Document and Company Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Jan. 30, 2010	Mar. 12, 2010	Jul. 31, 2009
Document and Company Information [Abstract]
Document Type	10-K
Document Period End Date	Jan. 30, 2010
Amendment Flag	false
Entity Registrant Name	NORDSTROM INC
Entity Central Index Key	0000072333
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--01-30
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		218,020,643
Entity Public Float			$ 4.8

Consolidated Statements of Earnings (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009	Feb. 02, 2008
Net sales	$ 8,258	$ 8,272	$ 8,828
Credit card revenues	369	301	252
Total revenues	8,627	8,573	9,080
Cost of sales and related buying and occupancy costs	(5,328)	(5,417)	(5,526)
Selling, general and administrative expenses:
Retail stores, direct and other segments	(2,109)	(2,103)	(2,161)
Credit segment	(356)	(274)	(198)
Gain on sale of Faconnable			34
Earnings on investment in asset-backed securities, net			18
Earnings before interest and income taxes	834	779	1,247
Interest expense, net	(138)	(131)	(74)
Earnings before income taxes	696	648	1,173
Income tax expense	(255)	(247)	(458)
Net earnings	$ 441	$ 401	$ 715
Earnings per basic share	$ 2.03	$ 1.85	$ 2.92
Earnings per diluted share	$ 2.01	$ 1.83	$ 2.88
Basic shares	216.8	216.6	244.8
Diluted shares	219.7	219.2	248.8

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009
Current assets:
Cash and cash equivalents	$ 795	$ 72
Accounts receivable, net	2,035	1,942
Merchandise inventories	898	900
Current deferred tax assets, net	238	210
Prepaid expenses and other	88	93
Total current assets	4,054	3,217
Land, buildings and equipment, net	2,242	2,221
Goodwill	53	53
Other assets	230	170
Total assets	6,579	5,661
Current liabilities:
Commercial paper		275
Accounts payable	726	563
Accrued salaries, wages and related benefits	336	214
Other current liabilities	596	525
Current portion of long-term debt	356	24
Total current liabilities	2,014	1,601
Long-term debt, net	2,257	2,214
Deferred property incentives, net	469	435
Other liabilities	267	201
Commitments and contingencies
Shareholders' equity:
Common stock, no par value: 1,000 shares authorized; 217.7, and 215.4 shares issued and outstanding	1,066	997
Retained earnings	525	223
Accumulated other comprehensive loss	(19)	(10)
Total shareholders' equity	1,572	1,210
Total liabilities and shareholders' equity	$ 6,579	$ 5,661

Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, unless otherwise specified	Jan. 30, 2010	Jan. 31, 2009
Shareholders' equity:
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	1,000	1,000
Common stock, shares issued	217.7	215.4
Common stock, shares outstanding	217.7	215.4

Consolidated Statements of Shareholders Equity (USD $) In Millions, unless otherwise specified	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Earnings (Loss)
Beginning balance at Feb. 03, 2007	$ 2,169	$ 827	$ 1,351	$ (9)
Beginning balance, Shares at Feb. 03, 2007		257.3
Cumulative effect of accounting change	(3)		(3)
Adjusted Beginning Balance at February 3, 2007	2,166	827	1,348	(9)
Adjusted Beginning Balance at February 3, 2007, Shares		257.3
Shareholders' Equity Rollforward
Net earnings	715		715
Other comprehensive earnings (loss):
Foreign currency translation adjustment	(15)			(15)
Postretirement plan adjustments, net of tax	7			7
Fair value adjustment to investment in asset-backed securities, net of tax of $3	(5)			(5)
Comprehensive net earnings	702
Cash dividends paid ($0.64 per share in 2009 and 2008; $0.54 per share in 2007)	(134)		(134)
Issuance of common stock for:
Stock option plans	61	61
Stock option plans, Shares		2.2
Employee stock purchase plan	17	17
Employee stock purchase plan, Shares		0.4
Other	5	5
Other, Shares		0.1
Stock-based compensation	26	26
Repurchase of common stock	(1,728)		(1,728)
Repurchase of common stock, Shares		(39.1)
Ending balance at Feb. 02, 2008	1,115	936	201	(22)
Ending balance, Shares at Feb. 02, 2008		220.9
Shareholders' Equity Rollforward
Net earnings	401		401
Other comprehensive earnings (loss):
Postretirement plan adjustments, net of tax	12			12
Comprehensive net earnings	413
Cash dividends paid ($0.64 per share in 2009 and 2008; $0.54 per share in 2007)	(138)		(138)
Effect of postretirement plan measurement date change	(3)		(3)
Issuance of common stock for:
Stock option plans	17	17
Stock option plans, Shares		0.8
Employee stock purchase plan	17	17
Employee stock purchase plan, Shares		0.6
Other	1	1
Stock-based compensation	26	26
Repurchase of common stock	(238)		(238)
Repurchase of common stock, Shares		(6.9)
Ending balance at Jan. 31, 2009	1,210	997	223	(10)
Ending balance, Shares at Jan. 31, 2009		215.4
Shareholders' Equity Rollforward
Net earnings	441		441
Other comprehensive earnings (loss):
Postretirement plan adjustments, net of tax	(9)			(9)
Comprehensive net earnings	432
Cash dividends paid ($0.64 per share in 2009 and 2008; $0.54 per share in 2007)	(139)		(139)
Issuance of common stock for:
Stock option plans	27	27
Stock option plans, Shares		1.5
Employee stock purchase plan	13	13
Employee stock purchase plan, Shares		0.7
Other	1	1
Other, Shares		0.1
Stock-based compensation	28	28
Ending balance at Jan. 30, 2010	$ 1,572	$ 1,066	$ 525	$ (19)
Ending balance, Shares at Jan. 30, 2010		217.7

Consolidated Statements of Shareholders Equity (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009	Feb. 02, 2008
Consolidated Statements of Shareholders Equity (Parenthetical)
Tax effect of postretirment plan adjustments	$ 6	$ (8)	$ (5)
Tax effect of fair value adjustment to investment in asset-backed securities			$ 3
Dividends paid (per share)	$ 0.64	$ 0.64	$ 0.54

