0000072333-21-000185 | 10-Q | XBRL Viewer

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	May 01, 2021	May 28, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 01, 2021
Document Transition Report	false
Entity File Number	001-15059
Entity Registrant Name	NORDSTROM, INC.
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-0515058
Entity Address, Address Line One	1617 Sixth Avenue
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	628-2111
Title of 12(b) Security	Common stock, without par value
Trading Symbol	JWN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		158,898,676
Entity Central Index Key	0000072333
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--01-29

Condensed Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Income Statement [Abstract]
Net sales	$ 2,921	$ 2,026
Credit card revenues, net	88	93
Total revenues	3,009	2,119
Cost of sales and related buying and occupancy costs	(2,019)	(1,810)
Selling, general and administrative expenses	(1,075)	(1,122)
Loss before interest and income taxes	(85)	(813)
Interest expense, net	(137)	(34)
Loss before income taxes	(222)	(847)
Income tax benefit	56	326
Net loss	$ (166)	$ (521)
Loss per share:
Basic (in dollars per share)	$ (1.05)	$ (3.33)
Diluted (in dollars per share)	$ (1.05)	$ (3.33)
Weighted-average shares outstanding:
Basic (in shares)	158.5	156.4
Diluted (in shares)	158.5	156.4

Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net loss	$ (166)	$ (521)
Foreign currency translation adjustment	10	(24)
Post retirement plan adjustments, net of tax	1	2
Comprehensive net loss	$ (155)	$ (543)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Assets
Cash and cash equivalents	$ 377	$ 681	$ 1,355
Accounts receivable, net	238	245	154
Merchandise inventories	1,961	1,863	1,489
Prepaid expenses and other	923	853	669
Total current assets	3,499	3,642	3,667
Land, property and equipment (net of accumulated depreciation of $7,322, $7,159 and $6,683)	3,642	3,732	3,974
Operating lease right-of-use assets	1,560	1,581	1,722
Goodwill	249	249	249
Other assets	383	334	357
Total assets	9,333	9,538	9,969
Liabilities and Shareholders’ Equity
Borrowings under revolving line of credit	200	0	800
Accounts payable	1,676	1,960	1,125
Accrued salaries, wages and related benefits	330	352	280
Current portion of operating lease liabilities	246	260	243
Other current liabilities	1,056	1,048	1,351
Current portion of long-term debt	500	500	0
Total current liabilities	4,008	4,120	3,799
Long-term debt, net	2,847	2,769	3,264
Non-current operating lease liabilities	1,662	1,687	1,836
Other liabilities	650	657	673
Commitments and contingencies (Note 5)
Shareholders’ equity:
Common stock, no par value: 1,000 shares authorized; 158.9, 157.8 and 157.0 shares issued and outstanding	3,221	3,205	3,148
Accumulated deficit	(2,996)	(2,830)	(2,661)
Accumulated other comprehensive loss	(59)	(70)	(90)
Total shareholders’ equity	166	305	397
Total liabilities and shareholders’ equity	$ 9,333	$ 9,538	$ 9,969

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Assets
Accumulated depreciation	$ 7,322	$ 7,159	$ 6,683
Shareholders' equity
Common stock, no par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares authorized	1,000.0	1,000.0	1,000.0
Common stock, shares issued	158.9	157.8	157.0
Common stock, shares outstanding	158.9	157.8	157.0

Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Common stock, balance, beginning of period at Feb. 01, 2020		$ 3,129
Common stock
Issuance of common stock under stock compensation plans		11
Stock-based compensation		8
Common stock, balance, end of period at May. 02, 2020	$ 3,148	3,148
Accumulated deficit, balance, beginning of period at Feb. 01, 2020			$ (2,082)
Accumulated deficit
Net loss	(521)		(521)
Dividends			(58)
Accumulated deficit, balance, end of period at May. 02, 2020	(2,661)		(2,661)
Accumulated other comprehensive loss, balance, beginning of period at Feb. 01, 2020				$ (68)
Accumulated other comprehensive loss
Other comprehensive income (loss)				(22)
Accumulated other comprehensive loss, balance, end of period at May. 02, 2020	(90)			(90)
Total Shareholders’ Equity at May. 02, 2020	$ 397
Accumulated other comprehensive loss
Dividends per share	$ 0.37
Common stock, balance, beginning of period at Jan. 30, 2021	$ 3,205	3,205
Common stock
Issuance of common stock under stock compensation plans		7
Stock-based compensation		9
Common stock, balance, end of period at May. 01, 2021	3,221	$ 3,221
Accumulated deficit, balance, beginning of period at Jan. 30, 2021	(2,830)		(2,830)
Accumulated deficit
Net loss	(166)		(166)
Dividends			0
Accumulated deficit, balance, end of period at May. 01, 2021	(2,996)		$ (2,996)
Accumulated other comprehensive loss, balance, beginning of period at Jan. 30, 2021	(70)			(70)
Accumulated other comprehensive loss
Other comprehensive income (loss)				11
Accumulated other comprehensive loss, balance, end of period at May. 01, 2021	(59)			$ (59)
Total Shareholders’ Equity at May. 01, 2021	$ 166
Accumulated other comprehensive loss
Dividends per share	$ 0

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Operating Activities
Net loss	$ (166)	$ (521)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expenses	162	176
Asset impairment	0	117
Right-of-use asset amortization	43	44
Deferred income taxes, net	8	(54)
Stock-based compensation expense	22	13
Other, net	86	2
Change in operating assets and liabilities:
Accounts receivable	7	25
Merchandise inventories	(16)	228
Prepaid expenses and other assets	(126)	(393)
Accounts payable	(296)	(292)
Accrued salaries, wages and related benefits	(22)	(227)
Other current liabilities	7	167
Lease liabilities	(81)	(65)
Other liabilities	8	2
Net cash used in operating activities	(364)	(778)
Investing Activities
Capital expenditures	(126)	(131)
Other, net	16	5
Net cash used in investing activities	(110)	(126)
Financing Activities
Proceeds from revolving line of credit	200	800
Proceeds from long-term borrowings	675	600
Principal payments on long-term borrowings	(600)	0
(Decrease) increase in cash book overdrafts	(17)	83
Cash dividends paid	0	(58)
Proceeds from issuances under stock compensation plans	7	11
Tax withholding on share-based awards	(13)	(8)
Make-whole payment and other, net	(85)	(11)
Net cash provided by financing activities	167	1,417
Effect of exchange rate changes on cash and cash equivalents	3	(11)
Net (decrease) increase in cash and cash equivalents	(304)	502
Cash and cash equivalents at beginning of period	681	853
Cash and cash equivalents at end of period	377	1,355
Cash paid during the period for:
Income taxes, net	3	0
Interest, net of capitalized interest	$ 63	$ 34

Basis of Presentation

3 Months Ended

May 01, 2021

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. 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 2020 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 May 1, 2021 and May 2, 2020 are unaudited. The Condensed Consolidated Balance Sheet as of January 30, 2021 has been derived from the audited Consolidated Financial Statements included in our 2020 Annual Report. The interim Condensed Consolidated Financial Statements should be read together with the Consolidated Financial Statements and related footnote disclosures contained in our 2020 Annual Report.

Seasonality

Our business, like that of other retailers, is subject to seasonal fluctuations and cyclical trends in consumer spending. Our sales are typically higher in our second quarter, which usually includes our Anniversary Sale, and the holidays in the fourth quarter. As a result of COVID-19, the Anniversary Sale was moved to August in 2020, which fell entirely in our third fiscal quarter. Results for any one quarter may not be indicative of the results that may be achieved for a full fiscal year. We plan our merchandise receipts to coincide with expected sales trends and other supply chain factors. For instance, our merchandise purchases and receipts increase prior to the Anniversary Sale, and we purchase and receive a larger amount of merchandise in the fall as we prepare for the holiday shopping season (from late November through December). Consistent with our seasonal fluctuations, our working capital requirements have historically increased during the months leading up to the Anniversary Sale and the holidays as we purchase inventory in anticipation of increased sales.

Use of Estimates

The preparation of financial statements in conformity with GAAP in the U.S. requires that we make estimates, judgments 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 valuation, long-lived asset recoverability and income taxes, all of which involve assumptions about future events. We may be unable to accurately predict the ongoing impact of COVID-19 going forward and as a result our estimates may change in the near term.

