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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended January 31, 1994
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________to________
Commission file number 0-12994
Nordstrom Credit, Inc.
______________________________________________________
(Exact name of Registrant as specified in its charter)
Colorado 91-1181301
________________________________ ___________________
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
13531 East Caley, Englewood, Colorado 80111
_______________________________________________________
(Address of principal executive office) (Zip code)
Registrant's telephone number, including area code: 303-397-4700
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.50 par value
_______________________________
(Title of class)
Indicate by check mark whether the Registrant (1) has filed all reports
require to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. YES /X/ NO / /
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. /X/
On March 22, 1994 Registrant had 10,000 shares of Common stock ($.50 par
value) outstanding; all such shares are owned by Registrant's parent,
Nordstrom, Inc.
The Registrant meets the conditions set forth in General Instruction J(1)
(a) and (b) of Form 10-K and is therefore filing this Form with the
reduced disclosure format.
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2
PART I
Item 1. Business.
- ------------------
In 1994, Nordstrom National Credit Bank (the "Bank") intends to issue a
VISA card. It is anticipated that receivables generated through the use
of the card will be purchased by Nordstrom Credit, Inc. (the "Company"),
without recourse, except for sales occurring at Nordstrom, Inc. stores.
This is expected to increase the external financing needs of the Company.
Service charges earned on these receivables are expected to be sufficient
to offset additional expenses generated through this activity. All other
operations of the Company will remain substantially the same.
Certain other information required under this item is included in Note 1
to the Financial Statements on page 12 of this report, which is
incorporated herein by reference.
Item 2. Properties.
- --------------------
The Company owns an office building in Englewood, Colorado where it
locates its principal offices.
Item 3. Legal Proceedings.
- ---------------------------
The Company is not a party to any material legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders.
- -------------------------------------------------------------
Not required under reduced disclosure format.
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder
Matters.
- ------------------------------------------------------------------------------
The class of securities registered is the Company's Common Stock, $.50
par value per share. There are 100,000 shares of authorized Common Stock,
of which 10,000 shares were issued and outstanding as of March 22, 1994.
The Company's common stock is owned entirely by Nordstrom. The stock has
not been traded and, accordingly, no market value has been established.
In addition, no dividends have been paid or declared.
Item 6. Selected Financial Data.
- ---------------------------------
Not required under reduced disclosure format.
Item 7. Management's Discussion and Analysis of Financial Conditions and
Results of Operations.
- -------------------------------------------------------------------------
Service charge income decreased in 1993 primarily because of a decrease
in the average amount of customer accounts receivable purchased.
Interest expense decreased in 1993 due to lower levels of debt and
decreased short-term interest rates.
Certain other information required under this item is included in Note 1
to the Financial Statements on page 12 of this report, which is
incorporated herein by
reference.
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Item 8. Financial Statements and Supplementary Data.
- ----------------------------------------------------
A) Financial Statements and Supplementary Data
The financial statements listed in the Index to Financial
Statements and Schedules on page 6 of this Report are
incorporated herein by reference.
B) Other Financial Statements and Schedules
Schedules required under Regulation S-X are filed pursuant to
Item 14 of this Report.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
- ------------------------------------------------------------------------
None
PART III
Item 10. Directors and Executive Officers of the Registrant.
- ------------------------------------------------------------
Not required under reduced disclosure format.
Item 11. Executive Compensation.
- --------------------------------
Not required under reduced disclosure format.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
- ------------------------------------------------------------
Not required under reduced disclosure format.
Item 13. Certain Relationships and Related Transactions.
- --------------------------------------------------------
Not required under reduced disclosure format.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form
8-K.
- ---------------------------------------------------------------------
(a)1. Financial Statements
--------------------
The following financial statements of the Company and the
Independent Auditors' Report are incorporated by reference in
Part II, Item 8:
Independent Auditors' Report
Statements of Earnings
Balance Sheets
Statements of Investment of Nordstrom, Inc.
Statements of Cash Flows
Notes to Financial Statements
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4
(a)2. Financial Statement Schedules
-----------------------------
The financial statement schedules listed in the Index to
Financial Statements and Schedules on page 6 of this Report
are incorporated herein by reference.
(a)3. Exhibits
--------
(3.1) Articles of Incorporation of the Registrant are hereby
incorporated by reference from the Registrant's Form 10-K for
the year ended January 31, 1991, Exhibit 3.1.