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Jan. 30, 2010	Jan. 31, 2009	Feb. 02, 2008
Operating Activities
Net earnings	$ 441	$ 401	$ 715
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization of buildings and equipment, net	313	302	269
Amortization of deferred property incentives and other, net	(42)	(21)	(36)
Stock-based compensation expense	32	28	26
Deferred income taxes, net	(58)	(36)	(42)
Tax benefit from stock-based payments	6	3	28
Excess tax benefit from stock-based payments	(7)	(4)	(26)
Provision for bad debt expense	251	173	107
Gain on sale of Faconnable			(34)
Change in operating assets and liabilities:
Accounts receivable	(159)	(93)	(1,083)
Investment in asset-backed securities			420
Merchandise inventories	(1)	53
Prepaid expenses and other assets	(38)	38	(36)
Accounts payable	168	16	(19)
Accrued salaries, wages and related benefits	120	(54)	(64)
Other current liabilities	8	28	36
Income taxes	73	(76)	(6)
Deferred property incentives	96	119	58
Other liabilities	48	(29)	(1)
Net cash provided by operating activities	1,251	848	312
Investing Activities
Capital expenditures	(360)	(563)	(501)
Change in credit card receivables originated at third parties	(182)	(232)	(151)
Proceeds from sale of Faconnable			216
Other, net	1	3	15
Net cash used in investing activities	(541)	(792)	(421)
Financing Activities
(Repayments) proceeds from commercial paper borrowings, net	(275)	275
Proceeds from long-term borrowings, net of discounts	399	150	2,510
Principal payments on long-term borrowings	(25)	(410)	(680)
Increase in cash book overdrafts	9	20	5
Cash dividends paid	(139)	(138)	(134)
Repurchase of common stock		(264)	(1,702)
Proceeds from exercise of stock options	21	13	34
Proceeds from employee stock purchase plan	13	17	17
Excess tax benefit from stock-based payments	7	4	26
Other, net	3	(9)	(12)
Net cash provided by (used in) financing activities	13	(342)	64
Net increase (decrease) in cash and cash equivalents	723	(286)	(45)
Cash and cash equivalents at beginning of year	72	358	403
Cash and cash equivalents at end of year	795	72	358
Cash paid during the year for:
Interest (net of capitalized interest)	134	145	75
Income taxes	$ 240	$ 340	$ 478

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jan. 30, 2010

Nature Of Operations And Summary Of Significant 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 shoe store in Seattle, today Nordstrom is a fashion specialty retailer that offers customers a well-edited selection of high-quality fashion brands focused on apparel, shoes, cosmetics and accessories for men, women 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 a wide selection of brand name and private label merchandise through multiple retail channels: our ‘Nordstrom’ branded 112 full-line stores and online store at www.nordstrom.com (collectively, “multi-channel”), 69 off-price ‘Nordstrom Rack’ stores, two ‘Jeffrey’ boutiques, and one clearance store. Our stores are located throughout the United States.

Through our Credit segment, we offer our customers a variety of payment products and services, including a Nordstrom private label card,

two Nordstrom VISA credit cards and a debit card for Nordstrom purchases. These products also allow our customers to participate in our

loyalty program.

Fiscal Year

Our fiscal year ends on the Saturday closest to January 31st. References to 2009, 2008 and 2007 relate to the 52-week fiscal years ended January 30, 2010, January 31, 2009 and February 2, 2008, respectively. References to 2010 relate to the 52-week fiscal year ending January 29, 2011.

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 United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Uncertainties regarding such estimates and assumptions are inherent in the preparation of financial statements and actual results may differ from those estimates and assumptions. Our significant accounting judgments and estimates include allowance for doubtful accounts, sales return reserve, inventory obsolescence and shrinkage reserves, deferred tax asset valuation and unrecognized tax benefits.

Reclassification

In 2009, we reclassified other income and expense, net in our consolidated statement of earnings to selling, general and administrative expenses and earnings on investment in asset-backed securities, net. Results for 2008 and 2007 have been reclassified for consistency with the 2009 presentation. These reclassifications do not impact our reported net earnings, earnings per share or cash flows for these periods.

Net Sales

We recognize revenue from sales at our retail stores at the point of sale, net of estimated returns and excluding sales taxes. Revenue from our sales to customers shipped directly from our stores and our online and catalog sales includes shipping revenue, when applicable, and 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. Our sales return reserves were $76 and $70 at the end of 2009 and 2008.

Credit Card Revenues

Credit card revenues include finance charges, late fees and other fees generated by our combined Nordstrom private label card and Nordstrom VISA credit card programs, and interchange fees generated by the use of Nordstrom VISA cards at third-party merchants. These fees are assessed according to the terms of the related cardholder agreements and recognized as revenue when earned.

Cost of Sales

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

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 and distribution operations.

Rent

We recognize minimum rent expense, net of landlord reimbursements, on a straight-line basis over the minimum lease term from the time that we control the leased property. For leases that contain predetermined, fixed escalations of the minimum rent, we recognize the rent expense on a straight-line basis and record the difference between the rent expense and the rent payable as a liability. 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 landlords to construct stores in certain developments. These incentives are recorded as a deferred credit and recognized as a reduction of rent expense on a straight-line basis over the lease term. At the end of 2009 and 2008, the deferred credit balance was $518 and $478.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of compensation and benefits costs (other than those included in buying and occupancy costs), advertising, shipping and handling costs, bad debt expense related to our credit card operations, and other

miscellaneous expenses.

Advertising

Production costs for newspaper, radio and other media are expensed the first time the advertisement is run. Total advertising expenses, net of vendor allowances, of $85, $98 and $101 in 2009, 2008 and 2007, respectively, were included in selling, general and administrative expenses.

Vendor Allowances

We receive allowances from merchandise vendors for cosmetic selling expenses, purchase price adjustments, cooperative advertising programs and various other expenses. Allowances for cosmetic selling 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 sold. Allowances for cooperative advertising and promotion programs and other expenses are recorded in cost of sales and related buying and occupancy costs and 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. The following table shows vendor allowances earned during the year:

Fiscal year	2009	2008	2007
Cosmetic selling expenses	$106	$112	$120
Purchase price adjustments	91	96	86
Cooperative advertising and promotion	63	65	61
Other	2	3	2
Total vendor allowances	$262	$276	$269

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 inbound freight to our distribution centers, which we include in the cost of our inventory. Shipping and handling costs of $103, $106 and $87 in 2009, 2008 and 2007, respectively, were included in selling, general and administrative expenses.

Loyalty Program

Customers who spend a certain amount with us using our Nordstrom private label cards or our Nordstrom VISA credit cards receive Nordstrom Notes^®, which can be redeemed for goods or services in our stores. We estimate the net cost of the Nordstrom Notes that will be issued and redeemed and record this cost as rewards points are accumulated. In addition to this long-standing benefit, in 2007 we launched an enhanced loyalty program, Fashion Rewards^®. Under this program, Nordstrom customers receive benefits such as free alterations based on their annual levels of spending. We record the cost of the loyalty program benefits for Nordstrom Notes and alterations in cost of sales given that we provide customers with products or services for these rewards. Other costs of the loyalty program, which primarily include shipping and fashion events, are recorded in selling, general and administrative expenses. These expenses are recorded based on estimates of benefits expected to be accumulated and redeemed in relation to sales.

Stock-Based Compensation

We recognize stock-based compensation expense related to stock options at their estimated grant-date fair value, recorded on a straight-line basis over the requisite service period. The total compensation expense is reduced by estimated forfeitures expected to occur over the vesting period of the award. We estimate the fair value of stock options granted using the Binomial Lattice option valuation model. Stock-based compensation expense also includes amounts related to performance share units and our Employee Stock Purchase Plan, based on their fair values as of the end of each reporting period.

New Store Opening Costs

Non-capital expenditures associated with opening new stores, including marketing expenses, relocation expenses and temporary 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 may be recognized as income. Breakage income was $8, $7 and $6 in 2009, 2008 and 2007. To date, our breakage rate is approximately 3.2% of the amount initially issued as gift cards. Gift card breakage income is included in selling, general and administrative expenses in our consolidated statement of earnings. We had outstanding gift card liabilities of $174 and $175 at the end of 2009 and 2008, 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. 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 which 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.