Land, Property and Equipment

Our net non-cash investing activities primarily related to technology expenditures resulted in a decrease to accounts payable of $44 in 2021.

Long-Lived Assets

In the first quarter of 2020, as we optimized our mix of physical and digital assets to align with longer-term customer trends, we closed 16 Nordstrom stores. In conjunction with these closures, we incurred non-cash impairment charges on long-lived tangible and ROU assets to adjust the carrying values to their estimated fair value. The following table provides details related to asset impairment charges as a result of COVID-19:

Quarter Ended

May 2, 2020

Long-lived asset impairment1

$94

Operating lease ROU asset impairment1

Total asset impairment

$117

1 As of May 2, 2020, the carrying value of the applicable long-lived and operating lease ROU assets after impairment was $15 and $6.

These charges are primarily included in our Retail segment SG&A expense on the Condensed Consolidated Statement of Earnings.

Income Taxes

We recorded $576 and $275 in current taxes receivable as of May 1, 2021 and May 2, 2020, which is classified in prepaid expenses and other on the Condensed Consolidated Balance Sheet. In addition, we recorded $60 and $2 in noncurrent taxes receivable as of May 1, 2021 and May 2, 2020, which is classified in other assets on the Condensed Consolidated Balance Sheet. The current and noncurrent income tax receivables are primarily associated with the loss carryback provision of the CARES Act.

Severance

In the first quarter of 2020, we recorded $88 of restructuring costs in connection with our regional and corporate reorganization, including $25 recorded in cost of sales and related buying and occupancy costs and $63 in SG&A on the Condensed Consolidated Statement of Earnings.

Leases

We incurred operating lease liabilities arising from the commencement of lease agreements of $33 for the quarter ended May 1, 2021 and $37 for the quarter ended May 2, 2020.

Reclassification

We reclassified our fiscal 2020 Condensed Consolidated Statement of Cash Flows to conform with current period presentation. To adjust our net loss to reconcile to operating activity cash flows, we present depreciation and amortization separate from other, net, which includes the “make-whole” premium in the first quarter of 2021 (see Note 3: Debt and Credit Facilities).

Recent Accounting Pronouncements

In November 2020, the SEC adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, which eliminates the requirement for selected financial data, streamlines certain disclosures in MD&A and eliminates duplicative disclosures with the intention of simplifying reporting compliance. In the fourth quarter of 2020, we early adopted the amendments to provision 301, Selected financial data and provision 302, Supplementary financial information. In the first quarter of 2021, we adopted all remaining provisions of this final rule. The adoption of this final rule did not have a material effect on our Consolidated Financial Statements

Revenue

3 Months Ended

May 01, 2021

Revenue from Contract with Customer [Abstract]

Revenue

NOTE 2: REVENUE

Contract Liabilities

Contract liabilities represent our obligation to transfer goods or services to customers and include deferred revenue for The Nordy Club (including points and Nordstrom Notes) and gift cards. Our contract liabilities are classified as current on the Condensed Consolidated Balance Sheets and are as follows:


			Contract Liabilities
Balance as of February 1, 2020			$576
Balance as of May 2, 2020			489



Balance as of January 30, 2021			478
Balance as of May 1, 2021			436

Revenues recognized from our beginning contract liability balance were $114 for the quarter ended May 1, 2021 and $130 for the quarter ended May 2, 2020.

Disaggregation of Revenue

The following table summarizes our disaggregated net sales:


	Quarter Ended
		May 1, 2021		May 2, 2020
Nordstrom		$1,854		$1,357
Nordstrom Rack		1,067		669

Total net sales		$2,921		$2,026

Digital sales as a % of total net sales		46	%	54	%

The following table summarizes the percent of net sales by merchandise category:


	Quarter Ended
		May 1, 2021		May 2, 2020
Women’s Apparel		31	%	33	%
Shoes		26	%	24	%
Women’s Accessories		14	%	12	%
Men’s Apparel		12	%	12	%
Beauty		11	%	12	%
Kids’ Apparel		4	%	4	%
Other		2	%	3	%
Total net sales		100	%	100	%