(3.2) By-laws of the Registrant are hereby incorporated by reference
from the Registrant's Form 10-K for the year ended January 31,
1991, Exhibit 3.2.
(4.1) Indenture between Registrant and First Interstate Bank of
Washington , N.A. dated November 15, 1984, the First Supplement
thereto dated January 15, 1988, the Second Supplement thereto
dated June 1, 1989 and the Third Supplement thereto dated
October 19, 1990 are hereby incorporated by reference from
Registration No. 33-3765, Exhibit 4.2; Registration No. 33-19743,
Exhibit 4.2; Registration No. 33-29193, Exhibit 4.3; and
Registrant's Form 10-K for the year ended January 31, 1991,
Exhibit 4.2, respectively.
(10.1) Investment Agreement dated October 8, 1984 between Registrant and
Nordstrom, Inc. is hereby incorporated by reference from the
Registrant's Form 10, Exhibit 10.1.
(10.2) Operating Agreement dated August 30, 1991 between Registrant and
Nordstrom National Credit Bank is hereby incorporated by
reference from the Registrant's Form 10-Q for the quarter ended
July 31, 1991, Exhibit 10.1.
(10.3) Credit Agreement dated June 30, 1992, as amended January 1, 1993,
between Registrant and Seattle-First National Bank of Washington
is hereby incorporated by reference from the Registrant's Form
10-K for the year ended January 31, 1993, Exhibit 10.5
(10.4) Second Amendment to the Credit Agreement dated June 30, 1992, as
amended January 1, 1993, between Registrant and Seattle-First
National Bank of Washington dated June 29, 1993 is filed herein
as an Exhibit.
(10.5) Loan Agreement dated November 24, 1992 between Registrant and
Nordstrom, Inc. is hereby incorporated by reference from the
Registrant's Form 10-K for the year ended January 31, 1993,
Exhibit 10.6.
(10.6) Loan Agreement dated June 28, 1993 between Registrant and a
group of commercial banks is filed herein as an Exhibit.
(12.1) Statement regarding computation of ratio of earnings available
for fixed charges to fixed charges is filed herein as an Exhibit.
All other exhibits are omitted because they are not applicable, or not
required, or because the required information is included in the Financial
Statements or notes thereto.
(b) Reports on Form 8-K
-------------------
No reports on Form 8-K were filed during the last quarter of
the period for which this report is filed.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this annual report
to be signed on its behalf by the undersigned, thereunto duly
authorized.
NORDSTROM CREDIT, INC.
(Registrant)
Date March 29, 1994 by /s/ John A. Goesling
________________________________ _________________________________
John A. Goesling
Executive Vice President and
Treasurer
(Principal Accounting and
Financial Officer)
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the date indicated.
/s/ John A. McMillan /s/ James F. Nordstrom
_____________________________________ _________________________________
John A. McMillan James F. Nordstrom
Co-Chairman of the Board of Directors Co-Chairman of the Board of
Directors
/s/ Bruce A. Nordstrom /s/ John N. Nordstrom
_____________________________________ _________________________________
Bruce A. Nordstrom John N. Nordstrom
Co-Chairman of the Board of Directors Co-Chairman of the Board of
Directors
/s/ John Walgamott /s/ John A. Goesling
_____________________________________ _________________________________
John Walgamott John A. Goesling
President Executive Vice President and
(Principal Executive Officer) Treasurer
(Principal Accounting and
Financial Officer)
Date March 29, 1994
______________________
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NORDSTROM CREDIT, INC.
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Page
Number
------
Independent Auditors' Report 7
Statements of Earnings 8
Balance Sheets 9
Statements of Investment of Nordstrom, Inc. 10
Statements of Cash Flows 11
Notes to Financial Statements 12
Additional financial information required to be furnished-
Schedules:
VIII - Valuation and Qualifying Accounts 15
IX - Short-term Borrowings 16
All other schedules have been omitted because they are inapplicable, not
required, or the information is included elsewhere in the financial
statements or notes thereto.
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INDEPENDENT AUDITORS' REPORT
Board of Directors
Nordstrom Credit, Inc.