Comprehensive Net Earnings

Comprehensive net earnings include net earnings and other comprehensive earnings and losses. Other comprehensive loss of $9 in 2009 and other comprehensive earnings of $12 in 2008 consisted of adjustments, net of tax, related to our post-retirement benefit obligations. In 2007, other comprehensive loss of $13 consisted primarily of a foreign currency translation adjustment and a fair value adjustment to our investment in asset-backed securities, partially offset by postretirement plan adjustments.

The accumulated other comprehensive losses of $19 and $10 at the end of 2009 and 2008 consist entirely of unrecognized losses on postretirement benefit obligations. During 2009 and 2008, we did not own any material foreign subsidiaries, and therefore, we did not recognize any foreign currency translation in accumulated other comprehensive loss.

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 amortized cost, which approximates fair value. Our cash management system provides for the reimbursement of all major bank disbursement accounts on a daily basis. Accounts payable at the end of 2009 and 2008 included $74 and $66 of checks not yet presented for payment drawn in excess of our bank deposit balances.

Accounts Receivable

We record credit card accounts receivable on our consolidated balance sheets at the outstanding balance, net of an allowance for doubtful accounts. We estimate the allowance for doubtful accounts based on our best estimate of the losses inherent in our receivables as of the balance sheet date. We evaluate the collectability of our accounts receivable based on several factors, including historical trends of aging of accounts, write-off experience and expectations of future performance, including trends in unemployment rates. We recognize finance charges on delinquent accounts until the account is written off. Delinquent accounts, including fees, are written off when they are determined to be uncollectible, usually after the passage of 151 days without receiving a full scheduled monthly payment. Accounts are written off sooner in the event of customer bankruptcy or other circumstances that make further collection unlikely.

Our Nordstrom private label cards can be used only in Nordstrom stores, while the Nordstrom VISA cards allow our customers the option of using the cards for purchases of Nordstrom merchandise and services, as well as for purchases outside of Nordstrom. Cash flows from the use of both the private label cards and Nordstrom VISA credit cards for sales originating at our stores are treated as an operating activity in the consolidated statements of cash flows as they relate to sales at Nordstrom. Cash flows arising from the use of Nordstrom VISA cards outside of our stores are treated as an investing activity within the consolidated statements of cash flows, as they represent loans made to our customers for purchases at third parties.

Securitization of Accounts Receivable

Prior to May 2007, our private label card receivables were held in a trust, which could issue third-party debt that was secured by the private label receivables. The private label program was treated as ‘on-balance sheet,’ with the receivables, net of bad debt allowance, and debt recorded on our consolidated balance sheet; the finance charge income recorded in credit card revenues; and the bad debt expense recorded in credit segment selling, general and administrative expenses.

The Nordstrom VISA credit card receivables were held in a separate trust (the VISA Trust), which could issue third-party debt that was secured by the Nordstrom VISA credit card receivables. The Nordstrom VISA credit card program was treated as ‘off-balance sheet’ prior to May 2007. We recorded the fair value of our interest in the VISA Trust on our consolidated balance sheet, gains on the sale of receivables to the VISA Trust and our share of the VISA Trust’s finance income in earnings on investment in asset-backed securities, net.

On May 1, 2007, we converted the Nordstrom private label cards and Nordstrom VISA credit card programs into one securitization program, which is accounted for as a secured borrowing (on-balance sheet). When we combined the securitization programs, our investment in asset-backed securities, which was accounted for as available-for-sale securities, was eliminated and we reacquired all of the Nordstrom VISA credit card receivables previously held off-balance sheet. Nordstrom VISA credit card receivables are now recorded at the outstanding balance, net of an allowance for doubtful accounts, on our consolidated balance sheet.

The following table summarizes certain income, expenses and cash flows received from and paid to the VISA Trust prior to the May 2007 transaction:

		3 months ended
	Period	May 1, 2007
	Principal collections reinvested in new receivables	$819
	Gains on sales of receivables	3
	Income earned on beneficial interests	21
	Cash flows (used in) provided by beneficial interests:
	Investment in asset-backed securities	(457)
	Servicing fees	2

Net credit losses were $9 in 2007.

Merchandise Inventories

Merchandise inventories are valued at the lower of cost or market, using the retail method (weighted average cost).

Land, Buildings and Equipment

Land is recorded at historical cost, while buildings and equipment are recorded at cost less accumulated depreciation. 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 is 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	Shorter of initial lease term or asset life
	Capitalized software	3–7

Leasehold improvements made at the inception of the lease are amortized over the shorter of the asset life or the initial lease term. Leasehold improvements made during the lease term are amortized over the shorter of the asset life or the remaining lease term. Lease terms include the fixed, non-cancelable term of a lease, plus any renewal periods determined to be reasonably assured.

Goodwill

Goodwill represents the excess of acquisition cost over the fair value of the related net assets acquired, and is not subject to amortization.

Impairment

When facts and circumstances indicate that the carrying values of long-lived tangible 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. Upon indication that the carrying values of long-lived assets may not be recoverable, we recognize an impairment loss. We estimate the fair value of the assets using the expected present value of future cash flows of the assets. Property, plant and

equipment assets 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.

We review our goodwill annually for impairment as of the first day of the first quarter or when circumstances indicate its carrying value may not be recoverable. We perform this evaluation at the reporting unit level, comprised of the principal business units within our Retail and Direct segments, through the application of a two-step fair value test. The first step of the test 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. If fair value does not exceed carrying value then a second step is performed to quantify the amount of the impairment. Based on the results of our tests, fair value substantially exceeds carrying value, therefore we had no goodwill impairment in 2009, 2008 or 2007.

Self Insurance

We retain a portion of the risk for certain losses related to employee health and welfare, workers’ compensation and general 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 based on an actuarially based analysis of claims experience, regulatory changes and other relevant factors.

Derivatives

Our interest rate swap agreements (collectively, the “swap”) are designated as fully effective fair value hedges. As such, we recognize our swap as either an asset or liability at fair value in our consolidated balance sheet, with an offsetting adjustment to the carrying value of our long-term debt. See Note 7: Debt and Credit Facilities for additional information related to our swap.

We periodically enter into foreign currency purchase orders denominated in Euros for apparel, accessories and shoes. We use forward contracts to hedge against fluctuations in foreign currency prices. These forward contracts do not qualify for derivative hedge accounting; therefore any changes in the fair value of financial contracts are reflected in the statement of earnings. The notional amounts of our foreign currency forward contracts at the contract rates were $1 and $3 at the end of 2009 and 2008.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature. The estimated fair value of long-term debt, including current maturities, based on quoted market prices of the same or similar issues, was $2,809 and $1,743 at the end of 2009 and 2008, compared to carrying values of $2,613 and $2,238, respectively.

The fair value of our swap was a $1 liability as of January 30, 2010. This fair value is estimated based upon open-market quotes for identical or comparable assets from reputable third-party brokers using market-based inputs, adjusted for credit risk, and as such is considered a Level 2 fair value measurement.