Debt And Credit Facilities	3 Months Ended
Debt And Credit Facilities	May 01, 2021
Debt Disclosure [Abstract]
Debt And Credit Facilities	NOTE 3: DEBT AND CREDIT FACILITIES Debt During the first quarter of 2021, we issued $250 aggregate principal amount of 2.3% senior notes due April 2024 and $425 aggregate principal amount of 4.25% senior notes due August 2031. These notes are unsecured and may be redeemed at any time in whole or in part. The April 2024 notes can be redeemed at par starting in April 2022. With the net proceeds of these new notes, together with cash on hand, we retired our $600 Secured Notes. We recorded $88 related to the redemption in interest expense, net, which primarily consisted of a one-time payment of $78 for a “make-whole” premium, and the write-off of unamortized balances associated with the debt discount and issuance costs. The make-whole payment was not included in cash paid during the period for interest, net of capitalized interest. As a result of this redemption, our outstanding long-term debt is unsecured and all real estate will be unencumbered. Credit Facilities During the first quarter of 2021, we borrowed $200 and amended our existing Revolver. Under the Revolver, we are in a “Collateral Period” if our Leverage Ratio is greater than four or our unsecured debt is rated below BBB- with a stable outlook at Standard & Poor’s or Baa3 with a stable outlook at Moody’s. In the Collateral Period, any borrowings under our Revolver will be secured by substantially all our personal property and we will be subject to asset coverage and minimum liquidity covenants, as well as a fixed charge coverage covenant. If our Leverage Ratio is below four and our unsecured debt is rated at or above BBB- with a stable outlook at Standard & Poor’s or Baa3 with a stable outlook at Moody’s, any borrowings under our Revolver will be unsecured, we will not be subject to the above covenants and the restrictions on dividend payments and share repurchases will be removed. In May 2021, subsequent to quarter end, we completely repaid $200 on our Revolver. Under our Revolver amendment, we created flexibility for dividends and share repurchases during the Collateral Period, provided no default or event of default exists as a result of such payments, the pro-forma Leverage Ratio as of the most recent fiscal quarter is less than 3.75, pro-forma liquidity at the date of such payment is at least $600, and the amount of such payments do not exceed the amount of the corresponding fiscal quarter of 2019. Additionally, the “make-whole” premium and unamortized deferred bond issuance costs related to the redemption of the $600 Secured Notes is excluded from the definition of interest expense. The Revolver expires in September 2023 and is classified in total current liabilities on the Condensed Consolidated Balance Sheet. As of May 1, 2021, we had $200 outstanding under this facility, our borrowings under the Revolver were classified as secured as our Leverage Ratio exceeded four and we did not meet or exceed our credit rating threshold. We met all other financial covenant measures for the quarter. Provided that we obtain written consent from the lenders, we have the option to increase the Revolver by up to $200, to a total of $1,000, and two options to extend the Revolver by one year. The Revolver contains customary representations, warranties, covenants and terms, including paying 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. As a result of our borrowings under the Revolver, the full capacity of our $800 commercial paper program is not available to us at this time. When available, the 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 of reducing available liquidity under the Revolver by an amount equal to the principal amount of commercial paper outstanding. As of May 1, 2021, we had no issuances outstanding under our commercial paper program.

Fair Value Measurements

3 Months Ended

May 01, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 4: 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 Measured at Carrying Value

Financial instruments measured at carrying value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and our Revolver, which approximate fair value due to their short-term nature.

Long-term debt is recorded at carrying value. If long-term debt was measured at fair value, we would use quoted market prices of the same or similar issues, which 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:


	May 1, 2021	January 30, 2021	May 2, 2020
Carrying value of long-term debt	$3,347	$3,269	$3,264
Fair value of long-term debt	3,480	3,430	2,804

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, long-lived tangible and ROU 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 quarter ended May 1, 2021. For more information regarding long-lived tangible and ROU asset impairment charges for the quarter ended May 2, 2020, see Note 1: Basis of Presentation.