Englewood, Colorado
We have audited the accompanying balance sheets of Nordstrom Credit,
Inc. as of January 31, 1994 and 1993, and the related statements of
earnings, investment of Nordstrom, Inc. and cash flows for each of the
three years in the period ended January 31, 1994. Our audits also
included the financial statement schedules listed in Item 14(a)2. These
financial statements and financial statement schedules are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial statement
schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all
material respects, the financial position of Nordstrom Credit, Inc. as
of January 31, 1994 and 1993, and the results of its operations and its
cash flows for each of the three years in the period ended January 31,
1994, in conformity with generally accepted accounting principles.
Also, in our opinion, such financial statement schedules, when
considered in relation to the basic financial statements taken as a
whole, present fairly in all material respects the information set forth
therein.
Deloitte & Touche
Seattle, Washington
March 11, 1994
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8
NORDSTROM CREDIT, INC
STATEMENTS OF EARNINGS
(Dollars in thousands)
Year Ended January 31, 1994 1993 1992
- ---------------------- ---- ---- ----
Revenue:
Service charge income $91,026 $92,553 $88,626
Rental income from Nordstrom
National Credit Bank 1,044 1,044 441
------- ------- -------
Total revenue 92,070 93,597 89,067
Expenses:
Interest, net 29,465 33,593 34,775
Service fees paid to Nordstrom
National Credit Bank 28,551 28,848 12,747
General and administrative 1,682 1,835 17,522
------- ------- -------
Total expenses 59,698 64,276 65,044
------- ------- -------
Earnings before income taxes 32,372 29,321 24,023
Income taxes 11,700 10,400 9,200
------- ------- -------
Net earnings $20,672 $18,921 $14,823
======= ======= =======
Ratio of earnings available for
fixed charges to fixed charges 2.09 1.87 1.69
======= ======= =======
See notes to financial statements.
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NORDSTROM CREDIT, INC.
BALANCE SHEETS
(Dollars in thousands)
January 31, 1994 1993
- ----------- ---- ----
ASSETS
- ------
Cash and cash equivalents $ 1,694 $ 388
Customer accounts receivable,
net of holdback allowance of
$23,145 and $23,969 564,495 583,211
Other accounts receivable 3,977 3,708
Property and equipment, net 5,987 6,183
Other assets 1,677 1,954
-------- --------
$577,830 $595,444
======== ========
LIABILITIES AND INVESTMENT OF NORDSTROM, INC.
- ---------------------------------------------
Notes payable to Nordstrom, Inc. $112,500 $112,500
Notes payable to bank 25,000 25,000
Commercial paper 15,337 13,319
Accrued interest, taxes and other 9,665 9,969
Long-term debt 265,600 305,600
-------- --------
Total liabilities 428,102 466,388
Investment of Nordstrom, Inc. 149,728 129,056
-------- --------
$577,830 $595,444
======== ========
See notes to financial statements.
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NORDSTROM CREDIT, INC.
STATEMENTS OF INVESTMENT OF NORDSTROM, INC.
(Dollars in thousands except per share amount)
Common Stock, $.50 par value,
100,000 shares authorized
------------------------- Retained
Shares Amount Earnings Total
------ ------ -------- -----
Balance at
January 1, 1991 10,000 $55,058 $40,254 $ 95,312
Net earnings - - 14,823 14,823
------ ------- ------- --------
Balance at
January 31, 1992 10,000 55,058 55,077 110,135
Net earnings - - 18,921 18,921
------ ------- ------- --------
Balance at
January 31, 1993 10,000 55,058 73,998 129,056
Net earnings - - 20,672 20,672
------ ------- ------- --------
Balance at
January 31, 1994 10,000 $55,058 $94,670 $149,728
====== ======= ======= ========
See notes to financial statements.
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NORDSTROM CREDIT, INC.