Recent Accounting Pronouncements

In June 2009, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2009-01, Generally Accepted Accounting Principles (ASC 105, Generally Accepted Accounting Principles), which established the FASB Accounting Standards Codification (“the Codification” or “ASC”) as the official single source of authoritative U.S. generally accepted accounting principles (“GAAP”). All existing accounting standards were superseded and all other accounting guidance not included in the Codification is now considered non-authoritative. The Codification is not intended to change GAAP, but is meant to organize and simplify authoritative GAAP literature. The Codification became effective for interim and annual periods ending after September 15, 2009.

Following the Codification, the FASB no longer issues new standards in the form of Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. Instead, it issues Accounting Standards Updates (“ASU”) which serve to update the Codification, provide background information about the guidance and the basis for conclusions on the changes to the Codification.

The impact on our consolidated financial statements is disclosure-only in nature as all references to authoritative accounting literature will be made in accordance with the Codification. In order to ease the transition to the Codification, we are providing the Codification cross-reference alongside the references to the standards issued and adopted prior to the effective date of the Codification.

In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging

Activities — an amendment of FASB Statement No. 133 (“SFAS 161”) (contained within ASC 815, Derivatives and Hedging). SFAS 161 expanded the disclosure requirements in SFAS 133 about an entity’s derivative instruments and hedging activities. This statement became effective for us as of the beginning of fiscal year 2009 and did not impact our consolidated financial position or results of operations, as its requirements are disclosure-only in nature.

ACCOUNTS RECEIVABLE

12 Months Ended

Jan. 30, 2010

Accounts Receivable [Abstract]

ACCOUNTS RECEIVABLE

NOTE 2: ACCOUNTS RECEIVABLE

The components of accounts receivable are as follows:

	January 30, 2010	January 31, 2009
Trade receivables:
Restricted	$2,136	$2,005
Unrestricted	26	14
Allowance for doubtful accounts	(190)	(138)
Trade receivables, net	1,972	1,881
Other	63	61
Accounts receivable, net	$2,035	$1,942

The following table summarizes the restricted trade receivables:

	January 30, 2010	January 31, 2009
Nordstrom VISA credit card receivables	$1,469	$1,369
Private label card receivables	667	636
Restricted trade receivables	$2,136	$2,005

The restricted trade receivables relate to substantially all of our Nordstrom private label card receivables and our Nordstrom VISA credit card receivables. Under our securitization program, the restricted trade receivables are transferred to a third-party trust on a daily basis. The restricted trade receivables secure our Series 2007-1 Notes, the Series 2007-2 Notes and our two variable funding notes. Our credit card securitization agreements set a maximum percentage of receivables that can be associated with various receivable categories, such as employee or foreign receivables. As of January 30, 2010 and January 31, 2009, these maximums were not exceeded.

The unrestricted trade receivables consist primarily of the remaining portion of our Nordstrom private label card receivables and our Nordstrom VISA credit card receivables and accrued finance charges not yet allocated to customer accounts. Other accounts receivable consist primarily of credit card receivables due from third-party financial institutions and vendor claims.

LAND, BUILDINGS AND EQUIPMENT

12 Months Ended

Jan. 30, 2010

LAND, BUILDINGS AND EQUIPMENT

LAND, BUILDINGS AND EQUIPMENT

NOTE 3: LAND, BUILDINGS AND EQUIPMENT

Land, buildings and equipment consist of the following:

	January 30, 2010	January 31, 2009
Land and land improvements	$70	$67
Buildings and building improvements	924	847
Leasehold improvements	1,735	1,631
Store fixtures and equipment	2,267	2,214
Capitalized software	382	347
Construction in progress	180	222
	5,558	5,328
Less: accumulated depreciation and amortization	(3,316)	(3,107)
Land, buildings and equipment, net	$2,242	$2,221

The total cost of buildings and equipment held under capital lease obligations was $28 at the end of both 2009 and 2008, with related accumulated amortization of $22 in 2009 and $21 in 2008. The amortization of capitalized leased buildings and equipment of $1 in both 2009 and 2008 was recorded in depreciation expense.

SELF INSURANCE

12 Months Ended

Jan. 30, 2010

SELF INSURANCE [Abstract]

SELF INSURANCE

NOTE 4: SELF INSURANCE

Our self insurance reserves are summarized as follows:

	January 30, 2010	January 31, 2009
Employee health and welfare	$20	$16
Workers’ compensation	50	53
General liability	10	11
Total	$80	$80

We are self-insured for the majority of our employee health and welfare coverage, and we do not use stop-loss coverage. Participants contribute

to the cost of their coverage through both premiums and out-of-pocket expenses and are subject to certain plan limits and deductibles.

Our workers’ compensation policies have a retention per claim of $1 or less and no policy limits. Our general liability policies, encompassing employment practices liability and commercial general liability, have a retention per claim of $1 or less and a policy limit up to $25 and

$150, respectively.

POSTRETIREMENT BENEFITS

12 Months Ended

Jan. 30, 2010

Postretirement Benefits [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 2009 and 2008 there were 35 and 33 officers and select employees eligible for SERP benefits. This plan is non-qualified and does not have a minimum funding requirement.

Benefit Obligations and Funded Status

	January 30, 2010	January 31, 2009
Change in benefit obligation:
Benefit obligation at beginning of year	$85	$95
Participant service cost	2	3
Interest cost	6	7
Benefits paid	(4)	(4)
Actuarial loss (gain)	13	(16)
Benefit obligation at end of year	$102	$85
Change in plan assets:
Fair value of plan assets at beginning of year	—	—
Employer contribution	$4	$4
Benefits paid	(4)	(4)
Fair value of plan assets at end of year	—	—
Underfunded status at end of year	$(102)	$(85)

The accumulated benefit obligation, which is the present value of benefits earned to date, assuming no salary growth, was $96 and $81 at the end of 2009 and 2008.

Amounts recognized as liabilities in the consolidated balance sheets consist of the following:

	January 30, 2010	January 31, 2009
Current liabilities	$5	$5
Noncurrent liabilities	97	80
Net amount recognized	$102	$85

Components of SERP Expense

The components of SERP expense recognized in the consolidated statements of earnings are as follows:

Fiscal year	2009	2008	2007
Participant service cost	$2	$2	$2
Interest cost	6	6	6
Amortization of net loss	–	2	3
Amortization of prior service cost	–	1	1
Total SERP expense	$8	$11	$12

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

	January 30, 2010	January 31, 2009
Accumulated loss	$(22)	$(9)
Prior service cost	(2)	(2)
Total accumulated comprehensive loss	$(24)	$(11)

In 2010, we expect $2 of costs currently in accumulated other comprehensive earnings to be recognized as components of SERP expense.

Assumptions

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

Fiscal year	2009	2008	2007
Assumptions used to determine benefit obligation:
Discount rate	5.95%	6.95%	6.35%
Rate of compensation increase	3.00%	3.00%	3.00%
Assumptions used to determine SERP expense:
Discount rate	6.95%	6.35%	6.00%
Rate of compensation increase	3.00%	3.00%	4.00%

In accordance with ASC 715, Compensation-Retirement Benefits (formerly SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Benefit Plans), during 2008, we recognized a one-time adjustment of ($3) to retained earnings in shareholders’ equity as a result of changing our benefit obligation measurement date from October 31 to our fiscal year-end.