- 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

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	May 01, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	NOTE 5: COMMITMENTS AND CONTINGENCIES Our NYC flagship store opened in October 2019 and the related building and equipment assets were placed into service at the end of the third quarter of 2019. While our store has opened, construction continues in the residential condominium units above the store. As of May 1, 2021, we have a fee interest in the retail condominium unit. We are committed to make one remaining installment payment based on the developer meeting final pre-established construction and development milestones. Precautions related to COVID-19 have caused delays in meeting these milestones and the timing of the remaining payment.

Shareholders' Equity	3 Months Ended
Shareholders' Equity	May 01, 2021
Stockholders' Equity Note [Abstract]
Shareholders' Equity	NOTE 6: SHAREHOLDERS’ EQUITY In August 2018, our Board of Directors authorized a program to repurchase up to $1,500 of our outstanding common stock, with no expiration date. On March 23, 2020, in response to uncertainty from the COVID-19 pandemic, we announced the suspension of our quarterly dividend payments beginning in the second quarter of 2020 and the immediate suspension of our share repurchase program. We remain committed to these programs over the long-term and intend to resume dividend payments and share repurchases when appropriate. We had $707 remaining in share repurchase capacity as of May 1, 2021. The actual timing, price, manner and amounts of future share repurchases, if any, will be subject to the discretion of the Board of Directors, contractual commitments, market and economic conditions, and applicable SEC rules. Our Revolver contains negative covenants with respect to the payment of dividends and share repurchases. As of May 1, 2021, our Leverage Ratio exceeded four and we did not meet our credit rating covenant, preventing us from paying dividends or repurchasing shares. For more information regarding our debt covenants, see Note 3: Debt and Credit Facilities.

Stock-Based Compensation

3 Months Ended

May 01, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

NOTE 7: STOCK-BASED COMPENSATION

The following table summarizes our stock-based compensation expense:


	Quarter Ended
		May 1, 2021	May 2, 2020
RSUs		$14	$13
Stock options		7	2
Other1		1	(2)
Total stock-based compensation expense, before income tax benefit		22	13
Income tax benefit		(6)	(5)
Total stock-based compensation expense, net of income tax benefit		$16	$8

1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards.

The following table summarizes our grant allocations:


	Quarter Ended
	May 1, 2021		May 2, 2020
	Granted	Weighted-average grant-date fair value per unit	Granted	Weighted-average grant-date fair value per unit
RSUs	1.4	$33	2.2	$23
Stock options	1.2	$13	0.3	$7
PSUs	—	—	0.4	$24

Under our deferred and stock-based compensation plan arrangements, we issued 1.1 shares of common stock during the first quarter of 2021 and 1.5 shares during the first quarter of 2020.

Earnings Per Share

3 Months Ended

May 01, 2021

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 8: EARNINGS PER SHARE

The computation of EPS is as follows:


	Quarter Ended
		May 1, 2021	May 2, 2020
Net loss		($166)	($521)

Basic shares		158.5	156.4
Dilutive effect of common stock equivalents		—	—
Diluted shares		158.5	156.4

Loss per basic share		($1.05)	($3.33)
Loss per diluted share		($1.05)	($3.33)

Anti-dilutive common stock equivalents		12.7	13.1

Segment Reporting

3 Months Ended

May 01, 2021

Segment Reporting [Abstract]

Segment Reporting

NOTE 9: SEGMENT REPORTING

The following table sets forth information for our reportable segment:


	Quarter Ended
	May 1, 2021	May 2, 2020
Retail segment EBIT	($55)	($711)
Corporate/Other EBIT	(30)	(102)
Interest expense, net	(137)	(34)
Loss before income taxes	($222)	($847)

For information about disaggregated revenues, see Note 2: Revenue.