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Year Ended January 31, 1994 1993 1992
- ---------------------- ---- ---- ----
OPERATING ACTIVITIES:
Net earnings $20,672 $18,921 $14,823
Adjustments to reconcile net earnings
to net cash provided by (used in)
operating activities:
Depreciation and amortization 640 664 1,204
Change in:
Customer accounts receivable, net 18,716 981 (89,178)
Other accounts receivable (269) 3,787 (1,752)
Accrued interest, taxes and other (304) (85) (779)
------- ------- -------
Net cash provided by (used in)
operating activities 39,455 24,268 (75,682)
------- ------- -------
INVESTING ACTIVITIES:
(Additions to) disposition of property
and equipment, net (167) 4 2,014
------- ------- -------
FINANCING ACTIVITIES:
Increase (decrease) in commercial paper 2,018 (71,416) 4,681
Principal payments on long-term debt (40,000) (19,400) (3,000)
Increase in notes payable
to Nordstrom, Inc. - 90,150 22,350
Decrease in notes payable to Banks - (25,000) -
Proceeds from issuance of
long-term debt, net - - 49,613
------- ------- -------
Net cash (used in) provided by
financing activities (37,982) (25,666) 73,644
------- ------- -------
Net increase (decrease) in cash and
cash equivalents 1,306 (1,394) (24)
Cash and cash equivalents at beginning
of year 388 1,782 1,806
------- ------- -------
Cash and cash equivalents at end of year $ 1,694 $ 388 $ 1,782
======= ======= =======
See notes to financial statements.
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NORDSTROM CREDIT, INC.
NOTES TO FINANCIAL STATEMENTS
(Dollars in thousands)
NOTE 1 - DESCRIPTION OF BUSINESS
Nordstrom Credit, Inc. (the "Company"), a wholly-owned subsidiary of
Nordstrom, Inc. ("Nordstrom") was incorporated in the State of
Washington in 1982 and reincorporated in the State of Colorado in 1990.
The primary business of the Company is to finance customer accounts
receivable generated through sales of merchandise in Nordstrom stores
("Accounts"). The Accounts are originated through the use of credit cards
issued by Nordstrom National Credit Bank, a national banking association
organized as a wholly-owned subsidiary of Nordstrom (the "Bank"), effective
August 30, 1991.
The Company and the Bank are parties to an Operating Agreement dated
August 30, 1991 (the "Operating Agreement") pursuant to which the Company
purchases Accounts from the Bank for a price equal to the amount of
Accounts originated less an allowance for amounts to be written off (the
"holdback allowance"). Under the terms of the Operating Agreement, the
Bank performs the servicing functions for the Accounts and the Company
pays the Bank a servicing fee which was initially established at 1.75% of
credit card sales. On February 1, 1993, the servicing fee increased to
1.82% and on November 1, 1993, it decreased to 1.59%.
Prior to the formation of the Bank, the Company and Nordstrom were parties
to a Prior Operating Agreement, whereby the Company purchased from
Nordstrom an undivided interest in the Accounts, which were generated
through the use of credit cards issued by Nordstrom, rather than the Bank.
Pursuant to the Prior Operating Agreement, the Company also provided
servicing for the Accounts.
The Company and Nordstrom are parties to an Investment Agreement dated
October 8, 1984 (the "Investment Agreement") which, among other things,
governs ownership of Company stock and the financial relationships between
Nordstrom and the Company. The Investment Agreement requires that
Nordstrom maintain the Company's ratio of earnings available for fixed
charges to fixed charges at not less than 1.25:1 and further requires that
Nordstrom retain ownership of all the outstanding shares of stock of the
Company. This agreement does not, however, represent a guarantee by
Nordstrom of the payment of any obligation of the Company.
NOTE 2 - RENTAL INCOME
The Company owns an office building in Englewood, Colorado, and leases
space in the building to the Bank under a month-to-month agreement for
$87 per month.
NOTE 3 - INTEREST EXPENSE
The components of net interest expense are as follows:
Year ended January 31, 1994 1993 1992
- ---------------------- ---- ---- ----
Notes payable to banks $ 771 $ 1,694 $ 2,865
Notes payable to Nordstrom, Inc. 1,696 461 178
Commercial paper 1,590 2,780 4,889
Long-term debt 25,543 28,906 27,105
------- ------- -------
Total interest expense 29,600 33,841 35,037
Less: Interest income (135) (248) (262)
------- ------- -------
Interest, net $29,465 $33,593 $34,775
======= ======= =======
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NOTE 4 - INCOME TAXES
The Company files consolidated income tax returns with Nordstrom. Income
taxes have been provided on a separate return basis, and the difference
between the effective tax rate and the statutory Federal income tax rate
is due to the provision for state and local income taxes. At January 31,
1994 and 1993, amount due to Nordstrom for income taxes totalled $1,592
and $1,460. The Company has no significant deferred taxes.