Future Benefit Payments and Contributions

As of January 30, 2010, 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
	2010	$5
	2011	5
	2012	5
	2013	6
	2014	7
	2015-2019	38

In 2010, we expect to make contributions to the plan of $5.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

DEBT AND CREDIT FACILITIES

12 Months Ended

Jan. 30, 2010

Debt And Credit Facilities [Abstract]

DEBT AND CREDIT FACILITIES

NOTE 7: DEBT AND CREDIT FACILITIES

Debt

A summary of our long-term debt is as follows:

	January 30, 2010	January 31, 2009
Secured
Series 2007-1 Class A Notes, 4.92%, due April 2010	$326	$326
Series 2007-1 Class B Notes, 5.02%, due April 2010	24	24
Series 2007-2 Class A Notes, one-month LIBOR plus 0.06%
per year, due April 2012	454	454
Series 2007-2 Class B Notes, one-month LIBOR plus 0.18%
per year, due April 2012	46	46
Mortgage payable, 7.68%, due April 2020	60	63
Other	15	17
	925	930
Unsecured
Senior notes, 6.75%, due June 2014, net of unamortized discount	399	-
Senior notes, 6.25%, due January 2018, net of unamortized discount	647	646
Senior debentures, 6.95%, due March 2028	300	300
Senior notes, 7.00%, due January 2038, net of unamortized discount	343	343
Other	(1)	19
	1,688	1,308

Total long-term debt	2,613	2,238
Less: current portion	(356)	(24)
Total due beyond one year	$2,257	$2,214

Both the Series 2007-1 Class A & B Notes and the Series 2007-2 Class A & B Notes are secured by substantially all of the Nordstrom private label card receivables and a 90% interest in the Nordstrom VISA credit card receivables. Our mortgage payable is secured by an office building which had a net book value of $78 at the end of 2009.

During 2009, we issued $400 of senior unsecured notes at 6.75%, due June 2014. After deducting the original issue discount of $1 and other fees and expenses of $3, net proceeds from the offering were $396. We used a portion of the proceeds from the issuance to repay the $140 in outstanding issuances of commercial paper as of May 26, 2009, the date the senior notes were issued. During 2009, we also repaid $19 in unsecured debt related to the acquisition of Jeffrey.

Other secured debt as of January 30, 2010 consists primarily of capital lease obligations. Other unsecured debt as of January 30, 2010 consists primarily of an adjustment to the carrying value of our long-term debt associated with the fair value of our interest rate swap.

During 2009, we entered into interest rate swap agreements (collectively, the “swap”) with a $650 notional amount maturing in 2018. Under the swap we receive a fixed rate of 6.25% and pay a variable rate based on one month LIBOR plus a margin of 2.9% (3.1% at January 30, 2010).

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

	Fiscal year
	2010	$355
	2011	5
	2012	505
	2013	5
	2014	404
	Thereafter	1,328

Interest Expense

The components of interest expense, net are as follows:

Fiscal year	2009	2008	2007
Interest expense on long-term debt and short-term
borrowings	$148	$145	$102
Less:
Interest income	(3)	(3)	(16)
Capitalized interest	(7)	(11)	(12)
Interest expense, net	$138	$131	$74

Credit Facilities

As of January 30, 2010, we had total short-term borrowing capacity available for general corporate purposes of $950. Of the total capacity, we had $650 under our commercial paper program, which is backed by our unsecured revolving credit facility and $300 under our Variable Funding Note facility (“2007-A VFN”).

During 2009, we entered into a new unsecured revolving credit facility (the “revolver”) with a capacity of $650. This revolver replaced our previously existing $650 unsecured line of credit, which was scheduled to expire in November 2010. The revolver, which expires in August 2012, is available for working capital, capital expenditures and general corporate purposes. Under the terms of the agreement, we pay a variable rate of interest and a facility fee based on our debt rating. Consistent with our previous unsecured revolving credit facility, the new revolver requires that we maintain a leverage ratio of not greater than four times Adjusted Debt to EBITDAR. The revolver also requires that we maintain a fixed charge coverage ratio of at least two times, defined as:

	EBITDAR less gross capital expenditures
	Interest expense, net + rent expense

As of January 30, 2010 and January 31, 2009 we were in compliance with these covenants.

Under the revolver we have the option to increase the revolving commitment by up to $100, to a total of $750, provided that we obtain written consent from the lenders who choose to increase their commitment.

Our $650 commercial paper program allows us to use the proceeds to fund share repurchases as well as 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 borrowing capacity under our revolver by an amount equal to the principal amount of commercial paper. As of January 30, 2010 we had no outstanding issuances under our $650 commercial paper program and no outstanding borrowings under our revolver. As of January 31, 2009, we had $275 in outstanding issuances under our $650 commercial paper program and no outstanding borrowings under our revolver.

During 2009, we renewed our 2007-A VFN. The 2007-A VFN has a capacity of $300 and matures in January 2011. The 2007-A VFN is backed by substantially all of the Nordstrom private label card receivables and a 90% interest in the co-branded Nordstrom VISA credit card receivables. Borrowings under the 2007-A VFN incur interest based upon the cost of commercial paper issued by a third-party bank conduit plus specified fees. We pay a commitment fee for the notes based on the size of the commitment. At the end of 2009 and 2008, we had no outstanding issuances against this facility.

Our wholly owned federal savings bank, Nordstrom fsb, also maintains a variable funding facility with a short-term credit capacity of $100. This facility is backed by the remaining 10% interest in the Nordstrom VISA credit card receivables and is available, if needed, to provide liquidity support to Nordstrom fsb. At the end of 2009 and 2008, Nordstrom fsb had no outstanding borrowings under this facility. Borrowings under the facility incur interest based upon the cost of commercial paper issued by the third-party bank conduit plus specified fees.

LEASES

12 Months Ended

Jan. 30, 2010

Leases [Abstract]

LEASES

NOTE 8: LEASES

We lease the land or the land and buildings at many of our full-line stores, and we lease the buildings at many of our Rack 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. Our fixed, non-cancelable lease terms are generally 20 to 30 years for full-line stores and 10 to 15 years for 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.

Future minimum lease payments as of January 30, 2010 are as follows:

Fiscal year	Capital Leases	Operating Leases
2010	$2	$98
2011	2	101
2012	2	89
2013	2	82
2014	2	78
Thereafter	7	406
Total minimum lease payments	17	$854
Less amount representing interest	(5)
Present value of net minimum lease payments	$12

Rent expense for 2009, 2008 and 2007 was as follows:

Fiscal year	2009	2008	2007
Minimum rent:
Store locations	$76	$63	$67
Offices, warehouses and equipment	13	13	14
Percentage rent — store locations	9	9	14
Property incentives — store locations	(55)	(48)	(47)
Total rent expense	$43	$37	$48

The rent expense above does not include common area maintenance costs which were $19 in each of 2009, 2008 and 2007.

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
COMMITMENTS AND CONTINGENT LIABILITIES	Jan. 30, 2010
Commitments And Contingent Liabilities [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 9: COMMITMENTS AND CONTINGENT LIABILITIES Our estimated total purchase obligations, capital expenditure contractual commitments and inventory purchase orders were $1,221 as of January 30, 2010. In connection with the purchase of foreign merchandise, we have outstanding import letters of credit totaling $5 as of January 30, 2010. We are subject from time to time to various claims and lawsuits arising in the ordinary course of business including lawsuits alleging violations by us of state and/or federal wage and hour laws. Some of these suits purport or have been determined to be class actions and/or seek substantial damages. While we cannot predict the outcome of these matters with certainty, we do not believe any such claim, proceeding or litigation, either alone or in aggregate, will have a material impact on our financial condition, results of operations or cash flows.