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	May 01, 2021
Basis of Presentation [Abstract]
Reclassification	Reclassification We reclassified our fiscal 2020 Condensed Consolidated Statement of Cash Flows to conform with current period presentation. To adjust our net loss to reconcile to operating activity cash flows, we present depreciation and amortization separate from other, net, which includes the “make-whole” premium in the first quarter of 2021 (see Note 3: Debt and Credit Facilities).
Recent Accounting Pronouncements	Recent Accounting PronouncementsIn November 2020, the SEC adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, which eliminates the requirement for selected financial data, streamlines certain disclosures in MD&A and eliminates duplicative disclosures with the intention of simplifying reporting compliance. In the fourth quarter of 2020, we early adopted the amendments to provision 301, Selected financial data and provision 302, Supplementary financial information. In the first quarter of 2021, we adopted all remaining provisions of this final rule. The adoption of this final rule did not have a material effect on our Consolidated Financial Statements

Basis of Presentation (Tables)

3 Months Ended

May 01, 2021

Basis of Presentation [Abstract]

The following table provides details related to asset impairment charges as a result of COVID-19:

Quarter Ended

May 2, 2020

Long-lived asset impairment1

$94

Operating lease ROU asset impairment1

Total asset impairment

$117

1 As of May 2, 2020, the carrying value of the applicable long-lived and operating lease ROU assets after impairment was $15 and $6.

Revenue (Tables)

3 Months Ended

May 01, 2021

Revenue from Contract with Customer [Abstract]

Summary Of Contract Liabilities

Our contract liabilities are classified as current on the Condensed Consolidated Balance Sheets and are as follows:


			Contract Liabilities
Balance as of February 1, 2020			$576
Balance as of May 2, 2020			489



Balance as of January 30, 2021			478
Balance as of May 1, 2021			436

Disaggregated Net Sales

The following table summarizes our disaggregated net sales:


	Quarter Ended
		May 1, 2021		May 2, 2020
Nordstrom		$1,854		$1,357
Nordstrom Rack		1,067		669

Total net sales		$2,921		$2,026

Digital sales as a % of total net sales		46	%	54	%

Percent Of Net Sales By Merchandise Category Summary

The following table summarizes the percent of net sales by merchandise category:


	Quarter Ended
		May 1, 2021		May 2, 2020
Women’s Apparel		31	%	33	%
Shoes		26	%	24	%
Women’s Accessories		14	%	12	%
Men’s Apparel		12	%	12	%
Beauty		11	%	12	%
Kids’ Apparel		4	%	4	%
Other		2	%	3	%
Total net sales		100	%	100	%

Fair Value Measurements (Tables)

3 Months Ended

May 01, 2021

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:


	May 1, 2021	January 30, 2021	May 2, 2020
Carrying value of long-term debt	$3,347	$3,269	$3,264
Fair value of long-term debt	3,480	3,430	2,804

Stock-Based Compensation (Tables)

3 Months Ended

May 01, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary Of Stock-Based Compensation Expense

The following table summarizes our stock-based compensation expense:


	Quarter Ended
		May 1, 2021	May 2, 2020
RSUs		$14	$13
Stock options		7	2
Other1		1	(2)
Total stock-based compensation expense, before income tax benefit		22	13
Income tax benefit		(6)	(5)
Total stock-based compensation expense, net of income tax benefit		$16	$8

1 Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards.

Summary Of Grants

The following table summarizes our grant allocations:


	Quarter Ended
	May 1, 2021		May 2, 2020
	Granted	Weighted-average grant-date fair value per unit	Granted	Weighted-average grant-date fair value per unit
RSUs	1.4	$33	2.2	$23
Stock options	1.2	$13	0.3	$7
PSUs	—	—	0.4	$24

Earnings Per Share (Tables)

3 Months Ended

May 01, 2021

Earnings Per Share [Abstract]

Computation Of Earnings Per Share

The computation of EPS is as follows:


	Quarter Ended
		May 1, 2021	May 2, 2020
Net loss		($166)	($521)

Basic shares		158.5	156.4
Dilutive effect of common stock equivalents		—	—
Diluted shares		158.5	156.4

Loss per basic share		($1.05)	($3.33)
Loss per diluted share		($1.05)	($3.33)

Anti-dilutive common stock equivalents		12.7	13.1

Segment Reporting (Tables)

3 Months Ended

May 01, 2021

Segment Reporting [Abstract]

Information By Reportable Segment

The following table sets forth information for our reportable segment:


	Quarter Ended
	May 1, 2021	May 2, 2020
Retail segment EBIT	($55)	($711)
Corporate/Other EBIT	(30)	(102)
Interest expense, net	(137)	(34)
Loss before income taxes	($222)	($847)