NOTE 5 - OTHER ACCOUNTS RECEIVABLE
Other accounts receivable consists primarily of amounts due from the Bank
for net activity in Accounts, less service fees due the Bank. These
amounts are settled on a second business day basis.
NOTE 6 - NOTES PAYABLE AND COMMERCIAL PAPER
The notes payable to bank represents amounts borrowed from a commercial
bank as fiduciary under a master note agreement which provides for
borrowings up to $25,000. Borrowings under the Agreement bear interest at
floating rates based on a published short-term interest rate composite
index (3.0% and 3.0% at January 31, 1994 and 1993) and mature up to six
months from the date of borrowing or on demand.
The notes payable to Nordstrom, Inc. represent amounts borrowed from
Nordstrom under an Agreement dated November 24, 1992 which provides for
borrowings from time to time, depending on seasonal cash flow requirements.
Borrowings under the Agreement bear interest at floating rates based on a
published short-term interest rate composite index (3.1% and 3.0% at
January 31, 1994 and 1993) and mature up to six months from the date of
borrowing or on demand. A summary of notes payable to Nordstrom, Inc. is
as follows:
Year ended January 31, 1994 1993 1992
- ---------------------- ---- ---- ----
Average daily borrowings
outstanding $ 54,643 $ 14,072 $ 4,166
Maximum amount outstanding 182,500 138,000 57,350
Weighted average interest rate
during the year 3.1% 3.3% 4.3%
The Company has $150,000 in unsecured lines of credit which are available
as liquidity support for notes payable to bank and commercial paper issued
by the Company. Under the terms of the line-of-credit agreements, the
Company must, among other things, comply with the terms of the Investment
Agreement between the Company and Nordstrom and the Operating Agreement
between the Company and Nordstrom National Credit Bank, and maintain a
ratio of total debt to tangible net worth no greater than 5 to 1. The
Company pays commitment fees for the lines in lieu of compensating balance
requirements.
The carrying amount of the notes payable and commercial paper approximates
fair value because of the short maturity of these instruments.
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NOTE 7 - LONG-TERM DEBT
Long-term debt consists of the following:
January 31, 1994 1993
- ----------- ---- ----
Medium-term notes, 8.05% - 9.6%,
due 1994 - 2001 $210,000 $250,000
Sinking fund debentures, 9.375%,
due 2016, payable in
annual installments of $3,750
beginning in 1997 55,600 55,600
-------- --------
Total long-term debt $265,600 $305,600
======== ========
Aggregate principal payments on long-term debt for the next five fiscal
years are as follows: 1994 - $51,000, 1995 - $25,000, 1996 - $73,000,
1997 - $3,750, and 1998 - $53,750.
The fair value of long-term debt at January 31, 1994, estimated using
quoted market prices of the same or similar issues with the same
remaining maturity, was $292,360.
NOTE 8 - SUPPLEMENTARY CASH FLOW INFORMATION
For purposes of the Statements of Cash Flows, the Company considers all
short-term investments with a maturity at date of purchase of three
months or less to be cash equivalents. The carrying amount approximates
fair value because of the short maturity of these instruments.
Supplementary cash flow information is as follows:
Year Ended January 31, 1994 1993 1992
- ---------------------- ---- ---- ----
Cash paid during the year for:
Interest $30,224 $34,121 $34,355
Income taxes paid to
Nordstrom, Inc. 11,568 10,350 8,100
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NORDSTROM CREDIT, INC.
SCHEDULE VIII - VALUATION AND
QUALIFYING ACCOUNTS
(Dollars in thousands)
Column A Column B Column C Column D Column E
Additions Deductions
- -------- ------------ --------- --------------------- --------
Account
Balance Charged write-offs Balance
beginning to other net of Other end of
Description of period accounts recoveries deductions period
- ----------- ------------ --------- ---------- ---------- --------
Holdback allowance -
customer accounts
receivable
Year ended
January 31, 1994 $23,969 $25,713* $26,537 $ - $23,145
Year ended
January 31, 1993 $24,192 $29,469* $29,692 $ - $23,969
Year ended
January 31, 1992 $ 0 $37,281** $13,089 $ - $24,192
Amounts withheld
pending collection -
customer accounts
receivable
Year ended
January 31, 1992 $26,503 $ - $ - $26,053** $ 0
* The Company purchases Accounts net of this amount which represents
the allowance for uncollectible amounts. Bad debt expenses are
reflected on the books of Nordstrom.