SHAREHOLDERS EQUITY

12 Months Ended

Jan. 30, 2010

Stockholders' Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 10: SHAREHOLDERS’ EQUITY

Share Repurchase Program

The following is a summary of the activity related to our share repurchase programs in 2007, 2008 and 2009:

Period	Shares	Average Price per Share	Amount
Capacity at February 4, 2007			$592
August 2007 authorization			1,500
November 2007 authorization			1,000
Shares repurchased (2/4/07 to 2/2/08)	39.1	$44.17	-1,728
Capacity at February 2, 2008			$1,364

Shares repurchased (2/3/08 to /31/09)	6.9	$34.29	-238
Capacity at January 31, 2009			$1,126
Shares repurchased (2/1/09 to 1/30/10)	-	-	-
Unused capacity upon program expiration in August 2009			-1,126
Capacity at January 30, 2010

Fiscal 2007 share repurchases included $300 repurchased as part of an accelerated share repurchase program. We repurchased 5.4 shares of our common stock on May 23, 2007 at $55.17 per share and in June 2007, we received 0.4 shares at no additional cost, based on the volume weighted average price of our common stock from June 1, 2007 to June 26, 2007. This resulted in an average price per share of $51.69 for the accelerated share repurchase as a whole.

Dividends

We paid dividends of $0.64 per share in 2009 and 2008 and $0.54 per share in 2007.

STOCK COMPENSATION PLANS

12 Months Ended

Jan. 30, 2010

Stock Compensation Plans [Abstract]

STOCK COMPENSATION PLANS

NOTE 11: STOCK COMPENSATION PLANS

We currently have three stock-based compensation plans: the 2004 Equity Incentive Plan, the 2002 Nonemployee Director Stock Incentive Plan and our Employee Stock Purchase Plan. Under our 2004 Equity Incentive plan, we grant non-qualified stock options, performance share units and common shares to employees. As of January 30, 2010, we have 48.4 shares authorized, 25.4 shares issued and outstanding and 7.8 shares available for grant. The Nonemployee Director Stock Incentive 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 January 30, 2010, we had 0.9 shares authorized and 0.7 remaining shares available for issuance. In 2009, we deferred shares with a total expense of $1.

Under the Employee Stock Purchase Plan (“ESPP”), employees may make payroll deductions of up to ten percent of their base and bonus compensation. At the end of each six-month offering period, participants may 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 January 30, 2010, we had 9.4 shares authorized and 1.7 shares available for issuance under the ESPP. We issued 0.7 shares under the ESPP during 2009. At the end of 2009 and 2008, we had current liabilities of $4 and $5, respectively, for future purchases of shares under the ESPP.

The following table summarizes our stock-based compensation expense:

Fiscal year	2009	2008	2007
Stock options	$26	$24	$23
Performance share units	3	-	(1)
Employee stock purchase plan	1	2	2
Other	2	2	2
Total stock-based compensation expense before income tax benefit	32	28	26
Income tax benefit	(12)	(10)	(9)
Total stock-based compensation expense, net of income tax benefit	$20	$18	$17

The stock-based compensation expense before income tax benefit was recorded in our consolidated statements of earnings as follows:

Fiscal year	2009	2008	2007
Cost of sales and related buying and occupancy costs	$10	$10	$10
Selling, general and administrative expenses	22	18	16
Total stock-based compensation expense before income tax benefit	$32	$28	$26

The benefits of tax deductions in excess of the compensation cost recognized for stock-based awards are classified as financing cash inflows and are reflected as “Excess tax benefit from stock-based payments” in the consolidated statements of cash flows.

Stock Options

We used the following assumptions to estimate the fair value for stock options at grant date:

Fiscal year	2009	2008	2007
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.	0.7% – 3.3%	2.0% - 4.3%	4.6% - 4.7%

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.	61.0%	45.0%	35.0%

Weighted average expected dividend yield: Our forecasted dividend yield for the next ten years.	1.3%	1.3%	1.0%

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.	5.3	5.5	5.7

The weighted average fair value per option at the grant date was $7, $15 and $20 in 2009, 2008 and 2007. In 2009, 2008 and 2007, stock option awards to employees were approved by the Compensation Committee of our Board of Directors and their exercise price was set at $13.47, $38.02 and $53.63, the closing price of our common stock on February 27, 2009, February 28, 2008 and March 1, 2007 (the dates of grant). The stock option awards provide recipients with the opportunity for financial rewards when our stock price increases. The awards are determined based upon a percentage of the recipients’ base salary and the fair value of the stock options. In 2009, we awarded stock options to 1,213 employees compared to 1,230 and 1,195 employees in 2008 and 2007.

As of January 30, 2010, we have 14.5 options outstanding under the 2004 Equity Incentive Plan. Options generally vest over four years, and expire ten years after the date of grant. A summary of the stock option activity for 2009 is presented below:

Fiscal Year	2009
	Shares	Weighted- Average Exercise Price	Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, beginning of year	11.8	$27
Granted	4.9	13
Exercised	(1.5)	14
Cancelled	(0.5)	29
Expired	(0.2)	20
Outstanding, end of year	14.5	$24	6	$193
Options exercisable at end of year	7.3	$25	4	$93
Options vested or expected to vest at end of year	13.5	$24	6	$180

The total intrinsic value of options exercised during 2009, 2008 and 2007 was $23, $14 and $79. The total fair value of stock options vested during 2009 was $25 and for both 2008 and 2007 it was $24. As of January 30, 2010, the total unrecognized stock-based compensation expense related to nonvested stock options was $38, which is expected to be recognized over a weighted average period of 29 months.

Performance Share Units

We grant performance share units to executive officers as one of the ways to align compensation with shareholder interests. Performance share units vest after a three-year period only when our total shareholder return (reflecting daily stock price appreciation and compound reinvestment of dividends) is positive and outperforms companies in a defined group of competitors determined by the Compensation Committee of our Board of Directors. The percentage of units that are earned depends on our relative position at the end of the vesting period and can range from 0% to 125% of the number of units granted.

Performance share units are payable in either cash or stock as elected by the employee; therefore they are classified as a liability award. The liability is remeasured, with a corresponding adjustment to earnings, at each fiscal quarter-end during the vesting period. The performance share unit liability is remeasured using the estimated percentage of units earned multiplied by the closing market price of our common stock on the current period-end date and is pro-rated based on the amount of time passed in the vesting period. The price used to issue stock or cash for the performance share units upon vesting is the closing market price of our common stock on the vest date.

Following is a summary of performance share unit activity:

Fiscal year	2009	2008	2007
Outstanding, beginning of year	117,389	113,743	255,467
Granted	144,891	79,504	50,070
Vested but unearned	(44,827)	(57,006)	-
Vested and earned	-	-	(191,794)
Cancelled	(8,007)	(18,852)	-
Outstanding, end of year	209,446	117,389	113,743

Total fair value of performance share units earned	-	-	$12
Total amount of performance share units settled or to be settled in cash	-	-	$3

As of January 30, 2010, our other liabilities included $3 for performance share units. As of January 31, 2009, we had no liabilities related to performance share units. As of January 30, 2010, the remaining unrecognized stock-based compensation expense for unvested performance share units was $4, which is expected to be recognized over a weighted average period of 22 months.