Basis of Presentation (COVID-19 Related Asset Impairment Charges) (Details) - USD ($)
$ in Millions

3 Months Ended

May 01, 2021

May 02, 2020

Property, Plant and Equipment [Line Items]

Long-lived asset impairment

^[1]

$ 94

Operating lease ROU asset impairment

^[1]

Total asset impairment

$ 0

117

Applicable long-lived assets [Member]

Property, Plant and Equipment [Line Items]

Carrying value of applicable assets after impairment

Applicable operating lease ROU assets [Member]

Property, Plant and Equipment [Line Items]

Carrying value of applicable assets after impairment

$ 6

[1]	As of May 2, 2020, the carrying value of the applicable long-lived and operating lease ROU assets after impairment was $15 and $6.

Basis of Presentation (Narrative) (Details) $ in Millions	3 Months Ended
Basis of Presentation (Narrative) (Details) $ in Millions	May 01, 2021 USD ($) store	May 02, 2020 USD ($)
Basis Of Presentation [Line Items]
Non-cash investing activities related to technology expenditures and accounts payable	$ 44
Restructuring costs		$ 88
Operating lease liabilities arising from the commencement of lease agreements	33	37
Cost Of Sales And Related Buying And Occupancy Costs [Member]
Basis Of Presentation [Line Items]
Restructuring costs		25
Selling, General and Administrative Expenses [Member]
Basis Of Presentation [Line Items]
Restructuring costs		63
Prepaid Expenses and Other [Member]
Basis Of Presentation [Line Items]
Income taxes receivable	576	275
Other Assets [Member]
Basis Of Presentation [Line Items]
Income taxes receivable	$ 60	$ 2
Nordstrom US [Member]
Basis Of Presentation [Line Items]
Number of stores \| store	16

Revenue (Summary Of Contract Liabilities) (Details) - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020	Feb. 01, 2020
Revenue from Contract with Customer [Abstract]
Contract liabilities	$ 436	$ 478	$ 489	$ 576

Revenue (Disaggregated Net Sales) (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 2,921	$ 2,026
Disaggregated sales by category	100.00%	100.00%
Digital Sales [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	46.00%	54.00%
Nordstrom [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 1,854	$ 1,357
Nordstrom Rack [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 1,067	$ 669

Revenue (Percent Of Net Sales By Merchandise Category Summary) (Details)	3 Months Ended
	May 01, 2021	May 02, 2020
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	100.00%	100.00%
Women's Apparel [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	31.00%	33.00%
Shoes [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	26.00%	24.00%
Women's Accessories [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	14.00%	12.00%
Men's Apparel [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	12.00%	12.00%
Beauty [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	11.00%	12.00%
Kids' Apparel [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	4.00%	4.00%
Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregated sales by category	2.00%	3.00%

Revenue (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
Revenue (Narrative) (Details) - USD ($) $ in Millions	May 01, 2021	May 02, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized from beginning contract liability balance	$ 114	$ 130

Debt And Credit Facilities (Narrative) (Details) $ in Millions	1 Months Ended	3 Months Ended
	Jun. 04, 2021 USD ($)	May 01, 2021 USD ($)	May 02, 2020 USD ($)	Jan. 30, 2021 USD ($)
Debt Instrument [Line Items]
Proceeds from long-term borrowings		$ 675	$ 600
Principal payments on long-term borrowings		600	0
Interest expense		137	34
Proceeds from revolving line of credit		$ 200	800
Minimum leverage ratio for debt covenant to pay dividends or repurchase shares		3.75
Minimum liquidity for debt covenant amendment to pay dividends or repurchase shares		$ 600
Borrowings under revolving line of credit		$ 200	$ 800	$ 0
Number of options to extend revolver		2
Subsequent Event [Member]
Debt Instrument [Line Items]
Payments on revolving line of credit	$ 200
Commercial paper [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 800
Borrowings not available at this time		0
Issuances or borrowings		0
Senior notes, 2.3%, due April 2024, net of unamortized discount
Debt Instrument [Line Items]
Proceeds from long-term borrowings		$ 250
Debt instrument interest rate		2.30%
Senior notes, 4.25%, due August 2031, net of unamortized discount
Debt Instrument [Line Items]
Proceeds from long-term borrowings		$ 425
Debt instrument interest rate		4.25%
Senior Secured Notes 8.750% due May 2025, net of unamortized discount [Member]
Debt Instrument [Line Items]
Principal payments on long-term borrowings		$ 600
2021 Refinancing
Debt Instrument [Line Items]
Interest expense		88
One-time "make-whole" payment		78
Revolver [Member]
Debt Instrument [Line Items]
Proceeds from revolving line of credit		$ 200
Debt covenant leverage ratio		4
Option to increase the maximum capacity of revolving credit facility		$ 200
Maximum borrowing capacity		$ 1,000

