’ Equity). As required by our equity incentive plan’s non-discretionary anti-dilutive provisions, an adjustment was made to outstanding awards to prevent dilution of their value resulting from the special cash dividend. These adjustments did not result in incremental stock-based compensation expense as the fair value measure of the awards were the same immediately before and after the adjustment. The adjustments to awards included increasing the number of outstanding restricted stock units, stock options and performance shares, as well as reducing the exercise prices of outstanding stock options.

Stock Options

Our Compensation Committee of our Board of Directors approves annual grants of nonqualified stock options to employees. We used the following assumptions to estimate the fair value for stock options at each grant date (excluding options granted in connection with the Trunk Club acquisition):



Fiscal Year		2017			2016			2015
Assumptions
	Risk-free interest rate: Represents the yield on U.S. Treasury zero-coupon securities that mature over the 10-year life of the stock options.	1.0% – 2.5%			0.7% – 1.9%			0.2% – 2.1%
	Weighted-average volatility: Based on a combination of the historical volatility of our common stock and the implied volatility of exchange-traded options for our common stock.	40.1		%	36.8		%	29.4		%
	Weighted-average expected dividend yield: Our forecasted dividend yield for the next 10 years.	2.4		%	2.2		%	1.8		%
	Expected life in years: Represents the estimated period of time until option exercise. The expected term of options granted was derived from the output of the Binomial Lattice option valuation model and was based on our historical exercise behavior, taking into consideration the contractual term of the option and our employees’ expected exercise and post-vesting employment termination behavior.	7.1			6.9			6.7

Grant Date Information
	Date of grant	February 28, 2017			February 29, 2016			February 24, 2015
	Weighted-average fair value per option		$16			$16			$21
	Exercise price per option		$47			$51			$81

Supplemental nonqualified stock options were also granted to certain company leaders on June 7, 2016, at an exercise price per option of $41. The assumptions used to estimate the fair value for the supplemental stock options were similar to the 2016 annual grant assumptions. The weighted-average fair value per option at the grant date was $13. In 2016, we also granted stock options to certain qualified employees outside of the annual and supplemental grant dates, which were insignificant in aggregate. The number of awards granted to an individual are determined based upon a percentage of the recipient’s base salary and the fair value of the stock options. Options typically vest over four years, and expire 10 years after the date of grant.

A summary of stock option activity for 2017, which includes awards issued as part of the Trunk Club acquisition in 2014, is presented below:



Fiscal year	2017
	Shares		Weighted- average exercise price		Weighted-average remaining contractual life (years)		Aggregate intrinsic value
Outstanding, beginning of year	13.5			$48
Granted	0.3		47
Exercised	(0.7	)	30
Forfeited or cancelled	(0.8	)	54
Outstanding, end of year	12.3			$49	5			$52
Exercisable, end of year	9.1			$47	4			$49
Vested or expected to vest, end of year	11.8			$49	5			$52

Fiscal year			2017		2016		2015
Aggregate intrinsic value of options exercised				$13		$30		$62
Fair value of stock options vested				$34		$40		$44

As of February 3, 2018, the total unrecognized stock-based compensation expense related to nonvested stock options was $22, which is expected to be recognized over a weighted-average period of 21 months.

Restricted Stock

Our Compensation Committee of our Board of Directors approves grants of restricted stock units to employees. The number of units granted to an individual are determined based upon a percentage of the recipient’s base salary and the fair value of the restricted stock. Restricted stock units typically vest over four years.

A summary of restricted stock unit activity for 2017 is presented below:



Fiscal year	2017
	Shares		Weighted-average grant date fair value per unit
Outstanding, beginning of year	2.3			$49
Granted	1.9		42
Vested	(0.5	)	56
Forfeited or cancelled	(0.4	)	63
Outstanding, end of year	3.3

Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Feb. 03, 2018	Jan. 28, 2017	Jan. 30, 2016
Dividends (in dollars per share)	$ 1.48	$ 1.48	$ 6.33
Recurring Dividend [Member]
Dividends (in dollars per share)			1.48
Special Dividend related to the sale of credit card receivables [Member]
Dividends (in dollars per share)			$ 4.85

401(k) Plan	12 Months Ended
401(k) Plan	Feb. 03, 2018
Four Zero One K Plan [Abstract]
401(k) Plan	NOTE 5: 401(K) PLAN We provide a 401(k) plan for our employees that allows for employee elective contributions and discretionary Company contributions. Employee elective contributions are funded through voluntary payroll deductions. Our discretionary Company contribution is funded in an amount determined by our Board of Directors each year. Total expenses related to Company contributions of $110, $92 and $62 in 2017, 2016 and 2015 were included in both buying and occupancy costs and selling, general and administrative expenses on our Consolidated Statements of Earnings. The $110 in 2017 included $94 of matching contributions and $16 for a one-time discretionary profit-sharing contribution.