INCOME TAXES

12 Months Ended

Jan. 30, 2010

Income Taxes [Abstract]

INCOME TAXES

NOTE 12: INCOME TAXES

Income tax expense consists of the following:

Fiscal year	2009	2008	2007
Current income taxes:
Federal	$275	$244	$435
State and local	38	39	65
Total current income tax expense	313	283	500
Deferred income taxes:
Current	(28)	(29)	(24)
Non-current	(30)	(7)	(18)
Total deferred income tax benefit	(58)	(36)	(42)
Total income tax expense	$255	$247	$458

A reconciliation of the statutory Federal income tax rate to the effective tax rate on earnings before income taxes is as follows:

Fiscal year	2009	2008	2007
Statutory rate	35.0%	35.0%	35.0%
State and local income taxes, net of federal
income taxes	3.5	3.4	3.4
Deferred tax adjustment	(1.8)	(3.2)	-
Permanent differences	(0.6)	2.0	-
Other, net	0.5	0.9	0.6
Effective tax rate	36.6%	38.1%	39.0%

In 2009 and 2008, the IRS completed its routine examination of our federal filings for the 2007 and 2002 through 2006 years, respectively.

As a result of adjustments identified in the IRS examinations and revisions of estimates, we increased our deferred tax assets, which resulted in a reduction in our effective tax rate in 2009 and 2008.

The major components of deferred tax assets and liabilities are as follows:

	January 30, 2010	January 31, 2009
Compensation and benefits accruals	$123	$99
Accrued expenses	67	63
Merchandise inventories	24	26
Land, buildings and equipment basis and
depreciation differences	13	7
Gift cards and gift certificates	18	17
Loyalty reward certificates	12	11
Allowance for doubtful accounts	74	54
Federal benefit of state taxes	11	10
Other	11	2
Total deferred tax assets	353	289
Total deferred tax liabilities	–	-
Net deferred tax assets	$353	$289

A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2009, 2008 and 2007 is as follows:

Fiscal Year	2009	2008	2007
Unrecognized tax benefit at beginning of year	$28	$27	$21
Gross increase to tax positions in prior periods	18	2	5
Gross decrease to tax positions in prior periods	(3)	(1)	(1)
Gross increase to tax positions in current period	3	4	3
Lapse of statute	–	(1)	(1)
Settlements	(3)	(3)	-
Unrecognized tax benefit at end of year	$43	$28	$27

At the end of 2009, 2008 and 2007, $25, $10 and $9 of the ending gross unrecognized tax benefit balance relates to deferred items which,

if recognized, would not impact the effective tax rate.

During both 2009 and 2008, our income tax expense included $2 of tax-related interest and penalties. During 2007, our income tax expense included $3 of tax-related interest and penalties. At the end of 2009, 2008 and 2007, our liability for interest and penalties was $7, $6 and $4.

We file income tax returns in federal and various state and local jurisdictions. Prior to 2008, we filed returns in France and other foreign jurisdictions. With few exceptions, we are no longer subject to federal, state and local, or non-U.S. income tax examinations for years before 2001. The federal tax returns for 2008 and 2009 are under concurrent year processing (accelerated audits), which are expected to be completed in 2010 and 2011. We also currently have an open audit in France for the years 2001 through 2004, related to our Façonnable business which we sold in 2007. Unrecognized tax benefits related to federal, state and foreign tax positions may decrease by $3 by January 29, 2011, subject to the completion of examinations and the expiration of various statutes of limitations.

EARNINGS PER SHARE

12 Months Ended

Jan. 30, 2010

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 13: EARNINGS PER SHARE

Earnings per basic share is computed using the weighted average number of common shares outstanding during the year. Earnings per diluted share uses the weighted average number of common shares outstanding during the year plus dilutive common stock equivalents, primarily stock options and performance share units.

The computation of earnings per share is as follows:

Fiscal year	2009	2008	2007
Net earnings	$441	$401	$715

Basic shares	216.8	216.6	244.8
Dilutive effect of stock options and performance
share units	2.9	2.6	4.0
Diluted shares	219.7	219.2	248.8

Earnings per basic share	$2.03	$1.85	$2.92
Earnings per diluted share	$2.01	$1.83	$2.88

Options and other equity instruments totaling 7.2 shares in 2009, 4.9 shares in 2008 and 2.7 shares in 2007 were excluded from earnings per diluted share because their impact was anti-dilutive.

SEGMENT REPORTING

12 Months Ended

Jan. 30, 2010

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 14: SEGMENT REPORTING

As of January 30, 2010, we have identified four reportable segments: Retail Stores, Direct, Credit and Other. Our Retail Stores segment includes our Nordstrom full-line stores and our Nordstrom Rack off-price stores, which meet the aggregation criteria set forth in ASC 280, Segment Reporting. Through our Direct segment, we operate our Nordstrom branded online store. With our multi-channel initiative, we are increasingly integrating our Nordstrom full-line stores and online store. Our goal is to create a seamless, consistent merchandise offering and service experience for our customers regardless of how they choose to shop.

Through our Credit segment, we offer our customers a variety of payment products and services, including a Nordstrom private label card, two Nordstrom VISA credit cards and a debit card for Nordstrom purchases. Our card products also include a loyalty program that provides benefits to our cardholders based on their level of spending.

The Other segment includes our product development group, which coordinates the design and production of private label merchandise sold in our retail stores, and our distribution network. This segment also includes our corporate center operations. During the time that we owned it, this segment also included the operations of our Façonnable business.

The following table summarizes net sales by merchandise category:

Fiscal year	2009	2008	2007
Women’s apparel	$2,845	$2,812	$3,063
Shoes	1,787	1,721	1,784
Men’s apparel	1,262	1,362	1,571
Women’s accessories	970	963	941
Cosmetics	895	921	950
Children’s apparel	283	269	285
Other	216	224	234
Total	$8,258	$8,272	$8,828

The following table presents our sales by merchandise category as a percentage of net sales:

Fiscal year	2009	2008	2007
Women’s apparel	34%	34%	35%
Shoes	22%	21%	20%
Men’s apparel	15%	16%	18%
Women’s accessories	12%	12%	11%
Cosmetics	11%	11%	11%
Children’s apparel	3%	3%	3%
Other	3%	3%	2%
Total	100%	100%	100%

In general, we use the same measurements to compute earnings before income taxes for reportable segments as we do for the consolidated company. However, redemptions of our Nordstrom Notes^® are included in net sales for our Retail Stores segment. The sales amount in our Other segment includes an entry to eliminate these transactions from our consolidated net sales. There is no impact to consolidated earnings before income taxes for this adjustment. In addition, our sales return reserve and other corporate adjustments are recorded in the Other segment. Other than described above, the accounting policies of the operating segments are the same as those described in the summary of significant accounting policies in Note 1.