Fair Value Measurements (Summary Of Carrying Value And Fair Value Estimate Of Long-Term Debt) (Details) - USD ($) $ in Millions	May 01, 2021	Jan. 30, 2021	May 02, 2020
Fair Value Measurements, Long-term Debt [Line Items]
Carrying value of long-term debt	$ 3,347	$ 3,269	$ 3,264
Level 2 [Member]
Fair Value Measurements, Long-term Debt [Line Items]
Fair value of long-term debt	$ 3,480	$ 3,430	$ 2,804

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Fair Value Disclosures [Abstract]
Impairment charges	$ 0	$ 117

Commitments And Contingencies (Narrative) (Details)	May 01, 2021
Commitments and Contingencies Disclosure [Abstract]
Installment payments remaining	1

Shareholders' Equity (Narrative) (Details) $ in Millions	3 Months Ended
Shareholders' Equity (Narrative) (Details) $ in Millions	May 01, 2021 USD ($)
Retained Earnings Adjustments [Line Items]
Remaining share repurchase capacity	$ 707
Revolver [Member]
Retained Earnings Adjustments [Line Items]
Debt covenant leverage ratio	4
2018 Program [Member]
Retained Earnings Adjustments [Line Items]
Share repurchase authorization	$ 1,500

Stock-Based Compensation (Summary Of Stock-Based Compensation Expense) (Details) - USD ($)
$ in Millions

3 Months Ended

May 01, 2021

May 02, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total stock-based compensation expense, before income tax benefit

$ 22

$ 13

Income tax benefit

(6)

(5)

Total stock-based compensation expense, net of income tax benefit

RSUs [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total stock-based compensation expense, before income tax benefit

Stock options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total stock-based compensation expense, before income tax benefit

Other [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total stock-based compensation expense, before income tax benefit

^[1]

$ 1

$ (2)

[1]	Other stock-based compensation expense includes PSUs, ESPP and nonemployee director stock awards.

Stock-Based Compensation (Summary Of Grants) (Details) - $ / shares shares in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	1.2	0.3
Weighted-average grant-date fair value per stock option (in dollars per share)	$ 13	$ 7
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	1.4	2.2
Weighted-average grant-date fair value per unit (in dollars per share)	$ 33	$ 23
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)	0.0	0.4
Weighted-average grant-date fair value per unit (in dollars per share)	$ 0	$ 24

Stock-Based Compensation (Narrative) (Details) - shares shares in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Share-based Payment Arrangement [Abstract]
Issuance of common stock under stock compensation plans (in shares)	1.1	1.5

Earnings Per Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Earnings Per Share [Abstract]
Net loss	$ (166)	$ (521)
Basic shares (in shares)	158.5	156.4
Dilutive effect of common stock equivalents (in shares)	0.0	0.0
Diluted shares (in shares)	158.5	156.4
Loss per basic share (in dollars per share)	$ (1.05)	$ (3.33)
Loss per diluted share (in dollars per share)	$ (1.05)	$ (3.33)
Anti-dilutive common stock equivalents (in shares)	12.7	13.1

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Segment Reporting (Information By Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	May 01, 2021	May 02, 2020
Segment Reporting Information [Line Items]
Loss before interest and income taxes	$ (85)	$ (813)
Interest expense, net	(137)	(34)
Loss before income taxes	(222)	(847)
Retail [Member]
Segment Reporting Information [Line Items]
Loss before interest and income taxes	(55)	(711)
Corporate/Other [Member]
Segment Reporting Information [Line Items]
Loss before interest and income taxes	$ (30)	$ (102)