** Upon execution of the Operating Agreement between the Bank and
the Company, all Accounts were sold back to Nordstrom and the
corresponding withholding account was eliminated.
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NORDSTROM CREDIT, INC.
SCHEDULE IX - SHORT-TERM BORROWINGS
(Dollars in thousands)
Column A Column B Column C Column D Column E Column F
-------- -------- -------- -------- -------- --------
Weighted
Maximum Average average
Weighted amount amount interest
Balance average outstanding outstanding rate
Category of aggregate at end of interest during the during the during
short-term borrowings period rate period period period
- --------------------- --------- -------- ----------- ----------- -------
(A) (B) (C)
January 31, 1994
Notes payable
to banks $ 25,000 3.0% $ 25,000 $ 25,000 3.1%
Notes payable to
Nordstrom, Inc. 112,500 3.0 182,500 54,643 3.1
Commercial paper 15,337 3.4 92,023 50,300 3.2
January 31, 1993
Notes payable
to banks $ 25,000 3.0% $ 50,000 $ 45,697 3.7%
Notes payable to
Nordstrom, Inc. 112,500 3.0 138,000 14,072 3.3
Commercial paper 13,319 3.5 136,038 75,840 3.7
January 31, 1992
Notes payable
to banks $ 50,000 4.1% $ 50,000 $ 50,000 5.7%
Notes payable to
Nordstrom, Inc. 22,350 4.1 57,350 4,166 4.3
Commercial paper 84,735 4.1 140,000 86,073 5.7
(A) The notes payable to banks and Nordstrom, Inc. have maturities of
up to six months or on demand. Notes payable to holders of commercial
paper generally have maturities ranging from one to two months.
(B) Average amount outstanding during the period is computed by
dividing the total of daily outstanding principal balances by the number
of days in the period.
(C) Average interest rate for the year is computed by dividing the
actual short-term interest expense by the average short-term borrowings
outstanding.
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EXHIBIT INDEX
EXHIBIT METHOD OF FILING
- ------------------------------- ------------------------------
3.1 Articles of Incorporation Incorporated by reference from
the Registrant's Form 10-K
for the year ended January
31, 1991, Exhibit 3.1.
3.2 By-laws Incorporated by reference
from the Registrant's Form
10-K for the year ended Jan-
uary 31, 1991, Exhibit 3.2
4.1 Indenture between Registrant and Incorporated by reference from
First Interstate Bank of Washing- Registation No. 33-3765, Ex-
ton, N.A. dated November 15, 1984, hibit 4.2; Registration No.
the First Supplement thereto dated 33-19743, Exhibit 4.2; Regis-
January 15, 1988, the Second Sup- tration No. 33-29193, Exhibit
plement thereto dated June 1, 1989, 4.3; and Registrant's Form
and the Third Supplement thereto 10-K for the year ended Jan-
dated October 19, 1990 uary 31, 1991, Exhibit 4.2.
10.1 Investment Agreement dated October Incorporated by reference from
8, 1984 between Registrant and Registrant's Form 10, Exhibit
Nordstrom, Inc. 10.1
10.2 Operating Agreement dated August Incorporated by reference from
30, 1991 between Registrant and Registrant's Form 10-Q for
Nordstrom National Credit Bank the quarter ended July 31,
1991, Exhibit 10.1
10.3 Credit Agreement dated June 30, Incorporated by reference from
1992, as amended January 1, 1993, Registrant's Form 10-K for
between Registrant and Seattle- the year ended January 31,
First National Bank of Washington 1993, Exhibit 10.5
10.4 Second Amendment to the Credit Filed herewith electronically
Agreement dated June 30, 1992, as
amended January 1, 1993 between
Registrant and Seattle-First
National Bank of Washington dated
June 29, 1993
10.5 Loan Agreement dated November 24, Incorporated by reference from
1992 between Registrant and Registrant's Form 10-K for
Nordstrom, Inc. the year ended January 31,
1993, Exhibit 10.6
10.6 Loan Agreement dated June 28, 1993 Filed herewith electronically
between Nordstrom Credit, Inc. and
and a group of Commerical Banks.
12.1 Computation of Ratio of Earnings Filed herewith electronically
Available for Fixed Charges to
Fixed Charges