The following tables set forth information for our reportable segments:

	Retail
Fiscal year 2009	Stores	Direct	Credit	Other	Total
Net sales¹	$7,564	$799	—	$(105)	$8,258
Net sales (decrease) increase	(1.4%)	14.5%	N/A	N/A	(0.2%)
Credit card revenue	—	—	$370	(1)	369
Earnings (loss) before interest and income taxes	935	256	(41)	(316)	834
Interest expense, net²	—	—	(41)	(97)	(138)
Earnings (loss) before income taxes	935	256	(82)	(413)	696
Earnings (loss) before income taxes as a % of net sales	12.4%	32.0%	N/A	N/A	8.4%
Capital expenditures	339	2	7	12	360
Depreciation and amortization	274	7	2	30	313
Goodwill	38	15	—	—	53
Assets³	2,807	122	2,070	1,580	6,579

	Retail
Fiscal year 2008	Stores	Direct	Credit	Other	Total
Net sales¹	$7,674	$698	—	$(100)	$8,272
Net sales (decrease) increase	(5.9%)	8.4%	N/A	N/A	(6.3%)
Credit card revenue	—	—	$302	(1)	301
Earnings (loss) before interest and income taxes	884	187	(22)	(270)	779
Interest expense, net²	—	—	(50)	(81)	(131)
Earnings (loss) before income taxes	884	187	(72)	(351)	648
Earnings (loss) before income taxes as a % of net sales	11.5%	26.8%	N/A	N/A	7.8%
Capital expenditures	529	15	2	17	563
Depreciation and amortization	259	8	1	34	302
Goodwill	38	15	—	—	53
Assets³	2,740	123	1,963	835	5,661

	Retail
Fiscal year 2007	Stores	Direct	Credit	Other	Total
Net sales¹	$8,159	$644	—	$25	$8,828
Net sales increase	3.1%	17.9%	N/A	N/A	3.1%
Credit card revenue	—	—	$253	(1)	252
Earnings (loss) before interest and income taxes	1,256	165	26	(200)	1,247
Interest expense, net²	—	—	(64)	(10)	(74)
Earnings (loss) before income taxes	1,256	165	(38)	(210)	1,173
Earnings (loss) before income taxes as a % of net sales	15.4%	25.6%	N/A	N/A	13.3%
Capital expenditures	431	35	3	32	501
Depreciation and amortization	228	3	1	37	269
Goodwill	38	15	—	—	53
Assets³	2,555	133	1,783	1,129	5,600

¹Net sales in Other include foreign sales of $62 in 2007.

²Interest income of $1, $2 and $14 for 2009, 2008 and 2007 is recorded in our Other segment as an offset to interest expense, net.

³Assets in Other include unallocated assets in corporate headquarters, consisting primarily of cash, land, buildings and equipment, and deferred tax assets.

SELECTED QUARTERLY DATA (UNAUDITED)

12 Months Ended

Jan. 30, 2010

Selected Quarterly Data [Abstract]

SELECTED QUARTERLY DATA (UNAUDITED)

NOTE 15: SELECTED QUARTERLY DATA (UNAUDITED)

Fiscal year 2009	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Net sales	$1,706	$2,145	$1,868	$2,539	$8,258
Same-store sales
percentage change	(13.2%)	(9.8%)	(1.2%)	6.9%	(4.2%)
Credit card revenues	86	87	95	101	369
Gross profit¹	599	727	658	946	2,930
Selling, general and administrative expenses:
Retail stores, direct and other segments	447	531	500	631	2,109
Credit segment	92	77	81	106	356
Earnings before income taxes	115	170	134	277	696
Net earnings	81	105	83	172	441
Net earnings as a percentage
of total revenues	4.5%	4.7%	4.2%	6.5%	5.1%
Earnings per basic share	$0.38	$0.49	$0.38	$0.79	$2.03
Earnings per diluted share	$0.37	$0.48	$0.38	$0.77	$2.01

Fiscal year 2008	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Total
Net sales	$1,879	$2,287	$1,805	$2,301	$8,272
Same-store sales
percentage change	(6.5%)	(6.0%)	(11.1%)	(12.5%)	(9.0%)
Credit card revenues	70	72	74	85	301
Gross profit¹	700	799	620	736	2,855
Selling, general and administrative expenses:
Retail stores, direct and other segments	493	545	490	575	2,103
Credit segment	50	57	77	90	274
Earnings before income taxes	196	235	94	123	648
Net earnings	119	143	71	68	401
Net earnings as a percentage
of total revenues	6.1%	6.1%	3.8%	2.8%	4.7%
Earnings per basic share	$0.54	$0.66	$0.33	$0.32	$1.85
Earnings per diluted share	$0.54	$0.65	$0.33	$0.31	$1.83

¹Gross profit is calculated as net sales less cost of sales and related buying and occupancy costs.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jan. 30, 2010

Schedule of Valuation and Qualifying Accounts Disclosure [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

(Dollars in millions)

Column A	Column B	Column C	Column D	Column E
		Additions
`Description`	Balance at beginning of period	Charged to costs and expenses	Deductions	Balance at end of period
Deducted from related consolidated balance sheet account

Allowance for doubtful accounts:
Year ended:
January 30, 2010	$138	$251	$199 (B)	$190
January 31, 2009	73	173	108 (B)	138
February 2, 2008	17	86 (A)	30 (B)	73

Reserves

Allowance for sales return, net:
Year ended:
January 30, 2010	$70	$1,030	$1,024 (C)	$76
January 31, 2009	56	1,051	1,037 (C)	70
February 2, 2008	55	1,023	1,022 (C)	56

(A) These expenses do not include write-offs of $21 related to the one-time transition of our VISA portfolio to on-balance sheet, which are included in credit selling, general and administrative expenses.

(B) Deductions consist of write-offs of uncollectible accounts, net of recoveries.

(C) Deductions consist of actual returns offset by the value of the merchandise returned and the sales commission reversed.

401(k) AND PROFIT SHARING	12 Months Ended
401(k) AND PROFIT SHARING	Jan. 30, 2010
Profit Sharing And 401 K Abstract
401(k) AND PROFIT SHARING	NOTE 5: 401(k) AND PROFIT SHARING We provide a 401(k) and profit sharing plan for our employees. Our Board of Directors establishes our profit sharing contribution each year. The 401(k) component is funded by voluntary employee contributions. In February 2009, the plan was amended to replace our fixed company matching contribution with a discretionary contribution in an amount determined by our Board of Directors. Our expense related to the profit sharing component and matching contributions to the 401(k) component totaled $74, $39 and $50 in 2009, 2008 and 2007.

SALE OF FACONNABLE	12 Months Ended
SALE OF FACONNABLE	Jan. 30, 2010
Sale Of Faconnable [Abstract]
SALE OF FACONNABLE	NOTE 16: SALE OF FAÇONNABLE During the third quarter of 2007, we completed the sale of our Façonnable business in exchange for cash of $216, net of transaction costs. As part of this transaction, goodwill of $28, acquired tradename of $84, and foreign currency translation of $16 were removed from our consolidated balance sheet and we recorded a gain of $34. Upon the closing of this transaction, we entered into a Transition Services Agreement, whereby we provided back office functions related to the Façonnable U.S. wholesale business. This agreement ended during 2009.